Jack Evans • May 3, 2012

This week, the D.C. Council met at its annual retreat to review legislative priorities, receive briefings from various officials and make plans for the coming year. We also recently received the audit of the fiscal 2011 budget – known as the Comprehensive Annual Financial Report (“CAFR”), an event of particular interest to me as Chair of the Council’s Committee on Finance and Revenue. 

First, the good news from the fiscal 2011 CAFR: the District sustained its 15th annual balanced budget and unqualified “clean” audit. In short, our finances today are a far cry from the desperate straits we faced in the mid-1990s. The audit also confirmed we have no “material weaknesses” (we had two in fiscal 2008) and reduced our “significant deficiencies” from five to two. I am glad we have made meaningful progress on our internal control systems. Every year, the District spends millions of dollars on various audit functions – not only the CAFR, but also the operations of the D.C. Auditor and the Office of the Inspector General. A few years ago, we decided to pool all this information more systematically and bring in under-performing agencies to submit remediation plans to correct the deficiencies. This new approach has begun to pay off.

We finished fiscal 2011 with a surplus of nearly $240 million, which now resides in our savings accounts. While I am glad that our financial position remains so strong, this surplus has caused a lot of anger among the hundreds of thousands of District residents who were asked to pay a number of new taxes and fees in last year’s budget, which I voted against. Before we rush to spend this money on an ever-expanding government, I think we need to take a hard look at making more sustainable spending choices. We have already received briefings on the status of the current fiscal 2012 budget by Mayor Gray and are expecting the upcoming fiscal 2013 budget submission from the mayor in late March. While we have a windfall now, indications are that the mayor will seek to spend all of this money and more to address potential gaps in the budget if he does not begin to spend within his budget. 

Every year, seemingly, we face “spending pressures” in the middle of the fiscal year. As it is February, the mayor has the opportunity to review these problems and take corrective action so that we end fiscal 2012 with a balanced budget. A more difficult challenge will be the work of the mayor and the council to balance the fiscal 2013 budget. Unfortunately, the government has built in cost increases every year, so that we pass the biggest budget in our history each year in spite of the difficult economic climate. No other state goes through recessions without making tough spending choices as a result. Clearly, this spring we will have some very serious challenges facing us and many tough decisions to make. I hope that with your help we can convince the mayor and my colleagues to find efficiencies within existing agency budgets by making tough choices rather than simply increasing taxes every year.

Before the budget is released, we first go through the performance oversight process. Over the past two weeks, I have sent a number of questions to the agencies under my purview to collect data on agency structure and recent spending. After I review what has worked and what has not, I will be in a better position to make recommendations on adjustments to the agency budgets for next year. Thanks for your support during this process, and please feel free to contact my office as well as to my colleagues to share your views.

Jack Evans •

I co-chaired a meeting on the District Council’s Subcommittee on Redistricting on proposed changes to the advisory neighborhood commission (ANC) and single-member district (SMD) boundaries on March16. According to federal law, the District must perform a redistricting of its eight wards within 90 days of the council’s receipt of the U.S. Census report, which happens every ten years. After completion of the ward redistricting process, which took place last summer, the council reviews and makes adjustments to the boundaries of the ANCs and SMDs.
 
As I have said before, in my 20 years on the council, there is no issue I have encountered that evokes a stronger emotional reaction than redistricting. To co-chair the committee overseeing redistricting is a thankless job. No one ever compliments us on preparing a “great” redistricting map, but many folks find aspects of any plan that they don’t like. There is no way to make everyone happy in the redistricting process, but my goal in the ward and ANC/SMD redistricting processes was to maintain and reunite neighborhoods wherever possible, while making use of census tract lines, natural boundaries and major traffic arteries to create logical borders within the framework imposed on us by federal law.

Under § 1-1041.01 of the D.C. Code, the Council of the District of Columbia is required to appoint ward task forces to recommend adjustment of the boundaries of the ANC area and Single Member Districts. In practice, deference is given to each ward member to appoint a task force chair and membership. I want to take this opportunity to publicly thank Tom Birch for agreeing to serve as chair of the Ward 2 Task Force on Redistricting. Another thankless job, the task force chair is responsible for being an arbiter in the process if any major disagreements arise. My subcommittee sent instructions to all councilmembers recommending appointment of a broadly-based task force for each ward. The method that seems to work best in Ward 2 is to create a task force subcommittee for each neighborhood, and I want to thank all of the ANC chairs and citizen association heads or designees that co-chaired the neighborhood groups.

