DC Council Committee of the Whole FY2027 Budget Hearing – May 13, 2026
DC Council Committee of the Whole FY2027 Budget Hearing – May 13, 2026
On May 13, 2026, the Council of the District of Columbia Committee of the Whole held a public hearing on six budget-related legislative measures for Fiscal Year 2027. The hearing began at 9:52 AM and adjourned at 7:08 PM, with 171 witnesses registered. The measures include the FY2027 Federal Portion Budget Request Act, Local Budget Act, Local Budget Emergency Act, Budget Support Act, and revised FY2026 budgets. The hearing was chaired by Chairman Mendelson, with Councilmembers Fruman, Bonds, and Parker presiding at various times.
Public Comments & Testimony
- Kevin Donahue (City Administrator) testified on the mayor's budget priorities: protecting education and public safety, preserving core services, protecting healthcare, and growing the economy. He noted the budget grew 62% over 12 years, with 80% from organic economic growth. He highlighted a $1.1 billion budget cliff and $400 million in cash reserves not accessible due to CFO restrictions on liquidity, including $200 million from 6 extra days of cash on hand and $180 million from decoupling set aside for legal risk. Subtitle provisions address telework (to reduce unused office space) and paid family leave for DC government workers (to balance leave usage with staffing needs).
- Community Wealth Builders (multiple speakers) advocated for a public bank, land bank, and tax incentives for cooperative conversions, arguing these would keep wealth local and support affordable housing and community-owned businesses.
- CSX Transportation (Randy Marcus) opposed railroad carrier fees (60 cents per rail car), citing conflicts with federal law, constitutional concerns, and a pending lawsuit.
- Nancy Drain (DC Access to Justice Commission) urged restoration of Access to Justice funding from the mayor's proposed $4.5 million to $31.7 million, warning that cuts would force 240 client-facing workers to be laid off and harm 38,000 residents.
- DC Coalition Against Domestic Violence (Michaela Deming, Dawn Dalton) requested restoration of $5.6 million to OVSJG victim services and $685,000 to DHS domestic violence services, noting rising DV homicides and demand.
- Scott Goldstein (EmpowerEd) called for restoring SNAP, school breakfast, school-based behavioral health, early childhood pay equity, and community schools funding, and redirecting MPD funds.
- Margaret Dwyer (Ward 3 Housing Justice) opposed WMATA joint development tax abatement, calling it a gift that would allow tax-free development on upzoned land.
- Liz de Barros (DC Building Industry Association) supported the budget, including downtown conversion incentives, tax abatements for WMATA and federal properties, and workforce housing abatement.
- Mara Brofi (NOMA BID) supported $50 million for Third Street Metro entrance, urging council to maintain funding.
- Robin Betterall (EYA) requested modifications to WMATA tax abatement subtitle, including allowing property sale, limiting first source/CBE requirements, and extending abatement term to 25 years.
- Emily Alexander (Jair Lynch) urged inclusion of Reservoir District tax exemption amendment to align with HUD income limits.
- Stefan Rodiger & Bericette Selassie (Rift Valley Capital) requested gap funding and workforce housing abatement for Chevy Chase community center/library redevelopment.
- Lily Goldstein (LEO Impact Capital) sought tax abatement for the Gale Eckington property to preserve 350 affordable units.
- Eric Mulata (Dalian Development) requested changes to federal property tax abatement dates to include the RLB building.
- Leona Agouridis (Golden Triangle BID) supported technical clarification for BID tax increase, and urged funding for Safe Commercial Corridors and DuPont South overlook.
- Kubai Nageg (DASH) asked to fund OVSJG at $59.6 million and restore DHS domestic violence services.
- Tyrell Holcomb (Jubilee Housing) supported $120 million for Housing Production Trust Fund, resident services, out-of-school time, and OVSJG restoration.
- Lynn Amano (Friendship Place) opposed cuts to homelessness services, urged increased PNA and non-congregate shelter.
- Multiple early childhood advocates (Educare DC, UPO, DC Action, etc.) urged full funding of pay equity fund ($94.2 million) and child care subsidy program ($177.1 million), warning of educator loss and program closures.
- DCFPI (Kate Coventry, Maria Monsalve, Erica Williams) recommended decoupling from federal tax cuts, tapping reserves, recouping funds from Events DC, shifting from MPD, and implementing wealth taxes (net investment income tax, business activity tax).
- TANF advocates (Fair Budget Coalition) opposed elimination of COLA, increased sanctions, and time limits, citing harm to 16,000 families.
- Access to Justice supporters (Aaron Larkin, Kenyatta Robinson, Julia Ward, Megan Browder, Joanne Lynn) urged restoration of $31.7 million, noting 44,000 residents served in 2025 and cost savings.
- Environmental advocates (Sierra Club, CCAN, Earth Day.org, etc.) opposed cuts to DOEE (28% cut), sweeps of Sustainable Energy Trust Fund, and elimination of Food Policy Council. They urged funding for electrification, lead pipe replacement, and federal matching funds.
- Housing and homelessness advocates (Amber Harding, Andy Wassenick, Chelsea Hinton, Geneva Smith, Lori Leibowitz) called for new housing vouchers, ERAP restoration, and permanent supportive housing, noting rising evictions and homelessness.
- Labor union representatives (AFGE, ASME, etc.) opposed pay freeze, cuts to paid family leave, and telework restrictions, arguing workers deserve cost-of-living adjustments.
- Cannabis industry representatives (James Kahn, Caroline Crandall, Grace Hyde) opposed proposed tax increase from 6% to 10.25%, citing competition from Maryland and Virginia, and risk to licensed businesses.
