FISCAL YEAR 2012

COUNCIL BUDGET MEETING

Monday May 16, 2011
9:30am
Room 502

Kwame R. Brown, Chairman

 Budget Timeline
 Friday April 1: Executive Transmitted the FY 2012 Budget
and Financial Plan to the Council

 April 7 through May 5 - Budget Hearings

 May 10 through 12 - Committee Markups

 Wednesday May 25: First Vote on Budget Request Act

and Budget Support Act for FY 2012

 Tuesday June 14: Second Vote on Budget Support Act

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 Agenda
 Review of Committee Budget Actions

 Review and Discussion of Council Wide Priorities and

Funding

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 Where are we?
 This is a transformational budget year
 New Mayor, new Council, evolving priorities
 Use of the General Fund Balance to pay for services is no
longer an option
 The District shows signs of emerging from the recession
 We still have many residents in need and substantial
infrastructure deficits
 The Council can’t resolve all outstanding service needs in
one year

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 Where are we?
 Between 2001 and 2010, the District’s local fund
spending has grown from $3.70 billion to $5.45 billion,
a growth of 47%
 When adjusted for inflation, the District’s local fund
spending has increased 20% since 2001
 The District’s population has increased by 4% since 2001
 Upon emerging from the Control Board, substantial
investments were made in education, healthcare and
economic development

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 Where are we going?

 Goals for FY 2012

 Develop a plan that will reduce spending and improve
efficiency
 Start to replenish the General Fund Balance
 Provide quality of life services to all District residents

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 Ground Rules
 Discussion will be limited to one half-hour for each
committee
 Each slide details the committee’s recommendation on the
Mayor’s proposed budget
 Any recommended BSA subtitle changes that commit
unrealized future revenues will not be included in the
BSA at this time
 New proposals without associated funding will not be
considered

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 Major Budget Actions In Committee Markups

Committee on Aging and Community Affairs

 The committee approved the Mayor’s proposed budget with the
following changes to the agencies under its jurisdiction
 $37,000 transferred from the Office on Aging to the ANCs for
supplies and materials
 $3,000 transferred from the Office on Aging to the Office of
Community Affair’s Office on Women’s Policy and Initiatives
 $8,524 transferred from the Office on Aging to the Office on Latino
Affairs to restore funding for partnerships between the District and
non-profits focused on job training, workforce development training
and providing jobs for District Latino residents

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 Major Budget Actions In Committee Markups
Committee on Economic Development

 The committee approved the Mayor’s proposed budget

without changes to the agencies under its jurisdiction

 The committee recommended two new BSA Subtitles:

 “Neighborhood Economic Development Corporation
Liquidation Act of 2011”
 “Small Business Investment Company Program Act of
2011”

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 Major Budget Actions In Committee Markups

Committee on Government Operations and the Environment

 The committee approved the Mayor’s proposed budget with the following
changes to the agencies under its jurisdiction
 Transferred $7,000 from DHR to Contract Appeals Board to continue the digital
records project
 Transferred $90,000 from various agencies under the committee’s purview to
the Public Employee Relations Board for an attorney position to help reduce the
agency’s backlog
 Transferred $90,000 from OCTO to the Office of Employee Appeals for an
administrative law judge to reduce the agency’s backlog
 Transferred $50,000 from DHR to the Office of Disability Rights to support
reading services for the visually impaired
 Transferred $200,000 from OCTO to the Department of Small and Local
Business Development to support programs that provide access to healthy foods
in low income neighborhoods in the District

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 Major Budget Actions In Committee Markups
Committee on Finance and Revenue

 The committee approved the Mayor’s proposed budget

without changes to the agencies under its jurisdiction

 Recommended several BSA subtitle changes that commit

unrealized future revenues to the elimination of the proposed
revenue enhancements and to fund additional police officers

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 Major Budget Actions In Committee Markups
Committee on Health

 The committee approved the Mayor’s proposed budget with

the following changes to the agencies under its jurisdiction
 DMH - $300,000 in increased intra-district to recognize
additional Medicaid funds associated with the CPEP program
 DHCF - $197,000 increase to federal grant funds for 4.0 FTES
related to the Employer and Private Market Initiative
 Health - $271,000 increase in special purpose revenue to
correctly reflect the management and oversight of the District’s
Marijuana Program.

