Committee of the Whole Additional Meeting on FY2027 Budget – May 22, 2026

This additional meeting of the Committee of the Whole, chaired by Phil Mendelson, considered the report and recommendations on the fiscal year 2027 budget and corresponding Budget Support Act (BSA) subtitles. The meeting is step one of two; final adoption is scheduled for June 9, 2026. The committee discussed education and non-education agency budgets, a subcommittee report on local business development, and identified priorities for the full committee markup ("big COW").

Discussion Items – Education

• DCPS: Increased funding for 15 schools consistent with the Schools First in Budgeting Act ($2.3 million). Added $292,000 for the New Heights program and restored three coordinator positions for pregnant and parenting students. Added $414,000 for three connected school managers in central office and $276,000 for managers at Cardozo Educational Campus and Jefferson Middle School. Provided $250,000 in FY27 capital funding for a microcenters design study and $6 million in FY28 capital for construction of early childhood microcenters in empty classrooms. Established a DCPS educator evaluation performance working group ($900,000 in FY27, $200,000 in FY28). Reduced the DCPS security contract increase from 30% to 15%, saving approximately $4.5 million.
• OSSE: Added $10 million one-time local funds in FY26 for the child care subsidy program to cover projected costs and eliminate the wait list. Restored $400,000 for the Live It Learn It experiential learning program. Increased educator wellness funding to $300,000 in FY27 (from $200,000 proposed). Funded math task force recommendations ($70,000 for materials/tools and $133,000 recurring for a math specialist). Added $435,000 recurring for course data collection to support credit transfers and digital backpack. Funded two additional literacy coaches and testing vouchers ($281,000 recurring). Increased Adult and Family Literacy funding by $500,000 to $3.87 million. Proposed a community schools task force to evaluate the grant program (replaces mayor's proposed elimination of $2.4 million).
• UDC: Restored roughly two-thirds of the mayor's cut and added $250,000 for workforce development and early childhood education.
• BSA Subtitles: Extended the truancy pilot for one additional year due to limited data. Restored $2.7 million for St. Coletta's. Struck the mayor's charter facilities subtitle to preserve the prior agreement (facilities allotment percentage pause until FY29). Restored $25,000 cut from the State Athletic Association. Added $38,000 to DGS for AV equipment repairs at the Barry Building (State Board of Education requirement).
• Councilmember Parker expressed support for many items but questioned the impact working group, stating concern that eliminating impact grants could be problematic. Chairman Mendelson explained the working group aims to improve the evaluation system, which is widely seen as punitive.
• Councilmember Lewis George highlighted concerns about DCPS capital cuts, especially DGS's elimination of $11 million in HVAC preventative maintenance, which led to closures at Cardozo and Banneker. She emphasized the need to close that gap and continue the truancy pilot with proper evaluation. She also flagged the need for immigrant teacher visa support; Chairman noted DCPS is not spending current funds on H1B processing.
• Councilmember Henderson thanked the committee for sustaining advanced technical center investments and the public school experiential grant. She questioned the $900,000 cost of the impact working group and the timing given the chancellor transition. Chairman defended the approach, focusing on expertise rather than the chancellor.
• Councilmember Nadeau supported child care subsidy and community schools funding but raised concerns about eliminating the alternative school breakfast program. Chairman explained the funding was for equipment and schools already have it. Also asked about adult charter issues; Chairman noted transportation subsidy is in another committee.
• Councilmember Bonds asked about microcenters and supported UDC's workforce development focus on elevator repair and HVAC.
• Councilmember Robert White praised investments in special education, community schools, and youth mentorship. Questioned how the truancy pilot will be evaluated; Chairman noted self-selection and phased rollout limit data. Asked about the impact working group cost and whether it could wait for new chancellor; Chairman said work can start immediately.

Discussion Items – Non-Education

• Department of Buildings: Funded two FTEs ($307,000 recurring) for vacant property registration. Accepted transfers for five additional FTEs: three for the Harmonious Living Amendment Act ($397,000), one for housing code violations ($171,000), and one for permit expediting ($171,000). Increased nuisance abatement contract by $750,000 one-time. Nondepartmental: $200,000 for DROP Act implementation.
• OCFO: Chairman attempted to cut seven vacant positions (vacant since September 2023) saving $595,000 recurring and a parking contract ($737,000 recurring) but OBP denied the cuts. Chairman intends to move these cuts at the full committee. Several councilmembers (Bonds, Parker, Henderson, Allen) criticized OCFO for holding vacancies and parking while cutting critical programs.
• Economic Development Subtitles: Retained downtown building conversion support, WMATA tax abatement, federal property tax exemption, and others. Struck workforce housing opportunity tax abatement, federal properties tax fund, industrial revenue bond, and certificate of occupancy fee reduction subtitles. Chairman noted money from struck subtitles is reserved for councilwide priorities.
• Councilmember Henderson supported the WMATA tax abatement but opposed increasing the medical cannabis sales tax from 6% to 10.5%, arguing it harms small businesses already disadvantaged by federal restrictions.
• Councilmember Allen praised the child care subsidy restoration and community schools funding but expressed deep concern about cuts to pay equity, out-of-school time grants, and Commission on Arts and Humanities. He supported the impact evaluation task force.

Subcommittee on Local Business Development

• Councilmember Felder (chair, present virtually) presented the subcommittee report: no budget adjustments to DSLBD. Accepted transfers: $25,000 (judiciary) for Upper 14th Street Clean Team; $50,000 (Human Services) for Connecticut Avenue NW Clean Team; $100,000 (Human Services) for Friendship Heights Alliance BID; $50,000 (Executive Administration and Labor) for Benning Road Main Street; $50,000 (Facilities) for Tacoma Main Street. No changes to Art All Night or Golden Triangle BID subtitles. Two new subtitles: redesignate Capital Riverfront BID as Navy Yard BID and prepare Southwest BID for disposition of federal buildings.

Items for Full Committee ("Big COW")

• Chairman listed priorities for the June 9 markup: approximately $39 million for the child care subsidy program in FY27; $60 million for pay equity to maintain status quo; shift facilities costs from DGS to DCPS to reduce sector funding disparity; shift lead testing funding for charter schools to DGS (currently zeroed out each year); strike public services hotel occupancy fee subtitles (since the 1% hotel occupancy tax increase is made permanent); reverse proposed elimination of medical leave under paid family leave; strike the medical cannabis tax subtitles (increase from 6% to 10.5% sales tax on medical cannabis); allocate approximately $1.4 million per year for mold inspections at the Department of Buildings; restore $2 million in FY27 and $6 million in FY28 for the Commission on Arts and Humanities capital grants.

Key Outcomes

• The committee voted unanimously to approve the committee report and print, with leave for staff to make technical, conforming, and editorial changes. The next step is a work session on Wednesday, May 27, 2026, to prepare for the full committee markup and first reading on June 9, 2026.