D.C. officials propose 4% increase in budget to $17.5 billion for fiscal year 2022

D.C. officials on Thursday proposed a $17.5 billion budget for fiscal 2022, up nearly 4% from this fiscal year’s $16.9 billion budget.

Budget Director Jenny Reed said the local funds portion of the proposed spending plan amounts to $9.12 billion, a 4.9% increase over fiscal 2021. She noted during a presentation Thursday that increases in the local and federal budgets resulted largely from federal stimulus funds.

The District has been allocated about $2.5 billion in federal aid under the American Rescue Plan, with a plan to spend it through fiscal 2024. The proposed plan allots about $505 million for affordable housing, $483 million for economic recovery for businesses, $387 million for economic recovery for residents and $378 million for health.

The city is starting to see a reversal in economic developments as more activities and businesses open and more people get COVID-19 vaccinations, officials said. As of this month, the District has earned $217 million in revenue, an improvement from the $742 million shortfall in September 2020.

Consumer spending was down 17% this month compared to a 41% decline in September, according to Mayor Muriel Bowser. Restaurant spending reportedly is improving, with a 26% drop this month compared to 49% in September.

The city’s budget proposes a 3.6% increase in school funding per student, with increased percentages for English Language Learners and at-risk students. It includes $68 million to expand access to affordable child care and offer incentives and scholarships for early childhood education teachers.

City officials said they also would like to invest $29 million for work-based learning in high schools over the next three years.

A proposed $420 million would be set aside to improve parks, libraries and recreation facilities over the next six years under the 2022 budget.

An additional $7.2 million is proposed for youth safety initiatives including expanding out-of-school activities for youth and enhanced training for school resource officers, while $6.1 million would be used to launch microtransit routes to serve 23 schools in Wards 7 and 8.

For health and human services, the city is proposing $46 million to add two new paid family leave benefits for prenatal medical leave and recovery leave for those who experienced domestic violence, stalking or sexual abuse.

Officials also aim to spend $18 million for health equity, including expanding telehealth services, offering doula services for low-income women and creating a sobering center.

The Bowser administration said it aims to add 758 permanent-supportive or affordable housing units for singles and 347 for families. The budget directs $67 million to buy buildings for permanent-supportive or affordable housing, as well as additional emergency and transitional shelters for victims of domestic violence.

An additional $352 million is proposed for rent and utility assistance in order to prevent evictions.

The budget provides economic relief for businesses and residents, including $49 million to expand subsidized employment and training through apprenticeship opportunities and $58 million to increase access to grocery stores and restaurants in Wards 7 and 8.

Officials also are suggesting fee waivers and one-time tax cuts, including a permanent reduction of business and professional license fees to $99 and a one-time cut to paid family leave payroll tax to 0.27%, down from 0.62%.

Under the budget, city government fees for community organizations hosting festivals and other public events in public spaces would be waived.

WIth regard to transportation, the budget plans to add 80 Capital Bikeshare stations, 3,500 e-bikes and a 20-bike pilot of new adaptive Bikeshare bikes for people with disabilities, 30 miles of protected bike lanes over the next three years and about 17 miles of new pedestrian and bicycle trails.

City officials said they also would like all streets, sidewalks and alleys to be in a “state of good repair” by 2025.

The budget sets aside $11 million to support former inmates transitioning back into the community with cash assistance, financial coaching and paper navigators; $7.8 million for violence interrupters; $6.8 million for agencies to respond to nonemergency 911 calls related to mental health distress; and $3.4 million for 100 new slots for the Metropolitan Police Department’s cadet program.

For government operations, the mayor is proposing $75 million for ongoing testing, cleaning and other coronavirus safety protocols. There is also $9.5 million proposed for the oversight and processing of the District’s $3.4 billion in federal COVID-19 relief funds.

To provide promised pay raises to Comp Units 1 and 2 and AFSCME 2921 members, city officials are proposing $32 million a year to make up for the paused pay raises during the pandemic. Almost another $6 million a year will be to cover a 2% cost of living adjustment for non-union employees.

Budget hearings will take place during June. The D.C. Council is scheduled to have its first budget reading on July 20.