COUNCIL OF THE DISTRICT OF COLUMBIA COMMITTEE OF THE WHOLE COMMITTEE REPORT 1350 Pennsylvania Avenue, NW, Washington, DC 20004 TO: All Councilmembers FROM: Chairman Phil Mendel son#/~)1--­ Committee of the Whole/J.t/ /'// .. - DATE: May 27, 2015 ~ SUBJECT: Report on Bill 21-158, the "Fiscal Year 2016 Budget Support Act of2015" c;; The Committee of the Whole, to which Bill 21-158 was referred, reports favO'f'a~ bln~:!!~ - CJ thereon with amendments and recommends approval by the Council. \0 f;?rti -0 :;:10 .::z::- .....,,.""'l"J :::0.., ~ -<.:r CONTENTS rr, N- I. Background and Need ............ .. .................................................... 1 (f/i~ II. Legislative Chronology ................................................................ 2 III. Position of the Executive .............................................................. 2 IV. Comments of Advisory Neighborhood Commissions ................ 2 v. List of Witnesses .......... .................................................................3 VI. Impact on Existing Law .............................................................. .4 VII. Fiscal Impact .................................................................................4 VIII. Subtitle-by-Subtitle Analysis .......................................................4 IX. Committee Action .......................................................................20 x. Attachments .................................................................................21 I. BACKGROUND AND NEED The purpose of Bill 21-158, the Fiscal Year 2016 Budget Support Act of 2015 ("FY 2016 BSA"), is to amend or enact various provisions of law that support the implementation of a balanced Fiscal Year 2016 budget and financial plan. In addition to the subtitle-by-subtitle analysis set forth below, further background on Bill 21-158 is available in the various committee budget reports. The committee print attached to this report contains FY 2016 BSA subtitles as recommended by the Committee of the Whole based on recommendations and feedback from the various Council committees. The Committee of the Whole recognizes the importance of the policy recommendations set forth by the various committees in their individual budget reports. These policy recommendations play an important role in the perfonnance and budget review process by the Council. The Committee of the Whole expects the executive branch to work with individual committees to address the policy recommendations as a part of the Council's continuing oversight activities. Committee of the Whole May 27, 2015 Report on Bill 21-158 Page 2 of21 I I. LEGISLATIVE CHRONOLOGY April 2, 2015 Chairman Mendelson introduces Bill 21-158 on behalf of the Mayor. April 3, 2015 . Notice of public hearings on Bill 21-158 is published in the District of Columbia Register. April 13, 2015 Committee of the Whole holds a public briefing on Bill 21-157, Bill 21-158, and the Mayor's Fiscal Year 2016 Proposed Budget and Financial Plan. April 17, 2015 Notice of Intent to Act on Bill 21-158 is published in the District of Columbia Register. April 15 - May 7, 2015 Council Committees hold public hearings on the proposed budgets of the agencies under their purview and the subtitles of the Fiscal Year 2016 Budget Support Act of 2015 that were referred to them for comments. May 8, 2015 Committee of the Whole holds a public hearing on Bill 21-157 and Bill 21-158. May 12-14, 2015 Committees mark up and approve their budget recommendations for Fiscal Year 2016. May 27, 2015 Committee of the Whole marks up Bill 21-158. I II. POSITION OF THE EXECUTIVE Chairman Mendelson introduced Bill 21-158 on behalf of the Mayor. On May 11, 2015, the Mayor transmitted an errata letter requesting that the Council incorporate various changes to the introduced version of Bill 21-158 and budget documents. At the May 8, 2015 hearing on Bill 21-158, City Administrator Rashad Young and Matthew Brown, Director of the Mayor's Office of Budget and Finance, presented testimony on behalf of the Mayor. IV. COMMENTS OF ADVISORY NEIGHBORHOOD COMMISSIONS The Committee of the Whole received no testimony or comments from any Advisory Neighborhood Commission on Bill 21-158. Committee of the Whole May 27, 2015 Report on Bill 21-158 Page 3 of21 v. LIST OF WITNESSES The Committee of the Whole held a public hearing on Bill 21-158 on May 8, 2015.1 The witnesses were as follows: 1. Lisa Mallory CEO,DCBIA 2. Sean Cahill President, DCBIA 3. Paul Blair State Affairs Manager, Americans for Tax Reform 4. Donna Pavetti Vice President for Family Income Support Policy, Center on Budget and Policy Priorities 5. Ed Lazere Executive Director, DC Fiscal Policy Institute 6. Veronica Sharpe Executive Director, District of Columbia Health Care Association 