Hello Neighbors:
I’ve written recently about the challenges in the budget we just passed for next fiscal year. We were able to restore what would have been significant cuts to critical programs, but only through the use of one-time funds that won’t be available in future years.
The Council is keenly aware of the problem: next year we’ll face a “fiscal cliff” – a significant gap between what we bring in and what we need to spend. And I’m afraid it’ll keep happening unless we make changes to the way we raise revenue. And yes, that means raising taxes on the wealthiest residents and on certain types of income. It is not hyperbole to say that the alternative is taking away housing from people who wouldn’t have any otherwise, food and health care from thousands of residents, and other entirely unacceptable cuts to services.
I and the Council are taking steps to develop a fairer tax system, starting with Chairman Mendelson’s pledge to hold a hearing in the fall on taxes and revenues at which we’ll discuss a variety of ideas. I intend to bring to that meeting three pieces of legislation that I’ve introduced.
The first is one I’ve discussed in previous newsletters: a Wealth Proceeds Tax. This would be a 3 percent surtax on unearned income for individuals making over $400,000 per year and couples making over $500,000 and would only apply to the amount of unearned income over those thresholds. It would apply to things like capital gains and real estate investments where the investor does no work – like investments in the stock market. It would not apply, e.g., to rental properties where the person is actively working to manage the property.
Earlier in this Council Period I introduced a bill to create a permanent Tax and Revenue Commission. We need a permanent body to review tax and revenue challenges and opportunities on a regular basis so that the Council isn’t forced to come up with last-minute solutions to budget challenges. I will make sure that this, too, is part of the discussion.
And finally, I introduced legislation on the last day before recess that would have the Office of Tax and Revenue implement a mechanism to more accurately determine the land value portion of real estate assessments. On its own, it makes no changes to what people pay in taxes. But it opens the door to making policy changes based on land value, changes that could shift the tax burden more equitably and encourage the highest and best use of vacant or underutilized land.
There’s one more thing that the Council did related to the future of taxation: we approved a feasibility assessment of a Business Activity Tax, aimed at closing a loophole that allows businesses owned by out-of-state individuals to not pay business taxes in D.C.
The system we have is not sustainable and it’s not equitable. We need to look at more reliable sources of revenue and we need to find more equitable ways of distributing the existing tax burden.
Unfortunately, there’s now a new effort in Congress, in the form of legislation proposed this week, to give Congress authority to rule on every tax or fee the District proposes to change. This would throttle DC’s ability to govern itself. Imagine an agency needs to increase the fee for a parking permit – now Congress would get to decide.
The bill introduction is cloaked in false allegations of fiscal mismanagement and is clearly intended for political purposes, to support their new messaging point that Democrats are spending too much.
The fact is that the District has balanced its budget 31 years in a row and Congress created our most recent $1 billion budget shortfall – a hole that we fixed on our own.
The residents of the District should have the right to implement sound tax policy like any other jurisdiction in the country. And if the residents don’t think it’s elected officials are doing that well, they can vote to replace them. Congress cannot be allowed to take away even more of our autonomy.
COUNCIL UPDATES
Rats!
One of the best ways to avoid large numbers of rodents is to employ responsible waste management practices. That way, rodents won’t have a huge food waste supply that leads to unmanageable population growth.
Councilmember Henderson and I recently teamed up to crack down on trash can issues: in this year’s Budget Support Act, my committee added language allowing the Department of Public Works to buy limited numbers of rodent-proof trashcans without going through the ordinary prolonged government procurement process, to try these can designs out on a pilot basis. And Councilmember Henderson’s committee supplied $100,000 to fund this pilot program.
DC Health has also started rolling out a new rodent response pilot program in a few neighborhoods. Among other things, their program involves trying to get rats to ingest contraceptives.
The Committee on Public Works & Operations, which I chair, and the Committee on Health, chaired by Councilmember Christina Henderson, held a joint hearing on two bills aimed at controlling the rat population in the District.
One comes from Councilmember Janeese Lewis George – it would require the Department of Health to develop a rodent abatement dashboard and report on its efforts; it would also require the Department of Public Works to give notice to Advisory Neighborhood Commissioners before removing public trash cans in residential zones.
The other is Councilmember Henderson’s – it would create a pilot program to give grants to Business Improvement Districts and Main Street programs to help purchase rodent proof trash receptacles for commercial businesses in 25 rodent hot spots.
I expect the two bills will come to the full Council for votes after recess.
National Guard should go home
We all know that the National Guard has no business patrolling the streets of the District and that they have done nothing to reduce crime, which was already dropping significantly before their arrival.
I joined fellow councilmembers in signing a joint letter to the governors of Michigan and the Virgin Islands, asking them to recall their National Guard members from D.C. The governors sent Guard members to assist with the July 4th and America 250 celebrations, but now that those are over, we hope they will agree that it’s time for their people to go home.
Bottle bill moves forward
D.C. has a litter problem. In our rivers, streets, sidewalks, alleys, yards.
Everything has a cost. Disposing of a product or its packaging has a cost. In the case of beverages with disposable containers, there’s a huge cost and it’s been paid by taxpayers.
At roundtable hearing on the bottle bill this month in the Committee on Transportation and the Environment, we heard from representatives of environmental groups, the beverage industry, retailers, brewers and others. They talked about the need for action to remove beverage containers that are littering our streets and rivers, and also about some of the concerns they have – especially small businesses – about how the proposed beverage container deposit legislation would impact their operations and costs.
