Councilmember Kathy Patterson
A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
to the Committee of the Whole with comments from the Committee on Finance
and Revenue.
To establish the
Independent Budget Office as an independent agency within the District
of Columbia government responsible for formulating the District’s annual
revenue estimate for budget formulation and other quarterly revised
revenue estimates; to establish other duties of the Independent Budget
Office, including the formulation of an annual baseline budget for the
District government and District agencies and the completion of other
budgetary studies and analyses at the request of the Mayor and Council;
to establish the position of Executive Director of the Independent
Budget Office and to provide for the Executive Director’s duties and the
process by which the Executive Director is hired to create a process by
which revenue estimates are formulated; to establish a Committee of
Economic Advisors with responsibility for certifying the revenue
estimates formulated by the Independent Budget Office; to establish the
membership and duties of the Committee of Economic Advisors; to create
the process through which revenue estimates are certified; to require
District government agencies to share information with the Independent
Budget Office; to give the Independent Budget Office independent
personnel and procurement authority; to authorize appropriations for the
implementation of this act; and to make necessary conforming amendments.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act
may be cited as the "Independent Budget Office Establishment Act of
2001 ".
See. 2. Purpose.
The purpose of this act is to establish the District of Columbia
Independent Budget Office as an independent agency within the District
government responsible for formulating revenue estimates
necessary for the proper formulation of the District’s annual budget and
multi-year financial plan. The Independent Budget Office shall function as
an independent source of revenue and other budgetary information and
analysis for the Mayor, the Council, and the people of the District of
Columbia.
Sec. 3.
Findings.
The Council of
the District of Columbia finds that:
(a) Accurate and independent revenue estimates are a critical component to
the responsible formulation of annual budgets, multi-year financial plans,
and budget and tax policy in general.
(b) As the beginning of fiscal year 2002 marks the end of the
"control period" as defined in D.C. Code Section 47-392.9,
preserving the District’s financial stability and the integrity of its
budget process is particularly important to the future fiscal health of
the District of Columbia.
(c) During past budget cycles when the revenue estimate function has been
the responsibility of an executive branch agency, conflicts between the
executive and legislative branches about the District’s annual revenue
estimates have resulted in confusion during the budget formulation process
and the perception that said estimates are formulated to benefit the
policy proposals of the executive branch rather than the integrity of the
budget as a whole.
(d) The establishment of an Independent Budget Office will eliminate the
confusion and perception referenced in paragraph (c) of this section,
provide for an independent source of budgetary analysis, and improve the
integrity and increase the accountability of the District’s budget process
for the government and people of the District of Columbia.
Sec. 4.
Definitions.
The following
definitions shall apply throughout this act:
(1) "Baseline budget" means the budget projected for the next
fiscal year based on current fiscal year budget authority.
(2)
"Committee" means the Committee of Economic Advisors as
established by this act.
(3)
"Council" means the Council of the District of Columbia.
(4) "District government agency" shall have the meaning provided
such term in section 3 (s) of the Administrative Procedure Act, approved
October 21, 1968, as amended, (Public Law No. 90-614, 82 Stat 1204, D.C.
Code Section 1-1502(3)).
(5)
"Mayor" means the Mayor of the District of Columbia.
(6) "Multi-year Financial Plan" shall have the meaning provided
such term in D.C. Code Section 47-302.
(7)
"Office" means the Independent Budget Office as established by
this act.
(8) "Public funds" means all monies belonging to or under
control of the District, including funds derived from taxes, fees, fines,
charges, miscellaneous recipts, annual federal payments to the District
authorized by law, funds derived from the sale of bonds, which are general
obligations of the District, general revenue sharing funds, or any other
funds which are not grant funds.
(9) "Revenue estimate" means public funds likely to be available
from existing revenue sources to be used to formulate the District’s
budget and multi-year financial plan.
Sec. 5.
Establishment.
The District of Columbia Independent Budget Office is hereby established
as an independent agency within the District of Columbia government in the
form and manner prescribed by this act.
Sec. 6.
Executive Director of the Independent Budget Office.
(a) There shall be an Executive Director of the Office. The Executive
Director shall be responsible for the administration of the Office and
implementation of the duties of the Office as described in this act.
(b) The Mayor, in consultation with the Committee, shall select candidates
for the position of Executive Director and shall present such candidates
to the Committee. The Committee, through an affirmative vote of a simple
majority of its members, shall appoint the Executive Director.
(c) The Executive Director shall be a statutory employee in the excepted
service pursuant to section 908 of the District of Columbia Government
Comprehensive Merit Personnel Act of 1978, effective March 3, 1979, as
amended (D.C. Law 2-139; D.C. Code Section 1-610.8), and shall serve at
the pleasure of the Committee.
(d) The Executive Director shall be a resident of the District of Columbia
or become a resident not more than 180 days after the date of appointment,
and shall remain a resident, unless temporarily or permanently exempted
from these requirements by the Mayor or for good cause.
