Posts about Budget

Ultimately, Gray's mayoralty will leave a lasting effect on the budget and city services, and residents, whether they voted for and endorsed Adrian Fenty (as I did) or Gray, should care a great deal about what the capable people in the administration, unconnected to the campaign or any campaign finance, are doing.

We've also yet to find out whether the mayor himself was part of any illegal activity or knew about it. Based on what we know thus far, it appears that Gray made some very poor choices about whom to trust early on. Since then, he's replaced most of these poor hires with better staff, who are better at sharing the administration's positive accomplishments, such as:

One City One Hire

The administration's program to help unemployed residents find jobs has now suc­cee­ded in getting employers to hire 3,000 unemployed District residents in the past year.

There are numerous obstacles to getting people into jobs, but employers' lack of trust in DC's jobless has been among the most intractable. One City One Hire officials work to restore this trust by personally vetting resumes of unemployed DC residents and asking employers to consider a couple of handpicked resumes for each opening.

Some feel that this is what the Department of Employment Services (DOES) was supposed to be doing all along. This is technically true. It's also true that DC Public Schools are supposed to be properly educating our children. We shouldn't withhold credit where credit is due when DCPS or DOES fulfills its mission.

Sector-specific economic development

Under previous administrations, the Deputy Mayor for Planning and Economic Development was concerned almost exclusively with real estate deals. Although targeted real estate deals are important, only Mayor Gray has really invested in developing other sectors that are strategically important to the city.

The Mayor's broader focus has produced new positions critical to the city's economy, even if the officers filling those positions often operate behind the scenes. For example, newly hired DMPED officials regularly meet with leaders of the technology, government contractor, and health care communities to align identify ways DC can support these strategically important sectors.

A newly reconstituted Workforce Investment Council, whose executive director Alison Gerber was recruited from the Aspen Institute, has made it clear that workforce development dollars must be targeted to high demand sectors. As a result, for the first time, workforce development in DC is no longer scattershot, with the Gray Administration targeting key sectors.

DOES has cut off funding to several training providers whose training wasn't aligned with these sectors. A new Workforce Intermediary will ensure that the needs of hospitality and construction employers are addressed by training providers.

Continued capital investments without raiding city's reserves

DC residents were aware of the many capital improvements made under former Mayor Fenty, but fewer were aware that Fenty drew down the "rainy day" fund of $700 million to pay for some of these improvements.

Mayor Gray has continued the pace of capital improvements, with renovations of Takoma Education Campus and Woodson, Cardozo and Anacostia High Schools. While maintaining the pace of the previous Administration, Mayor Gray has managed to replenish our reserve fund, bringing it up to $1.1 billion.

Sustainability plan

If you haven't seen the objectives Mayor Gray set for 2032 in his Sustainable DC plan, then you should take a look. These objectives should provide the basis for numerous DC government initiatives over the next two decades covering issues as diverse as our food supply and obesity, along with transportation, tree canopy, and waste.

For some these strategic plans and objectives may seem mere feel-good talk, but these objectives matter. Historically, DC government has looked to such comprehensive plans and small area plans in designing legislation and framing countless policy debates in subsequent years.

Cameras and parking

Study after study proves that traffic cameras save lives. Mayor Gray significantly expanded traffic cameras in this year's budget, a politically courageous move that will continue DC's trend of lower and lower traffic fatalities.

While the DC Council created visionary pilots in performance parking, the previous administration never made it much of a priority to adjust meter rates to manage curbside space effectively. The Gray administration has expanded performance parking and made it clear this is a priority.

Continued momentum in education reform, streetcars and bike lanes

Some predicted that education reform, the streetcar and bike lanes would stop under Mayor Gray. Let's be clear: that hasn't happened. Mayor Gray has increased the investment in streetcars, pledging $100 million in capital funds starting last year.

The pace of bike lane construction slowed a bit at first, but DDOT is now putting in bike lanes on many streets throughout the city, and is on track to build the L Street track this summer and M street soon after. He even vociferously defended Capital Bikeshare over Twitter to skeptical New York reporters.

