D.C. Freezes Hiring - NBC4 Washington

D.C. Freezes Hiring



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    D.C. Mayor Adrian Fenty is halting city hiring and other spending to deal with a projected $175 million budget crunch.

    Fenty issued the order Monday, and it takes effect Wednesday. The order freezes salaries and most new hiring, as well as most travel and training.

    It also requires agencies to cut 10 percent in spending for things like supplies, equipment and consultants. The order is projected to save $126 million -- $100 million from the budget cuts and $26 million from the hiring freeze.

    The city has spent much of its savings, News4's Tom Sherwood reported.

    District Leaders to Impose Hiring, Spending Freezes

    [DC] District Leaders to Impose Hiring, Spending Freezes
    The probable next mayor of D.C. Vincent Gray asked Mayor Adrian Fenty to impose a hiring and spending freeze this week, which could be just the start of serious budget cuts.
    (Published Wednesday, Oct. 13, 2010)

    "The budget problem is quite serious," said Councilman Jack Evans. "And the difference this year than other times is we have no reserves left."

    Democratic nominee for mayor Vincent Gray said he asked Fenty for the freeze right away.

    "This will give us an immediate effort, an immediate action to be able to start to get a handle on this," Gray said. "It will stop spending, which could be runaway, frankly, as we move into this fiscal year."

    The order comes after the city's chief financial officer said last week that the city is facing a projected $175 million deficit for the fiscal year that began Friday. The deficit is the result of a projected $75 million in overspending and a projected $100 million shortfall in revenue from taxes.

    Gray said the freeze may just be the first step in a tough budget-cutting session.

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