D.C. Finances Called 'Precarious' By Chairman of New Study Panel: Panel Formed to Help Fight
The chairman of a new commission farmed to address the DistrictÛªs financial crisis warned Ûª yesterday of a ÛÏsignificant deterioration'1 of city services unless drastic steps are taken to bring the cityÛªs budget deficit under control.</br></br>Describing the cityÛªs financial situation as "precarious," American University President Richard Berendzen said the city will face a budget deficit in excess of $100-million next year if current trends persist.</br></br>Without action to curb spending or raise revenue, he said, the city faces the prospect of reductions in services as basic as trash collection and health care. ÛÏThe city needs help,Û Berendzen said. ÛÏFor the past several years, the city has been on thin ice in its budget.Û</br></br>Berendzen spoke at a news conference at which Mayor Marion Barry announced the formation of a Commission on Budget and Financial Priorities to advise the city government on developing a five-year plan, between 1991 and 1995, to balance the cityÛªs budget, which now totals more than $3 billion.</br></br>ing costs of human service and law enforcement programs. Last year, the city incurred a $14 million deficit.