New projections show the District’s tax revenue dropping by more than $400 million in upcoming years, and the report points the finger at the continued absence of federal and other office workers from downtown, according to a dire warning from D.C.’s chief financial officer.
Chief Financial Officer Glen Lee warns of a predicted $464 million shortfall in commercial real estate revenue for 2024 to 2026. The reason is that the commercial property values of buildings that are mostly or partly empty are expected to plunge as federal and other workers continue hybrid, work-from-home schedules.
This could be the first time the D.C. government has to eye drastic budget cuts since the mid-1990s. As a result, a plan to provide free Metrobus service to District residents could be on the chopping block.
Wow- DC CFO releases dismal revenue estimates due to “deteriorating real estate market” revised DOWNWARD for next 3 years by almost $500 million. $81 million FY 2024, $183 million FY 2025, & $200 million in FY 2026. @nbcwashington
— Mark Segraves (@SegravesNBC4) February 28, 2023
The director of the District’s Golden Triangle Business Improvement District, home to numerous commercial office buildings, described the situation.
