D.C.

D.C. budget: Gray proposes new spending on affordable housing, libraries, emergency vehicles

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WASHINGTON (AP) - District of Columbia Mayor Vincent Gray is proposing a $10.1 billion budget that includes new spending on affordable housing, libraries and police and fire department vehicles.

The district ended the last fiscal year with a more than $400 million surplus. While most went into the city's reserve fund, Gray is proposing new spending because the city's income, corporate and sales taxes are expected to keep growing.

The budget includes no new taxes or fees. It also includes no tax reductions beyond eliminating an unpopular tax on municipal bonds from other states.

Major new initiatives include a $103 million renovation of the city's central library and $100 million in new spending on affordable housing.

Gray also is proposing $8 million for new fire department vehicles and $7.2 million for police vehicles.

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