D.C. budget proposal slaps fees on residents, commuters

WASHINGTON - In an effort to close an $800 million budget gap, D.C. Mayor Adrian Fenty has proposed closing the gap by increasing or creating fees on everything from parking meters to street lights.

The additional fees could generate up to $50 million a year.

Fenty's budget, which must be approved by the D.C. Council, Congress and the White House before becoming law, would create a new fee for using street lights.

The fee would be added to homeowners' monthly electric bill and cost homeowners about $50 a year. Businesses would have to pay about $200 a year.

Your phone bill could go up as well. Fenty's budget calls for an increase in the 911 fee on all phone bills. The monthly 911 fee embedded in customers' phone bills would go from 76 cents to $1.01 for land lines and from 76 cents to $1.15 for cell phones, under the mayor's proposal.

Fenty also sees more speed and red light cameras as a way to generate much needed revenue.

Commuters would have to shoulder some of the costs as well. Under Fenty's plan, parking meters would go up and free parking on Saturday would be eliminated.

As for taxes, Fenty wants to freeze the homestead and standard tax deductions, as well as the city's personal tax exemption, which will generate about $7.3 million, according to budget estimates.

While technically not a tax increase, standard deductions normally adjust for inflation, with a freeze, and anyone who makes more money the following year or whose home increases in value would pay more taxes.

(Copyright 2009 by WTOP. All Rights Reserved.)