Washington, D.C., revenue estimate boosted

The latest revenue estimate from the District of Columbia's chief financial officer shows a positive $169.7 million bump in actual inflows compared to the estimates that were prepared in September.

"The largest share of the higher revenue is from one-time litigation proceeds and year-end accounting adjustments related to prior-year cost recoveries," Glen Lee wrote in a letter addressed to the mayor and district council chair.

"Higher collection rates for real property taxes and higher-than-expected withholding and corporation tax payments largely account for the remainder," the letter said.

The letter was sent Tuesday, and cautions the increase is only temporary.

"Approximately 46% percent of the higher revenue is non-recurring and will not affect long-term projections. An additional 33% of the increased revenue is due to higher-than-expected property tax receipts related to Tax Year 2024 and prior-year assessment."

The city also received good news from the latest U.S. Census Bureau estimates, showing a population increase of 14,926, up 2.2% percent over 2023 levels.

Most of the growth came via international migration, an active target of the incoming administration.

Lee shows concern for the election's effect on the city's workforce as President-elect Trump relocated federal agencies out of Washington in his first term.

During his first administration Trump moved the Bureau of Land Management to Grand Junction Colorado, and the Agriculture Department's, Economic Research Service and the National Institute of Food and Agriculture to Kansas City, Missouri.

Federal civilian employment accounts for nearly 25% of the jobs and 28% of the wages in Washington's economy.

The city is still not fully recovered from the pandemic as many government agencies employ a liberal and inconsistent patchwork of remote work policies ? a sticking point with Mayor Muriel Bowser.

"The biggest thing that the federal government can do is have a centralized return to the office plan," said Bowser during an appearance before the House Appropriations Subcommittee in December.

"If you work for the IRS, it's this. If you work for Energy (Department), it's that. If you work for Treasury, it's something else. It's problematic, not just for the federal employees, but also a lot of the private sector."

During the same hearing, Lee added, "Federal workers are not the majority of workers in the district, but they are significant number, and when they don't come into work it means that these office buildings are vacant.

"Many of them are having the leases being turned back, and that means real property values have gone down."

Uncertainty about Washington's downtown workforce also spills onto the tracks of the Washington Metropolitan Area Transit Authority's rail lines and bus system.

WMATA's financial health relies on contributions from the district, Virginia, Maryland and the federal government along with fare box revenue, which took a major hit during the pandemic.

The authority boasted a 20% growth rate in ridership for the end of fiscal year 2024 over 2023's budget numbers. Operating revenue results show $28 million favorable over the budget.

WMATA issued $625 million of second lien, dedicated revenue bonds in July 2024.