An Affiliate of the

Center on Budget and Policy

Priorities
820 First Street NE, Suite 460
Washington, DC 20002
(202) 408-1080 Fax (202) 408-
8173
www.dcfpi.org
May 16, 2011
DC’s Local Budget Has Shrunk in the Recession
The Gross Budget Has Grown, Primarily Due To Rising
Health Expenses
When only expenditures of local funds are considered, the proposed DC budget for
fiscal year 2012 is smaller
than in 2008, the year
Figure 1: DC Budget, Gross Expenditures, FY
before the recession took
hold of DC’s economy. In 2008-FY 2012*
fact, the proposed general
fund budget for fiscal year
2012 is more than $400
million lower than general
fund expenditures in 2008,
after adjusting for inflation.

When both local and

federal funds are
considered, DC
government expenditures
have increased since the
start of the recession. This
increase is due mainly to
increasing health care
costs, as many residents
lost income and became
eligible for Medicaid or the Alliance and as a result of rising costs of health care
delivery. When expenses other than health are considered, the proposed 2012
budget is smaller in inflation-adjusted
* Figures interms
billions,than 2008
adjusted expenditures
for inflation (see
to equal 2012 figure 1).
dollars.
Reflects gross expenditures for functions other than enterprise funds. 2012
figures —
The District’s “gross expenditures” do not include transfers
including to the convention
both federal center,funds,
and local highwayrose
trust fund, or
from $8.48 billion in fiscal year 2008 to $8.79 billion in the proposed budget forfigures.
TIF/PILOT account because these are not included in 2008 budget
2012. This represents an increase of more than $300 million, adjusting for inflation.i

Gross spending for the agencies that administer DC’s main health care programs
rose from $1.94 billion to $2.37 billion, an increase of more than $400 million,
adjusting for inflation.ii

Not including gross health expenditures, spending on all other government services
fell from $6.54 billion in 2008 to $6.41 billion in the proposed 2012 budget, a drop
of 2 percent, adjusting for inflation.
i
These figures reflect gross expenditures before counting intra district funds for the total DC
budget other than “enterprise funds.” The 2012 figure does not reflect transfers to the convention
center, to the TIF/Pilot fund, or to the Highway Trust Fund, because such figures were not included
in 2008 budget documents. The 2008 figure is adjusted for inflation to equal 2012 dollars.
ii
The FY 2008 figure reflects spending for the Department of Health, and the FY 2012 figure
reflects proposed budgets for the Department of Health Care Finance plus the Department of
Health. DOH administered Medicaid and the Alliance program in 2008, but the agency was split
into DOH and DHCF in 2009.