The D.C. Council has given its initial approval on next year’s budget, which includes tax increases and cuts to major programs.
Both Council Chairman Phil Mendelson and Mayor Muriel Bowser acknowledge the District's $700 million budget gap requires cuts to programs and tax increases, but they disagree on which programs to cut and which taxes to raise.
One member of the Council was so moved by the cuts to one program she became emotional during last month’s hearing with the mayor.
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Last month, Bowser proposed eliminating a major program that funded pay equity for child care workers. When she made that proposal, Council member Christina Henderson became visibly upset.
On Wednesday, Henderson had a smile on her face, with funding for the program back in the budget.
"I'm excited," she said. "$70 million investment to pay equity. It's not the whole, but it's certainly better than zero."
While Bowser proposed raising the sales tax, Mendelson wants to also raise other taxes, including:
- increasing the property tax rate on houses selling for $2.5 million and above
- increasing the payroll tax for paid family leave from 0.62% to 0.75%
- eliminating tax exemption on municipal bonds
Bowser sent a letter to the Council criticizing the added tax increases and the cuts to to projects, including building a new youth indoor sports center at RFK and a new jail facility.
"Nowhere in the letter does she mention social justice programs or equity programs," Mendelson said. "That’s the philosophical difference between the executive and us."
The D.C. Council will hold its final vote on the District’s budget in two weeks. Ward 8 Council member Trayon White was the only member to vote against approving the $21 billion budget.
