Carol Schwartz for Mayor
1005 Seventh Street, NW
Washington, DC 20001
(202) 393-7300 - Fax (202) 639-8738

Responses to “Washington Business Journal” questionnaire

1) What specific actions would you take to improve the District’s business climate?

Lowering taxes, eliminating costly and cumbersome business regulations, and assuring that the District has the technological capability and equipment to compete in the regional marketplace are crucial steps that, as mayor, I will take to improve the business climate in the District.

2) Why do you support (or oppose) construction of a new convention center at Mount Vernon Square?

As a Councilmember, I voted in support of the Mt. Vernon Square site for the new D.C. convention center , in part, because of the potential for the creation of 10,000 new jobs for D.C. residents alleviating our appalling 9% unemployment rate. As a citizen I am very concerned about this unemployment rate — triple the national average — and as high as 22% in some parts of our city. My vote was also based upon concerns about the costs of mitigating environmental damage at the Union Station site and other potentially unknown negative factors associated with that site. I found the delay for necessary exploration of such factors to be imprudent; I feared that such a delay could cause the District to lose the convention center to the nearby suburbs, just as we lost the Redskins.

3) Please explain your position on rent control.

The vacancy decontrol measures that were introduced by the D.C. Council in the 1980s are sufficient to allow for additional rental housing. The law also exempts from rent control requirements, new buildings and newly-renovated buildings back on the market that have been continuously vacant since 1985. An amendment, I added in the 1980s reassures developers that they wouldn't t be left hanging by any subsequent reversal in the city’s rent control policy. The amendment requires the government to pay the building owner the difference in the value of the building with rent control and without rent control, following such reversal. This law is a delicate balance that protects the rights of tenants while ensuring a vibrant rental market.

4) What is your position on reforming the District, s costly worker’s compensation and unemployment benefits?

Bill 12-192, which I co-sponsored, is currently in the Council’s Committee on Government Operations. It reduces overall cost to D.C. employers by 21 percent. If enacted, the Bill will bring the costs paid by District businesses in line with the lower costs paid by businesses in surrounding jurisdictions.

5) What changes in the D.C. Tax Code do you support, if any? Please comment on the two recently proposed options: a 0.35 percent gross receipts tax; and a 1.5 percent business activities or “value added” tax.

Tax reform in the District is critical to our continued economic revitalization; and that reform must come in the form of tax relief. I am disinclined toward instituting value added or gross receipts taxes because of my longstanding desire to reduce taxes. We need to become more competitive with our business taxes if we wish to stem the exodus of businesses from our city and encourage businesses to relocate here. D.C. business taxes must be comparable or lower than in neighboring jurisdictions. This will not only stimulate the economy but will bring jobs, real jobs, back to the District. In 1997 the District lost 8,100 jobs while the area around us thrived. A higher corporate franchise tax in D.C. is not compatible with the goal of an expanded business community.

6) How will you improve the District, s relationship with key members of Congress?

I have already begun the process of improving relationships with Congress on my own and as chair of the Council’s Committee on Local, Regional and Federal Affairs. And you should bear in mind, as the first Republican mayor of the District of Columbia, I will have greater access to Congress than I already have and certainly more than others who are running will have. I will continue to build on the relationships that I have established over many years, often as the lone Republican in local government to assure that District concerns are addressed and our needs met.

7) How can you improve the working relationship between the mayor, D.C. Council and the financial control board?

I think that the only way democracy will ever be returned to the citizens of the District, is if all the participants — the mayor, the Council, and the control board — adopt collegiality as their watch word. All of the players are after all residents of our city and should share a mutual goal. I am an active listener, and have the ability to build coalitions which are essential elements to obtain harmony. As mayor, I will use these skills to improve the relationship between elected officials, the control board and citizens.

8) What are your priorities for economic development?

I want a booming downtown and economic revitalization in our neighborhoods. In order to achieve these goals, I will streamline the process of doing business in the District. An essential and vital component of my economic development plan is job site training and workforce development. Empowerment/enterprise zones — an idea I championed as early as 1988 is also an essential component of my new business recruitment strategy so that small and mid-size companies can afford to do business in the District. Not only will I recruit new businesses, but I will also put together a program for retention of existing companies here in the District, as other successful jurisdictions have done. I co-sponsored legislation for tax increment financing, which passed the Council. This Act will be key to my plans for economic development in those neighborhoods where there is grave need for it. I will also explore establishing a Beltway Business Authority with Maryland and Virginia similar to the working relationship enjoyed by New York, New Jersey and Connecticut.

9) The mayor’s office now has diminished powers. What can you do to restore respect for the office?

While some powers have been taken from they mayor, the mayor remains the elected voice of the people. In a democracy, the voice of the people is of utmost importance. As mayor, I will make certain that agencies under my purview are models of efficiency and fiscal responsibility. I will insist that the employees who work in these agencies be well-trained and competent and, above all, courteous. I intend to bring respect for public service, back to our government and to our city. I will ensure that the District government comes into the 21rst century by updating the technological infrastructure to enable the District government to compete in the regional marketplace.

10) Do you think the current system is preferable to having a city manager or commissioner system? Why?

The strong-mayor form of government put into place a quarter of a century ago, when home rule was enacted is not the problem. In any organization — business or government conscientious, competent, courageous, ethical leadership determines whether the structure succeeds or fails. City managers, per se, are no panacea. Miami had one and failed abysmally. New York has a strong- mayor form of government and has succeeded. The Home Rule Act addressed the need for a top-notch manager when the position of city administrator was written into the Act. I would use the city administrator to run the day to day operations of the city. That person would report to me as mayor and be accountable to me and the citizens who elected me. Any decision about the form of government we have in this city should be made by the citizens of the District of Columbia. First and foremost, I believe in democracy for all whether the citizens live in Maryland, Virginia or Washington, D.C.

Additional Comments: Twenty five years ago when the Home Rule Act was passed, I don’t think that we really understood all the elements that were necessary to build a world class government. Now, I think we do and as Mayor, I want to finally get it right. I want the District to have competitive taxes, streamlined regulatory processes and regional cooperation and workforce development. Give me a chance and I will prove D.C. can work for all of us — residents and businesses alike.