Response to Candidate Questionnaire
D.C. Chamber of Commerce

by
Anthony Williams, Candidate for Mayor

1. What is your position on the National Capital Revitalization Act of 1998?

This act was a step forward for good government, and a step backward for self government. On the positive side, it helped the District by directing the federal government to accept its responsibility for unfunded pensions, felony prisoners, and federal courts, which are some of the major cost drivers that dragged the District into insolvency. Free from these burdens, we can better focus on fixing local services for District residents and businesses.

But on the other hand, this act further deteriorated home rule by giving the Control Board operational control over most city agencies. To manage this new responsibility, the act created a Chief Management Officer position, which added yet another locus of control within the city government.

To move this government toward effectiveness, we need a leader with the credibility and management experience needed to unify the many interests in this city. Under my leadership, the District will go from confusion and infighting to filling potholes and serving businesses. We will then command the necessary respect from Congress to restore home rule. As Mayor, I will bring about one government, good government, and self government.

2. How to you propose to retain, expand, and attract businesses in the District of Columbia, and stem the exodus of businesses from the city?

A host of research shows that private companies care most about the “business necessities,” which primarily consist of a streamlined regulatory environment and fair and equitable taxes. I will discuss each of these in turn.

• Regulatory reform. Right now, D.C. subjects local businesses to a brutal maze of regulations and virtually no customer service to help navigate through. As Mayor, I will merge duplicative rules, and eliminate unnecessary regulations. In doing so, I will waste no time developing a panel or committee to review the Districts regulations, I will instead rely on the credible reviews conducted to date.
  In addition, I will create a one-stop customer service hot-line and center. This service will provide businesses with a centralized, knowledgeable, and courteous representative who will respond to all needs regarding permits, licenses, inspections, and any other concerns a business person may raise. We will work towards a technology-friendly environment where business licensing and many other transactions can be completed electronically.
• Fair and equitable taxes. At present, District businesses face taxes that are 50% to 75% higher than those paid by their suburban counterparts. In fact, D.C. has the region's highest taxes on commercial real property, corporate income, retail sales and utilities! As Mayor, I will work to ensure that taxes are restructured in a way that creates a friendly business climate in the District. Specifically, I will promote the implementation of key recommendations issued by the Tax Revision Commission.
• Improve basic services. To operate effectively, local businesses need clean and safe streets, reliable trash collection, and a well-maintained infrastructure. As Mayor, I will ensure continued upgrading of services to support a strong local economy.

These decisions, of course, will not be made by me alone. As Mayor, I will build a governing coalition that includes not only the Council and Control Board, but also business owners, not-for-profits, labor leaders, and citizens. By establishing a partnership among these folks, I will ensure that interests are represented and that my decisive action will be supported.

3. Please summarize your ideas and plans for comprehensive economic development in the District of Columbia and how you would implement these plans.

To create and maintain a vibrant local economy, I will create a partnership with businesses to accomplish the following:

• Create a business-friendly environment. Excessive regulations and outrageous tax rates create a hostile environment for businesses in the District. As Mayor, I will streamline necessary regulations and eliminate unnecessary ones, and strive to implement key recommendations of the Tax Revision Commission. On both the regulatory and tax fronts, I will create a one-stop customer service hotline to quickly and courteously respond to the needs of businesses in the District.
• Enhance neighborhood business centers. In addition to “downtown” businesses, our city has many important neighborhood sectors and commercial corridors. These neighborhoods are not only key to our economic stability, but to our civic and cultural identity. As Mayor, I will build on my economic development experience in Boston and St. Louis, to ensure that active support and assistance are focused on these areas to provide opportunities for growth and development.
• Promote tourism. Despite our wealth of cultural amenities and national landmarks, the D.C. is now often regarded as dangerous and unclean. To reclaim our status as a premier tourist city, we must restore basic city services like police patrols and street maintenance. In addition, we must market our city more effectively by advertising nationally and regionally, for both major national attractions as well as local neighborhood sites.
• Provide small business assistance. Small businesses are often the engine that drives economic growth. They provide new economic opportunities to both people and places. As such, I will focus resources on supporting small businesses, ensuring they have access to capital, access to local business networks, and full cooperation from key government agencies.
• Support Business Improvement Districts (BIDs). BIDs have provided a much- needed response to the District's failure to provide basic services. But unfortunately, this solution is an ambulance in the valley, when what we need is a fence on the cliff. In other words, local businesses should not have to tax themselves for basic city services while being taxed by the city for the same purpose. As such, I support BIDs (1) as an interim measure until we restore effective street maintenance and police protection, and (2) as a way for neighborhood businesses to provide visitors with attention that goes beyond reasonable city services. In general, though, these initiatives mirror the type of neighborhood partnerships that I, as Mayor, will bring to the entire District.
• Promote Regional Cooperation. Washington is the hub of the second largest technology region of the country. We should make every effort to take advantage of this opportunity by working with other regional governments and with business coalitions to train technology workers and support emerging new businesses.
• International Business Opportunities: The availability of new communications technology creates new opportunities for businesses and organizations in Washington to participate in the expanding global trade more than ever before. I will support the efforts of the city’s culturally diverse businesses and organizations to create and expand new international business opportunities..

4. What plans do you have to stimulate small business development in the District?

Small businesses play a key role in our economy by providing a constant source of new products, services, and revenues. They also mold and shape neighborhoods by creating a unique character, offering choices to customers, and opening opportunities for workers. As such, I plan to invest in small businesses by ensuring they have access to capital, access to local business networks, and full cooperation from key government agencies.

In addition, we should provide tax incentives to nurture small business growth. We should especially encourage small businesses to capitalize on their connection with the major industries that cluster in the Washington region.

