Jack Evans • May 23, 2013

Beginning last Tuesday, my colleagues and I met for two full days to discuss the budget proposal currently before the Council. At these discussions, each committee chair is asked to summarize his or her proposals and then respond to questions from other councilmembers. The first day, we primarily discussed the Budget Request Act component of the budget — the “numbers” I described in my last article, such as the funding levels we are recommending for various government agencies and grants. On the second day, we discussed each committee’s Budget Support Act recommendations — the “words” that give the government the legislative authority necessary to make the numerical portion work, such as my new initiative to dedicate a portion of our existing sales tax revenue to the arts.

For the last several years, these discussions have been held in full view of video cameras for the benefit of the public. The result is a great deal more grandstanding during these discussions and less candid dialogue. The next step is a Council vote on the full proposal. Only 24 hours’ advance circulation of the report is required prior to our initial vote, and by tradition, budget reports have actually been transmitted as late as 2 a.m. for a 10 a.m. vote — not necessarily a best practice.

I am hopeful we will stick pretty close to the mayor’s initial proposal, which does a good job striking the tough balance between long- and short-term objectives, and fostering the development of our business community (and resulting tax revenue) while providing support for those in need. When all is said and done, I will be proud to vote for a budget that restores Sunday hours in our neighborhood libraries, invests $86 million in affordable housing and repeals the municipal bond tax that has created such a burden for our seniors (without raising any meaningful revenue!). Looking forward, I hope to soon be able to let you know of the mayor’s fulfillment of a commitment to me to appropriate an additional $5 million for arts funding in our city, and a further $7 million off our budget “wish list,” if incoming revenues continue to outpace projections.

Thank you, as always, for your support, and please continue to send me your ideas.

Jack Evans • May 9, 2013

As I write this article, I am settling in for a weekend of work on my committee’s budget report. The Finance & Revenue Committee, which I chair, has the responsibility for oversight of the office of our Chief Financial Officer, as well as our real property tax appeals board, the convention center, Destination D.C., and the Commission on the Arts and Humanities.

Most people picture the budget as primarily a series of numbers, but there is much more to our budget documents than that. The budget is really a policy document. It outlines our most important priorities as a government and as a city, and describes how we intend to achieve our goals. There are actually a number of “words” that go with the mayor’s budget proposal – first are the “budget books.” This six-volume set of books comprises well over 1,000 pages of descriptions of the composition and function of our government agencies. The books also describe any changes in funding and goals from the prior year. For example, I recently oversaw the transition from our broken Board of Real Property Assessments and Appeals to a new Real Property Tax Appeals Commission, which has been going very well. The budget books are a great source for understanding the reasons and mechanics behind a transition like this.

Another important budget document is the Budget Support Act. This is a nearly 200-page legislative document that provides the legal authority for any action contemplated by the budget, such as the specific rules or criteria for a new tax (Don’t worry, there aren’t any new taxes in this budget!).

A third important category of budget documents is the reports and recommendations of the District Council committees, which brings me back to the opening of this article. My committee report is the best opportunity for me to express my views on the budget in a formal way. In years past, I have used my report the way a Supreme Court justice makes use of a dissenting opinion, to express the reasons why I disagree with the mayor or my colleagues on various proposals. Two years ago, I provided my rationale as to why it was a bad time to increase taxes and fees on our residents and small businesses, despite the fact that the majority of my colleagues did not support me and voted to raise a number of taxes over my objection.

This year, I am pleased to be able to support the budget as a whole. So, my report is more of a statement as to how I think the budget dollars should be directed. While the legislature has the “power of the purse,” the executive branch ultimately gets the authority to spend the money. With this being the case, it is all the more important that the legislature provide clear stipulations as to how the executive agencies spend the funds we appropriate. Last year, for example, we allocated $50,000 to an innovative nonprofit organization that partners with local farmers’ markets to provide incentives to lower income residents to make healthy food choices. The nonprofit partners with farmers’ markets to double the value of WIC dollars, or food stamps, for people who choose to make their purchases at the markets. After we made the allocation, though, the executive decided to use the money for a less-used voucher program, instead, rather than sending the money to the markets. This year, we will be more specific in our legislative language, while also increasing the funding for this important program. When I see a $2.5-billion Medicaid appropriation in our budget every year, it reinforces my desire to shape policy in a way that emphasizes prevention and gets more “bang for our buck.”

