DCFPI wants to take a moment to thank Chairman Brown, Council budget director Jennifer Budoff and her staff, and the Council members and their staffs for working hard to craft a budget that truly moves our city forward. The decisions the Council made these past few weeks will keep our residents healthier, safer, and more productive.

So what happened yesterday? Here’s a rundown:

AFFORDABLE HOUSING: $18 MILLION RESTORED TO THE HOUSING PRODUCTION TRUST FUND

The Council restored $18 million of the $20 million cut from the trust fund in Gray’s proposed budget by redirecting money from the sale of DC-owned property in the NOMA neighborhood. DC’s supply of affordable housing is vanishing, and the trust is one of our best mechanisms to maintain and create affordable units down the road. Mayor Gray had proposed using funds from the sale of the property to create needed greenspace and parks in the surrounding NOMA neighborhood. The Council decided that parks for NOMA should be prioritized for any additional revenue and placed the $18 million as number 4 on the contingency revenue list.

HEALTH CARE: HOSPITAL SERVICES FOR DC HEALTHCARE ALLIANCE FULLY RESTORED

Committee on Health chairman David Catania and his staff worked very hard to keep hospital-based services for the DC HealthCare Alliance. Mayor Gray had proposed cutting hospital coverage for the Alliance, which provides health insurance for low-income DC residents who do not qualify for federal Medicaid. The Committee developed a proposal and then modified it in collaboration with the office of the Mayor. Here’s how they agreed to fund these important services:

• $5.3 million from additional Medicaid funds made available this year from activities at District nursing homes
• $3 million in unanticipated savings from managed care drug rebates
• $2.6 million by moving effective date of the hospital Diagnostic Related Groups (DRG) rate changes to Oct.1, 2012, instead of Jan. 1, 2013
• $1.8 million by reducing Department of Healthcare Finance cost settlements budget for FY 2013
• $1.4 million by revising provider fees for nursing homes, a portion of which is dedicated to the Nursing Home Quality of Care Fund
• $252,000 in personnel vacancy savings within the Department of Health Care Finance
• $103,000 in personnel savings within the Office of the Deputy Mayor for Health and Human Services

HOMELESS SERVICES: $4 MILLION ADDED TO LOCAL RENT SUPPLEMENT PROGRAM

The Council’s actions yesterday take a big step toward a better approach to sheltering our homeless residents. Starting in June, between 200 and 300 families will be moved from shelters and motels into homes through the rapid re-housing program. Then, in October, these families will be able to stay in stable housing due to the $4 million in additional funding to the local rent supplement program. This action is significant for two reasons: It will help families move from emergency shelter into long-term housing and allow more families in desperate need of shelter to take advantage of DC General’s emergency shelter, which has been filled to capacity.

The Council’s budget does not restore the $7 million cut from homeless services due to a loss of federal funding, but it keeps the money as number one on the contingency revenue list. The Council also put $1.7 million to add beds for homeless youth on the contingency revenue list.

The Council—through the actions of the Committee on the Judiciary and the Committee of the Whole—restored $2.1 million to the Office of Victims Services. This office provides critical emergency shelter and services to victims of crime, including domestic violence.

EDUCATION: $2.6 MILLION FOR COLLEGE PREP AND A DIRECTIVE TO RIGHT-SIZE UDC

The Council voted to put $2.6 million to fully fund the Raising the Expectations for Education Outcomes Omnibus Act. This legislation includes four programs, including a Community Schools Incentive Initiative, a pilot teacher incentive program, plan to ensure all students apply to a college as a requirement for graduation and to assist students with information on applying to college, as well as a pilot early warning and support system to identify students who are off track in grades four through nine.

The budget also mandates several important reports. The fiscal year 2013 budget establishes a charter schools admissions taskforce to study providing a neighborhood preference in charter school admissions for the 2013-2014 school year. As well, the Council asked for a comprehensive food services plan to help reduce the cost of providing food services in DCPS. And by October 1, 2012 the University of the District of Columbia is expected to develop a right-sizing plan that outlines the steps that the university shall take, starting in fiscal year 2013, to bring the university’s costs, staff, and faculty size in line with other comparable public universities.

TAXES: EXTEND ALCOHOL SALES THE NIGHT BEFORE HOLIDAYS AND MAJOR HOLIDAY WEEKENDS

The approved FY 2013 budget scales back the mayor’s proposed expansion of alcohol sales. Instead of making last call an hour later every day, the approved budget allows bars to stay open until 4 a.m. the night before federal and District holidays. As well, for Memorial Day and Labor Day—and if New Year’s and July 4^th create a holiday weekend by falling either on a Saturday, Sunday or Monday—extended hours apply to the entire weekend.

