How would you change the mayor’s budget?

In contrast to the mayor’s budget, I have long proposed a complete overhaul of our tax system and the creation of a six-tiered progressive tax. While this would lessen the tax burden for some of our city’s neediest residents, it would also more equitably distribute the burden and increase revenue without a dramatic increase in taxes.

--

Personal Post

Vincent Orange: Revenue without higher taxes

A case cannot be made for tax increases or spending cuts without first addressing why the proposed budget does not have a component for additional revenue collection in fiscal 2012. The budget ignores Medicaid reimbursements, in excess of $340 million, that are due from the federal government, real estate tax liens in excess of $100 million, and unpaid parking tickets in excess of $300 million. Approximately $25 million can be collected if we repeal tax-exempt bonds for those states that tax our bonds. Proper marketing of the DC-Net fiber-optic communications system can generate millions of dollars. In fact, it was created after the attacks of Sept. 11, 2001, to provide excellent communications and to generate in excess of $52 million annually from the federal government. We are receiving only about $1.7 million.

These sources of revenue must be addressed, without raising taxes.

There are concerns that the proposed budget increases spending by $322 million. This amount is odd because we were told that the projected budget deficit for 2012 is $322 million unless we act quickly. Clearly, there must be reconciliation between the alleged deficit and the proposed increase in spending.

Combined reporting is featured in this budget to generate $22 million for fiscal 2012. This same number is used to balance the fiscal 2011 budget. However, this money is not being collected because the regulations for implementation have not been shared and corporations have not been advised on how combined reporting works.

This budget is a work in progress.

--

Patrick Mara: Facing up to reckless spending

By raising taxes, Mayor Gray’s proposed budget condones the reckless spending habits we’ve seen from City Hall for too long. Politicians treated the District’s tax base and savings accounts as though we had inexhaustible funds; we should not have a deficit, and I will not support any tax hikes. Instead, we must trim government spending by reforming the many District agencies that are bloated and inefficient.

The District has lost over $340 million in Medicaid reimbursements; that squandered money alone is enough to cover our current budget gap. The dysfunctional Department of Health Care Finance, which is responsible for processing Medicaid, must be overhauled. Management issues that are years old still plague the department. Shockingly, the Gray administration placed the now-infamous political appointee Sulaimon Brown as a “special assistant” in the department.

I also support legislation introduced by D.C. Council member David Catania (I-At Large) to modernize the District’s pension system. This common-sense strategy for changing how we calculate cost-of-living adjustments and other reforms, already adopted in other states, would save taxpayers an estimated $242 million.