I also intend to unveil a new arts funding program in my budget report. While I have been largely pleased with the grant process of the Commission on the Arts and Humanities, I think these grants have been generally too small. This year, I will be making a proposal to dedicate 0.25 percent of our 6 percent sales tax, around $22 million per year, to fund the arts. From within this dedicated tax number, I want to support large art projects as well as small ones. Without city funding, we would not have an amazing Arena Stage facility, as well as one for the Shakespeare Theatre, or a revitalized Ford’s Theatre, among many others. Now that our revenues are growing again, we should recommit to enriching the cultural life of our city and providing this important supplement to the inadequate emphasis on arts education in our public schools.

I hope to have your support on these initiatives.

Jack Evans • April 11, 2013

I was pleased to work with the Mayor Gray as he developed the fiscal year 2014 budget, which will be the District’s 17th consecu- tive balanced budget. I support many of the mayor’s objectives as reflected in this proposal, including restoring funding for the Housing Production Trust Fund. I was pleased to see that many other issues for which I have advocated are also funded in the budget. Let me tell you about a few of the highlights.

First, I have been advocating for quite a while that our libraries be kept open longer. I introduced a bill to mandate that libraries be open seven days a week, and for longer hours. The mayor included in his budget proposal an increase in funding so that all of our public libraries will be open on Sundays. The budget includes $8 million toward new hours and an additional $2 million for new books.

I was also pleased to see included funding to repeal the tax on out-of-state municipal bonds that had been put in the budget a couple of years ago by the prior Council chairman. I introduced and passed a bill to repeal this tax, but it needs an appropriation in order for the repeal to be implemented. The bond tax disproportionately impacts our senior citizens and those near retirement. Rather than encourage these residents to move elsewhere, I am hopeful that we can keep them in the District, where they will continue to contribute to the civic and cultural life of our city.

The budget also includes allocations for projects of importance to Ward 2, such as funds to restore and enhance Stead Park and Mitchell Park, and to keep the DMV located at Georgetown Park. Another item of importance to Ward 2 residents is public safety. I introduced a bill to mandate 4,000 officers as minimum police staffing in 2011. I am glad my proposal is coming to fruition with the mayor’s inclusion of a line item to fully fund 4,000 police officers. Finally, while no longer technically in Ward 2, I have long pushed that the city fulfill its promise to rebuild Shaw Middle School, which serves a dynamic and growing population of District residents, including Ward 2 residents.

The budget also funds a number of citywide initiatives of importance to me. For example, the budget provides for “supercan” trash receptacle replacements throughout the city, which improves the cleanliness of our neighborhoods. This is an issue I have spoken about many times and raised again just a few weeks ago at our legislative meeting. I was also pleased to see funding included for two citywide capital projects I advocated for: $15 million to rebuild the Fort Dupont Ice Rink, in Ward 7; and $18 million for the renovation of the Southeast Tennis and Learning Center, in Ward 8.

One item that continues to need our attention is enhanced funding for the arts. Last year, I identified funds to increase the allocation to the Commission on the Arts & Humanities by more than $6 million. Unfortunately, these were “one time” dollars that were not renewed in the mayor’s 2014 proposal. These cuts are partially offset, however, by a countervailing increase in the commission’s capital budget by more than $2 million in new funding per year. In addition, nonprofits, such as the city’s arts organizations, can apply for up to $100,000 per year, for a total of $300,000, from the “One City Fund” that the mayor has established with a balance of $15 million. I am hopeful that these two funding sources will be used to backfill the other reductions and make sure that our arts community continues to provide important educational and economic development benefits to our city.

This is an important time in the financial life of our city, particularly in light of the upcoming transition of our chief financial officer due to Natwar Gandhi’s recent decision to retire. I believe we are still on very sound financial footing, however, as underscored by our recent bond rating upgrade and the mayor’s responsible budget pro- posal. The District Council will be making its own recommendations regarding the budget in coming weeks. So, please, share your views with me and with my colleagues. ?

Jack Evans • March 28, 2013

As we wait for Mayor Gray to transmit his budget proposal to the District Council, I thought it would be a good week to reflect on some things our government is good at versus some areas that need improvement.