As Chair of the Public Works & Operations Committee, I’ve learned in detail just how much the District has to budget to clean up litter. By some metrics, we spend more money per mile to clean our streets than any other city in the country. And 80 percent of that litter is comprised of beverage containers.
617 million bottles and cans per year are distributed and sold in the District, and we are paying for every single one of them.
It’s no wonder the big beverage industry doesn’t want this bill. They don’t want to pay for the cost to clean up the mess they create.
They are throwing everything at the wall. I addressed some of the arguments they made in my remarks. I am also taking the concerns seriously and have already made significant adjustments: reducing the costs that would be incurred by brewers, exempting small retailers from many of the requirements, and more. Councilmember Charles Allen, chair of the Committee on Transportation & the Environment, has made additional adjustments and I think both he and I are open to further tweaks.
Bottom line: the big beverage industry is creating a massive pollution problem but not paying for the cleanup; we are. Bottle bills have worked effectively in 10 other states and they have worked out the details of collecting and returning bottles and cans. It works.
Recess is still work
The Council is in recess until September 15. While that means there will be no Council or committee meetings, my office will be open and ready to answer your concerns, while also preparing for the resumption of legislative activity in the fall. We have a lot of work to do to finalize legislation, some of which has been in the works for more than a year.
During recess, our office will have slightly reduced hours – we’ll be in 9:30 am to 4:30 pm throughout the summer.
BRIANNE IN THE COMMUNITY
More Food & Friends
It was so inspiring to join in the groundbreaking for a new Food & Friends building that will help this amazing organization double the number of medically-tailored meals it delivers each year to people living with serious illnesses.
As chair of the Committee on Public Works & Operations, I was thrilled to direct $500,000 to Councilmember Christina Henderson’s Committee on Health to support the project. In total, the Council was able to invest $1.5 million in the $30 million project.
Food & Friends has been delivering meals – “food as medicine” – since 1988, first to people living with AIDS and now also cancer and other serious illnesses. They also provide nutrition counseling and reduce social isolation.
It is one of several programs supported by the new carrier-for-hire fee on food and other deliveries, which will now expand access to healthy food and reduce food insecurity.
Ward 1 Pool Day!
Thank you to everyone who came out for Ward 1 Pool Day at Banneker Pool – before the smoke! We had a lot of fun greeting folks, chatting about Ward 1 issues, handing out popsicles and raffling off tickets to Nationals games.
Ward 1 Day at the National Building Museum
The National Building Museum’s exhibit, The Playground, is a blast (open til August 30) and was the backdrop for our Ward 1 Day at the Building Museum. It was great seeing folks, especially in that incredible space.
COMMUNITY UPDATES
In light of the federal law enforcement surge
We’ve seen a surge this summer in federal law enforcement activity in the District, including by ICE and other immigration personnel. Many of you have educated yourselves and your neighbors on how to show up for immigrants, your rights when interacting with local and federal law enforcement, and the resources that are available to you and neighbors, regardless of immigration status. Thank you.
If you haven’t done that or are just looking to refresh your knowledge or find a list of resources, please check out our resources page – the section titled “Impact of Federal Actions on D.C.” for information. That page, in turn, will direct you to know-your-rights information and a page on immigrants’ rights and resources, both of which are in English and Spanish.
IN THE NEWS
WASHINGTONIAN
Inside the Food Truck Mafia Wreaking Havoc Around the National Mall
CITY CAST
D.C. Council to Weigh New Tax on Rich
WUSA 9
Debate over DC’s bottle bill shifts from environmental impact to costs
“By some metrics we spend more money per mile to clean our streets than any other city in the country, and 80% of that litter is comprised of beverage containers,” Nadeau said.
WASHINGTON POST
D.C.’s highest earners may pay more in taxes under new council proposal [paywall]
CALENDAR
Council in recess
July 15 to Sept. 15
No legislative of committee meeetings but Councilmember Nadeau’s office is open and staff are available
Advisory Neighborhood Commission 1E Monthly Meeting
Wednesday, July 22, 7 pm
Advisory Neighborhood Commission 1D Monthly Meeting
Monday, August 3, 7 pm
CONTACT US
Brianne K. Nadeau | Councilmember | bnadeau@dccouncil.gov
Abigail Boshart | Deputy Committee Director | aboshart@dccouncil.gov
Nicole Bramstedt | Senior Legislative Assistant | nbramstedt@dccouncil.gov
Amanda Chulick | Senior Legislative Assistant | achulick@dccouncil.gov
David Connerty-Marin | Communications Director | dconnertymarin@dccouncil.gov
Sean Cuddihy | Committee Director | scuddihy@dccouncil.gov
Kara Dunford | Communications Manager | kdunford@dccouncil.gov
David Meni | Deputy Chief of Staff & Legislative Director | dmeni@dccouncil.gov
Maricela Nava | Deputy Chief of Staff & Scheduler | mnava@dccouncil.gov
Sabrin Qadi | Deputy Legislative Director | sqadi@dccouncil.gov
Norma Rivera | Constituent Services Specialist | nrivera@dccouncil.gov
Niccole Rivero | Chief of Staff | nrivero@dccouncil.gov
Eliza-Roche Robinson | Constituent Services Specialist | errobinson@dccouncil.gov