Photo by PoPville flickr user JoshBassettPhotography
From a press release:
Mayor Vincent C. Gray welcomed new estimates from the Office of the Chief Financial Officer (OCFO) that show the District government taking in $139.5 million more in Fiscal Year 2012 than expected.
Significant growth in employment among District residents and robust economic growth were the biggest drivers of the revenue boost. The estimates show that individual income tax withholding increased by $51.2 million, and the sales fueled by higher earnings yielded an additional $22.8 million in sales taxes.
However, Mayor Gray noted, OCFO’s estimates for Fiscal Year 2013 revenues remain flat due to the threat of federal sequestration – currently scheduled to take effect in January – and its anticipated effect on the local economy. “The District’s fiscal future looks far bleaker if Congress and the President do not act quickly to prevent what everyone agrees is a completely unacceptable and destructive means of reducing the federal budget,” he said. “It also underscores the urgency of diversifying the District’s economy and reducing dependence on the federal government for our economic success.”
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