OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Council Committee Holds Budget Hearing on Auditor, Retirement Board, and CFO Offices – May 4, 2026

Council of the District of Columbia — Monday, May 4, 2026
BodyWashington, District Of Columbia
SessionCouncil of the District of Columbia
DateMonday, May 4, 2026
StatusFILED
Video Record
0:00 / 5:30:38

Transcript — Verbatim
0:21

I'm going to order this hearing.

0:22

This is a public hearing of the committee as a whole of the Council of the District of Columbia.

0:26

I'm Phil Mendelssohn, Chair of the Council, Chair of the Committee as a whole.

0:30

Today is Monday, May 4th, 2020 is 212 in the afternoon.

0:36

My apologies for our starting late, our starting very late.

0:47

And those agencies are we will hear testimony in this order.

0:53

District of Columbia Auditor, DC Retirement Board, and the Office of the Chief Financial Officer.

0:59

The mayor submitted the budget on April 14th of this year.

1:02

The council has 56 days before we vote first reading, which is scheduled for June 9th.

1:09

For the first three weeks, not including the week of the 14th.

1:15

The council's committees are having hearings on the proposed budget for the agencies under their purview.

1:22

Committees will mark up the following week.

1:25

The um as I said, the council will vote on June 9th first reading.

1:31

The um this is the sixth of nine hearings the committee is having related to the budget.

1:37

On Wednesday, we will hear testimony regarding the Commission on Arts and Humanities, Office of Zoning, Office of Planning, and Department of Buildings.

1:44

On Thursday, May 7th, we will hear testimony regarding the Office of the State Superintendent of Education.

1:49

And next Wednesday, May 13th, we will have a hearing on all of the legislative measures to mayor submitted, which would be the Local Budget Act for 2027, uh revised budget for fiscal year 2026, the Budget Support Act, and the Federal Portion Budget Request Act.

2:07

That's May 13th.

2:09

The um I think at this point we will proceed with um uh witnesses.

2:18

Uh again, the order will be the auditor, then the retirement board, and then the chief financial officer.

2:24

The uh for the auditor, there were two individuals who signed up to testify before I get to the auditor.

2:31

Scott Goldstein, I'm assuming he's participating virtually, and Dunchia Pradeau.

2:37

I don't know if she is here.

2:41

Don't see you.

2:41

Mr.

2:42

Goldstein, uh, the floor is yours.

2:45

Good afternoon.

2:46

The DC auditor continues to be an incredibly valuable part of DC government's ecosystem, conducting critical studies that hold the government accountable and make important recommendations.

2:55

The auditors recently released three different reports on education focused on spending.

3:00

While they note an increase in overall education spending, the majority of that increase is uh come from driving down student to teacher ratios in a way that is good for student outcomes.

3:09

They do make important points about potential duplication of initiatives across education agencies, which is worth noting in a time of tight budgets and high absenteeism, because we'd be well served to have a better coordinated, more holistic response to this challenge.

3:21

They also note a sharp increase in administrative positions in schools.

3:25

This is worth further investigation.

3:27

Uh while some positions classified as administrative are deeply valuable, such as connected schools managers, attendance counselors, or wellness coordinators.

3:34

We haven't thought strategically about how administrative staffing works and what the most effective structures are.

3:39

Whether by the auditor, the council, the state board of education, or potentially the research practice partnership.

3:45

It would be worth us as a city looking at the dozens of administrative staffing models across DCPS and charter LEAs to determine the effectiveness of different models since the cost variations are extremely high, and this takes away funding for direct student support.

3:59

We do have duplication in some ways because of the undefined mandate of the DME's office, partially as a result of our education governance model.

4:06

While mayoral control is designed to make things more efficient, in reality, it makes spending less efficient by stacking so many roles in mayoral-run agencies and the council that are stretched thin already that would normally be shared by others, like a school board.

4:19

Second, I'm testifying to ask the DC auditor to conduct a thorough on-the-ground investigation and report on the effectiveness of youth curfews.

4:27

Why is this needed?

4:28

Every independent study, everyone, from the Campbell's collective's meta-analysis to the American Journal of Criminal Justice to the Marshall Project, all show that curfews do not work.

4:38

Not only do they do not work, but studies find they actually increase youth violence for a multitude of reasons.