Finally, Mayor Gray has continued the process of education reform, despite the fears of many DC residents. Teachers are still being evaluated and sometimes fired based on performance, not on seniority.

The Gray administration's education reforms have included important initiatives which haven't received the same attention and publicity accorded the teacher firings. The administration has already made strides toward improving our special education system and opened multiple Early Stages centers aimed at early identification of kids with special needs. These investments have reduced by 20% the number of children bused, at DC's expense, to non-public special education, saving significant money.

I'm not nominating Mayor Gray for sainthood, but residents need to reexamine the fairly widespread belief that the administration is not getting anything done. While Adrian Fenty was very good at getting press attention for his actions, this administration is acting more quietly.

We should condemn any illegal behavior from the campaign, but we must also give the mayor and his staff credit for the ways the administration is making DC greater for the long term.

To: Members of the Council of the District of Columbia
From: Councilmember Mary M. Cheh
Date: May 14, 2012
Subject: The District's Fiscal Year 2013 Budget

Tomorrow, we will take our first vote on the Fiscal Year 2013 budget. To encourage transparency and open debate, this memorandum provides a summary of all budget recommendations from my office. The recommendations are divided into Committee and Non-Committee proposals.

Committee Recommendations

1. Prohibit the sale of gasoline in the District beginning January 1, 2014. In the interim, the District shall raise its excise tax on gasoline from $0.235 to $8.75, which we are told represents roughly 50% of the jobbers' current markup on motor fuel in the District. Revenues from the tax shall be converted into capital dollars for the construction of a hydrogen automobile factory. Beginning January 1, 2014, hydrogen may only be purchased from stations operated by small and disadvantaged businesses grossing less than $777.9 million annually (or whatever Capitol Petroleum's gross revenue may be at that time).

2. Convert $12,000,000 from the District Department of the Environment's operating budget into capital dollars to fund the construction of a new shelter. The new shelter, known as the "Cheh Rat Sanctuary," will be open to families of rodents who have been forcibly relocated. At the shelter, they will be able to live together in peace and without fear of being exterminated. Based upon discussions at the "Rat Summit of 2012," the Virginia Attorney General offered to house the sanctuary on his Fairfax estate. We are awaiting further communications with the Virginia Attorney General's office and are preparing an MOU to facilitate the interstate transfer of funds.

3. Related to number 2 above, create a special purpose fund for fees collected as part of a new written examination to be administered to states' Attorneys General of other jurisdictions. The examination will measure knowledge of constitutional law and basic reading skills, and a passing score will be required for each Attorney General who wishes to opine on District matters. Sample questions may include: "Which of the following sentences does not include the word 'rat'?" Proceeds from the fund shall be used to establish public grief counseling units for rats and other commensal rodents who have lost family through pest control. The fund shall be managed by the District Department of the Environment.

4. Transfer $250,000 from the Department of Motor Vehicles' Adjudication Services to a newly created Global Positioning System (GPS) person-tracking program. Through the program, select individuals will be asked to wear GPS-powered, "District-loyalty" ankle bracelets used to implement the following requirements:

Council Members shall be barred from outside vacationing. Elected officials—particularly those with second jobs—should not waste valuable time and potential tax dollars vacationing in other jurisdictions. Moreover, a member may become beholden to a Hampton Inn in Maryland, whose free breakfast policy creates an obvious conflict of interest and may run afoul of the new ethics rules if the member chooses to have a second free waffle. The change should also boost tourism as vacationing members can highlight many of the District's top destinations and activities. Sample activities include touring archeological sites in Spring Valley, taking advantage of natural exfoliation in the Anacostia River, enjoying a mud bath at Blue Plains, or watching a filibuster in the U.S. Senate or at an ANC meeting.

Establish a residency requirement for the Washington Post's editorial board. This requirement is expected to generate tax revenues from new residents and additional tax revenues from whichever entity is now hired to perform public relations for former Mayor Adrian Fenty.

