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When the D.C. Council voted to approve the city’s 2012 budget, they were banking on a revenue increase which had yet to be announced by the city’s Office of the Chief Financial Officer. At a breakfast meeting with Councilmembers this morning, D.C. CFO Natwar Gandhi let the cat out of the bag: the District will be able to add an extra $77.2 million to next year’s budget, while an additional $107.1 million will be applied to the current fiscal year.

What will that extra money buy the District? The Council was hoping for an uptick of $135 million, which would have allowed them to reinstate a number of cuts. But with a little more than half that amount, it appears as if city employee shifts to free up cash in the city’s capital budget and $1.8 million in funding for “Green Teams” in four of the city’s wards will happen. It’s a safe bet that the Council will choose to apply the remainder of the extra revenue to pay additional costs associated with the city’s Medicaid providers.

What won’t be funded? More money for school nurses, affordable housing production and police officers — the latter likely to once again invoke the ire of Councilmember Phil Mendelson, who voted against the budget in protest of the decision to funnel the revenue uptick to other sources before cops.

As for what the extra FY2011 money will be used for, Mayor Gray told Councilmembers that his first order of business will be to take care of “spending pressures.” Gandhi, though, urged caution, stating that the “future is very uncertain” and that he was “cautiously pessimistic” about future revenues.