WASHINGTON (Map, News) - The D.C. Council on Tuesday adopted a 2009 budget that sets aside more than $50 million for 170 community organizations as it cuts the commercial property tax rate, doubles the cigarette tax and plots a course toward universal health care.

Facing a $35 million deficit and a slowing economy, the council “was able to focus resources to meet important community priorities” in recrafting Mayor Adrian Fenty’s $5.77 billion local funds budget proposal, said Council Chairman Vincent Gray, who guided the budget to approval in an unheard-of 90 minutes.

“In an austere budget, there’s still a lot to be happy about,” at-large Councilman David Catania said.

The number of noncompetitive grants to community groups is eye catching: more than 170 totaling about $56 million, including $10 million for Ford’s Theatre. Organizations will be required to provide detailed spending plans before receiving money.

“It is very hard for me to swallow this large amount of money going toward earmarks when I see small agencies get cuts or be expected to absorb step increases ... as we give out the largess to groups, however worthy, outside of this government,” at-large Councilwoman Carol Schwartz said.

Ed Lazere, executive director of the D.C. Fiscal Policy Institute, said the council used every last dollar it found on earmarks, rather than filling gaps in programs and services. Lazere spent his morning trying to track down extra money for rent supplements and housing.

The approved budget represents less than a 1 percent increase over the current year. It includes $504 million for a 4,200-officer Metropolitan Police Department, $773 million for the D.C. Public Schools, and another $700 million for school modernization and maintenance.

In a statement, Fenty said he was pleased the council passed a balanced budget “that overwhelmingly leaves intact the budget we proposed in March,” including funding for education, affordable housing and small-business tax relief.

The spending plan, which takes effect Oct. 1, delivers $20.8 million in commercial property tax relief through a reduction in the rate on the first $3 million of assessed value, from $1.85 to $1.65 per $100 of appraised value. Fenty had proposed $15 million in relief, to Gray’s dismay.

The plan doubles the cost of business application fees from $35 to $70 and doubles the cigarette tax from $1 to $2 per pack.

The council also:

- Moved to permanently close Klingle Road.

- Extended the term of a driver’s license to eight years.

- Established the Healthy DC universal health insurance program.

mneibauer@dcexaminer.com