5. Transfer $25,000 in capital dollars to the District Department of Motor Vehicles. The funds will be used to establish a new, state-of-the-art, customer queue management system. All residents seeking DMV services will participate in mandatory BINGO games. When a patron achieves BINGO, s/he will become next in line for DMV services. The measure is expected to improve customer enjoyment at DMV and to decrease the average wait time by three hours and seventeen minutes.

Non-Committee Recommendations

1. Transfer 95% of all Council Committee budgets and FTEs to the Committee of the Whole. To maximize efficiencies and streamline the government, the following additional functions will now fall under the Committee of the Whole: Public Services, Consumer Affairs, Government Operations, the Environment, Public Works, Transportation, Planning, Economic Development, Housing, Workforce Development, Tax and Revenue, Health, Human Services, the Judiciary, Small Business, and Aging. The following areas shall be divided up among the other Council Committees at future date to be determined: the Office of Cable Television, the Office of Risk Management, the Boxing Commission, the Bicycle Advisory Council, and the Department of Parks and Recreation. In order to allow members to spend more time focusing on their revised committee responsibilities, the Committee of the Whole will now include only the following members: the Council Chairman.

3. Add a new requirement for the Council as part of the Budget Support Act. Recently, the Council passed legislation requiring all students to apply to at least one college in order "to raise expectations for students, and create a culture of academic excellence and success in District schools." Add a new BSA provision requiring all Council Members to apply to at least one job in order to raise expectations for members, and create a culture of professional excellence and success in District government. The measure is expected to be budget neutral.

4. Beginning October 1, 2012, Council Members who use profane language shall be required to deposit five cents into a special purpose non-lapsing fund, designated as the Saying Words Egregious to Aural Recipients by Juvenile Actors Reacting, or SWEAR JAR. Funds shall be distributed to DCPS schools to offset the $17 million shortfall for the IMPACT teacher evaluation system caused by the loss of private grant funds. After the first $17 million is provided to DCPS schools, remaining funds shall used to purchase ear muffs for use at Council breakfasts.

5. Transfer $3,000 from the Department of General Services maintenance fund to be used for marketing. As the District government continues to "right size," vacant District-owned property represents untapped income. Therefore, I am recommend allocating $3,000 to advertise available office space in the Wilson Building. With minimal outreach, we have already successfully leased a vacant suite of offices on the first floor of the building to the Federal Bureau of Investigation's Washington Field Office. With just a bit more outreach, I believe we could easily fill other vacant spaces as well. For example, I understand that the Federal Bureau of Prisons is exploring some additional space in the basement and expects to conclude negotiations soon.

6. Establish the Resident Relocation Fund, a new special purpose fund. Some residents simply are not well suited to live in a major city. They fear sidewalks, bicycles, traffic, noise, parking, and university dormitories. To address their growing list of concerns, we shall establish the Resident Relocation Fund, which will subsidize the costs of these folks moving outside of the District and include a complimentary municipal bond, untaxed, from the jurisdiction of the ex-resident's choice.

7. Add a further amendment to the BSA. With the passage of B19-0474, the Lottery Amendment Repeal Amendment Act of 2012, the District gave up millions of dollars in potential revenue. Much of our concern related to the iGaming contract stemmed from the lack of transparency in the bidding process. To remedy that problem, add a BSA provision that would once again put an internet-based gaming system out for contract, but with the added mandate that the payment for that contract be made only with money orders. In doing so, the District will enhance its revenue stream while ensuring a clear and easily traceable contract process.

Should you have any questions about the below measures, please take a hard look in the mirror. The ideas here are brilliant and need no further explication. Please do not contact my staff or me with your questions or concerns.

How does HPAP work? HPAP is the District's homegrown downpayment assistance program which provides up to $44,000 for first-time, low- and moderate-income home buyers. HPAP acts as a second mortgage. Recipients begin paying their loan down starting in year five of owning their home and make monthly payments over a 40-year period instead of the traditional 30-year period, making the payments more affordable. As HPAP recipients repay their loans, the city recoups the cost, which currently generates $2 million in repayment every year.