One area our government is pretty good at is ensuring civil rights for all our citizens. Our Human Rights Act is one of the most expansive in the country. In addition, we have the distinction of being one of the first jurisdictions to legalize marriage equality. I remember clearly the introduction of our marriage equality bill, just a few short years ago. I knew it was a historic moment. Due to the volume of legislation we introduce, members often delegate signature authority to a chief of staff or principal legislative staffer. With marriage equality, though, this was the kind of bill I was proud to personally sign.

As with so many areas, however, we can always improve. I watched with interest a recent hearing on our Marriage Officiant Amendment Act. This bill, which I coauthored, provides residents of the District with the ability to select a marriage officiant of their choosing, without having to either attempt to navigate the courthouse, wedding party in tow, or else work through a religious organization. I think it is preferable for couples to be able to select a person of importance in their lives to perform their ceremony, rather than a person they may not know well or at all.

Of course, there is more work to be done on the federal level and around the country. On March 26 and March 27, the Supreme Court will hear arguments relating to marriage equality — specifically, the Defense of Marriage Act, as well as California’s Proposition 8. To show community engagement on these historic issues, a rally in support of freedom and equality will be held by United for Marriage beginning at 8:30 a.m. on March 26, meeting outside the Supreme Court at First and East Capitol Streets, NE. I hope to see you there.

Of course, my office is always available to help my constituents with these and any other D.C. issues.?

Jack Evans • March 13, 2013

Every year, the Mayor, the Chairman of the Council, the Chief Financial Officer and myself, the Chairman of the Finance Committee, meet with the three major Wall Street rating agencies (Fitch, Moody’s, and Standard & Poor’s). These meetings are important because the rating agencies evaluate the fiscal health of cities, counties and states throughout the country. These ratings, in turn, impact the interest rate imposed on our borrowing through public finance bonds. The proceeds of these bonds allow us to make capital improvements, such as work at our schools, libraries, and even roads –backed in part by the federal government as well. The better the rating, the lower the interest rates and the less it costs to borrow the money. Because of the increase in our bond ratings, the District has saved millions in debt service over the years.

This year, the District delegation was pleased to report on the city’s annual audit of FY 2012, which reported a surplus of roughly $417 million. In addition, the delegation discussed the potential impact of the federal sequester cuts and the ongoing efforts to stabilize the United Medical Center hospital in Ward 8. Finally, the rating agencies were interested in the process for selecting a new permanent CFO with the announced retirement of current CFO Natwar Gandhi.

I made a presentation to each of the agencies regarding our eligibility for a ratings upgrade. I reminded the agencies that we’ve done everything they have asked of us – we have put a cap on our borrowing, replenished the fund balance in our “savings accounts,” and produced structurally sound budgets for a number of years. The rating agencies are also realizing that the District’s economy has changed. We used to be able to tax only about 30 percent of the income earned in the District due to our inability to tax commuters. Now, as the number of District residents continues to increase, we are able to tax more like 45 percent of the income earned in the District. This means we have a stronger, more stable economy, and we are working hard to diversify. I always use the example of “BCD” – we are currently rated better than as Baltimore, Cleveland and Detroit, but we should be on the same AAA ratings scale as Boston, Charlotte and Denver.

I am hopeful that this will be the year for an upgrade, but if not, I will continue to advocate for balanced budgets and spending within our means while continuing to bolster our savings accounts. Thanks for your support.

Jack Evans • February 28, 2013

I wrote in my last column about the new Council period and a number of my priorities, such as education, public safety, and affordable housing. One of the things these goals have in common is that they are substantially impacted by the budget decisions that the Mayor and the Council will make over the next several months. As Chairman of the Finance and Revenue Committee, this half of the year is often my busiest.

I am hopeful that the Mayor’s budget will include funding for these items as well as for expanded library hours, and that it will include sensible tax relief now that we can afford it. This is a time when everyone is expecting hundreds of millions of dollars of “new” revenue to our government to be announced due to higher-than-expected tax collections as our economy improves. In light of that information, it simply doesn’t make sense to continue our plan to begin to tax out-of-state municipal bonds this year, a tax which largely impacts seniors. I believe I have the Mayor’s support on this issue, but it will help if he and my colleagues on the Council hear from you prior to and during budget considerations.

