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Fiscal Year 2022 Local Budget Act of 2021” COUNCIL OF THE DISTRICT OF COLUMBIA C O M M I T T E E O F T H E WHOLE COMMITTEE REPORT 1350 Pennsylvania Avenue, NW, Washington, DC 20004 DRAFT TO: All Councilmembers FROM: Chairman Phil Mendelson Committee of the Whole DATE: July 20, 2021 SUBJECT: Report on Bill 24-275, the “Fiscal Year 2022 Local Budget Act of 2021” The Committee of the Whole, to which Bill 24-275 was referred, reports favorably thereon as amended and recommends approval by the Council. This legislation establishes the operating expenditures and capital budget authority for the District for Fiscal Year (FY) 2022. The Committee adopts the fiscal recommendations set forth by the 10 committees on the “Fiscal Year 2022 Local Budget Act of 2021” and the “Fiscal Year 2022 Federal Portion Budget Request Act of 2021” and the spending allocations for the respective agencies under the committees’ direct purview, except where the Committee has modified the recommendations through superseding actions as set forth below.1 TABLE OF CONTENTS I. BACKGROUND AND NEED .................................................................................. ……………….2 Status of the District of Columbia ................................................................................................... ……………….2 Housing and Homeless Services Investments ...................................................... ………………5 Human Support Services ....................................................................................... ………………7 Public Education .................................................................................................... ………………8 Public Safety and Justice ........................................................................................ ……………..11 Economic Development and Regulation .............................................................. ……………..13 Operations and Infrastructure .............................................................................. ……………..15 Governmental Direction and Support .................................................................. ……………..16 II. OPERATING BUDGET CHARTS ....................................................................... ………………20 1 The following information is from the Fiscal Year 2022 budget as proposed by the Committee of the Whole for markup. Budget allocations may change at first and second reading of Bill 24-275. For the final Fiscal Year 2022 budget allocations or for committee specific information, please see the Fiscal Year 2022 Summary Reports, (located on the D.C. Council Office of the Budget Director’s website, https://www.dccouncilbudget.com/) or the committee reports provided by each committee, (available as part of the legislative history of B24-0275, available in the Legislative Information Management System, https://lims.dccouncil.us/) Committee of the Whole July 20, 2021 DRAFT Report on Bill 24-275 Page 2 III. CAPITAL BUDGET ........................................................................................................ ………………20 IV. LEGISLATIVE CHRONOLOGY .......................................................................... ………………22 V. POSITION OF THE EXECUTIVE .................................................................... ………………22 VI. COMMENTS OF ADVISORY NEIGHBORHOOD COMMISSIONS ….23 VII. COMMENTS FROM THE NATIONAL CAPITAL PLANNING COMMISSION .................................................................................................................... ………………24 VIII. LIST OF WITNESSES .................................................................................................. ………………24 IX. IMPACT ON EXISTING LAW ............................................................................. ………………28 X. FISCAL IMPACT .............................................................................................................. ………………28 XI. SECTION - BY- SECTION ANALYSIS .............................................................. ………………29 XII.COMMITTEE ACTION .............................................................................................. ………………29 XIII. ATTACHMENTS ............................................................................................................... ………………29 I. BACKGROUND AND NEED Section 442 of the “District of Columbia Home Rule Act,” approved December 24, 1973 (87 Stat. 798; D.C. Official Code § 1-204.42), requires the Mayor to prepare and submit to the Council an annual budget for the District, which the Council must adopt by act within 70 days after receipt.2 On December 1, 2020, the Council adopted Resolution 23-610, the “Fiscal Year 2022 Budget Submission Requirements Resolution of 2020.” The resolution established March 31, 2021 as the date by when the Mayor was required