Fenty Budget Cuts 385 Jobs, Increases Schools Funding
With details still scarce, Mayor Adrian M. Fenty's budget proposal holds sacred education and public safety, while finding sundry service cuts and fee hikes to close an approximately $550 million budget gap.
The budget proposal eliminates 385 full-time equivalent positions; a Fenty official estimated than one-half of those positions are already empty, the other half will be laid off. The proposal also seeks to freeze automatic "step" increases in government worker salaries, saving $20 million. All told, general spending is falling 1.2 percent against the current fiscal year.
The big news is what is increasing: Fenty is proposing actually hiking funds for D.C. Public Schools and charter schools by as much as $140 million. The per-student funding formula would increase by $175, to $8,945. Fenty is also proposing a modest increase, 4 percent, for the Fire and Emergency Services Department.
What Fenty isn't proposing: No additional money for Metro, to help offset proposed service cuts. And no local money for vouchers, making up for the federal money lost after Congress refused to reauthorize the program.
How to pay for it all? Fenty, in keeping with a 2006 campaign pledge, is not proposing any hikes to the "Big Three" revenue generators: sales, income, and property taxes. But, as has become habit, there is a passel of new fees in the Fenty budget: $28 million in increased traffic fines; $7 million in 911 fees (see below); $150,000 in increased notary registration fees; $3.6 million by hiking parking meter rates from $.75 per hour to $1 per hour; $3.1 million from a "fee for steel plates on roadways"; $920,000 from additional fees for business licenses and public space permits; and $16.1 million in other fee hikes.
There are other cuts, too: Changing hazardous-waste dropoffs from weekly to monthly; eliminating the police department's pager contract; and merging the Office of Employee Appeals, Public Employees Review Board, and the Office of Administrative Hearings into a single shop, saving $1.9 million. But there are still no details on core human services functions—health care, homeless services, poverty relief, and other programs that are very costly and are expected to bear heavy cuts. A group of activists, from Save Our Safety Net, briefly interrupted Fenty's press conference this morning to protest the anticipated cuts.
Some big fights to come:
The Enhanced 911 fee, aka E911. Fenty has proposed this fee every year in office, which would add a tax to phone bills raising, an estimated $7 million in FY2011. And every year he's proposed it, At-Large Councilmember Phil Mendelson has cut the fee from the budget. This year, there's a twist: Fenty wants to take the fee and use it not for enhancing 911, according to a CFO analysis, but to pay salaries and benefits for 30 employees. That would require a change to current law—a tough slog for sure.
A tax on hospitals. Fenty is proposing to raise $25 million by levying a "new assessment on net patient revenue" at city hospitals. Standing in front of the John A. Wilson Building today was Robert Malson of the D.C. Hospital Association, a powerful lobby group. "The hospitals are pleased to do their part, but everything has to be on the table" in terms of spending cuts, he says. "We can't afford a one-percent tax on inpatient and outpatient revenues."
Office of the Tenant Advocate. The city's voice for renters is losing $496,000 in funding, according to the CFO's office. City Administrator Neil Albert pledged today that the office would continue to exist under the Fenty budget, and that it would continue to serve the same role it does in the current fiscal year. But details are quite sketchy indeed, and any attempts to cut its budget will lead to jawing from council progressives.
Fund balance. The Fenty plans spends down the city's savings account by $97 million; Gandhi testified earlier this year that the city was approaching the limit of how much it needs to keep in reserve in order to meet its cash needs and statutory obligations. Gandhi, while certifying the request, warns in a letter that officials should "take steps to augment, or at a minimum, replenish the General Fund Balance." Fiscal hawks like Jack Evans and probably Vincent Gray are likely to make it an issue. A related issue: $97 million in "debt restructuring" that saves the city money in the short term but increases interest costs down the road.
Summer jobs. Last year, Fenty proposed a 10-week Summer Youth Employment Program, a costly mayoral pet initiative. However, the council, in order to cover a late-breaking revenue shortfall, saw fit to reduce the program to just six weeks this year. In 2011, Fenty is again proposing a 10-week program, but says he can do it for only $22.7 million. (A 10-week program in 2008 cost well over $40 million.) Fenty budget aide Merav Bushlin told councilmembers that program spending "depends on how the program is structured."
Photo by Darrow Montgomery
1:18 pm
The Mayor's budget balancing approach once again relies on regressive fees and cuts. Save Our Safety Net protested today because the Mayor did not look to additional tax brackets for the top 5% of DC residents in order to fund the safety net programs we all rely on.
1:22 pm
why not eliminate the identity-politics based offices like the Office and Gay and Lesbian Affairs - these are truly a waste of resources.
1:39 pm
Watch and see as the dumb ass BAG TAX morphs in to closing the budget gap!
1:39 pm
Watch and see as the dumb ass BAG TAX morphs into closing the budget gap!
1:57 pm
Risk Mangus, bag tax revenue, such that it is, is being used to offset DPW street sweeping. A function that has ALWAYS been a part of District services. I lie to you not. The tax was very specific to what is was to be used for, but the Mayor, in true fashion, said to hell with what they told the public to get support for the tax, they will use the tax funds how HE wants too.
2:04 pm
What's the logic here??
You hurt parents while PIMPIN' the children....brilliant and business as usual!
3:30 pm
@proballdc - Are you sure his budget doesn't simply amend the bag tax law to say what it will be used for? If Wells disagrees, that's fine. Let him then figure out how to make the numbers balance.
5:50 pm
Seems good to me.
Keep strong such core services as education and emergency response, and trim as needed elsewhere.
Excellent.
6:34 pm
sedcdude,
Logic seems pretty clear to me.
