The District government faces up to $300 million in unanticipated expenditures over the next two years, presenting an early test for Mayor-elect Adrian M. Fenty and his pledge to improve service delivery without raising taxes.
But last week Fenty received a memo from D.C. Chief Financial Officer Natwar M. Gandhi stating that the District is already $87 million over budget for fiscal 2007, which began Oct. 1. Projections for fiscal 2008 show the city is facing up to $215 million in higher-than-anticipated costs.
The reasons, according to the memo, are largely twofold: More people than expected are enrolled in city health-care programs, and two health-care agencies -- the Department of Mental Health and the Mental Retardation and Developmental Disabilities Administration -- routinely fail to submit the proper paperwork to receive federal reimbursement for Medicaid and Medicare services.
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