jonetta rose barras: Visionaries and innovators needed in DC government now

DC elected officials, including Mayor Muriel Bowser and council Chairman Phil Mendelson, seemed roused by revenue estimates recently released by Chief Financial Officer Jeffrey DeWitt. The city had enough money in December to instigate an upward revision of $320.1 million in projected fiscal year 2021 revenues. That could mean an opportunity for more spending.

Don’t start that happy dance. 

Revenue for FY 2020 was $163.3 million (2.0%) below the FY 2019 revenue level. For the current fiscal year, the decline is expected to be about $257.3 million (3.2%) from the FY 2019 figure. “Estimated revenue is $461.8 million below budgeted revenue for the FY 2021 [through] FY 2024 financial plan, despite upward revisions,” according to DeWitt.

Translation: We’re mostly broke. 

“While we end a year of such tragedy and challenge, it is hard to celebrate that our fiscal loss is less bad than we had feared,” Bowser said when the report was released. 

Mendelson declared the revised revenue estimates a “relief. While we know that a great many of our businesses are struggling to keep alive, the city’s economy is actually stronger than expected.” 

Across the District, many residents, including business and civic leaders I spoke with, have praised the DC Council and mayor for their day-to-day management of the negative consequences of the coronavirus pandemic. In at least one instance, accolades also extended to the city’s Chief Technology Officer Lindsey Parker for helping to mitigate the digital divide affecting low-income and working-class families and students juggling with the demands of distance learning.

“I think the mayor has been masterful,” said one longtime political observer. That recognition came with a caveat: “I think there needs to be a strategic long-term view.”

Alex Padro, executive director of Shaw Main Streets, said he hadn’t “seen much along those lines. There has been no financial commitment to implement a vision to build back better.”

If DC is to retain its pre-pandemic dynamism, officials will need to walk and chew gum at the same time. They will have to handle myriad continuing demands created by a 10-month-long public health emergency while developing an implementable plan. 

The obstacle to achieving that goal may be the fact that there apparently is a dearth of in-house innovators and risk-takers at the John A. Wilson Building to handle that task. “[Bowser] needs more stars,” continued the political observer.  

Deputy Mayor for Planning and Economic Development (DMPED) John Falcicchio was singled out as a bright light. However, his dual role as the mayor’s chief of staff and a deputy mayor is perceived as restricting. “James Baker had been a great chief of staff for President Ronald Reagan. Then, he decided he wanted to be secretary of the treasury. People keep saying he could still be chief of staff. He said, ‘I don’t want to be chief of staff. I want to be treasury secretary,’” said the observer. “John needs to decide.”

Whether led by Falcicchio or someone else, a strong team of creative high-achievers with a clear understanding of the District and a full appreciation of the city’s potential as it rolls out of the pandemic is needed ASAP. 

Two decades ago, the District faced a comparable challenge. Then, the problem wasn’t a lethal virus. The culprits were a poorly managed government, outward migration of middle- and upper-income residents, insufficient investment in critical human services and a host of socioeconomic issues that made DC unattractive to private investors. 

Anthony A. Williams stepped in as CFO and later as mayor. Working with a group of  hard-driving, out-of-the-box thinkers like city planner Andrew Altman and Deputy Mayor for Economic Development Eric Price, Williams created the dynamism and diversity of pre-pandemic DC. When he decided not to seek a third term, I argued that the Williams era would continue long after he left office. His administration had been even more innovative than Marion Barry in his first term in office.

Williams improved a decrepit bureaucracy, introduced high-quality technology and renovated recreation centers and libraries while enhancing the central business district, among other things. He bolstered the Housing Production Trust Fund and fought the council over construction of a baseball stadium, which instigated a massive development ripple in Southeast and Southwest. He helped establish a free health insurance system for low-income and working-class residents. He also set the goal of 100,000 new residents, which was met and has helped bolster the city’s financial stability. 

Despite two vaccines, the coronavirus may have put an end to the era of growth and development that began under Williams. Don’t believe me; believe the current CFO.

In his analysis, DeWitt wrote: “Gross sales tax revenue in FY 2021 is forecasted to decline 9 percent before rebounding 27 percent in FY 2022. Full recovery to FY 2019 levels is not expected to occur until FY 2024.”

Also this: “As many District-area offices switched to full remote working because of the COVID-19 health emergency, some District residents opted to temporarily relocate outside the District.” In the post-pandemic world, they may not come back to the city. That could mean fewer restaurant patrons, retail shoppers, and a continuation of empty streets. “If this becomes a reality, there is a risk to the outlook as population growth has been a major driver of District revenue growth over the last two decades,” he added. 

What should the city do now, beyond passing out grant money? “It’s going to take a lot of work. Businesses are closing every day,” said Padro.

Yesim Sayin Taylor, executive director of the DC Policy Center, has noted that it’s important to build back where possible. But this is “also an opportunity to innovate and grow in new ways. A good place to start is loosening barriers to business and job creation to help both residents and small businesses.”

Padro suggested that property tax relief for businesses might be a good place to start. The council has resisted such entreaties. “They can give relief now and get some taxes — or don’t and get 100% of nothing when they all close.” 

He praised the “streateries” that Bowser has promoted. However, Padro criticized the Department of Consumer and Regulatory Affairs for initially requiring restaurants to secure construction permits in order to winterize their outdoor spaces; that meant preparing actual blueprints, the cost of which ate into the meager $6,000 government grants being offered.

Former Ward 2 Council member Jack Evans suggested that DC should permanently adopt changes introduced during the pandemic. For example, the government could use Zoom to bring greater efficiencies and cost-effectiveness to various operations like the court system. 

It could use a delivery system like Grubhub or DoorDash to help improve the speed with which agencies provide documents to residents. He cited the case of a 70-year-old who was forced to renew his driver’s license in person, “hauling all the required paper [documentation]. DC mailed his license on Dec. 10; he still hasn’t received it.”

“We always fall back on yellow pads,” continued Evans. 

He and others said there are three areas that should get special attention because of their ability to improve the economy: sports, entertainment and the arts. 

“They are the magnet that draws people to the restaurants and retail and other activity,” the political observer agreed. “They are the reasons people are willing to put up with other things in the city.”

“We have turned our town into the second-largest venue in places for the arts. The arts are what puts color on an otherwise blank page,” said Evans. “We don’t remember a civilization for its army. We remember it for its arts and culture.” 

People I spoke with asserted that despite being a powerful economic engine, the arts community has mostly been ignored during the pandemic. That could also be said about traditional small businesses, said Padro. Many of them are finding their own creative solutions. He offered that a few have paired up, sharing space to reduce rental expenses. “One operates during daytime hours while the other opens in the evening.”

Could DC officials provide incentives to encourage such innovation? They should, said Evans. “The government needs to lead — not follow.”

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jonetta rose barras is an author and freelance journalist, covering national and local issues including politics, childhood trauma, public education, economic development and urban public policies. She can be reached at thebarrasreport@gmail.com.