DC Chamber of Commerce Statement on District of Columbia’s Revenue Estimates for FY21, Announced by Jeffrey S. DeWitt, CFO, District of Columbia on September 30, 2020
Today Jeffrey S. DeWitt, CFO, District of Columbia, announced that the fiscal year 2020 is closing with higher than anticipated revenue at $221.1 million; however, District of Columbia Revenue Estimates for FY21 has been lowered by $211.9 million. The higher FY 2020 revenue reflects the unprecedented federal relief provided earlier this year, while the lower FY 2021 revenue reflects decreased economic activity in order to contain the COVID-19 pandemic.
“Despite the District’s surplus of $220 million, the anticipated downfall for FY21 and the years to come are a huge concern for the DC Chamber and the District’s business stakeholders,” said Angela Franco, Interim President & CEO of the District of Columbia Chamber of Commerce. “The DC Chamber of Commerce is asking DC Government and the District’s elected officials to protect the future of our vulnerable business community, especially small and medium sized businesses, by continuing with the Tax Revision Commission and by working with corporate stakeholders for input on future fiscal policy decisions.”
While the Chamber understands that the District government cannot make up for the economic losses incurred by the pandemic-induced recession on its own, the adoption of the right policies can shape and strengthen economic recovery. Ensuring that DC’s jobs and economy bounce back will require unified discipline. The Chamber is recommending the following principles to Government and District elected officials as they make decisions on how it will extend the $220 million surplus while creating strategies on ways to increase revenue for the future.
Continue with the Tax Revision Commission Reestablishment
At the DC Chamber of Commerce, we believe that it is important for the growth and development of our jurisdiction that we focus on economic diversification and policies like Bill 23-316 that support the interests of the business community and foster job creation so that the District’s economy progresses competitively.
Refrain From Adopting New Taxes That Impact the Business Community We are at a critical moment where we need to be united across sectors – business, government, resident, and nonprofit – to help restore this economy for all D.C. residents from COVID-19. Now is not the time to adopt a new tax that goes to the heart of our business community. We want to work closely with government officials on ensuring that the first remedy to fix the FY2021 gap is not by creating additional business taxes. We believe this is a more business-friendly strategy that will help relieve the stress of additional taxes on our businesses that are already struggling to stay afloat financially, due to COVID-19.
Internal Audit of Discretionary Spending and Fiscal Responsibility
D.C. businesses, local, national, and global, are already suffering directly from COVID-19 crippling their livelihood. At this critical moment, D.C.’s employers need a hand, not harmful taxes or extra costs that will put them out of work. We believe the best path to economic growth and resilience includes revised discretionary spending and fiscal responsibility. We support the continued transfers that help alleviate the burden businesses face during the pandemic and programs that supply security for our workers.
Strategic Support for Small Businesses
We need to look at the support that we can give to small businesses, especially on the financial, marketing and technology side. While some businesses were resilient in transitioning their business from brick and mortar to online, many other businesses need more support transitioning. They need the financial capacity to make those adjustments, support on how to market their new way of doing business and technology support to provide services or support to its customers online.
Create Return-to-Work Safety Measures to Bolster Regional Business/Economy
While some DC businesses were resilient in pivoting from work to work at home, we realize how essential it is for our regional economy to safely move people back to work. It’s essential for our transportation services, as well as the local businesses that thrive on the foot traffic for business. We want to work with government, businesses and residents to create a plan that will help employees transition back to working in their offices in DC. This includes discussing childcare, transportation, and safety protocols, to name a few top line issues.
“We’re optimistic that the Chamber, its members, and the government can work together, have open and honest conversations on strategies, innovations and technologies and create a plan that supports business resiliency, preserves entrepreneurial capacity, return to work concerns, and opportunities to secure the fiscal health and resiliency of the city,” added Franco.
On Friday, October 2, 2020, the DC Chamber of Commerce will unveil its “2020 State of Business Report: Pivoting from Pandemic to Recovery” at its annual State of the District and Region Conference, where elected officials and stakeholders will discuss current issues impacting the District. For more information about the virtual event or information on how you can download the report, please visit www.dcchamber.org, or to register for the conference visit https://bit.ly/STOD20.
About the DC Chamber of Commerce
The DC Chamber of Commerce is the largest Chamber in the Washington DC region. As an advocate for the DC business community for 81 years, the DC Chamber of Commerce is the voice for businesses in the District of Columbia, proudly serving a diverse membership of more than 1,400 members. For more information, visit https://www.dcchamber.org, or follow the Chamber at https://twitter.com/dcchamber and on https://www.facebook.com/DCCofCommerce.
