District Council Passes Budget Without Income Tax Increase

The District Council today approved the Fiscal Year 2012 budget by a voice vote. The Council will make their final vote on the budget June 14. Unlike the , the Council budget does not include income tax increases.

To make up for the gap in funding from tax increases that Gray's budget would have provided, the Council approved new taxes on out-of-state bonds.

Among the differences from Gray's budget are restored funding for "safety net services," including shelters for families and homeless services, as well as fully funding the WMATA subsidy.

In a statement Wednesday afternoon, Councilmember Jack Evans said “I am pleased to have been able to support our social safety net without increasing our income tax rate.

“With the largest budget in the history of the District before us, we should not have a problem funding these important programs," added Evans.

Mayor Vincent Gray released a statement "commending" the Council on their efforts.

“If the Council ultimately decides to swap the bond tax increase for the income tax increase, it is not a change that would prevent me from supporting the budget.”

The final budget will go into effect October 1.