D.C. Mayor Muriel returned next year's budget to the D.C. Council unsigned, writing in a letter to Council Chairman Phil Mendelson Tuesday, “I cannot support a budget that needlessly increases our residents’ property and income taxes, raises the paid family leave tax to untested levels, or harms our public schools."
The mayor’s move is one step short of a veto, which would have required the D.C. Council to take a vote to override her veto. Unsigned, the budget can still take effect, but Congress has 30 days to review it, and if the budget is rejected, the Council and Bowser administration would be back to square to present another budget.
The Council and Bowser battled for months over how to close a $700 million budget gap next year.
The Council voted unanimously in favor of its budget, which includes tax increases and cuts to major programs, but some big items were saved.
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The Council’s final budget vote restored funding for two of Bowser’s big projects: a youth indoor recreation center on the RFK Stadium campus, and planning and construction for a new jail.
But in the letter to Mendelson, Bowser wrote, “The Council’s fiscal decisions are setting the stage for additional tax hikes for our residents and businesses next year. This approach is unsustainable.”
The budget cuts several programs, including the DC Circulator bus, and it raises some taxes, including:
- The property tax rate on houses selling for $2.5 million and more,
- The payroll tax for paid family leave from 0.62% to 0.75%,
- The sales tax by 1% over the next two years.
The budget also eliminates tax exemptions on municipal bonds.
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Mendelson increased funding for housing vouchers to help families facing evictions.
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