By a seven to five vote, the Council placed restoring the tax break for interest earned on out-of-state bonds as last on the contingency revenue list. This means that unless the District sees an uptick of $119 million in revenue next year, the exemption will not be restored and interest earned on out-of-state bonds purchased in 2012 and beyond will be subject to the income tax. DCFPI has noted that limiting the income tax exemption to DC bonds creates an incentive for DC residents to purchase DC bonds, and the city’s recent bond sale suggests this is true.

CONTINGENCY REVENUE LIST: SOME SUBTRACTIONS AND ADDITIONS

The Council altered the Mayor’s proposed contingency revenue list. If the District receives additional revenue in fiscal year 2013, the below programs will be funded in the following order:

1. $7 million for homeless services
2. $14.7 million for TANF employment program
3. $9.5 million to fund South Capitol Street Memorial Amendment Act
4. $18 million for NOMA parks and recreation
5. $1.7 million for youth homelessness prevention
6. $1.6 million for human services, i.e., emergency shelter
7. $2.9 million for Home Purchase Assistance Program
8. $2.6 million for Office of Victim Services
9. $8.6 million for toddler and infant slots
10. $5 million to the Office of the State Superintendent for Education  for special ed
11. $15 million to the Department of Employment Services for adult job training
12. $10 million for reduction of commercial property tax rate
13. $3 million to the University of the District of Columbia
14. $1.5 million for the Ward 8 pilot budget challenge
15. $77,000 to Office on Aging
16. $500,000 to DC Fire and Emergency Medical Services cadet program
17. $320,000 to Capital City Fellow program
18. $10 million to Office of Motion Picture and Television Development
19. $220,000 to Department of Small and Local Business Development
20. $150,000 to Boxing and Wrestling Commission
21. $150,000 to Office of Motion Picture and Television Development study
22. $1.5 million for Takoma Theater
23. $5 million for Douglas Recreation Center
24. $1.1 million to restore out of state bond tax break

The Council’s Committee of the Whole will discuss the Chairman’s recommendations starting around 11 am today. The Council will then re-convene in a legislative session, make any further amendments, and cast the first and final vote on the Budget Request Act, the legislation that allocates dollars for next year. The Council will also cast the first of two votes on the Budget Support Act, the legislation that includes any new laws which need to be implemented for the budget. The second vote is scheduled for June 5.

Here’s a quick highlight reel of the Chairman’s proposal:

AFFORDABLE HOUSING: $18 MILLION RESTORED TO THE HOUSING PRODUCTION TRUST FUND
The chairman’s proposal restores $18 million of the $20 million cut from the trust fund in Gray’s proposed budget by redirecting money from the sale of DC-owned property into the fund. The Mayor had proposed using funds from the sale of the property to build parks in the surrounding neighborhood, now known as NOMA. The Chairman’s proposal puts $18 million in funding for NOMA parks as number 4 on the contingency revenue list.

HOMELESS SERVICES: $4 MILLION ADDED TO LOCAL RENT SUPPLEMENT PROGRAM
Starting in June, under the chairman’s proposal, between 200 and 300 families in need of a place to live will be moved into stable housing through the rapid re-housing program. Then, in October, these families will be transferred to the rent supplement program, which provides housing subsidies. This will help alleviate the overcrowding at the DC General family shelter and hopefully allow the shelter to accept new families in need of emergency shelter.

The chairman’s budget also puts as number 5 on the contingency revenue list $1.7 million to add beds for homeless youth. It does not restore $7 million cut from homeless services due to a loss of federal funding, but keeps it as number one on the contingency funding list.

HEALTHCARE: $23 MILLION FOR THE DC HEALTHCARE ALLIANCE
The chairman’s proposal restores $23 million cut in the Mayor’s proposed budget from the DC HealthCare Alliance, the city’s public health insurance program for residents not covered under federal Medicaid. Sources say that negotiations between the Committee on Health Chairman David Catania and his staff, Mayor Gray and his budget team, and the Chief Financial Officer are on-going today. DCFPI will update through Twitter, @DCFPI.