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 Major Budget Actions In Committee Markups
Committee on Human Services

 The committee approved the Mayor’s proposed budget with

the following changes to the agencies under its jurisdiction
 CFSA - reduction of 19 FTEs and reallocation of 1.2 million
 $500,000 transferred to DMH to restore MOU for children’s mental
health services
 $400,000 transferred to Health for an MOU to provide substance
abuse services for youth
 $300,761 reallocated within CFSA to move families off of the
Grandparent Caregiver program waiting list
 $100,000 reallocated within CFSA to support tutoring services

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 Major Budget Actions In Committee Markups
Committee on Human Services (cont)
 DYRS – Reallocation of $1 million from residential treatment centers
(RTC) funding
 $874,000 - to support increased secured waiting placement housing;
 $250,000 – to support educational services;
 $30,000 – for health services for a formal assessment of the overall
need for intensive substance abuse and alcohol treatment, recovery and
relapse prevention programs at New Beginnings
 ABRA – Increases funding to reimbursable details by $1 million
 $540,000 from fund balance (one time funding)
 $460,000 from revenues generated from the “Opening Hours
Amendment Act of 2011”
 No changes to the Mayor’s proposed service reductions in the
budget of DHS to TANF, homeless services and IDA

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 Major Budget Actions In Committee Markups

Committee on Housing and Workforce Development

 The committee approved the Mayor’s proposed budget with
the following changes to the agencies under its jurisdiction
 DOES - One-time transfer of $555,000 in local funds from the
Summer Youth Employment Program to the Year Round Youth
Program
 DHCD - Allocates $1.7 million in available CDBG funds to restore
the Small Business Technical Assistance Program

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 Major Budget Actions In Committee Markups
Committee on the Judiciary
 The committee approved the Mayor’s proposed budget
with the following changes to the agencies under its
jurisdiction
 Reduced overtime in FEMS by $1 million and MPD by $250,000
 Salary lapse vacancy savings in FEMS of $485,000 and MPD of
$213,000
 $200,000 to fund a study to determine the optimal size of MPD
 Reduction in the Department of Corrections contracts of
$500,000
 Approved consolidation of sub-agencies into the office of the
Deputy Mayor for Public Safety and Justice
 Increased funding to the Office of Victim Services by $1.3 million

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 Major Budget Actions In Committee Markups

Committee on Libraries, Parks and Recreation

 The committee approved the Mayor’s proposed

budget with the following changes to the agencies
under its jurisdiction
 Transfer of $500,000 in capital funds from the Cleveland
Park Library to the Lamond-Riggs Library
 Return of $408,000 and 4 FTEs from DGS to DPR

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 Major Budget Actions In Committee Markups

Committee on Public Services and Consumer Affairs

 The committee approved the Mayor’s proposed budget

without changes to the agencies under its jurisdiction

 The committee recommended two new BSA Subtitles:

 “Office of the Tenant Advocate Establishment Amendment Act”
 “Public Service Commission Amendment Act”

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 Major Budget Actions In Committee Markups
Committee on Public Works and Transportation
 The committee approved the Mayor’s proposed budget with
the following changes to the agencies under its jurisdiction
 WMATA
 The Mayor’s proposed budget underfunded the WMATA subsidy by
$13.685 million
 $2.92 million will be sent to WMATA in FY 2011 reducing the FY 2012
gap to $10.765 million
 The committee proposed shifting $6.265 million of FTEs from local
operating to federal funds within DDOT
 A $4.5 million funding gap for WMATA remains
 DMV
 Recommended a progressive RPP to fund various initiatives within
DDOT and DMV
 Increased adjudication services by one FTE and $93,461