- Other testimonies covered support for New Heights program, Bridge the Gap Fund, equitable charter school funding, Office of Tenant Advocate, and food policy council.
Discussion Items
- Chairman Mendelson questioned City Administrator Donahue about the errata letter (expected by end of week), cash reserves (CFO restricted $400 million, citing liquidity concerns), telework subtitle (to address unused office space), and paid family leave subtitle (to balance leave with staffing needs). Mendelson expressed concern about the direction of the paid leave program, noting it was designed to benefit both workers and businesses.
- Councilmember Parker questioned witnesses on pay equity, TANF priorities, and access to justice funding levels.
- Councilmember Bonds and Councilmember Fruman also presided over portions of the hearing, engaging with witnesses on various issues.
Key Outcomes
- No votes were taken; the hearing was for public testimony. The council will hold work sessions and markups, with first reading scheduled for June 9, 2026, and second reading on June 23, 2026. The record will close before the work session.
Meeting Transcript
I am calling to order this hearing. This is a public hearing of the committee, the whole of the council of the District of Columbia. Today is Wednesday, May 13th, 2026. The time is 9 52 in the morning. We're in room 500, the council chambers of the Johnny Wilson building. This is a hearing, the hearing that the council has on the legislative measures the mayor has submitted relevant to the budget for the District of Columbia government. There are, I believe, six legislative measures. Bill 26-658, fiscal year 2027 Federal Portion Budget Request Act, which is comment on the portion of the district's budget that is funded at the discretion of Congress, such as funding for the Judicial Nominations Commission, which is a DC government agency, funding such as tuition assistance grant program, which is a congressionally enacted program. And this is uh our request to Congress with regard to the federal portion budget. Bill 26-659, the fiscal year 2027 local budget act, which we adopt through budget autonomy. That is what everybody focuses on when they think of as the district's budget. Bill 26-660, the fiscal year 2027 Local Budget Emergency Act of 2026, which we adopt when we adopt a local budget act so that it becomes more effective, becomes effective, excuse me, becomes effective sooner than congressional review of the permanent bill. Bill 26-661, the fiscal year 2027 Budget Support Act of 2026, which is a very um lengthy legislative measure that contains provisions that are intended to be all of them are supposed to be relevant to the budget to support the budget. Bill 26-662, the fiscal year 2026 revised local budget emergency act of 2026. Those are revisions to the current year budget, and the Bill 26-663, fiscal year 2026, revised local budget temporary act, which will be the same as the local budget emergency act for fiscal year 2026. Again, the revisions are to the current year budget. So this hearing, for this hearing, the committee of the whole is welcoming testimony from any citizen or business or anyone else who has comments with regard to any of these budget measures. We have a hundred and seventy-one witnesses who signed up, so this will probably be all day. We begin this meeting hearing testimony from the government. This is not comprehensive testimony on the budget because all of the committees have had their hearings, and that's where we've been getting detailed testimony from executive uh officials uh with regard to the proposed budget for specific agencies. All the committees have, I believe, at this point completed their hearings on the proposed budgets for the agencies under their purview. The committees will do their markups of recommendations next week. The council members will have a work session the following week where we go over where we go over all of this, and then the council is scheduled to vote. First reading on June 9th, if I remember correctly. Unfortunately, I have these dates committed to memory. Uh June 9th, and then we have to vote a second time that will be on June 23rd. The Budget Support Act will probably have its second reading later than June 23rd, and the revised budget uh for the current year, the emergency and temporary acts will get their um uh final reading on June 23rd. Um with that, we have uh Kevin Donahue, the uh city administrator. Uh please, when you're ready, begin. Uh, good morning, Chairman Mendelson. Uh, good morning, uh staff and team of the committee on the whole. I'm Kevin Donahue. I have the privilege of serving as city administrator for the District of Columbia, and I'm joined here by Jenny Reid, the Deputy City Administrator and Budget Director, and Barry Christworth, our general counsel, who does a lot of the hard work of actually developing and writing the language of the BSA. This morning I'll provide testimony on the fiscal year 2027 Budget Support Act submission. Uh, I know you have a very long day of public testimony, so I'll keep my remarks quite short. Uh I also want to say good morning to everyone in the room here, for those watching, you can't see all the folks here, but there's probably a hundred plus people. Whenever I'm at ANC meetings, I always encourage folks to advocate for the budget, whether they agree or disagree with what we're putting forward, because it's an incredibly important document that really shapes what we do for an entire year. Uh so now I'll begin my formal remarks, which I said I'll keep brief. Um, and I'll really use them to highlight the four priorities that Mayor Bowser set out when she had us develop the FY27 budget, the BSA, and the FY26 supplemental. And there are really four guideposts that we have pointed to for each one of the hearings. Uh the first is focusing on making sure we protect and enhance education and public safety. Part of the reason for that is the mayor's view is that improvements in education and public safety are often the foundation for growth as a city and as an economy. Uh DC's comeback often depends on strong schools in a safe city, and we're proud of the investments we were able to make in the budget that we put forward to the council. Uh and that budget that we have put forward over a number of years that have led to increased enrollment, graduation rates, test scores, teacher retention, parent satisfaction in a moment in time post-pandemic when all of those things in other school districts are often at risk. Uh we're equally proud of the investments we make to the district's public safety ecosystem, resulting in last year the lowest levels of violent crime uh in over 30 years and the lowest level of homicides in about 15 years. The second guidepost we've used is preserving core services. I call core services things that, because it depends on who you ask, but really is things that every municipality everywhere in the world does and really has to do to be able to maintain their credibility as a basic functioning city government. You have to pick trash up, you have to respond to police calls and fire calls. You need to have a strong parks department, rec centers. You need libraries that are safe and maintained with content and programs that draw people to those libraries.
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