I think we can be proud of the outcome of these meetings in Ward 2 and across the city. Where the boundaries are working and population remained relatively constant, such as in Kalorama, it makes sense to leave boundaries as they are, which is what our task force recommended.  Where significant Ward 2 boundary changes have been made, such as the welcome reuniting of Penn Quarter, significant changes are required to create ANC and SMD boundaries that make sense.  Thanks for your patience and participation in the process.

Jack Evans • April 4, 2012

Last week, Mayor Vincent Gray submitted his Fiscal Year 2013 budget proposal to the Council. The total proposed budget for the District is $11.3 billion, the largest in our city’s history. Of that amount, our proposed local funds budget for FY 2013 is $5.9 billion, which is $237 million more than the FY 2012 approved budget of $5.6 billion, an increase of 4.2%. Once you add in certain dedicated revenues, the entire general fund revenue proposal is $6.6 billion. While we also receive federal money in our budget, it is in the same proportional ballpark as that received by any other state. There is a common misconception that the federal government makes a separate contribution to the District, however, this type of payment was eliminated in 1996.

Over the past ten years, our local funds budget has gone from $3.7 billion to $6.1 billion, an increase of 64%. Much of this increase has been in the social services and education budgets. Today, almost 80% of our budget is used for social services, education, and public safety. In light of this extraordinary spending growth, I simply cannot understand the position of some of my colleagues and policy advocates who say we are not providing adequate funding for social services programs. An argument can perhaps be made that spending choices should be made more wisely, but we are not in need of any new revenue.

Fortunately, the Mayor seems to agree at least partially with those sentiments. I am pleased with certain aspects of the budget, such as the absence of any tax increases. I am also pleased to see at least a token increase in the homestead deduction, standard income tax deduction, and personal income tax exemption. I would go even further, however. Due to our large surplus from the past fiscal year and an increase in our quarterly revenue estimate, an argument could be made that we should return these tax dollars to taxpayers, and return the furlough money to our government employees.

I also have concerns that certain revenue raising proposals in the Mayor’s budget may not generate the projected levels of funds. Of particular concern is a proposal to expand the hours during which alcohol can be sold, from 2:00am to 3:00am on weekdays and from 3:00am to 4:00 am on weekends and holidays, for the apparent purpose of generating $1.3 million in increased sales tax revenue annually starting in FY 2013, and approximately $5.32 million in the four-year financial plan period. I believe many residents of Ward 2 will object to this type of change. Therefore, this will require that we find funding elsewhere. The Mayor also proposes to raise $24.8 million in new revenue from increased speed and red light ticket cameras. I disagree philosophically with this nickel-and-dime approach to balancing the budget.

Last year I expressed concerns about inadequate police funding in the budget. While I am encouraged by the Mayor’s commitment to fund additional officer positions, I disagree that a staff of 3,900 officers would constitute a “fully funded” police force. I believe we should increase our force to a minimum of 4,000 sworn officers at all times to protect us from rapid changes, such as when we reach a “retirement bubble.” I also believe we should provide at least $10 million in funding for the Commission on Arts & Humanities as well as additional funds for libraries and parks.

I will be working with my colleagues on the Council to make improvements to the Mayor’s proposal and hope to have your support. Last year, I voted “no” on the budget.  I am hopeful that I will be able to support it this year.

Jack Evans • June 29, 2011

Friday night was the Volta Park fundraiser at Georgetown Visitation Preparatory School. A large number of Georgetowners and other advocates turned out to show their support. Mayor Gray, Councilmember Catania and I all attended and gave our support. Of course, Mimsy Linder was the Mistress of Ceremonies and again made sure the weekend ran smoothly.

Linder and John Richardson were the original forces behind the renovation of Volta Park. It was through their efforts, as well as the efforts of so many Georgetown residents, that we have a first rate playground and swimming pool complex.

Saturday and Sunday were the doubles tennis tournament. The winner this year was WTOP political commentator and former Georgetown resident Mark Plotkin (the Comeback Kid) and his partner, John McDermit. Mark is a five-time winner of the Volta Park tennis tournament, his last victory in 2000. His four-year reign began at the 1997 inaugural tournament with his partner and Georgetown resident Garrett Rasmussen and extended through 2000. After a twelve-year hiatus, this victory seals his reputation as the premier tennis player in the history of Volta Park.