7. Ericka Taylor Executive Director, DC Fair Budget Coalition 8. David Bardin Public Witness 9. Patricia Mullahy Fugere Executive Director, Washington Legal Clinic for the Homeless 10. Kurt Runge Director of Advocacy, Miriam's Kitchen 11. Lara Pukatch Miriam's Kitchen 12. Mark Elton Bancroft Elementary School PTO 13. Tonija Navas President, Bancroft Elementary School PTO 14. Alejandra Vallejo Bancroft Elementary School PTO 15. Jocelyn Kaiser Bancroft Elementary School PTO 16. Nechama Masliansky Senior Advisor, SOME, Inc. (So Others Might Eat) 17. Samantha Davis Advocacy Specialist, SOME, Inc. (So Others Might Eat) 18. David Schwartzman Tax and Budget Coordinator, DC Statehood Green Party 19. Gable Barmer J &G Consultants 20. Sam Jewler DC Community Organizer, Jews United for Justice 21. Robert Bremner HumanitiesDC Board of Directors 22. Oramenta Newsome Washington, DC Community Development Oral Histories 23. Elizabeth Shurgin DC Youth Orchestra Program 24. Zachary Levine Jewish Historical Society of Greater Washington 25. Bethany Henderson Executive Director of DC SCORES 26. Shay Stevens Washington Performing Arts 27. Robert Warren Director, People for Fairness Coalition 28. Janet Sharp People for Fairness Coalition 29. Damon King Children's Law Center 30. Juanita Hardy Executive Director, CulturalDC 1 All of the Council's committees held hearings between April 15 and May 7, inclusive, on the Mayor's proposed budget; in many cases, testimony at those hearings addressed various provisions of the FY 2016 BSA. Committee of the Whole May 27, 2015 Report on Bill 21-158 Page 4of21 31. Gregory Conley President, American Vaping Association 32. Sean Robinson Public Witness 33. Carol Dostert Public Witness 34. Christine Brooks Cropper Chair, Commission on Fashion, Arts, and Events 35. G. LeeAikin Public Wit'ness 36. Sunny Sumter Executive Director, DC Jazz Festival 37. Monica Kamen Advocacy Coordinator, Fair Budget Coalition 38. Ericka Taylor Public Witness 39. Kevin Clinton Chief Operating Officer, Federal City Council 40. Tamaso Johnson DC Coalition Against Domestic Violence 41. Rashad Young City Administrator 42. Matt Brown Director, Office of Budget and Finance VI. IMPACT ON EXISTING LAW Bill 21-158 is a substantial and wide-ranging piece of legislation that would have a significant impact on existing law, as reviewed in the subtitle-by-subtitle analysis, infra. VII. FISCAL IMPACT Bill 21-158 will have a significant and complex fiscal impact on the District and is necessary to balance and implement the FY 2016 budget. The fiscal impact of the legislation is set forth in the attached fiscal impact statement of the Office of the Chief Financial Officer ("OCFO"). VIII. SUBTITLE-BY-SUBTITLE ANALYSIS 2 Section 1 States the short title of Bill 21-158. TITLE I. GOVERNMENT DIRECTION AND SUPPORT Subtitle A. Bonus and Special Pay Limitation Act of 2015: prohibits the award of most bonuses, special awards pay, and service awards in FY 2016. Similar language has been adopted in the BSA for each of the last several fiscal years. Subtitle B. Supply Management Amendment Act of 2015: authorizes the Office of Contracting and Procurement ("OCP") to enter into agreements with other agencies or public charter schools to dispose of those entities' surplus goods; allows OCP to charge a 6% fee for 2 Due to the size and complexity of the committee print of Bill 21-158, and in keeping with standard Council practice and Council Rule 803(j), this part of the report analyzes the legislation by subtitle, rather than by section. Committee of the Whole May 27, 2015 Report on Bill 21-158 Page 5 of21 such services; establishes the lapsing Surplus Property Sales Fund under OCP, to receive fees such fees and fund OCP's surplus property disposition operations. Subtitle C. Office of Lesbian, Gay, Bisexual, Transgender, and QuestioningAffairs Amendment Act of 2015: renames the Office of Gay, Lesbian, Bisexual, and Transgender Affairs the "Office of Lesbian, Gay, Bisexual, Transgender, and Questioning Affairs." Subtitle D. Elected Attorney General Authority and Litigation Fund Establishment Amendment Act of 2015: provides the Office of the Attorney General ("OAG") independent personnel and procurement authority; establishes the Litigation Support Fund, into which shall be amounts from favorable judgments and settlements (with the total deposits in the fund not to exceed $1.5 million), to be used by the OAG to fund non personal services costs related to litigation; provides subpoena authority to the OAG in cases related to consumer protection. Subtitle E. Office on Aging Reporting Requirements Act of 2015: requires the Mayor to submit quarterly reports in FY 2016 to provide detailed information for specific areas of operation within the Office on Aging. Subtitle