4:43

The conversation among council members and the mayor about this policy has been almost completely evidence-free and driven by politics.

4:50

Implementing an idea that will make them look like they're addressing something rather than actually addressing it.

4:54

I've heard many council members refer to the curfew not as a solution but as a band-aid.

5:00

But I don't see how something can make a situation worse and be a band-aid.

5:02

Band aids help stop the bleeding.

5:03

Curfews increase the blood.

5:05

Curfews plainly do not help avoid arrests, as Councilmember Pinto and others have argued, but rather put youth increasingly in interactions not only with MPD but the National Guard.

5:15

The idea expressed by some in the council, including the chairman that the curfew only applies to group of eight is directly refuted by the lived experience where police are dispersing every team they see.

5:24

I would ask any council member who thinks they're really only making groups of eight leave to go to Navy Yard during a curfew and see whether police are only dispersing groups of larger than eight or just every teenager they see.

5:35

In effect, the curb use do prohibit all teens from being in those areas at those times, increase their interactions with police and provably failed to prevent violence.

5:44

That's something you could prove through study.

5:47

Again, there has really been no evidence inserted into this debate, and I think it would be helpful for all of those reasons and more to have the DC auditor conduct a real on-the-ground study of curfew implementation in D.C.

5:59

I appreciate all the continued work by the DC auditor.

6:01

I will say that the auditor, Auditor Patterson, and I have had discussions about these two issues in advance of the hearing as well.

6:08

And in particular, it will be critical that the D.C.

6:11

Auditor does this work during the next year to help the new mayor and council members understand key issues as they take office.

6:17

Thank you.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability███████████████████████████████████████████43%
Personnel Matters█████████████████17%
Economic Development████████8%
Public Safety█████5%
Budget Equity Analysis█████5%
Racial Equity███3%
Real Property Tax███3%
Child Care Voucher███3%
Procedural██2%
Summary of Proceedings

Council Committee Holds Budget Hearing on Auditor, Retirement Board, and CFO Offices – May 4, 2026

On May 4, 2026, the Council of the District of Columbia's Committee as a Whole, chaired by Phil Mendelson, held a public hearing on the proposed FY2027 budgets for the District of Columbia Auditor, the DC Retirement Board, and the Office of the Chief Financial Officer. The hearing featured testimony from agency heads, public witnesses, and extensive discussion on revenue forecasting, pension plan designs, tax compliance, and budget transparency.

