WaPo‘s Mike DeBonis reports today that Chief Financial Officer Natwar M. Gandhi notified Mayor Vincent Gray and D.C. Council members this morning that several city agencies are projected to go over budget this year by tens of millions of dollars.

One of the biggest costs putting the city in the red: the Department of Youth Rehabilitation Services’ continued insistence on placing youths in out-of-state residential treatment facilities. The juvenile justice agency is projected to spend $8.4 million more than originally allocated for this outsourcing. In a recent cover story we outlined reasons why this is an outdated, extremely costly, and ineffective use of public funds.

The DC Behavioral Health Association raised similar concerns about DYRS’ emphasis on residential treatment in a 2010 report.