EDUCATION: $2.6 MILLION FOR COLLEGE PREP AND A DIRECTIVE TO RIGHT-SIZE UDC
The Chairman’s proposal puts $2.6 million to fully fund the Raising the Expectations for Education Outcomes Omnibus Act. This legislation includes four programs:  a community schools incentive initiative, a pilot teacher incentive program, a plan to ensure all students apply to a college as a requirement for graduation and to assist students with information on applying to college, as well as a pilot early warning and support system to identify students who are off track in grades four through nine.

The chairman’s proposal also establishes a charter schools admissions taskforce to study providing a neighborhood preference in charter school admissions for the 2013-2014 school year. The report will offer recommendations for how a neighborhood preference would be designed by Sept. 1, 2012. Before Feb. 15, 2013, the Office of Planning shall transmit to the Council and to the Healthy Schools and Youth Commission a comprehensive food services plan for the District that shall include the following: a plan to reduce the cost of providing food services in the District of Columbia Public Schools.

By Oct. 1, 2012, the beginning of next fiscal year, the University of the District of Columbia is expected to develop a right-sizing plan that outlines the steps that the university shall take to bring costs, staff, and faculty size in line with other comparable public universities.

TAXES: EXTEND ALCOHOL SALES THE NIGHT BEFORE HOLIDAYS AND MAJOR HOLIDAY WEEKENDS
The chairman’s proposed budget scales back the mayor’s proposed expansion of alcohol sales. Instead of making last call an hour later every day, the Chairman’s proposal allows bars to stay open until 4 a.m. the night before federal and District holidays. As well, for Memorial Day and Labor Day—and if New Year’s and July 4^th create a holiday weekend by falling either on a Saturday, Sunday or Monday—extended hours apply to the entire weekend.

The Council also removed a tax proposal from the revenue contingency list that would have restored the tax break for interest on out-of-state bonds.  The Council’s budget thus leaves in place last year’s compromise, which maintains the tax break for investments made prior to this year but eliminates the tax break for investments made in 2012 and beyond. The response to the city’s recent boost in DC bond sales suggests that demand to buy DC bonds among DC residents has increased, presumably as a result of this change.

Stay tuned to @DCFPI on Twitter throughout the day!

So as we wait, a few highlights from last week:

*District high school senior Chris Feaster–who currently lives at DC General family shelter but will be moving to East Lansing, Michigan, this fall to study at Michigan State University–talks directly to the DC Council about housing for families like his: http://www.dcfpi.org/the-budget-priority-list-future-michigan-state-freshman-and-dc-family-shelter-resident-chris-feaster

*DCFPI Policy Director Jenny Reed talks about DC’s vanishing low-cost housing: http://thekojonnamdishow.org/shows/2012-05-10/spiraling-rents-our-region

*Read our new report, Disappearing Act: http://www.dcfpi.org/disappearing-act-affordable-housing-in-dc-is-vanishing-amid-sharply-rising-housing-costs

 Chris Feaster is one of those priorities. Since last year, Chris and his mom have been living at DC General family shelter. In a few months, Chris will move out of DC General, not because the District has an apartment for him to live in but because he will be a freshman at Michigan State University.

 You’ve heard plenty from us this budget season. Take a few minutes to hear Chris: http://www.facebook.com/video/video.php?v=605184483327&saved

Chris is grateful for having a roof over his head, but it certainly hasn’t been easy to study, fill out college applications, and stay positive while living in DC’s packed-to-capacity family shelter. Somehow Chris stayed on task, looked beyond the tough circumstances in the short term and envisioned a better future ahead.

He asks the DC Council to do the same for next year’s budget. By putting $6 million toward the local rent supplement program and $7 million into homeless services we can move families like Chris’s family forward:

• $7 million toward homeless services fills a gap in human services budget that, if not filled, would lead to serious cuts in services including shutting down 750 shelter beds.
•  $4 million to tenant-based rent supplement will serve 250 homeless families and $2 million to project-based rent supplement will create 200 permanent supportive housing units.
• If the DC Council devotes $4 million to local rent supplement in the FY13 budget (not just the wish list) to serve 250 homeless families, the Department of Human Services believes it will be able to start placing families into housing immediately. This will create enough space this summer to stop using motels and start sheltering families with no safe place to sleep.

But if the DC Council funds neither:

• Shelters will close: DHS says without this funding, they’ll have to close shelters, amounting to half the beds for single men and women next spring. Food, transportation, job training, outreach and other supportive services will be cut.
• No families will get into shelter except when it is below 32 degrees. More families will be referred for neglect investigations because of concerns that their children are at grave risk staying in cars, parks, or other unsafe settings.
• There will be little movement out of emergency shelters. DC will have to depend even more on expensive motels next winter.

