DC’s Budget Season All Wrapped Up

Budget season is over. The process takes several months starting with a budget proposed by Mayor Vincent Gray, then hearings in which members of the public comment on the mayor’s proposed budget, an amended budget proposed by members of the city council, a contingency list of items that the Mayor would like to fund but isn’t sure we can afford, etc. Finally, last Wednesday, June 26, 2014 the DC City Council took their final vote on DC’s budget for fiscal year 2014, deciding on behalf of the residents of the District of Columbia how to spend our tax dollars.

As part of Grassroots DC’s mission to provide media coverage of issues that impact the underserved communities of the District of Columbia, we’ve reported on some of the issues in question on this blog. We wanted to cover more but alas, lacked the manpower. (Feel free to take that as a veiled plea to potential contributors.)

Here’s an update, as per DC’s Fiscal Policy Institute, on some of the provisions in the budget that are generally favorable to DC’s low-income and working-class residents:

Help for homeless residents. The FY 2014 budget included many increases in funding to help homeless residents or residents at risk of homelessness. Increases included:

$2.2 million increase in permanent supportive housing, which provides housing to chronically homeless families and individuals. $1.5 million increase in emergency rental assistance, which helps prevent residents from becoming homeless. $400,000 to offer services to single homeless residents to help move them out of shelter quickly and into housing with supportive services. $5 million increase to the Office on Aging, including $3.5 million in operating funds. $1.5 million in capital funds.

Help for vulnerable families and individuals. The FY 2014 budget included two changes to DC’s Temporary Assistance for Needy Families program that will improve the lives of vulnerable families with children. First, the mayor’s budget included a delay in the benefit cut for families who have been on assistance for longer than 60 months. In addition, the Council also included funding to exempt some families with severe barriers from the time limit. These protections, which most states offer, give families a break from the 60-month time limit on benefits to give them time to deal with serious issues that interfere with their ability to work such as domestic violence, illness, or caring for a family member with a disability.

Help for parents who need child care. The FY 2014 budget increased funding for DC’s Subsidized Child Care program by $11 million. This program pays part of the childcare costs for parents of young children who are in school, working or looking for work but who cannot afford child care. The $11 million will increase the number of spaces available for infants and toddlers in community-based child care programs. It will also increase the reimbursement rates paid to providers by 10%. This is the first increase since 2004.

Help with rising housing costs. The FY 2014 budget includes significant increases to affordable housing. In addition to Mayor Gray’s proposed $100 million for affordable housing, the Council added funds for key affordable housing programs that had not received an increase in the mayor’s proposed budget. Including:

An increase to DC’s Local Rent Supplement Program, which provides rental subsidies to families with very low-incomes. The Council’s budget includes $1.75 million to provide rent vouchers that will help approximately 120 low-income families obtain affordable housing. Increases to Low-Income Property Tax Relief or Schedule H, which is a tax credit for lower-income residents when rents or property taxes are high relative to income. An expanded property tax break for seniors. Under current law, senior homeowners with income under $100,000 qualify for a 50 percent cut in property taxes. The FY 2014 Budget will provide property tax reductions for seniors with incomes between $100,000 and $125,000.

On the flip side, I’m not too happy about the Council’s decision to accept Mayor Gray’s proposal to restore a tax break on income from out-of-state bonds. This will reverse legislation adopted in recent years to phase out the tax break for investments made starting in 2013. DCFPI points out that much of the tax-exempt income in DC is earned by very high-income residents, including some who earn millions from these investments. They proposed phasing out the tax break for wealthy residents while maintaining the exemption for low- and moderate residents. But the Council has proposed allowing all residents to retain the tax break, regardless of income.

On the whole, the DC . . . → Read More: DC’s Budget Season All Wrapped Up

Fair Budget Coalition Fights City Hall and WINS!

Don’t tell me you can’t fight city hall. Yesterday (May 15, 2012) advocates fighting to maintain and improve essential social services in the District of Columbia, packed the city council hearing room as they voted on this year’s fiscal budget. As a result, the city council passed the Budget Request Act with $25 million restored to affordable housing programs. A victory without question but more needs to be done. The final vote on the budget won’t happen until June 5, 2012. Between now and then, council members must be convinced to use fiscal reserves and/or raise more revenue to fully fund TANF (Temporary Aid to Needy Families), homeless services, the subsidized child care program and more. For more information on what programs still need support, which council members need to be lobbied, etc., go to the Fair Budget Coalition’s campaign website Make One City Possible.

For more on what’s at stake should the city continue to cut social services, check out the fabulous video below from the Day in the Strife protest, produced by Laura Gwizdak. I don’t know where the mainstream media was that day. The halls were packed with DC residents actively participating in the political process. Personally and professionally, I call that news.

Pack the Hearing Room & Stop Cuts to the Safety Net

On Thursday May 10, the Fair Budget Coalition sponsored A Day in The Strife, an action at the Wilson Building in protest of Mayor Gray’s proposed cuts to the city’s budget, most of which will once again fall on the backs of the poor. For details of what’s in the budget and what’s left out, a good article to read is Kesh Ladduwahetty’s Washington Post article A Tea Party Budget for D.C. The following video from a Day in the Strife highlights what’s at stake for DC residents who will be directly impacted.

A Day In The Strife

Cross-posted from the Fair Budget Coalition Facebook Page

When faced with the impossible choices that many DC residents have to make, what would DC Council members choose? Pay rent or buy groceries? Buy a metrocard to get to work or school supplies for your kids? Over the last few years the Mayor and DC Council have cut funding to safety net programs like affordable housing, homeless serivces, TANF, Child Care and more. This year millions more in cuts to these programs are on the chopping block. Meanwhile, DC residents are forced to make impossible choices to make ends meet. Join us as we fight CUTS to the safety net and show the Councilmembers what it’s really like to live in poverty. A DAY IN THE STRIFE: A Tour of Life on the Poverty Line Thursday, May 10th: 10:00am-Noon At the Wilson Building 1350 Pennsylvania Ave NW Lunch will be provided Bring your ID to enter the building And BRING AN EXTRA SHOE to carry along as we tour! We want to ask Councilmembers to picture what it’s like to walk a mile in our shoes. For more information contact 202-328-1262 or makeonecitypossible@gmail.com To learn more about the campaign, visit: www.makeonecitypossible.com This event is organized by the Fair Budget Coalition @FairBudgetDC www.facebook.com/FairBudgetDC

DC Council Budget Vote Run Down

Cross-Posted from Save Our Safety Net

If you haven’t already heard, we didn’t win the income tax brackets. But we did win one progressive revenue source which is helping to pay for our other collective win: Millions in restorations to safety net services! And it is directly due to OUR PRESSURE! Check out this news report from the day before the vote:

But Jack Evans is already trying to undo $13 million in possible restorations in order to repeal the progressive revenue that did make it in the budget–a progressive revenue, incidentally, that HE VOTED FOR. He even wrote an email to other Councilmembers telling them “You need to help us”. They don’t seem to give up, but neither do we. Click HERE to take action to make sure all new revenue will go towards services and not a tax repeal.

WHAT DID WE GET IN THIS BUDGET?

Let’s start with SAFETY NET FUNDING RESTORATIONS

Restorations were either funded in the budget, or promised future funding in a list of priorities if the June revenue forecast reveals the city will be getting more money than Council thought. (It is widely estimated that there will be additional funding that can be used to start funding the priorities in the order the Council has laid out.) Here’s a table to show you how restorations stand (there may be adjustments here and there as the final budget is analyzed, but this should be fairly accurate):

Services Cuts Restorations in Budget Restorations IF more $$ in June Homeless Services $20.5M $17M $2.2M Housing Prod. Trust Fund $18M 0 $18M Interim Disability Asstnce $4.8M $1.2M $3.3M TANF $5M $4.9M 0 Childcare $2.2M 0 $2M Children’s Mental Health $7M 0 $6.4M Victim’s Services $3M $4.1M** 0 Healthcare Alliance $11M 0 0 Housing 1st rent subsidies $4M 0 $1.6M TOTAL: $75.4M $27.2M $33.5M

**To help cover Victim’s Services cuts, the Council used $2.8M from the Domestic Violence Shelter Fund. For more information about the potential restorations and the list of priorities check out this post on the District Dime.

This is an incredible accomplishment. We did not get everything this city needs, we need to keep fighting to protect what we did get, and only time will tell how much of the $33.5M in future promises will actually be delivered. But as the Exec. Director of the Washington Legal Clinic for the Homeless, Patty Mullahy Fugere, told us: “In my 20 years here at the Legal Clinic, I don’t think I’ve ever heard so many council members express concern about maintaining a safety net for our low-income and homeless neighbors. It was a very welcome change.”

And this is because of your calls, emails, and participation in the numerous rallies, council visits, and actions in the past 3 months. (Seriously folks: early last week we heard that Homeless Services would only be getting $4M. By Friday (a few hundred calls, emails and a Safety Net Reality Tour later) that number had jumped to $17 million.)

And now on to PROGRESSIVE REVENUE:

We lost the income tax by two votes from two Councilmembers we had considered staunch allies until something happened in the back rooms of the Council. Tommy Wells and Marion Barry voted against the income tax, joining Cheh, Catania, Bowser, Kwame and Orange. For their votes in our favor, we profusely thank Michael Brown, Graham, Thomas, and our two newest safety net superheroes, Mendelson and Alexander.

Though we didn’t get the income tax, we did close the exemption on the out-of-state bonds tax which is projected to bring in a comparable amount of revenue. This was pretty amazing as it was a centerpiece of last year’s SOS campaign but it was not widely supported then. It became clear this bonds tax was just a gimmick intended to be repealed when the June revenue forecast is likely to reveal the city has a bit more to spend for this year. Kwame had written in language stating that he would use some of the extra revenue from the June forecast to “buy back” the tax. But Wells impressed us when he managed to pass an amendment to take out the repeal and redirect the funds to safety net services. He gets major props for that move.

ACTION POINT: Now Evans, Cheh, Kwame and Catania are plotting to take away the $13 million earned by Wells’ amendment, money that is currently promised to Homeless Services, Interim Disability Assistance, the Housing Production Trust Fund and Children’s Mental Health. CLICK HERE . . . → Read More: DC Council Budget Vote Run Down