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D.C. Budget Forecast Gets Brighter

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CFO Natwar Gandhi says the city's booming commercial real estate market provided the unexpected bounce.

"The District now is among the most sought-after commercial real property market in the country if not in the world," Gandhi says.

Gandhi says the city's budget shortfall now stands at around $320 million -- still big but not the $500 million or even $600 million deficit some had forecast.

How the new numbers affect the city's plan to close its shortfall is unclear. But since taking office Gray has repeatedly said some sort of tax increase may be needed.

He was asked if that's still the case.

"Everything is still on the table; I mean, $105 million is wonderful news, but remember that is a fraction of what we need in order to address this budget gap," Gray says.

Gray says funding for education will be his top priority as his team crafts the budget, which is due on April 1.

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