Although beloved by politicians and residents alike, HPAP has dwindled since 2008. The program in FY13 is slated to be only a third of its size only five years ago. As a result, the number of people who can use the program has fallen. And this year, the decrease will impact about 100 families. According the DHCD, last year the program served 246 families, next year it will serve around 150.

The city has used federal funding to maintain the HPAP program, relying heavily in recent years on stimulus dollars, but this year, federal funds are not available to fill the gap. The federal Department of Housing and Urban Development's grant programs that have also funded HPAP also dwindled; its HOME program shrank 37% in 2012, and its Community Development Block Grants (CDBG) dwindled by 12%.

Also, the 2010 Census made DC is eligible for less CDBG funding, since the city has fewer high poverty areas than in previous years. All of these combined losses have left few funds available for housing programs like HPAP.

HPAP budgets have decreased substantially since FY 2008.

In April, more than a dozen HPAP recipients attended the DHCD budget oversight hearing to advocate for the program that has helped them become District homeowners. Attendees highlighted the diversity of residents impacted by the program.

Elizabeth Palmberg purchased her home with an HPAP loan, only to be diagnosed with lymphoma soon after. She has been able to afford her mortgage despite her health struggles; "the HPAP program helped me to be able to still buy my condo, and now every month as I write my mortgage check, I am grateful to be building equity which will give me stability against shocks that life might send my way in the future."

Bernice Joseph was able to purchase her home in Logan Circle in 2002 and has no plans of leaving the neighborhood. She loves the convenience, and believes that HPAP has had a huge impact on her family and her educational opportunities. "Without this program I do not know where I would be. But I do know I would not be in my neighborhood, the one that is so dear to my heart, the one where I have put down roots, and the one where I have lived for the past 21 years. I have raised all four of my kids in DC. Without the stable price of my mortgage, I would not be able to afford to go back to school. I definitely could not afford my classes if I had to pay market-rate rent."

The value of homeownership of course extends beyond the individual. Homeowners pay property tax back to the city and provide an anchor for communities. Homeownership is an indicator of success for families and kids across the country and one of the most important wealth-building tools in our country, especially in communities of color and low-income communities. A 2003 study found that housing wealth accounted for 77% of all low income household's wealth.

HPAP has supported District residents and communities by encouraging homeownership, neighborhood stability, and equity building. This year, the program will become even weaker after years of reductions. The DC government should encourage residents to become homeowners, to invest in their communities and themselves by supporting the HPAP program with local funds.

Sarah Scruggs contributed to this blogpost, which can also be found at www.housingforallblog.org.

Since 2008, family homelessness has increased by 75 percent. According to the city's Department of Human Services, 3,187 DC residents in families with children have no home right now. That is up from 2,688 in 2011. This is the fourth year of significant increases.

Demand is up, but our supply of housing and available resources is going down. Mayor Gray's proposed budget has a $7 million gap in funding for homeless services, due to federal funds that will not be available in fiscal year 2013. These funds are needed simply to maintain the status quo from this past year and won't allow the family shelters to remain open year-round. It is in our best interest—both fiscally and as a city—to fund homeless services.

As a city, we can choose to tackle this difficult issue or we can wish that the problem will go away and these families will just find a place to stay. In the end, it's sort of counterintuitive, but "the hope the problem goes away" approach is the more expensive option.

Here's why. The District does not have a legal obligation to house families in warm weather, but when it is hypothermia season—when the temperature dips below 32 degrees—the city is required under law to house families. Last winter, hundreds of families came to the city in need of shelter. DHS expanded capacity at its DC General shelter, bringing total capacity up to 273 families. Yet, that was not enough. The District ended up placing 200 more families in motel rooms on New York Avenue NE, at a cost of roughly $3,000 a month per family.

You read right—$3,000 a month. That's why the dozens of homeless families at the Wilson Building yesterday asked the DC Council to put money toward housing. It is the city's less expensive and better option to move these kids and parents toward stability.