I am also hopeful that the Mayor will finally sunset the supposedly temporary increase in the sales tax. In case you don’t know the story, the government raised the sales tax from 5.75% to 6% several years ago with the promise that it would sunset by now. Unfortunately, when the government thought it needed the money, it simply repealed the sunset provision. Now that everyone knows we have the money, we should keep our promise to lower this tax. All my colleagues should be able to agree on this, as the sales tax is regressive, disproportionately impacting those who have the least disposable income.

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. I am also pleased to welcome the Commission on Arts & Humanities and Destination DC as new additions to my committee oversight responsibility this year. Thanks for your support during this process, and please feel free to reach out to my office as well as to my colleagues to share your views. ?

Jack Evans • February 15, 2013

I was disappointed to learn of Dr. Natwar Gandhi’s recent decision to retire as the District’s chief financial officer, effective June 1. Much of our success in maintaining fiscal discipline can be attributed to his leadership. I have said many times that I would not trade the District’s financial position with that of any other city, county or state in the country. The District now has a $1.5-billion cumulative general fund balance, a half-billion-dollar increase from just a few years ago. This is $2 billion above the District’s lowest fund balance level, which was minus $518 million during the Control Board period in 1996. Our audit this year was the District’s 16th consecutive clean audit and our fiscal year 2013 budget was the District’s 16th consecutive balanced budget.

While the mayor and members of the council have at times criticized Gandhi’s conservative revenue forecasts, I strongly believe having a surplus at the end of the year is better than finding ourselves with a deficit and the potential reintroduction of a control board. Particularly during this time of recent instability in our government, it has been critical to have an independent CFO with a demonstrated commitment to maintaining integrity in financial projections regardless of political pressure. I have seen firsthand how difficult it is to bring efficiency into a government bureaucracy, which makes it all the more impressive that our Office of Tax and Revenue can issue income tax refunds in three to five days for electronically filed returns, and just ten days even for paper filings.

Perhaps most important to me is the District’s bond rating. The District must issue bonds to finance important infrastructure improvements, such as schools, libraries and parks. I cannot emphasize enough how adept Gandhi and his team have been at communicating with the credit rating agencies at our annual meeting in New York. These rating agencies determine how expensive it will be for us to borrow money. Meetings such as this help us to secure our Income Tax bond rating of “AAA” by S&P and “Aa1/AA+” by Moody’s and Fitch. Our general obligation bond ratings, which were considered “junk bonds” in the Control Board Period, are now in the A+ and double-A range. The District has been recognized for our new highly-rated Income Tax Secured Revenue Bonds that help to ensure ongoing access to the financial markets with low interest rates. The initial issuance of these bonds gained recognition as one of the Bond Buyer newspaper’s “Deals of the Year” in 2010.

The credit rating agencies now have a very positive view of the District’s financial position and our bond issuances are routinely oversubscribed and pay among the lowest interest rates among major cities. Therefore, I am not just talking about a general sense I have as to Gandhi’s value – Gandhi’s work has led to tangible savings for the District. For example, the use of variable rate bonds has saved us more than $100 million.

Since Gandhi’s resignation is not effective until June 1, I am hopeful the mayor will undertake a thoughtful search and send a well-qualified candidate that I can move swiftly through my committee’s confirmation process.

While Gandhi’s departure will mark a huge loss to the District, the opening presents an opportunity to bring in a new perspective in furthering our financial stability and future growth.

Jack Evans • January 30, 2013

Council Period 20 is now well underway, and we will soon be swept up in our oversight and budget season. Before
that happens, I want to lay out some of my top priorities for the term.

Our public education system continues to be one of my top areas of focus. I was pleased to work with the community in helping to advocate that the Chancellor keep Garrison and Francis-Stevens open. Fortunately, the Chancellor took note of what we are already well aware of in Ward 2 – demographic trends in our neighborhoods require our city to pro- vide residents with the educational and other resources our new children will need. I hope families will continue to decide to stay in the District, unlike in past years, when so many young families would move to the suburbs once they started having children.