Here is a quick summary of some of the major discussion topics.

DC HealthCare Alliance: David Catania (I-At-Large), chairman of the Committee on Health, discussed his committee’s actions to fund the cuts Mayor Gray proposed to the District’s public health insurance program. An explanation and rundown of the committee’s recommendations are here. Catania said that he and his staff are in talks with the Office of the Chief Financial Officer to make sure the actions can be approved. DCFPI congratulates the Committee for finding ways to fund this important health care program. If the actions are approved, this will also move the Alliance off Mayor Gray’s contingency revenue list and possibly help programs below it on the list to receive funding if revenues exceed current projections.

Homeless Services: Jim Graham (D-Ward 1), chairman of the Committee on Human Services, discussed the funding shortfall in homeless services. Mayor Gray’s proposed FY 2013 reduces homeless services by $7 million due to a loss in federal funding that the mayor chose not to replace with local funds. Graham said the reduction will likely mean closure of some city shelters, even while demand is rising. A Metropolitan Washington Council of Governments study shows homelessness rising six percent in the District, and family homelessness increasing 18 percent in just one year.

Affordable Housing: Various members expressed support for the Housing Production Trust Fund, the city’s main mechanism for maintaining and building affordable housing. Mayor Gray’s budget proposal cuts $20 million from the trust fund and puts it toward another housing program. Funding for the Housing Production Trust Fund is number four on the mayor’s contingency revenue list. Councilmember Michael Brown (I-At-Large), chairman of the Committee on Housing and Workforce Development, discussed his proposal to use additional revenue from the current year, FY 2012, to help replenish funds in the housing production trust fund.

Temporary Assistance for Needy Families: One issue that didn’t get discussed a lot yesterday is TANF, Temporary Assistance for Needy Families. Last week, the DC Council tabled the Temporary Assistance for Needy Families Time Limit Amendment Act of 2012 after receiving a letter from the Mayor giving assurances that the bill is not needed. We appreciate the mayor’s stated interest in protecting TANF families, but are deeply concerned that important protections, such as putting time limits on hold for families fleeing domestic violence, are not in place at this time.  Some 36 states offer time limit exemptions to families in certain circumstances.  We strongly urge the Council to support this bill to put these protections into place and provide time for all parents to access the new improved TANF services.

Under current law, families who have received TANF for more than 60 months will face a 25 percent benefit reduction in October. This follows a 20 percent reduction that these families already experienced in April 2011 and will bring benefits to just $257 per month for a family of three. Because DC does not offer exemptions to the time limit, all families, even those dealing with serious issues such as domestic violence or illness, will face this steep decline in benefits. DC currently exempts these individuals from work activity requirements while families are accessing services to deal with these issues. But DC does not disregard these months from the time limit, meaning that parents who are dealing with the biggest issues receive decreased benefits and have little time to prepare for and train for work once they have addressed these issues.  The bill before the Council would provide reasonable, temporary exemptions that most states have to protect these families. 

 Alcohol Tax: Chairman Brown presented a new proposal. Instead of keeping bars open an extra hour year-round, the Chairman recommended on federal and District holidays, bars can serve alcohol until 4am and serve food 24 hours. In addition, on four holiday weekends–New Year’s, Memorial Day, Labor Day and Independence Day–the extended service hours would apply all weekend long. This would generate $2 million in revenue.

Here is a quick summary of some of the major discussion topics.

DC HealthCare Alliance: David Catania (I-At-Large), chairman of the Committee on Health, discussed his committee’s actions to fund the cuts Mayor Gray proposed to the District’s public health insurance program. An explanation and rundown of the committee’s recommendations are here. Catania said that he and his staff are in talks with the Office of the Chief Financial Officer to make sure the actions can be approved. DCFPI congratulates the Committee for finding ways to fund this important health care program. If the actions are approved, this will also move the Alliance off Mayor Gray’s contingency revenue list and possibly help programs below it on the list to receive funding if revenues exceed current projections.

Homeless Services: Jim Graham (D-Ward 1), chairman of the Committee on Human Services, discussed the funding shortfall in homeless services. Mayor Gray’s proposed FY 2013 reduces homeless services by $7 million due to a loss in federal funding that the mayor chose not to replace with local funds. Graham said the reduction will likely mean closure of some city shelters, even while demand is rising. A Metropolitan Washington Council of Governments study shows homelessness rising six percent in the District, and family homelessness increasing 18 percent in just one year.

