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Mayor Gray Orders Immediate Spending Freeze to Ensure Balanced Budget for Fiscal Year 2011

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(WASHINGTON, D.C.) — Mayor Vincent C. Gray has issued an executive order freezing spending on non-personal services in an effort to offset unanticipated expenses in some agencies and ensure the District ends the current fiscal year with a balanced budget.

Specifically, Mayor’s Order 2011-102, effective May 18, 2011, requires agencies to get additional approval from the Executive Office of the Mayor to spend local funds for supplies, materials, contractual services, subsidies and equipment. Salary and other personnel costs are not affected.

Independent government entities like the Council of the District of Columbia, the Office of the Chief Financial Officer and the D.C. Public Library are not covered by the order.

“Given the point at which we find ourselves during this fiscal year and the looming spending pressures we are facing, now is the time to implement additional cost-saving measures to square this government with the realities of our financial situation,” Mayor Gray said. “We are bound by law to be fiscally responsible, and it is my obligation to take action to achieve this result.”

Since taking office, Mayor Gray has reduced spending significantly, with measures such as District-wide hiring freezes and the implementation of four furlough days for employees. Nonetheless, due to issues with the District’s finances that predate his administration, the Mayor has found it necessary to institute a spending freeze while continuing to offer the full array of public services to District residents. The Mayor noted that agency directors will ensure that the freeze does not impair critical and timely services set to get underway, such as summer programming.