Public Comments & Testimony

  • Scott Goldstein: Praised the DC Auditor's education spending reports and recommended further study on administrative duplication and youth curfew effectiveness. He criticized revenue underestimates by the CFO and proposed new taxes, including a business activity tax and a wealth proceeds tax, to avoid safety net cuts.
  • Sam Bonar (DC Community Wealth Builders): Urged the council to fund a dedicated FTE in the CFO's office to advance work on a public bank and land bank, citing incomplete feasibility studies and potential savings from keeping financial returns local.
  • Aidan Simpson (DC Community Wealth Builders): Supported a public bank and land bank to address housing costs and small business fragility, arguing current incentive-based development fails communities.
  • Austin Cipriano: Asked for a public bank to reduce debt service costs and finance permanently affordable housing and grocery stores in underserved areas.
  • Daniel Dadragon (DC Community Wealth Builders): Called for a full-time employee at the CFO to complete public bank feasibility work, emphasizing that public investments should serve the public good rather than corporate incentives.
  • Jen Jenkins (Legal Aid DC): Urged adoption of a local net investment income tax, land value tax, and business activity tax to raise revenue equitably, and a comprehensive independent budget review.
  • Erica Wadlington (DCBIA): Supported office-to-residential conversions, workforce housing tax abatements, and urged against raising property taxes. She asked to fund the Vacant to Vibrant Amendment Act provisions.
  • Betty Gentle (SOME, Inc.): Supported Bill 26-125 for tax forgiveness on two affordable housing properties, noting financial strain from unresolved tax debts.
  • Erica Williams (DC Fiscal Policy Institute): Recommended piggybacking on the federal net investment income tax to raise hundreds of millions, and a feasibility analysis of a business activity tax.
  • Tazra Mitchell (DC Fiscal Policy Institute): Criticized the mayor's proposal to delay a sales tax increase and repeal the child tax credit, highlighting regressive impacts and suggesting alternative progressive revenue sources.
  • Brittany Pope (Bread for the City): Described positive outcomes from direct cash transfers and urged restoring the DC Child Tax Credit.
  • Olu Funke (Funke Ido): Asked for guaranteed basic income for residents with disabilities, funding for Bread for the City, and permanent child tax credit.
  • John Simmons: Emphasized the importance of the child tax credit for his family and community, and praised Bread for the City's Cash RX program.
  • Daisy Gomez Palacios (Bread for the City): Shared a client's story showing how unconditional cash enabled educational opportunities, and urged protecting the child tax credit.
  • Vincent Orange (former councilmember and mayoral candidate): Called for a revenue alignment commission to ensure funds are used as intended, and proposed allowing $600 million in federal tax benefits to circulate in the local economy.
  • Vernon Suggs: Supported child tax credit and programs like Bread for the City, linking them to crime prevention and community well-being.
  • Robert Rabin (Diverse Asset Managers Initiative): Accused the DC Retirement Board of refusing to disclose diversity data on asset managers, claiming FOIA denials used trade secret as pretext.
  • Abel Menne (Fair Budget Coalition): Advocated for a business activity tax to close loopholes for wealthy partnerships and corporations.
  • Catherine Lamfield (Fair Budget Coalition): Proposed revenue from decoupling, redirecting MPD overtime funds, and taxing capital gains and high incomes to avoid safety net cuts.
  • Eduardo Seraphim (DC Jobs with Justice): Supported fair tax policies including business activity tax, higher income taxes on top earners, and wealth taxes, calling the mayor's budget anti-worker.
  • Mary Rhodes (Archdiocese of Washington): Requested council reaffirm the emergency act allowing parishes to retitle property via supplemental deeds without transfer tax, citing OTR's refusal to comply.
  • Robert Warren (People for Fairness Campaign): Called for a tax-based voucher system for residents over 55, criticizing displacement and inadequate affordable housing.
  • Lauren Green: Asked to cut the Department of Behavioral Health budget, end forensic psychiatry, and rename shelters as cooperative development centers.

Discussion Items

  • DC Auditor Kathy Patterson presented her office's budget ($11.6 million revised FY26, proposed $7.8 million for FY27). She highlighted ongoing litigation over an MPD officer report, reserve fund violations by OCFO, education staffing growth, MPD overtime, and the need to retain the Homeland Security Commission. She discussed transition of juvenile justice data reporting to DYRS.
  • Chair Mendelson questioned Patterson on MPD overtime, leave management, and the Events DC excess cash issue ($68.7 million owed, $62 million disputed). He asked for litigation cost details and out-year projections for the auditor's office.
  • DC Retirement Board Executive Director JP Balasti reported the fund is 104.2% funded ($13.8 billion assets), with strong investment returns, and outlined the $42.2 million proposed budget. He discussed the district's required $221 million contribution for FY27.
  • Chair Mendelson and Balasti had an extended exchange on a proposed Deferred Retirement Option Program (DROP) for police and firefighters. Balasti emphasized legal and fiduciary constraints, but indicated DCRB could potentially administer a DROP if properly designed, fully funded outside plan assets, and compliant with tax and regulatory requirements. Actuary Tom Vicente explained that DROP costs depend on design, especially whether participants enter earlier or later than normal retirement, and that the board is working to smooth contribution volatility from retroactive pay increases.
  • CFO Glenn Lee presented the OCFO budget ($222 million gross, $182 million local). He described a right-sizing effort reducing positions by 23, a vacancy rate near 10%, and hiring plans. He detailed $3.7 million in new tax compliance initiatives (adding 17 FTEs) and $3.9 million from a partnership with the Attorney General for collections litigation.
  • Chair Mendelson questioned Lee on space utilization, revealing that average badge swipes were below two per month and many workstations appeared unused. He criticized the policy of requiring only one in-person day per pay period. Lee agreed to reassess remote work policies and footprint.
  • Discussions also covered clean hands certificate issues (multiple entities, timeliness), the Archdiocese property deed dispute, and fund naming inconsistencies.

