Photo by dsade

With a mere two weeks left in the District’s 2011 fiscal year, D.C. CFO Natwar Gandhi told Mayor Vince Gray that he stumbled across an additional $89 million in cash today. He wrote:

“This letter certifies, as of September 2011, revenue estimates for the FY 2011 – FY 2015 District of Columbia Budget and Financial Plan. Fiscal Year 2011 is on track to finish ahead of the June estimate by $89 million. There is no significant change to the revenue estimate for FY 2012 because stronger than expected real property tax revenue offsets estimated shortfalls in sales and income tax revenue. For FY 2013 and beyond, when growth in the real property tax revenue is expected to slow, revenue is forecasted to be less than estimated in June. Recent economic developments, especially those relating to the Euro-zone debt crisis and the U.S. long-term fiscal stability, have increased uncertainty. We will continue to pay close attention to the national economy and its impact on the District’s finances.”

It’s not yet clear what the additional funds will be spent on, but it’s likely that the majority will go towards replenishing the city’s savings account, an option advised by Gandhi. There’s also a chance that $13 million will be used to delay the implementation of a new tax on out-of-state municipal bonds.

The tax, which was proposed as a means to close a $322 million budget gap, would be retroactive to the start of 2011, a prospect that angered many bondholders. City officials have been trying to adjust the date it kicks in to the start of 2012, but they would need to find $13 million to do it.

Now they have.

September 2011 Revenue Estimates Certification