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[quote=Anonymous]Yikes

[quote]‘Enormous Implications For Everybody’

As it becomes clear just how far office values are falling, a better picture is also forming of just how deep the ramifications could be for all Washingtonians.

A significant share of the District's budget is on the line. About 15% of the city’s revenue comes from commercial properties, according to the Urban-Brookings Tax Policy Center. Sinking revenue means less money for everything from police officers to schools to the Metro and pothole repair.

“Everyone stands to lose,” D.C. Policy Center Executive Director Yesim Sayin said. “Tax revenue pays for government support and services that all D.C. residents need or use. So that is a very, very disconcerting, very nerve-wracking picture for me.”[/quote]

[quote]In its most recent revenue estimate, the OCFO last month projected commercial revenues would drop every year for the next four years. While the District received nearly $1.7B in tax revenues from occupied commercial buildings in 2022, the OFCO predicted that figure would be $136M lower in 2027. The report says continued office market decline would pose an added risk to the outlook.

“If you look at the CFO’s forecast, you can see that we’re feeling the pain,” Loh said. “This isn’t a subject that’s up for debate.”

But the costs to the city don’t stop at commercial tax revenues. Loh said it will be important to watch the “second-order effects” from the office disruption, like a decline in fares for the transit system and falling downtown sales tax revenue, factors that could additionally hinder D.C.’s finances.[/quote][/quote]

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