Key Outcomes

  • The council will consider testimony and agency proposals as it prepares to mark up the budget. The first reading vote is scheduled for June 9, 2026.
  • Chair Mendelson requested written follow-ups from the DC Auditor (litigation costs, out-year budget projections), the OCFO (details on revenue officer/auditor productivity, independent analysis of public bank feasibility, background on TIF forward-funding change, authority for multi-entity clean hands enforcement, and a plan for naming convention consistency).
  • The Archdiocese deed issue will be revisited with proposed corrective language from the Attorney General.
  • The CFO committed to right-sizing space and revising remote work expectations, with a plan to increase in-office presence.
  • No final votes were taken; testimony will inform budget decisions.

Meeting Transcript

I'm going to order this hearing. This is a public hearing of the committee as a whole of the Council of the District of Columbia. I'm Phil Mendelssohn, Chair of the Council, Chair of the Committee as a whole. Today is Monday, May 4th, 2020 is 212 in the afternoon. My apologies for our starting late, our starting very late. And those agencies are we will hear testimony in this order. District of Columbia Auditor, DC Retirement Board, and the Office of the Chief Financial Officer. The mayor submitted the budget on April 14th of this year. The council has 56 days before we vote first reading, which is scheduled for June 9th. For the first three weeks, not including the week of the 14th. The council's committees are having hearings on the proposed budget for the agencies under their purview. Committees will mark up the following week. The um as I said, the council will vote on June 9th first reading. The um this is the sixth of nine hearings the committee is having related to the budget. On Wednesday, we will hear testimony regarding the Commission on Arts and Humanities, Office of Zoning, Office of Planning, and Department of Buildings. On Thursday, May 7th, we will hear testimony regarding the Office of the State Superintendent of Education. And next Wednesday, May 13th, we will have a hearing on all of the legislative measures to mayor submitted, which would be the Local Budget Act for 2027, uh revised budget for fiscal year 2026, the Budget Support Act, and the Federal Portion Budget Request Act. That's May 13th. The um I think at this point we will proceed with um uh witnesses. Uh again, the order will be the auditor, then the retirement board, and then the chief financial officer. The uh for the auditor, there were two individuals who signed up to testify before I get to the auditor. Scott Goldstein, I'm assuming he's participating virtually, and Dunchia Pradeau. I don't know if she is here. Don't see you. Mr. Goldstein, uh, the floor is yours. Good afternoon. The DC auditor continues to be an incredibly valuable part of DC government's ecosystem, conducting critical studies that hold the government accountable and make important recommendations. The auditors recently released three different reports on education focused on spending. While they note an increase in overall education spending, the majority of that increase is uh come from driving down student to teacher ratios in a way that is good for student outcomes. They do make important points about potential duplication of initiatives across education agencies, which is worth noting in a time of tight budgets and high absenteeism, because we'd be well served to have a better coordinated, more holistic response to this challenge. They also note a sharp increase in administrative positions in schools. This is worth further investigation. Uh while some positions classified as administrative are deeply valuable, such as connected schools managers, attendance counselors, or wellness coordinators. We haven't thought strategically about how administrative staffing works and what the most effective structures are. Whether by the auditor, the council, the state board of education, or potentially the research practice partnership. It would be worth us as a city looking at the dozens of administrative staffing models across DCPS and charter LEAs to determine the effectiveness of different models since the cost variations are extremely high, and this takes away funding for direct student support. We do have duplication in some ways because of the undefined mandate of the DME's office, partially as a result of our education governance model. While mayoral control is designed to make things more efficient, in reality, it makes spending less efficient by stacking so many roles in mayoral-run agencies and the council that are stretched thin already that would normally be shared by others, like a school board. Second, I'm testifying to ask the DC auditor to conduct a thorough on-the-ground investigation and report on the effectiveness of youth curfews. Why is this needed? Every independent study, everyone, from the Campbell's collective's meta-analysis to the American Journal of Criminal Justice to the Marshall Project, all show that curfews do not work. Not only do they do not work, but studies find they actually increase youth violence for a multitude of reasons. The conversation among council members and the mayor about this policy has been almost completely evidence-free and driven by politics. Implementing an idea that will make them look like they're addressing something rather than actually addressing it. I've heard many council members refer to the curfew not as a solution but as a band-aid. But I don't see how something can make a situation worse and be a band-aid. Band aids help stop the bleeding. Curfews increase the blood. Curfews plainly do not help avoid arrests, as Councilmember Pinto and others have argued, but rather put youth increasingly in interactions not only with MPD but the National Guard.

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