The 35-day partial federal government shutdown cost D.C.’s coffers $47.4 million worth of revenue, putting city officials in a tighter spot just as they prepare to debate the budget for the upcoming year.

The calculation on the shutdown’s impact came in the quarterly revenue estimate that D.C. Chief Financial Officer Jeffrey DeWitt prepares for Mayor Muriel Bowser and members of the D.C. Council. He told city officials that the revenue loss from the shutdown was slightly offset by $6 million worth of higher deed taxes and interest, leaving the city with $41.4 million less than estimated for the current fiscal year on the $7.8 billion local budget.

In a letter to city officials, DeWitt said the shutdown “was a reminder that despite the diversification of the District’s economy over the last several years, the federal government is still an important driver of employment and economic activity in the District.”

The new revenue estimate may prove to be a shock for D.C. lawmakers, who in recent years have grown accustomed to seeing more money flow into city coffers than expected. From June to September of last year, for example, the city took in $58.3 million more than initially estimated.

The revenue estimate also comes as Bowser prepares to submit her 2020 budget to the Council later this month, kicking off a two-month debate over spending priorities and programs. Shortly after the shutdown ended in late January, Bowser warned the Council that it may have to temper its expectations over what it hopes to fund in the upcoming budget.

“We should also be planning on how we’re spending for a real recession, because there’s a lot of prediction that we could see some slowdowns across the nation,” she said in a late-January press conference. “And that just means all of us thinking of new programs and making sure that in recessionary times we can support them, not have to cut them back and not have to ask the taxpayers for more money.”

Advocacy groups and Council members have been lobbying Bowser on how best to allocate spending in the upcoming budget. Some liberal-leaning groups want her to increase property taxes on businesses and high-income residents to pay for affordable housing, homeless services, schools and health programs.

At three recent budget forums, city officials polled attendees on whether they would support either targeted or across-the-board tax increases to pay for more affordable housing to be built in D.C.

In his letter, DeWitt said that expert predictions “put the odds of a recession at about one in four in 2019 and about one in three in 2020.” He also outlined other possible negative signs to the city’s economy, including slowing job and population growth.

But DeWitt said that despite some clouds on the horizon, D.C.’s economy remains on steady footing. While the shutdown cost the city $47.4 million, he estimated that it will take in $16 million more than expected for fiscal year 2020, which starts in October. He also said that Amazon’s arrival is expected to help the local economy.

“Federal cutbacks are still a drag on the local and regional economies, but this is largely offset by the anticipated arrival of Amazon and its plan to add at least 25,000 jobs to the regional economy over the next ten years,” he wrote.

In a statement on the revenue estimate, Bowser called the shutdown “historic and unnecessary” but said it served as “a reminder of why we continue the work of diversifying our economy and making our city an attractive place to do business.”

“Being strong stewards of taxpayer resources means both making the investments that our residents and neighborhoods need to thrive, while also being intentional about building a fiscally resilient city,” she said.

This story originally appeared at WAMU.