The education and safety of the Districs children is the the highest priorty.
The government will have to do more with less. They is not going short change children so government employees can keep their jobs. Just like they wouldn't cut out summer school to avoid laying off teachers.
How is more funding for schools pimping the kids?
This is a major recession and kids should not suffer ahead of adults.
6:41 pm
You guys are pathetically funny. If Fenty said that it was ok to molest children, you would raid the playground because he said so.
It is NOT OK to present a tax before the people and say it is for x, y and z to get their support. And then, when revenue is generated from it, use it for a, b and c.
That Wells can make an issue of it not the proverbial point. The point is, this Administration tells the people one thing then does another.
Like you say that it is "ok", though unlawful, for the Mayor to shift 85 million in District taxpayer dollars to a private entity to dole out in contracts, to friends and cronies, outside of legislative oversight, because he thought it was a "good idea". Because it produced a faster turnaround in getting projects completed.
To you, laws are for everyone to follow, but the man whose butt crack is the color of your nose.
7:04 pm
LOL proball is still working through voters' lack of luv for Linda. :)
7:06 pm
@Proballdc: You do realize that the proposed budget support act will be transferring money from all over the place into the general fund, so as to make the numbers balance and get OCFO certification?
Of course you don't. That would require something a bit deeper than the usual "Fenty sucks!" level of thinking you usually do.
7:37 pm
Why is King Fenty and the Council pouring billions of dollars into a school system with a small population? D.C. spends more per capital on it's school system oppose to other much larger school systems in the country and the DCPS is still rated worse than a third world school system. Why not use this money to go towards mental health, public safety, and more senior citizen housing? During these stressful times, mental health is just as if not more important than healthcare. Suicide, depression, bipolar, and other mental health disorders have increased across the country, but it's ignored and stigmatized.
7:39 pm
probaldc,
"You guys are pathetically funny. If Fenty said that it was ok to molest children, you would raid the playground because he said so."
Wow! Now Fenty is a potential child molester! Got to love it.
8:03 pm
ANSWER
"The education and safety of the Districs children is the the highest priorty"
"Should be"........
Too funny, where are the politician's children being educated???
District youth already are and have been suffering because of SO-CALLED ADULTS!
8:19 pm
"Why is King Fenty and the Council pouring billions of dollars into a school system with a small population?" GOOD POINT WARD4DC. THEY ALSO HAVE LESS TEACHERS.
HEY hymesb, downtown rez AND Sally I WOULD GRANT YOU A MORATORIUM ON FENTY FOR A WEEK IF YOU CAN FIND OUT IF BANNEKER VENTURES EMPLOYED ANY DC YOUTH LAST SUMMER DURING THE SUMMER YOUTH EMPLOYMENT PROGRAM?
8:31 pm
noodlez-
I don't know but would put $5 that they did. Pretty much every one did.
8:46 pm
I KNOW PRETTY MUCH EVERYONE DID. MY QUESTION WAS DID THEY.
9:56 pm
Stop anymore of Lord Fenty's stupid and costly bike lanes, and you can save a lot of money there!
10:19 pm
Really, we need to rethink our tax policy. People would always mind paying because they are taxes and government isn't the most efficient operation. But these new fees might as well be taxes and call it done.
10:33 pm
Opponents often refer to Politicians as "King" when they don't like them. King Daley, King Herenton, King Bloomberg, King Obama, King Fenty.
It is a cheap shot.
They aren't acting like Kings. They are acting like Executives. Read the job description. Chief Executive. Execute means "to put into effect; carry out." They enforce the law.
It is a cheap trick to condemn a person for doing there job. My problem with the council under Gray is that they want to micro manage and second guess the execution of the law. Their job is to create law along with the executive. It is the job of the judiciary to intrepret the law.
Gray has wanted to run for mayor for four years now. He has operated as if he is a mini-mayor. The tools...emergency legisalation, investigation, and character assasination.
But when you ask him: what would you do? (i.e., execute). He says: "I'll get back to you on that. In the meantime, why don't you come watch me "legislate" on chanel 13."
Negro, you are giving that job up! Why the hell would I come watch you play left field when I am looking for a pitcher?
Anyway, I say all that to say.......don't hate the player, hate he game.
3:32 am
hymesb
sounds good, but it ain't.....how bout we FIX the game and FIRE the player!!
Play baaaaaalll!!
6:32 am
downtown rez, yet again, you postulate wrong. I did not and would not support Linda Cropp. I just know what killed her campaign. To annunciate that does not underscore "support". Can you register that?
6:43 am
@Sally: You went there. So I'll carry your high and mighty ass home. You are right, during the budget process, prior to being certified, it is OK for the Mayor and Council to shift money around to fill in fiscal gaps where they exist, or to protect pet projects or re-fund services that the the Council feels are essential to their constituents. However, once certified and approved by Congress, THEN it becomes unlawful to shift budgeted funds, like the 85 million the Mayor shifted to a private entity, without legislative review and approval. Even the Mayor's beloved Attorney General publicly spoke to that fact.
Of course YOU didn't realize it because you get your panties all tied up in a knot when someone speaks to the facts of this Mayor's ethical and legal lapses. Get a grip! K?
7:02 am
@hymesb: If you can't get the point, why bother. Nobody called Fenty a molester. Read it again, call up the Rhee if you must, so that you can get a handle on reading for comprehension.
8:09 am
If i could increase spending per- pupil and put Phd's in every classroom in all schools in D.C the culprit of behavior would remain. Bad behavior keeps the media, politicians,preachers,and the prisons in business.Curb the bad behavoir of those students the grades would increase and the prisons will cease being a growth industry.