The District on Friday upgraded its revenue forecast for the 2013 fiscal year by $190 million, even as the threat of automatic, sweeping federal budget cuts looms next month.
"This forecast builds on solid revenue gains achieved in fiscal year 2012," wrote Natwar Gandhi, the District's chief financial officer, in a letter to city officials.
Gandhi also revised his projections upward for the 2014, 2015 and 2016 budget cycles. In total, Gandhi's forecast improved by $744.8 million.
But the longtime CFO, who is due to retire later this year, warned that he figured in possible federal budget cuts when preparing his updated outlook.
"A high degree of uncertainty still clouds the future course of both the national and local economies," Gandhi wrote. "The biggest sources of uncertainty are the measures that the federal government may take to reduce federal budgets in a period of austerity that may last for some time."
The District recorded a $417 million surplus in the 2012 fiscal year, all of which went into the city's savings account.
But Mayor Vincent Gray pledged last month that he would be willing to spend any surprise revenues for the 2013 fiscal year, meaning city leaders will soon begin debate on how to spend the extra cash.