As we look to next year, the problem is likely to be worse. Ten to 12 families request shelter each week, but DC will not shelter any newly homeless families until hypothermia season. It is likely that once the shelter opens to new families, the need will again overwhelm existing capacity. DCFPI estimates that if the need for shelter matches that of fiscal year 2012, DHS will need to house up to 296 families per night in motels, at a total cost of nearly $7.5 million.

DC needs a plan to move families out of the shelter and motels and into stable living arrangements. This will free up space to meet emergency need throughout the year and prevent our reliance on expensive motel rooms that do not meet the needs of families. We can improve the lives of these families and the city's pocketbook by making a strategic investment in homeless services. Mayor Gray and the DC Council should fully fund homeless services and move these families and our city forward.

Cross-posted at The District's Dime.

Neighborhoods like Columbia Heights and H Street have seen makeovers so dramatic their own mothers might not recognize them. It's no secret that these changes have had a mixed impact on longtime and low-income residents.

Over the last decade, the has city lost 20,000 units of low-cost housing. In fact, Brookings' analysis of the population data shows that affluent residents increased as the population of low income residents fell. To put it another way, higher-income people moved into lower-income people's apartments.

Preserving affordable housing is one of the mandates of the Housing Production Trust Fund. The Trust Fund is meant to preserve low- and moderate-income families' ability to stay in their homes and communities as neighborhoods change. The Trust Fund has done this successfully all over the city.

Tucked within some of DC's most rapidly changing neighborhoods are buildings that have long-term affordability locked in because of their funding from the Housing Production Trust Fund. In Mount Pleasant there is the St. Dennis, in Logan Circle there is the Norwood and in Petworth there is Three Tree Flats. The current residents and future low-income tenants of these buildings get the benefits of the new grocery stores, upgraded libraries, and all the other amenities that are making DC a place where so many people want to live.

The other goal of the Trust Fund is to produce new high-quality affordable housing. SOME, a 40-year-old nonprofit that provides a wide range of services to DC's homeless population, has been doing this with great success, most recently in Wards 7 and 8. They have purchased, gutted, and rehabbed vacant, decrepit buildings around the wards, and are turning them into 250 high-quality homes for currently homeless individuals.

These refurbished buildings include a thoughtful mixture of housing needs (including emergency shelter beds in buildings with single-room occupancy and efficiency units) as well as social needs such as a rooftop deck, with elevator access, for a new senior building.

Unfortunately, these types of projects will no longer be possible if the cuts to the Trust Fund continue. By not taking it seriously enough, the city risks losing its only locally-funded tool for remaking derelict property into vibrant community assets, and for helping long time residents stay in place.

Any revenue bump will not last long as drivers adjust to actually following laws. Plus, it's a red herring to cast doubt on the program just because it's coming up in a budget cycle. DC needs to spend money to get cameras. Therefore, the program has to be part of the budget. MPD has been trying to buy the cameras for over a year, and budget and procurement have long been the obstacle.

Below are the candidates' answers:

Sekou Biddle: Putting aside the fact that these cameras will certainly change Tom [Sherwood]'s driving habits, I'm not a fan of this idea because, frankly, it looks like we're taking what was initially designed to be a public safety tool and turning it into a revenue generator. We see in the budget the claim that we're not having tax and fee increases, but we're looking to generate more revenue through speed cameras, and then using those cameras to do both speed and red lights. This really is disconcerting, and we need to really think about what we're using them for.

Vincent Orange: I do not support the idea. We've already raised in excess of $100 million through the speeding cameras and parking tickets and things of that like. I think that now it's become a revenue generator, and to say that we're going to cover the entire city with this apparatus is not a good idea in my view.

E. Gail Anderson Holness: I don't think it's a good idea. I think it's a waste of taxpayer money to use the funds to put those cameras in place ... I think there are other options to raise funds for the District of Columbia. I'm out there waving in the mornings and I see Maryland and Virginia tags coming into the District. There ought to be some kind of commuter tax.

You don't let the good suffer with the bad in this instance ... of course Tom, some of us go over the speed limit a little bit every now and again, and we're going to be subjected. But it's going through that green light piece is a major issue, so I'm not in favor of it all.

