Testimony of DC for Democracy Regarding FY2018 Budget Priorities
Chairman Mendelson and other Councilmembers, thank you for the opportunity to testify today. My name is Zach Schalk, and I am a resident of Columbia Heights in Ward 1. Today, I am testifying on behalf of DC for Democracy, which I’ve recently joined as the Communications Chair. We are a progressive, all-volunteer grassroots organization with over 600 members that promotes the political empowerment of ordinary citizens. Our members recently voted on a resolution supporting recommendations for the Fiscal Year 2018 budget, and I am here today to share these priorities and recommendations with the Council.
As an organization that envisions a people-driven democracy that empowers all community members, DC for Democracy strongly supports fair and open government practices. However, in the past, the Chairman’s budget has often been published mere hours before the first Committee of the Whole vote, allowing little opportunity for meaningful community input on this foundational aspect of governing. For that reason, we are recommending that the Council Chairman should publish the revised budget, along with summaries abiding by language access laws, to allow at least seven business days for public review before any vote is taken on the measure.
It is often said that budgets are moral documents, and we believe that the biggest moral challenge facing our city is the shortage of affordable housing. Our recent member survey found affordable housing to be our members’ number one issue, and our recommendations reflect just a few small steps the Council can take to improve the state of affordable housing in the FY18 budget.
First, the District should expand its commitment to public housing by acquiring additional units and providing $25 million a year for public housing repairs. Second, the Council should invest $150 million a year in the Housing Production Trust Fund (HPTF), while also increasing to 50% the amount of HPTF money targeted to benefiting DC residents earning less than 30% of the Area Median Income. Third, the District should make fighting homelessness a priority by funding $30 million in rental assistance for people experiencing homelessness and $12.2 million a year for permanent supportive housing. Finally, the Council must hold slumlords accountable by including additional funding in the budget for the Department of Consumer & Regulatory Affairs.
Again, these recommendations should be seen as the bare minimum that could be done in the fight to address the District’s crisis in affordable housing, mere band aids rather than long-term solutions.
Criminal justice reform is also a key issue with our members. We strongly support fully funding and implementing the NEAR Act to reflect both the letter and the spirt of the law, helping to establish a new relationship between the community and the police. In particular, the budget must include at least $6 million in recurring funds for the Office of Neighborhood Engagement & Safety to encourage community well-being through the use of public health methods to interrupt and reduce violence. The NEAR Act was passed unanimously by the Council over a year ago, and still enjoys broad public support today. Fully funding and implementing this legislation is both common sense and the right thing to do.
Another top priority for us is to fight for economic justice that strengthens the inclusive District economy. We have been integral members of the Paid Family Leave Coalition, and we remain dedicated to the success of the Universal Paid Leave Act passed last December. The Council must find the additional $20 million in the FY18 budget required to fully fund the start-up costs for this historic program. After two years of debating the bill, the Council should stand by its own law and not allow the Big Business lobby to exercise veto power over the interests of people who work in the District.
Finally, our members feel strongly that the Council has a duty to make sure that the rapid economic growth in the District is converted into the revenue needed to support these and other essential budget priorities. Our city has witnessed exploding inequality, with high-end growth often outpacing the vital services for vulnerable communities who get left behind. We have four recommendations to help reverse this trend.
First, we support Councilmember Grosso’s Reserve Fund Improvement Amendment Act, which would provide an additional $90 million in FY18 for the Housing Production Trust Fund and school modernization. Second, the Council should embrace a fairer tax code by eliminating planned cuts to the estate tax and business franchise tax that will only increase income inequality while depriving the city with hundreds of millions of dollars in revenue in the coming years. Third, the Council should withdraw all subsidies and abatements from developers and corporations not complying with local hiring, wage, labor practice, or affordable housing laws and regulations. And, finally, the Council should make our taxes more progressive by revising the 2014 tax legislation to raise income tax rates on households making more than $350,000 per year.
We believe that these recommendations, if faithfully enacted, would create a more just community and a budget that truly reflects real DC values. Thank you for your consideration.