to transmit to the Council her proposed Fiscal Year 2022 budget. However, the budget transmission date was postponed twice, first to April 22, 20213 and then to May 27, 2021, to provide the time necessary for the executive to include the federal payments made available through the American Rescue Plan Act (ARPA) federal payment according to its May 10, 2021 guidance.4 On May 27, 2021, the Mayor transmitted Bill 24-275, along with supporting legislation in the form of Bill 24-285, the “Fiscal Year 2022 Budget Support Act of 2021,” and Bill 24-276, the “Fiscal Year 2022 Federal Portion Budget Request Act of 2021.” Status of the District of Columbia Against a backdrop of a global pandemic, social justice movements, and other significant events, the District’s Fiscal Year 2022 Budget and Financial Plan allocates resources to address 2 Section 446 of the Home Rule Act (D.C. Official Code § 1-204.46). 3 Section 903 of the Coronavirus Support Emergency Amendment Act of 2021, effective March 17, 2021 (D.C. Act 24-30; 68 DCR 3101). 4 Resolution 24-76, effective April 6, 2021. Committee of the Whole July 20, 2021 DRAFT Report on Bill 24-275 Page 3 District residents’ most urgent and immediate needs: provides supports to residents and businesses hardest hit by COVID-19; reallocates funds from policing to community-based interventions; invests in education, health care access, and housing; strengthens the social safety net; and opens new opportunities to businesses. In response to the global COVID-19 pandemic, Mayor Muriel Bowser declared a public health emergency on March 11, 2020, which was still in effect at the issuance of this report.5 In the 16 months since, more than 216,000 residents have applied for unemployment.6 At the same time that residents’ need for social safety net services skyrocketed, the District’s tax revenues plummeted. In April 2020, the Office of the Chief Financial Officer (OCFO) lowered the District’s predicted revenue by $721.8 million in FY 2020 and $773.6 million in FY 2021; and initially forecasted that it would take three years for revenues to recover to the FY 2019 baseline.7 Fortunately, a decade’s worth of economic prosperity, strong tax revenues, and sizable reserves has allowed the District to better weather the storm than many jurisdictions. The OCFO’s September 2020 and May 2021 revenue estimates showed noteworthy improvement in the District’s economy. The September 2020 forecast increased the FY 2020 estimated revenue by $222.1 million and showed only a reduction of $212 million in FY 2021, as compared to the April 2020 forecast.8 The May 2021 forecast also showed improvements in revenue growth and estimated that revenue should recover to the FY 2019 level ($8.3 billion) by FY 2022.9 In response to the nationwide coronavirus crisis, the federal government also enacted several bills to address the unprecedented challenges presented by the pandemic to states, local governments, residents, small businesses, and essential workers. The table below details the total funds provided to the District from each of the relevant acts. Federal Legislation Grants Allocated to D.C. State Aid Allocated to D.C. Coronavirus Preparedness and Response $9.2 million -- Supplemental Appropriations Act, 2020 Families First Coronavirus Response Act $89.1 million -- Executive Action $146 million -- Coronavirus Aid, Relief, and Economic $1.4 billion $495.1 million Security Act (CARES Act) Paycheck Protection Program and Health $88.2 million -- Care Enhancement Act 5 Mayor’s Order 2020-045, Mayor’s Order 2020-046, and Mayor’s Order 2021-069. 6 D.C. Department of Employment Services (16 July 2021). Unemployment Compensation Claims Data. Retrieved from https://does.dc.gov/publication/unemployment-compensation-claims-data 7 D.C. Chief Financial Officer (2020). April 2020 Revenue Estimates. OCFO Retrieved from https://cfo.dc.gov/sites/default/files/dc/sites/ocfo/publication/attachments/April%20Revenue%20Estimate%20Letter% 20042420.pdf 8 D.C. Chief Financial Officer (2020). September 2020 Revenue Estimates. OCFO Retrieved from https://cfo.dc.gov/sites/default/files/dc/sites/ocfo/publication/attachments/Revenue%20Estimate%20Letter%20093020. pdf 9 D.C. Chief Financial Officer (2020). May 2021 Revenue Estimates. OCFO Retrieved from https://cfo.dc.gov/sites/default/files/dc/sites/ocfo/publication/attachments/May%202021%20Revised%20Revenue%20 Estimates%20for%20FY%202022%20-%202025_0.pdf Committee of the Whole July 20, 2021 DRAFT Report on Bill 24-275 Page 4 Consolidated Appropriations Act, 2021 $1.0 billion -- American Rescue Plan Act of 2021 $1.3 billion $2.3 billion TOTAL $6.9 billion $2.8 billion The pandemic further highlighted the significant inequities facing communities of color in the United States, and here in the District. Rarely have
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