Sunday was Volta Park Day, kicked off by the annual East vs. West softball game in which the East was again victorious, continuing its winning streak. At 3 p.m., the picnic and games began. You could smell the hamburgers and hotdogs on the grill throughout the entire neighborhood. The dunk tank was in full operation and my daughters Katherine and Chris, along with their friend Hannah, ran the snow cone booth while my son John was the popcorn vendor. When they left to go swimming, I took my turn on the snow cone machine and Nancy Taylor ran the popcorn machine.

As if on cue, it began to rain as the events came to an end at 6 p.m. bringing another very successful Volta Park weekend to a close.

To me, the event signifies the beginning of summer in Georgetown. I look forward to the many fun summer events, including the very popular concerts in the park. Wishing everyone a fun and happy summer!

Jack Evans •

-By now homeowners in the District will have received their annual property tax assessment from the Office of Tax and Revenue. The Chief Financial Officer (CFO) tells us that overall the value of residential properties has declined between 3 and 4 percent, and commercial properties have declined by just over 10 percent. The CFO has also recently released his February revenue estimate report, which will show a decline for FY 2011 of about $71 million for property taxes — largely stemming from the decline in commercial property values.

To me, this is no great surprise. Given the state of the economy I fully expected commercial property to start showing a decline in value. An interesting observation from residential property is that the decline is largely on the east side of the city — where foreclosures have been highest — and that values in Ward 2 have remained fairly stable.

One policy hitting a number of taxpayers this year is the institution of what’s called the 40 percent “floor” on residential property taxes. This proposal was submitted by the mayor as part of his FY 2010 budget last spring and was adopted by the council. What is the 40 percent “floor?” It basically states that a taxpayer must pay property taxes on at least 40 percent of the assessed value on their home, and no lower. I spoke up against this proposal — in fact, I noted in the budget report of the Committee on Finance and Revenue that this proposal could have some negative consequences on tax bills — particularly for seniors. Now that the bills have come out, we are indeed seeing that. As part of our budget oversight hearings this spring, I will be asking the Office of Tax and Revenue for further data on this matter and its impact, and I’d appreciate you sharing your experiences and observations with me as well. We have heard from residents whose property tax bills have essentially doubled — which back when I passed the 10 percent cap was something I wished to avoid. So, your input is welcome.

All this being said, with the downturn in commercial property values — which is a situation that I think will continue for a few years – we need to be especially careful in our budgeting for FY 2011 and onward. Property speculation, both residential and commercial, led to the bubble which collapsed along with Wall Street in the fall of 2008. I do not think we will return any time soon to the days of quarterly revenue increases that we can use to continue to expand our government and pay the bills. In short, we have to create a post-bubble budget that lives within our means. The most important part of that exercise is restraining growth. Dr. Gandhi, our Chief Financial Officer, also let us know that to continue the current functions of the D.C. government from FY 2010 to FY 2011 there is a growth of over $400 million, even if we add no new programs or spending. So are there hard choices ahead? Yes there are, but I think between the mayor, the council, and the CFO we are ready to make those difficult decisions.

The author is a city councilmember representing District Ward 2.

Jack Evans •

-Last week, we lost two giants of Ward 2.

While most people have probably heard the news, I want to take a minute still to recognize and remember the lives of Charles Bermpohl and Miles Groves.

Charlie is best known around town for his seven-year stint at The Current, covering the ins and outs of Georgetown. He loved reporting. He loved his job. That’s more than many of us can say and for that we should count him lucky.

One look at Charlie and you knew right away that he was a reporter. Why? Because he looked like one. The Columbo trench coat, the fedora, the pad and pencil — the quintessential reporter.

Anyone who knew him knew that he was much more than your regular newspaper man. He was insightful, fair-minded, he asked good questions, and most importantly — he cared. He used these attributes, which I don’t see in most reporters these days, to get at the heart and truth of a story. With the Internet and the 24-hour news cycle, this doesn’t come as easily as it used to.

50 years of reporting in New York, Florida, and the District means that we aren’t the only ones missing Charlie today.

For those who would like to pay tribute to Charlie, an “Irish wake” will be held in his honor on April 24 from 2 to 4 p.m. at McLean Gardens Ballroom.