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 Major Budget Actions In Committee Markups
Committee on Public Works and Transportation (cont)
 The committee approved the Mayor’s proposed budget with the following
changes to the agencies under its jurisdiction
 DDOT
 Increased funding by $1.1 million to DDOT to restore $1 fare for the
Circulator
 Provided $400,000 to WMATA to increase WMATA bus routes and
offset Circulator route eliminations
 Increased DDOT FTEs
 Policy, Planning and Sustainability Administration by 6 FTEs and
$600,000
 Traffic Operations and Traffic Management by 5 FTEs and
$274,074
 Transferred $50,000 to MPD to fund a Bait Bike Theft Deterrence
Program
 Modifications to the Capital Budget
 $1 million to Green Alleys Initiative
 $2 million for Capital Bikeshare expansion

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 Major Budget Actions In Committee Markups

Committee of the Whole

 The committee approved the Mayor’s proposed budget with
the following changes to the agencies under its jurisdiction
 Recommended a $4.4 million reduction in local funds from DGS
to reflect economies of scale savings and transfer of 4 capital
planning positions back to DPR
 Reduced $3.8 million of local funds from the UDC Subsidy to
incentivize the creation of out-of-state tuition rates for the
community college
 Increased $150,000 in the DME to fund an adult literacy gap
analysis
 Increased capital funds by $2 million to the Ballou SHS
modernization in FY 2012

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 Review of Council Wide Priorities
Councilmembers identified $350 million of spending priorities
The priorities listed below were the most commonly identified
among the members
Uses of funds FY 2012 FY 2013 FY 2014 FY 2015
Revenue impact of eliminating Mayor's proposed tax increases
Modifications to Mayor's proposed new income tax rate
Eliminate new tax bracket with 8.9% rate at $200,000 18,700 29,300 31,800 34,500
OR
Modify proposed new tax bracket so 8.9% rate starts at $500,000 5,700 9,000 9,800 10,600
Eliminate the expansion of the sales tax base to include live theater 2,303 2,395 2,491 2,591
Operating budget impact of restoring Mayor's proposed service reductions
Fund remaining WMATA subsidy shortfall 4,500
Increase number of sworn officers within MPD (~$7.25 million per 100 police) 7,250 7,250 7,250 7,250
Restore funding to provide shelter to homeless families during non-hypothermia season 6,500 6,500 6,500 6,500
Restore funding to the Neighborhood Investment Fund (NIF) for affordable housing 2,000 2,000 2,000 2,000
Restore funding for Clean Teams and Main Streets 1,000 1,000 1,000 1,000
Establish the Tax Revision Commission 806

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 Review of Council Wide Priorities
Revenue generating proposals from members

Sources of Funds FY 2012 FY 2013 FY 2014 FY 2015

Furloughs (~$4.5 million per day) 4,500
Savings from the Committee of the Whole 6,100 6,100 6,100 6,100
Applying sales tax to Armored Car, Private Investigation and Security Services 4,866 4,866 4,866 4,866
Modifications to the District's treatment of interest of out-of-state bonds
Eliminate 100% tax exemption of interest on out-of-state bonds 13,408 28,292 29,482 30,424
OR
Impose 50% tax exemption of interest on out-of-state bonds 6,704 14,146 14,741 15,212
Move a portion of proposed operating FTEs permanently back to capital (would need to
make $30 million offsetting cut to capital) 10,000 10,000 10,000 10,000

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 Review of Council Wide Priorities
The District’s General Fund Balance has been declining while our
reliance on short term borrowing has increased

Total General Fund Balance TRANS (Short Term) Borrowing

1494
1245

921 890
700
700
500
400
300 300

2007 2008 2009 2010 2011 (est)

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 Review of Council Wide Priorities
 Council Directive to Mayor on Use of Additional Revenues
 New BSA Subtitle outlining how increases in the
District’s quarterly revenue estimates should be
appropriated outside of the annual budget process
 50% must be used to replenish the District’s General Fund
Balance
 25% must be used to assist District residents in need
(homeless services, adult job training, youth mental health
services, etc…)
 25% must be used to invest in the District (public
infrastructure, Police, tax and fee relief, etc…)

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