Affordable Housing: Various members expressed support for the Housing Production Trust Fund, the city’s main mechanism for maintaining and building affordable housing. Mayor Gray’s budget proposal cuts $20 million from the trust fund and puts it toward another housing program. Funding for the Housing Production Trust Fund is number four on the mayor’s contingency revenue list. Councilmember Michael Brown (I-At-Large), chairman of the Committee on Housing and Workforce Development, discussed his proposal to use additional revenue from the current year, FY 2012, to help replenish funds in the housing production trust fund.

Temporary Assistance for Needy Families: One issue that didn’t get discussed a lot yesterday is TANF, Temporary Assistance for Needy Families. Last week, the DC Council tabled the Temporary Assistance for Needy Families Time Limit Amendment Act of 2012 after receiving a letter from the Mayor giving assurances that the bill is not needed. We appreciate the mayor’s stated interest in protecting TANF families, but are deeply concerned that important protections, such as putting time limits on hold for families fleeing domestic violence, are not in place at this time.  Some 36 states offer time limit exemptions to families in certain circumstances.  We strongly urge the Council to support this bill to put these protections into place and provide time for all parents to access the new improved TANF services.

Under current law, families who have received TANF for more than 60 months will face a 25 percent benefit reduction in October. This follows a 20 percent reduction that these families already experienced in April 2011 and will bring benefits to just $257 per month for a family of three. Because DC does not offer exemptions to the time limit, all families, even those dealing with serious issues such as domestic violence or illness, will face this steep decline in benefits. DC currently exempts these individuals from work activity requirements while families are accessing services to deal with these issues. But DC does not disregard these months from the time limit, meaning that parents who are dealing with the biggest issues receive decreased benefits and have little time to prepare for and train for work once they have addressed these issues.  The bill before the Council would provide reasonable, temporary exemptions that most states have to protect these families. 

Moving our city forward includes restoring the $7 million for homeless services to replace depleted federal funds and smartly putting $6 million toward Local Rent Supplement. This will allow 250 families to move from $100 a night motel rooms to stable housing. An additional $2 million would support 200 permanent supportive homes for homeless residents.  

Mayor Gray’s proposed budget includes a “Revised Revenue Estimate Contingency Priority List”, a list of 25 programs he hopes to fund if the District’s revenue collections grow beyond current projections in fiscal year 2013. It is not a list of frills but instead it would simply help maintain services that are critical to the well-being of the District, including human services programs that have been hard hit in the Great Recession.  

DCFPI urges the DC Council to keep the following items on the priority list as part of the budget: 

Number 1:  $7 million of local dollars to homeless services. If the Council cannot fund homeless services in the budget, it’s critical to keep this at number one. Without this money, shelters might close and both families and singles will be left on the street outside of hypothermia season.  

Number 2:  $14.7 million toward Temporary Assistance for Needy Families. This is critical to implementing a re-designed TANF jobs program and to making sure s parents have sufficient benefits for their children while they access the services they need to find and retain employment.   

Number 4, hopefully moved up to Number 3:  $20 million for the Housing Production Trust Fund. The trust fund is DC’s best way to maintain and build affordable units. The DC HealthCare Alliance is currently at number three, but the Committee on Health found savings within its committee to restore money to the program. DCFPI hopes the Council will move the trust up to number three. The number of affordable units in our city is quickly vanishing. As he did last year, Gray proposes in his budget to take money from the Housing Production Trust Fund to fund the Local Rent Supplement Program. Unfortunately, taking money from one good program to fund another isn’t a winning strategy for keeping our city affordable.

DCFPI believes that the committee’s actions should be carefully reviewed to make sure the savings are legitimate, and we hope these adjustments will stand up to scrutiny so an important health benefit for the 23,000 residents in the DC HealthCare Alliance (Alliance) can be maintained. 

The Alliance is DC’s locally-funded health program for uninsured residents who are not eligible for Medicaid, Medicare, or other public insurance programs. Because many DC residents became eligible for Medicaid as a result of federal health reform, the Alliance now primarily serves undocumented immigrants.  

Mayor Gray’s proposed FY 2013 budget would eliminate hospital-based services for Alliance participants, including both in-patient and out-patient services. The mayor has argued the cut eliminates a “double-payment” because many hospitals receive a lump sum from the city — known as “disproportionate share hospital” or DSH payments — to address the uncompensated care they provide, while also getting reimbursed for care to Alliance participants.  

