THE DCFPI OFFICES ARE CLOSED TODAY DUE TO A POWER OUTAGE, AND STAFF DO NOT HAVE ACCESS TO WORK EMAIL OR PHONES. BUT THE DISTRICT DIME LIVES ON!
Last Wednesday’s DC Council vote on the DC budget was a victory for advocacy and Democracy. Almost from the minute that Mayor Gray released his budget on April 1, the Council heard loudly and clearly from constituents concerned about deep proposed cuts to services for the homeless and other vulnerable populations. The Council responded, making restoration of the safety net its top priority. The Council even sought additional resources to do so, and it supported a progressive increase in DC’s income tax, even though it differed from Mayor Gray’s income tax proposal.
The DC Council acknowledged the priorities expressed by DC residents, who have indicated that protecting critical services that have made DC a welcome place to live and work is more important than keeping taxes low. The Council’s action was the product of an aggressive and sustained lobbying effort on the part of service providers and District residents.
Let’s look more closely at what the Council did:
Restored cuts, entirely in the safety net: The Council identified $24 million to restore a number of the cuts initially proposed by Mayor Gray. Virtually all of these restorations came in human services, which were slated to suffer the brunt of cuts from Mayor Gray’s proposal: homeless services; TANF for families with children; Interim Disability Assistance for residents unable to work who are waiting for federal benefits to be approved; and victims’ services, particularly for victims of domestic violence.
Allocated future revenue to restore more cuts, many in the safety net: The Council voted to use an expected increase in revenues, from the city’s economic recovery, to further restore cuts to low-income programs. All eyes are on the lookout for the June revenue forecast by the Office of the CFO, which is expected to come in above previous forecasts. The Council voted to save half of any new revenues that may come from increased revenue forecast, but also to restore funding to a number of services. This list includes police, housing, and libraries, with the largest restorations to low-income programs. These restorations will go a long way towards promoting One City and keeping the District moving forward.
Supported a balanced approach of spending cuts and progressive revenue increases: The DC Council achieved these restorations by recognizing the need for a balanced approach towards crafting the District’s budget. The Council identified new resources by altering Mayor Gray’s proposal to move $47 million in expenses from the capital budget to the operating budget; instead, the Council voted to leave $22 million in the capital budget — for now — which freed up funds to restore services.
The Council also voted to eliminate DC’s tax exemption for interest on out-of-state bonds. This change makes policy sense, since no state offers tax incentives to invest in another state’s infrastructure. And it is a progressive change, since most households with these investments have incomes above $200,000. The DC Fiscal Policy Institute has long supported eliminating this exemption.
The budget is not a done deal, however. The second vote on the Budget Support Act is on June 14, which means budget advocacy is not over! It’s important to let DC Councilmembers know they did the right thing to restore money to our critical programs to move our city forward and keep revenue measures in place.