Miles Groves lived downtown since the mid-1990s and through the founding of the Downtown Neighborhood Association four years ago, is credited for bringing together downtown residents and business owners on key issues that affected the neighborhood.

Miles was instrumental in several projects and initiatives in and around Downtown. From negotiating ABRA agreements to fighting crime to addressing a broad range of quality of life issues, his accomplishments were many. Miles not only witnessed the transformation of Chinatown and the downtown, but was instrumental in making the neighborhood what it is today. For this, we are all grateful.

Community members, leaders, and activists will gather on March 24 at 6:30 p.m. at the Calvary Baptist Church to honor Miles and his great contributions to the District and downtown.
Our thoughts and prayers go out to the family, friends, and the countless number of District residents who were touched by the lives and work of Charlie and Miles.

They are truly missed.

The author is a city councilmember representing District Ward 2.

Jack Evans •

-The anticipation at the Verizon Center last Wednesday night could not have been greater. The Washington Capitals, our great hockey team with the best record in the National Hockey League, was playing in Game 7 of the first round of the playoffs against the Montreal Canadiens.

The Caps, after losing the first game at home, ran off three straight wins and led the series 3-1. They then lost one at home and one in Montreal. We all knew the Caps were the better team and looked forward to a great victory at home. It was not to be and we lost 2-1. Thus another disappointing end for a Washington team, a city that hasn’t had a championship in the big four since the Redskins won the Super Bowl in 1992.

Washington has now gone longer than any other city without a championship in a major sport. (As an aside, kudos to Mark Ein of the Kastles and D.C. United — both teams have brought championships home to the District.)

So where is the future of Washington sports headed? Actually, to a very promising place.

The Capitals will be back next year just as good and hopefully advance to the finals. The Redskins appear to have a good coach, a new quarterback, and a new outlook. We will all have our fingers crossed come September. The Wizards franchise may have a future. Ted Leonsis (of Caps fame) now owns them and we hope he can bring his winning ways to our lackluster basketball team. Good luck, Ted.

Finally, have you been to a Nats baseball game this year? Go. The team has a winning record and is off to its best start since their first season in 2005. It’s probably too early to tell but we may be in for an exciting summer.

So here’s to the future of Washington professional sports. The day will come when we again bring home a championship.

The author is a city councilmember representing District Ward 2.

Jack Evans •

-Next week on Wednesday, May 26, the D.C. council will vote on the fiscal year 2011 budget. The District’s next fiscal year runs from October 1, 2010 through September 30, 2011. The current budget was prepared by the mayor beginning in October 2009 and submitted to the council on April 1, 2010.

By law, the council has two months to hold hearings and pass a budget. It is then sent to the mayor for his veto or approval. If approved, it is then sent to Congress for their approval by October 1, 2010.

Because of the slowdown in the economy, the city’s revenues are no longer increasing and, as such, reductions need to be made in our spending. The mayor’s FY 2011 budget is balanced and relies on significant spending cuts and increases in a number of fees and penalties. It also relies on spending additional money from our fund balance, i.e. our savings account.

I have analyzed the mayor’s budget carefully and have the following observations.

The cuts he recommends are painful but necessary. The amount the city spends has increased significantly the past 10 years and now it is time to reduce spending. Tough choices need to be made.

The fee and penalty increases are problematic. Our residents and businesses are tired of being nickeled and dimed to death. People don’t want to pay this government any more money. Thus the proposal to increase parking meter fees and charge more for basic licenses, etc. should be reversed.

Finally, spending more from our savings account to fund agency operations is bad policy. In 2007 our fund balance was $1.6 billion. It is currently $920 million and would be $600 million in 2012. The city would have spent $1 billion of its savings, which will really hurt our position in the credit market.

If the council does not accept the mayor’s increases in fees and does not wish to spend from the savings account, it must identify additional funds to balance the budget. In addition, many members of the council want to add back the mayor’s cuts and unrealistically fund new programs. This also takes new money.

Several council members want to raise taxes to pay for this spending. Nothing could be worse for the city. Increasing taxes in a recession is bad policy because it allows the spending to keep increasing, forcing us to increase taxes again the next year. The proposals put forward include, among other things, a raised income tax, new taxes on tax-free bonds, and extending the sales tax to services. Given that the District is ranked 51st in tax burdens, it is very counter-productive.

I will continue to work hard to balance our budget without further burdening our residents and small businesses.

The author is a city councilmember representing District Ward 2.