WASHINGTON (Map, News) - D.C.’s anticipated budget deficit for fiscal 2009 has soared to more than $130 million, Chief Financial Officer Natwar Gandhi will tell city leaders today, placing further strain on already-tense budget deliberations.

In his latest revenue forecast, Gandhi is projecting $13 million more revenue for fiscal 2008, which ends Sept. 30, and $35 million less for fiscal 2009. All told, Gandhi expects a $93 million surplus for this year and a $130.8 million deficit for next year.

The numbers, obtained by The Examiner, come days after the D.C. Council committees wrapped up work on the $5.7 billion 2009 local budget. The full council is to consider the program on May 13.

A high-ranking council source said Tuesday the new projections leave the legislative body in a difficult spot, as Mayor Adrian Fenty already used backup revenue funds and fee increases to balance his proposed spending plan. Only tough cuts are left, the source said.

“There’s no margin for error,” the source said. “This will certainly change the tone of the discussion.”

Council Chairman Vincent Gray’s small-business commercial tax relief legislation, which Fenty has sought to dramatically scale back, has a $95.7 million fiscal impact. Gray faces new challenges in restoring that tax break with the new estimates on the table.

But Phil Mendelson, D-at large, said he didn’t trust the revenue projections.

“It’s convenient that the council is working on a revised property tax relief that’s going to cost about $30 million, which is about what the new projected shortfall is,” he said. “I think somebody’s got their thumb on the scale.”

Gandhi’s last projections, released in February, anticipated a $95.8 million budget gap in fiscal 2009, as the national economic slowdown finally catches up to the District. Property transfer fees, income tax revenues and sales tax collections are expected to crash, while property tax collections remain strong.

D.C. has reaped massive surpluses over several years, thanks to booming real estate and income tax revenues.

“Right this moment we’re balanced,” said Ward 1 Councilman Jim Graham, chair of the public works and environment committee. “If the CFO has a new revenue projection that puts us out of balance, then we’re going to have to figure out what to do.”

Staff writer Bill Myers contributed to this report.

mneibauer@dcexaminer.com