Sec. 7. Duties
of the Independent Budget Office.
The Office
shall:
(1) formulate the annual revenue estimate to be used to formulate the
District’s budget and multi-year financial plan through a process
consistent with Section 8 of this act;
(2) formulate revised revenue estimates on a quarterly basis consistent
with Section 8 of this act;
(3) formulate the District’s annual baseline budget, in consultation with
the Mayor and Council and transmit the District’s annual baseline budget
to the Mayor and the Council by February 1 of each year;
(4) complete analyses projecting the fiscal impact of proposed laws and
policies at the request of the Mayor and the Council;
(5)
complete any other budgetary analyses at the request of the Mayor
and the Council.
Sec. 8.
Formulation and Transmittal of Revenue Estimates
(a) The Office shall formulate revenue estimates based on past and current
revenue levels and projected future revenue levels based on certain
assumptions, including financial inputs and outputs related to District
tax policy and agency programs, national and local economic forecasts, and
demographic, labor and housing data.
(b) The Office shall formulate revenue estimates on a quarterly basis
consistent with the certification schedule set forth in section 10 of this
act.
(c) The Office shall transmit the revenue estimates to the Committee in
the form of a report which shall include explanatory statements, a
delineation of revenues from all sources and a comparative record of the
actual revenues of these funds for each of the last five fiscal years.
Sec. 9. Establishment, Purpose, Membership and Procedure of the Committee
of Economic Advisors.
(a) There is hereby established a Committee of Economic Advisors, the
purpose of which shall be to approve the revenue estimates formulated by
the Office through a process consistent with Section 8 of this act.
(b) The
Committee shall consist of the following persons:
(1) The Mayor;
(2)
The Chairman of the Council;(3) The Chief Financial Officer of the
District of Columbia;(4) The Chairman of the Council’s Committee on
Finance and Revenue;(5) The District of Columbia Auditor.
(c) The
Mayor and Chairman of the Council shall chair the Committee.
(d) Three members shall constitute a quorum for the purpose of voting and
conducting official business of the Committee.
(e) Members of the Committee shall receive no compensation for service as
members of the Committee.
Sec. 10.
Certification of Revenue Estimates.
(a) No later than December 1 of each year, the Committee shall certify the
revenue estimate prepared by the Office to be used to formulate the budget
for the next fiscal year by an affirmative vote of a simple majority of
its members.
(b) The revenue estimate referenced in subsection (a) shall be considered
the official revenue estimate of the District government and shall be used
by the Mayor and Council to formulate the budget and multi-year financial
plan.
(c) No later than March 1 of each year, the Committee shall certify a
revised revenue estimate prepared by the Office for the next fiscal year
by an affirmative vote of a simple majority of its members.
(d) No later than June 1 of each year, the Committee shall certify a
revised revenue estimate prepared by the Office for the next fiscal year
by an affirmative vote of a simple majority of its members.
(e) No later than August 30 of each year, the Committee shall certify a
revised revenue estimate prepared by the Office for the next fiscal year
by an affirmative vote of a simple majority of its members.
Sec. 11.
Interaction of the Office with Other Agencies.
All District government agencies shall provide any information requested
by the Office in the discharge of its duties.
Sec. 12
Independent Personnel and Procurement Authority.
(a) The Independent Budget Office shall serve as the personnel authority
for all employees of the Office. The Office shall exercise this authority
consistent with the District of Columbia Government Comprehensive Merit
Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2139; D.C. Code
Section 1-601 et seq.)
(b) The Independent Budget Office shall exercise procurement authority
to carry out the responsibilities of the Office, including contracting and
contract oversight. The Office shall exercise this authority consistent
with the District of Columbia Procurement Practices Act of 1985, effective
February 21, 1986 (D.C. Law 6-85; D.C. Code Section 1-1181.1 et seq), except
with regard to the powers and duties outlined in section 105(a), (b), (c),
and (e) of that act (D.C. Code Section 11181.5(a), (b), (c) and (e)).
Sec. 13. Appropriations. There are
authorized to be appropriated from the general and other revenues of
the District funds necessary to carry out the purposes of this act.
Sec. 14. Fiscal
Impact Statement
The Council adopts the fiscal impact statement in the committee report
as the fiscal impact statement required by section 602(c)(3) of the
District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.
813; D.C. Code § 1-233(c)(3)).
Sec. 15. Effective
Date.
This act shall take effect following approval by the Mayor (or in the
event of a veto by the Mayor, action by the Council to override the veto),
approval by the Financial Responsibility and Management Assistance
Authority as provided in section 203(a) of the District of Columbia
Financial Responsibility and Management Assistance Act of 1995, approved
April 17, 1995 (109 Stat. 116; D.C. Code § 47-392.3(a)), a 30-day period
of Congressional review as provided in section 602(c)(1) of the District
of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C.
Code § 1-233(c )(1)), and publication in the District of Columbia
Register.