Once in office, Pratt's
grassroots, reform posture met resistance. She made good on her promises to clean house, requesting the resignations of all Barry appointees the day after her election; however, as she began to slash the city employment payroll, her
political support began to weaken. She angered labor leaders who claimed she had promised not to fire union employees, and began mandating unpaid furloughs and wage freezes citywide. She took great pains to remove all of Barry's political cronies, even though these layoffs hurt her administration as well. Kelly was at odds with several D.C. Council members with her proposal to temporarily move the city government to the building at
One Judiciary Square, ten blocks away from Washington's incumbent city hall, the
District Building, while the latter underwent renovations. When Kelly moved her office and administration departments to One Judiciary Square in 1992, the Council refused to leave the District Building, although they had approved the proposal that spring. In February 1993, after accusing Kelly of deliberately neglecting maintenance in order to force them out, they voted to take full and exclusive control of the District Building. According to the
Washington City Paper, Kelly "was never able to get control of a city government still loyal to Barry, and she often mistrusted the advice she got from aides."
Statehood Kelly's drive to achieve D.C. statehood in order to improve the District's financial and political standing created fierce opposition from
Republican members of Congress, who unleashed a barrage of attacks on the District as a "national disgrace" of "one-party rule...massive dependency, hellish crime...and unrelenting scandal." The attacks brought unwelcome negative press to the District, and the ultimate failure in the
House of Representatives of DC statehood legislation weakened her political capital. She lost standing with the D.C. Council when she supported Council member
Linda Cropp to serve as acting chair after the suicide of
John A. Wilson in May 1993; instead, the Council chose
John L. Ray.
Redskins stadium Kelly was blamed for the
Washington Redskins moving out of the city. Redskins owner
Jack Kent Cooke attempted to pressure the city to build a new stadium to replace aging
RFK Stadium, with the threat of moving the team to nearby
Alexandria, Virginia. After negotiations stalled and Cooke was publicly courted by Virginia's governor, Kelly denounced Cooke vocally, saying that "I will not allow our good community to be steamrolled by a billionaire bully." She announced that she had offered as much as she was willing to offer the Redskins and would go no further. Although an agreement was ultimately reached, in 1993 Cooke withdrew from negotiations and moved the team to what is now
Northwest Stadium (originally Jack Kent Cooke Stadium; later FedEx Field) in
Landover, Maryland.
City finances and re-election campaign Kelly began her term having extremely good relations with Congress, including successfully lobbying them to increase federal aid for D.C. by $100 million and to authorize the sale of $300 million in deficit reduction bonds. As fiscal year 1994 began for DC government (in October 1993), DC faced a $500 million budget deficit, with financial experts predicting that the city's debt would reach $1 billion by 1999; the US Congress commissioned a federal audit of the city finances by the
GAO. In the weeks following, Kelly came under fire for other inappropriate uses of city funds, including the addition of bulletproof glass and a marble fireplace in her office and a series of 1993 televised town hall meetings that she had promised would be paid for with private financing. The GAO's report on DC finances was published on June 22, 1994, and estimated that the city would run out of money in two years and "may be forced to borrow from the U.S. Treasury by fiscal year 1995." The report specifically singled out Kelly's administration for gross mismanagement of city funds and agencies, and accused her of concealing the city's perilous fiscal condition from Congress for two years, "using gimmicks and violating the federal
anti-deficiency act, which prohibits over-spending of a federally approved budget."
The Washington Post, which had endorsed Kelly in 1990, instead in 1994 endorsed Councilman John Ray. In its endorsement, the
Post reflected that Kelly "has not been a coalition builder, which a mayor – and perhaps particularly the mayor of a city under enormous financial and social stress – needs to be...the most aggressive members of the city council, those most sympathetic to her cost-cutting message, are not with her. Nor are key elements in the business community. She has lost them and with them, we believe, her chance to enact the measures she has stood for." In the Democratic primary that September, Kelly finished a distant third, with only about 13% of the vote. Barry won the primary and would go on to win the general election in November against an unusually strong Republican opponent,
Carol Schwartz. ==Post-mayoral activities==