DC is battling austerity policies at the national & local levels. As Republicans have us barreling towards a local recession, Mayor Bowser is adding fuel to the fire w/her budget proposal.

See DCFPI's new blog that pulls back the curtain and offers our first take on Bowser's proposal. ⏬⏬⏬

Today, the House approved a budget bill that included devastating cuts to programs like SNAP and Medicare, programs that tens of thousands of people in DC rely on every day. These plans would create new cuts and barriers that would have sustained effects on the District.

Tazra Mitchell on X: "I appreciate all the attention Punchbowl has brought to Congress's sabotage of DC's budget. However, the tweet below is conflating issues. A DC budget fix remains unresolved regardless of the potential Commanders deal. That's b/c the sabotage is a FY 2025 issue, not FY 2026+." / X I appreciate all the attention Punchbowl has brought to Congress's sabotage of DC's budget. However, the tweet below is conflating issues. A DC budget fix remains unresolved regardless of the potential Commanders deal. That's b/c the sabotage is a FY 2025 issue, not FY 2026+.

Spending local tax dollars in fy26 and beyond on RFK is a bad deal, but like @tazramitchell.bsky.social says to @jakesherman.bsky.social let's not conflate that issue with Congress keeping us from using our own tax dollars this year... x.com/TazraMitchel...

To the extent that the Mayor runs out of tools (we assume she is considering them all), and by then she is deeper into the process of making the remaining $400m in cuts, DCFPI hopes she will work w/community leaders to target those cuts in ways that lead to the least amount of harm.

Once they return from the April recess in 2 weeks, the US House could still take up the DC “fix” legislation, undoing the $1.1b in cuts. The Senate has already approved the bill and Trump has signaled his support. But, the end of the fiscal year/deadline for absorbing the cuts is fast approaching.

Tom Sherwood on X: "#BreakingNews - DC Mayor Muriel Bowser - using an obscure budget law provision - intends to reduce a looming $1.1 billion cut imposed by Congress by legally increasing city spending 6% ($679 million) and cutting spending by $410 million. Details to council next few weeks." / X #BreakingNews - DC Mayor Muriel Bowser - using an obscure budget law provision - intends to reduce a looming $1.1 billion cut imposed by Congress by legally increasing city spending 6% ($679 million) and cutting spending by $410 million. Details to council next few weeks.

We’re grateful Mayor Bowser found a pathway to protect residents from $700M in cuts by invoking a rarely used, congressionally approved DC law allowing the city to raise its budget mid-year by up to 6% x.com/tomsherwood/...

Five Misunderstandings About the Congressional Bill to Protect the District’s Budget Unless the US House takes action, DC will be forced to cut $1 billion from its current budget, in an attack on residents’ fundamental right to self-govern.

And for what? The federal overreach doesn’t save the federal government a single penny and DC has proven itself fiscally responsible—as evidenced by clean audits, balanced budgets, and stellar credit ratings www.dcfpi.org/all/five-mis...

DC Expected to Lose $1 Billion in Revenue Through the Financial Plan Local revenues are expected to decline by more than $1 billion over the next three years compared to previous estimates, largely due to federal layoffs steep enough to throw DC into a mild recession, ...

Being forced to pull back from critical public investments when the CFO is already projecting a mild recession (largely due to federal layoffs) will deepen DC’s bleak economic outlook. www.dcfpi.org/all/dc-expec...

@maustermuhle.bsky.social has a helpful thread that lays out the timing of how some of these cuts could work x.com/maustermuhle...

..that all would lead to detrimental harm to city services.

She identified “extraordinary measures” she'd have to apply b/c of US House’s refusal to move forward the DC “fix” that would right the $1.1B wrong. These include freezes on contracts, overtime, & hiring and possibly furloughs and facility closures....

Mark Segraves on X: "Furloughs of DC government employees and partial closures of some government facilities now being considered by @MayorBowser Mayoral Order imposes spending and overtime freeze. Capital projects like Cap One Arena deal exempt. @nbcwashington https://t.co/ohjdmWTrk2" / X Furloughs of DC government employees and partial closures of some government facilities now being considered by @MayorBowser Mayoral Order imposes spending and overtime freeze. Capital projects like Cap One Arena deal exempt. @nbcwashington https://t.co/ohjdmWTrk2

A $400M cut by September is significant—it'll harm vulnerable residents in need of vital services and the beloved city workers who care for our residents & keep DC functional. The Mayor’s letter lays out the path she is forced to take to achieve those cuts: x.com/SegravesNBC4...

Thank you to @mayorbowser.bsky.social for using tools to protect DC’s local budget by reducing the Congressional budget cut to $400M from $1.1B. Even w/this progress, today she made clear the drastic measures necessary to make remaining cuts, including furloughs & contract pauses.

The Mayor’s budget may be delayed, but we do have some insight into her priorities by way of her office’s Guiding Principles. How does a program like the Pay Equity Fund stack up against these principles? Let’s dig in 🧵

Cuts to Federal Food Assistance Will Hurt Residents Just As DC Enters Recession More than 140,000 residents of the District of Columbia are at risk of not having enough to eat if the proposals in Congress to make substantial cuts to the nation’s primary food assistance program ar...

More than 140,000 residents of the District are at risk of not having enough to eat if the proposals in Congress to make cuts to the nation’s primary food assistance program are not defeated. loom.ly/XbDZL9c

Exaggerated claims of “tax flight” should be set down once and for all. Let’s focus on the facts as DC stares down massive federal fiscal threats on top of a looming $1 billion loss in local funds.

Taxing Capital Gains More Robustly Can Help Reduce DC’s Racial Wealth Gap DC Should End Special Tax Treatment that Makes the Wealthy Even Wealthier.

In fact, the combined federal and state top marginal income tax rate needs to reach 68 percent to induce a problematic level of millionaire tax flight. @DCFPI’s capital gains tax report summarizes the research well—see page 2. www.dcfpi.org/all/taxing-c...

Tax rates would have to be A LOT higher to actually motivate masses of rich people to leave home. The magnitude of the effects of taxes on migration would need to be 8 to 15 times higher for it to be a relevant consideration in tax policy decisions, according to Dr Cristobal Young’s research.

After the increase, TRC found there were *more* high-income taxpayers than before. drive.google.com/file/d/1_R_j...

DC's Tax Revision Commission published a memo confirming that wealthy residents didn’t flee DC after it modestly raised income taxes on individuals with taxable income over $250k a year (or $500k for married couples) in 2021.

State Tax Levels Have Little Effect on Where People Choose to Live New analysis of interstate migration again disproves “tax flight” myth

Also, state tax levels have little effect on where people choose to live, despite Axios buying into the tax flight myth. Evidence shows that people choose where to plant roots based on job opportunities, family, and the cost of housing—not taxes.
www.dcfpi.org/all/state-ta...

Income taxes are just part of the puzzle. ORA’s analysis takes this into account, showing an apples-to-apples comparison of regional differences across taxes. This chart shows DC taxes its residents *lower* vs neighboring jurisdictions across income levels
ora-cfo.dc.gov/sites/defaul...

Simply comparing top tax rates doesn’t provide an accurate picture of how DC compares to other areas. In fact, it’s misleading given that statutory rates don't reflect all the adjustments & provisions made to the tax base, such as tax deductions, credits, and other preferences.

Today’s @Axios DC newsletter includes some misconceptions about taxes in DC. Looking at top tax rates, rather than effective rates, tells only part of the story. @ORAdcgov’s analysis consistently finds that DC residents’ level of tax responsibility is lower than our neighbors.

Sweeping Federal Worker Layoffs Leave States Reeling | Center on Budget and Policy Priorities Communities across the country have been reeling in recent weeks as billionaire Elon Musk, the DOGE team he leads, and the Trump Administration broadly continue their campaign of sweeping and...

Mass federal layoffs mean cuts to crucial public services and major strains on our local budget and economy. A new blog from @centeronbudget.bsky.social's @wesleytharpe.bsky.social dives into the harmful effects of these layoffs 🧵 www.cbpp.org/blog/sweepin...

Further confirming what @tazramitchell.bsky.social wrote in her blog addressing the misunderstandings of the Senate fix to the fed CR that will cut $1b from DC's budget-->CBO score shows $0 cost to fed govt b/c Congress is limiting use of local NOT federal tax dollars www.cbo.gov/publication/...

USDA cancels $500M in food deliveries, leaving food banks scrambling The Trump administration’s latest move, which follows $1 billion in cuts to food aid programs, puts more pressure on groups trying to feed hungry Americans.

Impact explained by Vince Hall @feedingamerica.org

With inflation rising & fundraising down - food banks are at a moment of extraordinary demand that is taxing them 2 the breaking point. Any interruption of food sources will mean serious consequences to our neighbors facing hunger.
wapo.st/41Xz09A

Five Misunderstandings About the Congressional Bill to Protect the District’s Budget Unless the US House takes action, DC will be forced to cut $1 billion from its current budget, in an attack on residents’ fundamental right to self-govern.

The US Senate has approved a bipartisan bill that would undo the $1 billion cut Congress forced on DC's current budget. The House should act next week to do the same.

Our Chief Policy and Strategy Officer, @tazramitchell.bsky.social, debunks 5 myths about the bill: www.dcfpi.org/all/five-mis...

No sign DOGE significantly cut spending or the deficit in February according to CBO.

Federal outlays grew 7% compared to last year and the deficit grew 5%.

It would also restrict DC's ability to set its budget.
bsky.app/profile/mlea...