Yet DCFPI and others have noted that eliminating hospital coverage will likely mean that many Alliance members will not be able to get needed care, and those that do are likely to be billed by hospitals, creating serious debt and credit problems for this vulnerable population. 

The Committee on Health, led by At-Large Councilmember David Catania, shares these concerns and worked to identify savings that could be used to maintain the Alliance’s hospitalization coverage. The list of savings includes: 

• $7 million in Medicaid managed care due to an adjustment in projected participant enrollment;
• $3 million from increased Medicaid pharmacy rebates;
• $2.4 million by maintaining current year enrollment levels for some community-based services, including the EPD and ID/DD waiver programs;
• $2 million in Alliance managed care due to an adjustment in projected participant enrollment;
• $1.8 million through lower projected cost settlement expenditures;
• $1.5 million due to higher use of the non-emergency transportation benefit;
• $1.4 million in additional revenue certified by the Chief Financial Officer in dedicated taxes;
• $1 million by keeping the Medicaid growth rate comparable to the current fiscal year;
• $252,000 from the Department of Health Care Finance from vacant positions; and
• $103,000 from the Deputy Mayor for Health and Human Services due to the elimination of one full-time position. 

DC’s Chief Financial Officer (CFO) would have to sign off on these changed assumptions before the savings can be certified and used to restore the Alliance cut. Since the health committee’s actions last week, committee staff has been meeting with the Gray administration and the CFO to go over the proposed savings. The Gray Administration has expressed concern about lowering some growth rate and participant enrollment assumptions, noting that the city could face fiscal problems if the projections prove to be too low. 

DCFPI agrees that projected health care costs should be based on best possible information. The Committee on Health has provided information to demonstrate why it believes the assumptions built into the proposed FY 2013 budget. We are hopeful that a careful review of the committee’s actions will show that many of the identified savings are realistic, so that funds can be used to maintain hospital coverage for the 23,000 DC residents who are only able to get health care coverage from the Alliance.

But while housing costs are rising quickly in the District, the incomes of DC households are not keeping pace. In fact, incomes for the bottom 40 percent of DC households have remained stagnant over the last decade. 

One consequence is more DC households are now paying more than half of their income on rent, including three-fifths of DC’s lowest-income families.  When housing consumes so much of a family’s income, there is little left over to pay for other basic necessities like food, clothing and transportation.  

The impact is not just on low-income households, however. A growing number of moderate income households face severe housing burdens today than they did at the start of the decade. In fact, just over six percent of households that earned between 30 and 50 percent of area median income — about $31,000 to $51,000 for a family of four — paid more than half of their income on housing in 2000. By 2010, that number had risen to 31 percent.       

The change in the District’s housing market means that more and more low- and moderate-income families will face challenges staying in — or moving to — the District. Since the private market produces very little affordable housing on its own, it is critical that the District support the creation and preservation of affordable housing.  

The District has a variety of tools that can help address the affordable housing needs of low- and moderate-income residents, but the Great Recession really put the brakes on most local programs. Most programs have simply been maintained at their prior-year levels, meaning that there has been no progress against the dwindling supply of affordable housing in the private market.  And there have been significant reduction in DC’s Housing Production Trust Fund— the main source for affordable housing production and preservation.  Resources to the trust fund fell quickly in the recession and have faced significant cuts in both the fiscal year 2012 budget and the current fiscal year 2013 budget being debated by the DC Council. 

Mayor Gray has included restorations to the trust fund and other housing programs on his priority revenue list. DCFPI encourages the Mayor and Council to find a way to begin reinvesting in the programs DC has that can build, preserve and ultimately help the District stem the tremendous loss of affordable housing in DC. 

Take homeless services. The number of residents in homeless families in DC is skyrocketing—up 75 percent since 2008—but the District’s shelter system is already over capacity. So what to do? We can put our heads in the sand but that comes with a high price tag. Right now, DC is spending $3,000 a month to put some kids and parents in need of shelter in motel rooms. When winter comes, and the District is under legal obligation to find shelter for families when temperatures dip below 32 degrees—the city will be spending a lot more. 

That is money down the drain – resources going for poor-quality services that meet needs in a short-sighted way.   

Or we can decide to work toward long-term solutions that will move families toward stability and the city as well. In homeless services, that means helping kids and parents move into apartments that are both better living environments than hotels and cheaper. We think of it as budgeting for a better future. DCFPI urges the DC Council to put our money toward a better future and preserve the top items on Mayor Gray’s revenue contingency priority list.

The options and the impacts: