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

Call to Action: Tell DC Council to Fund Subsidized Child Care

How much money were you making in 2004? Could you survive on that today? Maybe, maybe not. Might be a stretch but hey, times are tough. How about 27% of what you were making in 2004, could you survive on that? Unless 2004 was a real banner year and you made ten times what you’re making today, maintaining your lifestyle on that money would be impossible. If you were making less than the median income for Washington, DC in 2004, then 27% of that amount won’t even meet your basic needs.

Yet the DC Government refuses to pay child care providers who accept the city’s subsidized child care vouchers, more than 27% of the rate they should have been paid in 2004. Aaron Brooks, owner of Power To Become Child Care Center and Jeffrey Credit, owner of Community Child Development Center are more than a little peeved about the situation. They let the city council know during a day of lobbying at the Wilson Building headed by Empower DC child care organizer Sequnely Gray. The following video lays out their argument.

Despite a $417 million surplus in the city’s budget, Mayor Vincent Gray and the DC City Council are unlikely to increase funding for DC’s subsidized child care program unless someone like you accepts the challenge and makes them change their minds. Contact your city council members and tell them to fund subsidized child care. Here are their phone numbers and email addresses:

Councilmember Phil Mendelson (202) 724-8032 pmendelson@dccouncil.us

At-Large Councilmember Anita Bonds (202) 724-8064 abonds@dccouncil.us

At-Large Councilmember David Grosso (202) 724-8105 dgrosso@dccouncil.us

At-Large Councilmember David Catania (202) 724-7772 dcatania@dccouncil.us

At-Large Councilmember Vincent Orange (202) 724-8174 vorange@dccouncil.us

Ward 1 Councilmember Jim Graham (202) 724-8181 jgraham@dccouncil.us

Ward 2 Councilmember Jack Evans (202) 724-8058 jevans@dccouncil.us

Ward 3 Councilmember Mary Cheh (202) 724-8062 mcheh@dccouncil.us

Ward 4 Councilmember Muriel Bowser (202) 724-8052 mbowser@dccouncil.us

Ward 5 Councilmember Kenyan McDuffie (202) 724-8028 kmcduffie@dccouncil.us

Ward 6 Councilmember Tommy Wells (202) 724-8072 twells@dccouncil.us

Ward 7 Councilmember Yvette Alexander (202) 724-8068 yalexander@dccouncil.us

Ward 8 Councilmember Marion Barry (202) 724-8045 mbarry@dccouncil.us