Peter Shapiro: I think there's a little bit of election-year pandering going on with this, because it's an important issue, and we've got some serious concerns with public safety in the city. Now the key is around balance, and so the red light cameras and even speed on green can be a very healthy thing. Now the idea of blanketing the whole city doesn't make a whole lot of sense.

Kojo Nnamdi: Why not?

Shapiro: Because there are many many intersections where if we put this in place, then it's only about generating revenue. There are any number of anecdotes, you will hear people, I have my own experience with this, where it it feels like it's essentially a trap for folks. It's not making the community safer, so what you really have to do is make sure that we have a comprehensive plan, but that they're located in places where they actually will reduce speed in ways that keeps the community safe.

But "walkable" is part of "livable, walkable," and part of making a place walkable is making it safe to walk around. If Orange really believed in that, he might have mentioned in his answer that it's important to curb speeding and red light running.

Shapiro is right that we should only place cameras where they will improve safety, and it might be just fine to reduce the level of fines as DC increases the number of cameras. However, when Gray said he would "blanket" DC with cameras, he likely didn't mean one on every corner, but rather far more than we have today. Good for him.

All 4 candidates focused their answers around their complaints of the program. Perhaps they were all assuming that most people who listen to WAMU are driving. One day, hopefully soon, people running for office citywide will feel that if they pander, it's better to pander to residents who want safer neighborhoods than drivers who want to speed with impunity.

Meanwhile, if you are a Democratic voter in DC, vote for Peter Shapiro, whom we endorsed, in tomorrow's primary. It's not enough to just get a more ethical candidate if that candidate still won't take a stand on the important issues that actually affect policy. Ultimately, the reason to have a candidate who's not bought and sold by moneyed special interests is so they vote for better policies. Shapiro has demonstrated far more commitment to good policy than any other candidate in the race.

Pedestrians will welcome any measures to slow down cars, make drivers stop for pedestrians in crosswalks, and clear the box so that parents crossing the street to take their small children to their preschool don't have thread their way through the cars blocking the intersection and the crosswalks.

Lisa Sutter, head of photo enforcement for DC's Metropolitan Police Department, first presented her photo enforcement program to the DC Pedestrian Advisory Council in December or 2010. I thought Santa had delivered the absolute best Christmas presents. The new cameras will catch violators not stopping for pedestrians in crosswalks, speeding through red and green lights, and blocking the box.

Ms. Sutter has the proof. She collects data on how her cameras affect driver behavior.

Cameras work. Drivers slow down and stop going through red lights. Plus, revenues drop over time.

Many of the complaints against cameras, such as those from AAA, say that the measure is just a play for revenue. But it is not really a good revenue source once drivers learn and begin to follow the law. Maybe new cameras would help plug a budget gap this year, but DC will not be able to count on a lot of revenue over time. What they can count in is safer streets.

Look at Connecticut Avenue north of Chevy Chase Circle. The cars go the speed limit. As a pedestrian who has had many near misses, I am all for it. And I drive a car, as well.

Besides, we all want safer streets, and we need to invest the resources to get there. If an effective method pays for itself and provides funding for more expansion, should we not support it?

Each pedestrian killed costs $3.84 million (in 2005 dollars) from losing wages and productivity, medical expenses, motor vehicle damage and employers' insurance costs. A pedestrian injury costs $52,900 (also in 2005 dollars, according to the National Safety Bureau.)

Aren't these fines a small price to pay to reduce crashes?

ANCs 3C and 3F passed a resolution in favor of photo enforcement, and other ANC's across the city are considering similar actions. It is time to view the risk of bodily harm from the traffic violations on our streets as we do the risk from crime. In fact, the risk is greater.

In their report of Traffic Safety in the New Millennium, the International Association of Chiefs of Police wrote, "More people are killed and injured and the economic losses to society are greater from traffic crashes than that from crime."

It's long past time to install more traffic cameras and make our streets safer. Mayor Gray took the right step, and the DC Council should approve the program as part of this year's budget.