Proposed Budget - Fiscal Year 2027
On April 10, District of Columbia Mayor Muriel Bowser released a $21.2 billion total gross funds budget for fiscal 2027, a decrease of $810.0 million, or 3.7 percent, from the fiscal 2026 approved budget. General fund expenditures total $13.3 billion in fiscal 2027, a decrease of 2.6 percent from approved fiscal 2026 and the Local Funds portion of the budget totals $11.8 billion in fiscal 2027, a decrease of 2.1 percent from approved fiscal 2026. Estimated general fund revenues for fiscal 2027 are projected at $12.6 billion in fiscal 2027 before any policy proposals, an increase of 2.5 percent over the revised fiscal 2026 estimate, while the Local Funds portion is projected at $11.1 billion, an increase of 2.6 percent compared to the revised fiscal 2026 estimate. In the Local Funds component of the budget, the operating margin after reservations is $500,000 for fiscal 2027. Total reserves in the proposed fiscal 2027 budget are $2.3 billion.
Proposed Budget Highlights
The mayor’s proposed fiscal 2027 budget prioritizes enhanced funding for education and public safety, preserving core city services, protecting health care for DC residents, and growing the District’s economy. The proposal addresses a $1.1 billion budget gap through a combination of current-year savings, fiscal 2027 program reductions and savings, revised revenue estimates, surplus and adjustments, and tax and fee changes.
Education
- Increases per-student funding by 2.55 percent, bringing the foundation level to $15,455 per student.
- Adds funds to expand access to Advanced Technical Centers, which offer students in grades 9-11 the ability to participate in high-quality career and technical education programs while remaining enrolled in their home high schools.
- Continues investment in high-impact tutoring programming, a research-backed initiative that provides small-group, intensive tutoring.
Public Safety
- Provides funds through the capital budget over six years to keep firetrucks and ambulances modern and functional.
- Adds funding to improve youth rehabilitation facilities, including new housing units to expand capacity.
- Allocates funds to improve and enhance emergency communications technology by supporting a full replacement of police department and fire/EMS radios and mobile data computers and communications systems upgrades.
Housing and Economic Development
- Includes funds to attract businesses and diversify the District’s economy through the Vitality Fund and Tech Ecosystem Fund along with a continued investment in small business grants.
- Reduces the cost of running a business by reducing corporate filing fees, certificate of occupancy fees, and business dissolution fees.
- Provides funds for transportation improvements around the RFK stadium campus for pedestrians, cyclists, and drivers.
- Includes capital and operating funds to acquire a third bridge housing site and support ongoing operations.
- Adds funds to the Homelessness Prevention Program and makes investments to replace a shelter and make small capital improvements at various shelter spaces.
- Includes a new round of moderate-income housing tax abatements to encourage more development of missing middle housing in DC.
Health and Human Services
- Maintains health care coverage for residents enrolled in the Medicaid, Basic Health Plan, and Alliance programs.
- Provides additional funds for increased Medicaid costs driven by growth in special populations, provider rates, and overall enrollment increases.
- Adds funds to provide dental and vision benefits for residents enrolled in the Basic Health Plan or the Alliance beginning in fiscal 2027.
- Includes funds to convert Supplemental Nutrition Assistance Program (SNAP) recipients to chip cards to better protect against stolen benefits.
- Allocates funds for new SNAP administrative costs to cover the portion of the costs that used to be covered by the federal government.
- Protects programs and services at the Department of Aging and Community Living to support seniors.
Key Reductions to Address Budget Gap
- Removes funding set-asides for future collective bargaining agreements and non-union pay increases.
- Scales back universal paid leave and rapid rehousing programs.
- Implements cost controls for substance use disorder program.
- Maintains funding for essential and core government services including parks and recreation, public libraries, public works, transportation, and motor vehicles.