Presentation to DC4D: FY 2019 Budget and Financial Plan Office of - - PowerPoint PPT Presentation

Presentation to DC4D: FY 2019 Budget and Financial Plan

Office of the Budget Director Council of the District of Columbia Jennifer Budoff, Budget Director

4/11/2018

Dedicated Taxes, 0.5, 3% Federal Grants and Medicaid, 3.4B, 23% Special Purpose, 0.7B, 5% Federal Payments, 0.1B, 1% Enterprise Funds, 1.9B, 13% Income Tax, 2.7B, 18% Sales Tax, 1.3B, 9% Property Tax, 2.7B, 19% Gross Receipts, 0.2B, 1% Other , 0.4B, 3% Non-Tax, 0.4B, 3% Lottery, 0.1B, 1% Fund Balance, 0.1B, 1% Local, 7.9B 55%

FY19 Pr Proposed Bu Budg dget an and d Fin inan ancial Pl Plan: $1 $14. 4.5 G 5 Gross R Reven enues (ex

excludes es i intra-district t transfers)

FY19 Pr Proposed Bu Budg dget an and d Fin inan ancial Pl Plan: Gross Capi Capital an and d Ope perating Bu Budg dget (ex

excludes es i intra-district t transfers a and e enterprise)

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500

FY19 Proposed Budget (in millions)

Operting Budget Capital Budget

Eco cono nomic c and nd P Poli licy cy I Impa pact ct Statements

Since 2016 Council has granted the Budget Office the authority to issue economic and policy impact statements on legislation and proposals. The Office has produced two such reports.

Council Rule 308

The reports offer Councilmembers a data- and evidence-based resource for weighing the policy implications and economic costs and benefits of new initiatives. They do not make policy recommendations, and their findings and conclusions are non-binding. They are not a substitute for the Office of the Chief Financial Officer’s fiscal impact statement (FIS).

Purpose

The reports include an examination of DC’s status quo; an analysis of the academic research and empirical evidence on the subject; a benchmark proposal against the policies of other states and localities; and a forecast of the magnitude and directionality of its impact on the local economy over a 10- year period. Forecast developed using REMI PI+ v2.0.3, a 70-industry-sector economic model that is tailored to the unique conditions of the Washington, DC MSA

Toolkit

Eco cono nomic c and nd P Poli licy cy I Impa pact ct Statements

• The Budget Office released its first report in December 2016
• n the “Universal Paid Leave Amendment Act of 2016.”
• Among the report’s findings is that such programs generally

boost women’s labor force participation rate, reduce infant and child mortality, and have little impact on most businesses’ profitability.

• Projects that it will have between a $15 million positive to a

$122 million negative impact on DC’s GDP over 10 years.

• Private sector employment will decline by 90 to 1,200 jobs.
• Report available for download:

http://dccouncil.us/news/entry/economic-and-policy-impact- statement-universal-paid-leave Paid Family & Medical Leave

Eco cono nomic c and nd P Poli licy cy I Impa pact ct Statements

• The Budget Office released its second report in February 2018.
• Estimates that it costs a family of three living in the District $96,885

per year to pay for their basic needs. The District has a robust social safety net that can cover the needs of some, but not all, low-income residents.

• Providing a minimum income that would allow all households to meet

their basic needs would cost $7 to $9.3 billion annually. The impact

• f doubling taxes would reduce DC’s overall employment and could

force the District government to forgo about $2.66 billion in federal payments and grants each year.

• A more moderate cash payment or negative income tax to provide an

income floor at 100% of the FPL may provide additional resources to DC residents without materially reducing employment or putting federal funds at risk.

• Report available for download:

http://dccouncil.us/news/entry/minimum-income-study-released-by- council-budget-office1 Guaranteed Minimum Income

FY 2019 Pr Propo posed Bu Budg dget an and d Fin inan ancial al Pl Plan Co Council Overs rsight S Sche hedule

The Executive transmitted the FY 2019 Proposed Budget and Financial Plan to the Council

March 21, 2018

Committee Budget Hearings

March 26 - April 26, 2018

Committee Markups

May 2-4, 1018

1st vote on the Local Budget Act, Federal Portion Budget Request Act & Budget Support Act

May 15, 2018

2nd vote on the Local Budget Act & Federal Portion Budget Request Act. 1st (and only) vote on the FY18 Revised Revenue Emergency

May 29, 2018

Second and final vote on Budget Support Act

June 2018

Conta tact I Informa mati tion Commi mitt ttee/ ee/ Issue Ar Area Phon hone Ema mail

Jennifer B r Budoff, B f, Budget D Director

• r

Revenue (202) 724-5689 jbudoff@dccouncil.us Angela la J Joyner, D , Deputy B Budget D Dire rector

• r

Judiciary, Housing and Neighborhood Revitalization (202) 724-5688 ajoyner@dccouncil.us Anne P Phelp lps, B , Budget C Counsel Committee of the Whole, Budget Acts (202) 724-8169 aphelps@dccouncil.us Joe Wolfe, Se Senio ior Cap Capit ital B Budg dget Analy lyst Economic Development, Capital Improvements Program (202) 727-6132 jwolfe@dccouncil.us Ave veri ril C l Carraway, S , Senior B

• r Budget A

Analy lyst Government Operations, Reprogrammings (202) 724-8544 acarraway@dccouncil.us John M MacNeil, S l, Senior

• r B

Budget A Analy lyst Transportation and the Environment, Finance and Revenue (202) 724-8056 jmacneil@dccouncil.us Su Susan anna G Groves, Se Senior B Budg dget Analy lyst Human Services, Health (202) 724-7782 sgroves@dccouncil.us Jas ason K Kim im, Se Senio ior B Budg dget A Analyst Education, Labor and Workforce Development (202) 724-8139 jkim@dccouncil.us

Offic ice o

• f the Bu

Budg dget D Dir irector Co Contact I Information