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Independent Budget Office Establishment Act of 2001
Bill 14-247

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Councilor Councilmember Kathy Patterson

A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Councilmember Patterson introduced the following bill, which was referred 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.

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