A Budget that Predictably Disappoints
The Council’s first vote on the budget said a lot about the state of local politics. Public pressure harnessed by a variety of grassroots and social service organizations won a number of improvements to the Mayor’s budget. Those victories mean better housing, nutrition, and health which mean a little more hope and little less anxiety among thousands of DC residents. But other efforts fell short, and even those efforts were well short of the immense social needs generated by the triple pandemics of COVID-19, police brutality and centuries of racist policies. A political system that cannot offer solutions on the scale as the problems is headed for failure.
This budget season, DC4D focused on funding for homeless programs (ending chronic homelessness), public housing repairs and renovation, cash assistance for excluded workers (undocumented immigrants and other workers who were excluded from federal assistance), child care subsides (Birth to Three for All), and campaign finance reforms (ending pay-to-play corruption). We also joined our allies in the #BlackLivesMatter movement by calling for defunding the MPD and investing funds in violence interruption and social needs that lie at the roots of violence.
VICTORIES
We take heart in the victories we won on Tuesday in the following key budget amendments which provided funding for many of these priorities:
Ward 6 Councilmember Charles Allen’s proposal to delay tax deductions for large businesses: raised $7 million by further delaying a tax deduction for large businesses enacted in 2011. This deduction has been repeatedly delayed for the last 10 years. This amendment delays it for a further 5 years. This passed unanimously.
Ward 1 Councilmember Brianne Nadeau’s proposal to almost entirely eliminate a tax subsidy for high-tech companies (QHTC): raised $17 million in FY21 to fund a variety of needs, including healthcare, child care companies, emergency rental assistance, school based mental health, cash assistance to excluded workers, homeless programs and more. This passed with Anita Bonds, David Grosso, Elissa Silverman, Robert White, Brianne Nadeau, Mary Cheh, Brooke Pinto, Charles Allen, Vince Gray and Trayon White voting YES.
Ward 8 Councilmember Trayon White’s proposal to reduce the estate tax threshold from $5.6M to $4M: raised $1.8M for violence interruption programs, school mental health and mentoring programs. This passed with David Grosso, Elissa Silverman, Robert White, Brianne Nadeau, Kenyan McDuffie, Charles Allen, Vince Gray and Trayon White voting YES.
We are also extremely gratified that the Judiciary Committee chaired by CM Allen funded the campaign finance reform that prohibits DC government contractors from contributing to political campaigns. This is a meaningful step towards ending pay-to-play corruption.
DEFEATS
We are deeply disappointed in the budget amendments that failed with just 2 votes shy of a majority:
Ward 6 Councilmember Charles Allen’s proposal to increase income taxes on the wealthiest DC residents: would have raised $7M in FY21 (with about $12M in future years) by raising taxes on those earning over $250K. Those earning $250K – $350K would pay a marginal rate of 8.75% (vs. current 8.5%). Those earning $350K – $1M would pay 8.95% (vs. 8.75%). Those earning over $1M would pay 9% (vs. 8.95%). This very incremental measure failed with Councilmembers Robert White, Elissa Silverman, Charles Allen, Brianne Nadeau and Trayon White voting YES.
At Large Councilmember Robert White’s proposal to redirect $35M from the streetcar project to repair public housing: This measure failed with Councilmembers Robert White, Elissa Silverman, Brianne Nadeau, Brooke Pinto (new Ward 2 Councilmember) and Trayon White voting YES. Anita Bonds, Chair of the Housing Committee, had committed to vote yes but voted no. Note: Chairman Mendelson added a further $25M for public housing repairs, bringing the total to $50M for FY21 (progressive groups had fought for $60M annual investment).
Two more yes votes would have meant success on these amendments. If Janeese Lewis George and Ed Lazere were on the Council, these amendments would have passed. Elections make a difference!
Rent Control Update
We have been working with the Reclaim Rent Control coalition to expand and reform the current Rent Control law and looked forward to a spirited effort before the law expires at the end of the year. Chairman Mendelson sneaked in language reauthorizing the current Rent Control law into the Budget Support Act, apparently under pressure from Big Business interests and without consulting his colleagues. Councilmember Brianne Nadeau valiantly proposed an amendment to strike the language, but was not supported by any of her colleagues, including CM Bonds who chairs the Housing committee. She was forced to withdraw her amendment. While the rent control bill remains active, the political pressure to reauthorize has now dissipated, dealing a major blow to the campaign.
MPD budget
We credit CM Allen for making significant improvements to the Mayor’s budget for MPD. He expanded funding for violence interruption services and restorative justice programs and cut the budget by $33M from the revised FY20 MPD budget. We recognize that the composition of the Judiciary Committee that Allen chairs (Bonds, Cheh, Gray and Pinto) is not conducive to the reforms that Allen himself supports. Still, we are extremely disappointed that more was not cut from the MPD budget, given the unprecedented outpouring from the public. It is also outrageous that the current MPD budget is $41 million higher than what the Council approved in the FY20 budget, and that this significant increase occurred with no public scrutiny.
NEXT STEPS
We will continue our struggle to have a budget that raises revenues through a truly progressive tax structure to adequately fund dire community needs. This is a long-term campaign and it is closely connected with our electoral campaigns. In the meantime, we can hold Councilmembers accountable for their votes. Our wonderful local media rarely reports on votes, particularly votes on amendments. The chart below visually depicts the votes that were contested (not unanimous). Help us get the word out by sharing this post!
