Progress at Risk: How the Recession Has Set Back Important Public Investments in DC

Yesterday, we wrote about public investments the District should be proud of — investments over the past decade in health care, education, and libraries and rec centers that have paid off in a healthier and growing city.

Almost all of those efforts started before the recession, though, and much of the progress slowed or even came to a halt as the city’s tax collections fell precipitously in the downturn.  And despite signs that DC’s economy and finances have started to rebound, there is still a large gap between what the city will collect in taxes next year and what we needs to maintain existing services.  In other words, the risks of further backsliding are significant.

Here are some of the investments that are at risk.

Libraries and Parks:   The District has a number of new state-of-the-art libraries and recreation centers, but funding to operate and maintain these beautiful facilities has been cut.  DC libraries have $9 million less than three years ago to buy books and run programs for children and adults ‘   cut of one-fourth.  Since 2008, funding for recreation programs has fallen more than 40 percent, and the parks department is not sure how it will find money to open pools and run camps this summer.

Keeping the City Clean:   DC’s public works agency has cut more than 100 personnel who enforce sanitation laws, pick up our trash, and keep public spaces clean.   Total funding for public works has been cut by a quarter over the past three years.

Building and Renovating Housing for DC Residents:   In 2007 and 2008, the District made commitments to build or rehab more 2,700 units of housing for low- and moderate-income families through our housing trust fund.  Since then, the Trust Fund has made commitments to build just 19 housing units. That’s right, 19.

Keeping Families Stable in the Downturn:  Unemployment reached a 30-year high last year, yet programs to help families facing financial crises have been cut.  The District is spending less this year on emergency rent and utility assistance programs than before the recession, even though these programs help keep families from being homeless and thus save the city money in the long-run.

Unfortunately, even deeper cuts like these are on the table for the budget that Mayor Gray will submit to the Council in April.  While DC’s revenue collections are starting to rebound, the city still will collect far less next year than before the recession, and the projected budget gap is $322 million.

Deep cuts in services are not inevitable, though.  The District can protect the services that help DC residents and that have contributed to a more vibrant city, by taking a balanced approach that includes revenue increases and targeted budget cuts.

Tune in tomorrow to learn more about that.