Next, public safety is a continuing prior- ity of mine. As the District’s population continues to grow, not to mention the daytime commuter population, we need an expanded police force to continue to keep us safe. While I applaud the Chief for reporting the lowest homicide rate in decades last year, we have to give her the resources she needs to continue this trend. When I first moved to DC, we had 5,200 officers on the police force. When I joined the Council, we had 4,800. Would you believe that today we have only 3,890 sworn officers? I introduced a bill a few weeks ago that would mandate that the Mayor fund 4,000 officers as a minimum staffing level. That is not a magic number, but in my judgment, after 20 years of service, it is a first step in the right direction. We also need to fund overdue pay raises to the officers currently on the force – when you don’t give pay raises for several years, retention starts to become a problem.

Third, I want to continue to focus on providing access to quality health care for all our residents. Hopefully, it is well known by now that we have the second-highest state insurance coverage rate in the country, with only Massachusetts consistently outscoring us. Isn’t it nice to finally be at the top of one of those state ranking lists? I am excited about the implementation of the District’s new health care exchange, which should make it easier for individuals to avail themselves of private health insurance options. I want to make sure, though, that this is not done in a way that increases insurance costs for our small businesses.

Fourth, I want to continue to fund afford- able housing. I was one of the original cre- ators of the Housing Production Trust Fund, and I still support it because it is one of a relative few government programs that con- sistently exceeds our performance expecta- tions. I believe it is critical to subsidize private developments, such as the Howard Town Center project, so that they include affordable housing components. I was dis- appointed to see undoubtedly well-meaning but nonetheless misguided opposition to this project from a handful of public officials and public interest lobbying groups. I think there is a misunderstanding by many of how this business works – developers will choose the most profitable business proposition available to them. Care to take a guess as to whether affordable housing generates more profits than the development of an office building? Anyone familiar with economics knows that if we don’t at least help cover the opportunity cost spread between the use we want (such as a mixed use that includes affordable housing) and the most profitable use (yet another office building), all we will get is office space. Not to mention that with regard to Howard Town Center, specifically, the land was sitting vacant for nearly a decade and will continue to do so if not for our efforts.

All of these priorities lead to my fifth goal – more jobs for District residents. When you provide a world class education system, a safe environment, and affordable housing, as well as health care, to all our residents, jobs will follow. While many parts of our city are doing well, other parts of our city remain at very high levels of unemployment and deserve our best efforts in facilitating job creation in the District. Helping to incentivize the creation of construction jobs through city projects prepares our residents for long-term career paths through apprenticeship programs. Once the developments are completed, permanent hospitality jobs result as businesses occupy the new spaces, and we receive many dollars in expanded tax revenue for each dollar we initially invest in subsidies.

Thank you for all your support and good ideas, and please don’t hesitate to reach out to my office if you have any constituent services requests with which we can assist you.

Jack Evans • November 15, 2012

Tuesday was a great day for our city, country and indeed the world. The initial election of Barack Obama as President of the United States was a historic and exciting event, and his reelection under- scores our ability to remake our government so it lives up to the highest ideals of our nation, both at home and abroad. His reelection brings both possibilities and responsibilities. The continued problems in the world’s financial systems pose distinct challenges to both our national and local economy. The responsibility of providing our residents with health care, an education, jobs, and real opportunities are high on the agenda. The threat of terrorism and war is something that can render any or all other priorities asunder.

I still believe Barack Obama’s pledge to create a new political framework in this nation, to reach across lines that have divided us to find solutions, is the right approach to finding practical solutions to the problems we face. As a region and a city we also have an agenda to pursue with the federal government – not the least of which is the question of full statehood and voting rights in Congress for the District. We also need to work to ensure the federal government partners with us to stimulate the economy – particularly by locating federal agencies right here in the District rather than in neighboring states.

At the local level, I believe it is important to bring people together again to work through problems we face here in the District. From days past, particularly in 2002-2003 when we faced budget challenges more severe than we do today, it was imperative that all the major stakeholders come together. While I know we won’t always agree on a plan of action, I look forward to having more dialogue with my col- leagues, the Mayor, and members of the community on budget and policy issues.

In Ward 2, I am, of course, excited about my reelection, and thank you to everyone who supported me. Our city and nation face some very interesting times ahead, but after last week’s election I have renewed energy, hope, and faith we can meet the challenges ahead. I heard unfortunately of a number of instances of inefficiencies or other problems in polling places – please let me know of any experiences you have had, positive or negative, that I can convey to the Board of Elections. On a final note – please be patient as we take down all our campaign signs – and if you see any that are still up after a week or two, please let me know.