Welcome to September, District Dime readers! For many of us, this means heading back to school, a five-day work week and a more routine daily schedule.
But this also means that our DC Council will soon get back from recess and possibly resume discussions about the Fiscal Year 2012 budget, which starts Oct. 1. A quick recap: The Council approved the budget earlier this summer, replacing Mayor Gray’s proposed rate increase on residents who earn more than $200,000 with a different type of income tax increase. Instead of new tax rate for high-income households, the Council decided to eliminate a tax break for DC residents who invest in out-of-state bonds. At its last meeting in July, the Council attempted to reverse course somewhat to keep the tax break in place for 2011, and it proposed paying for the revenue loss from the city’s savings account, known as the fund balance. Mayor Gray vetoed that change, citing concerns about dipping into the city’s reserve fund.
DCFPI agreed with Mayor Gray’s decision. For those who might have been in at the beach, the mountains, or just decided to take a summer break from DC politics, the District Dime wrote in detail about the issues surrounding out-of-state municipal bonds exploring the who, when, and how.
Some elected officials have mentioned reviving an income tax proposal when the Council comes back from recess ‘ and possibly restoring the tax break for out-of-state bonds in some fashion. Back before Memorial Day, DCFPI commissioned Hart Research to do a poll on how residents felt about tax and budget issues, including an income tax. You can watch our video on the poll here.
Others have mentioned alternative proposals. If the DC Council decides to make another change to the budget, it should do so with public input and participation. We will do our best at the District Dime to keep you informed!