5. How do you envision the role of the DC Chamber of Commerce and other business organizations in the rebuilding of the city’s economic base?

In all aspects of my administration, I will build a governing coalition that allows for all voices to be heard and all interests to be represented. Now, this doesn’t mean that we’ll have management by committee, or that everyone will be pleased with every decision I make. It means that all interests can voice their concerns, hear others’ concerns, and find solutions that do the greatest good for the greatest number.

One such solution is creating a strong local economy from which everyone can benefit. To bring this about, I will work closely with the Chamber, with private and not-for- profit groups, with labor leaders and with civic organizations to support businesses without ignoring workers; to create opportunities for former welfare recipients, while still keeping businesses competitive; and to develop new commercial areas while protecting our neighborhoods and our environment. The Chamber’s assistance will be critical in developing this coalition and creating the cooperation necessary to rebuild the District's economic base.

6. Do you support the construction of the new D.C. Convention Center at the Mount Vernon site?

Yes. As a member of the Convention Center Board, I voted to approve this project. But although I believe this decision was right, the decision-making process could have been better. More opportunity should have been provided for the community voice its interests and concerns.

Nevertheless, this center will bring new opportunities and positive activity to the Mount Vernon neighborhood. The larger center will bring more visitors to enjoy new shops and restaurants that will grow up around the area.

7. Do you support the construction of the new baseball stadium in the downtown section of D.C.?

I would like to see the nation’s sport played in the nation’s capital, but we must learn from the examples of the convention center and other stadium projects around the country. Community input and careful cost-benefit analysis are the key to approving major projects like this.

8. Do you support a regional bid for the Olympics in 2012?

Absolutely. The experience of other American cities proves that hosting the Olympics not only builds great regional pride, it also brings tremendous economic benefits. To execute a viable Olympic bid, we will need to build a strong regional partnership, consistent with the governing coalition that is part of my platform.

Through this partnership, and through the service reforms I will produce as Mayor, we can demonstrate that the D.C. metropolitan area provides the safe environment, well- managed services, and the excellent transportation system needed to successfully host the 2012 Olympic games.

9. What do you think the Mayor, D.C. Council and Control Board can do to promote tourism?

Unfortunately, the incumbent leaders of the District have proven ineffective in many areas, including the promotion of tourism. As Mayor, I would build a partnership through which many components of our city could work cooperatively to promote an attractive environment for tourists. Specifically, this effort would require the following measures.

• Provide clean, safe streets. To get to, from, and around the District, visitors must encounter a pleasant environment. As Mayor, I will ensure that police officers are redeployed from desk jobs to street patrols, and that public works equipment and workers are used to maximizes the beauty and safety of public areas.
• Market the District more strategically and aggressively. As in other well run cities, I will work closely with the Chamber of Commerce to produce an aggressive national advertising campaign as well as local campaigns. This marketing would not only sell the national monuments, but also the tremendous landmarks, shops, and restaurants in our distinctive neighborhoods. For example, regional ads would draw visitors to the F Street area in Northwest to visit the Building Museum, Police Memorial. and Chinatown.
• Create a regional partnership. Many key promotions will require cooperation with our neighbors in Virginia and Maryland. To enhance transportation systems and adjoining public lands, for example, this partnership will provide critical contacts and cooperation.

As Mayor, I will build the support and cooperation among the Council, Authority, and all other stakeholders to promote tourism in these ways

10. Given that one of the critical elements in business retention and attraction is the quality of the educational system, what would you do to develop the relationship between the education and business communities?

My top priority in creating “good government” is to invest in people. This investment reaches further than the labor force of the government. This commitment begins with the future citizens of the Nation’s capital, our children. As a mayor my first priority will be to create an environment conducive to learning. This will be a holistic approach to providing the necessary ingredients for better schools. For example, clean schools, clean neighborhood, and a safe environment creates the context where learning can take place.

A successful educational system will not only produce better academic results, but will:

• prepare our children to compete in a global economy,
• give residents hope in the future of our city, and
• bring families back to the District of Columbia.

The success of the public schools is dependent on far more than internal organizational change. It’s a partnership involving parents, non-profits, and businesses that must all contribute and work in collaboration in order for our children to succeed.

Many school district’s around the country have already embarked in this type of relationship. For example, in the Virginia Beach school district, businesses are providing Novell network training to students, resulting in students obtaining necessary technical skills to compete in the work force. The fact is, collaboration between education and businesses benefits the business community as well as the children.

11. Comprehensive Regulatory Reform

a. Worker’s Compensation
The District must strive to provide a competitive business environment compared to neighboring jurisdictions while protecting the interests of labor and the environment . Worker’s compensation costs are an area where the District is out of line with the Maryland and Virginia suburbs. The Control Board recently passed a Resolution and Order that requires the District to bring its Worker’s Compensation law in the line with Maryland and Virginia. This change, along with all labor-related regulations, should be viewed in the context of a collaborative process with business and labor working as a partnership to ensure the local-term economic viability of the District.

b. Environmental Regulation
The District’s administration of its environmental regulations institute an additional layer of inefficient bureaucracy on an already cumbersome process. The entire regulatory process must be streamlined to ensure a balances between the interests of protecting the health and safety of District residents and encouraging new development. I will utilize all available resources including the BRRC report and management reform studies to develop and implement a regulatory system that strikes this balance.

The Control Board recently enacted a Resolution and Order which raises the threshold for projects which trigger the requirement of Environmental Impact Statement. This is an appropriate regulatory change which will free many small businesses from an inappropriate regulatory burden.

c. Fire Code Marshall
A streamlined regulatory process will include a one-stop shopping model of permitting and inspections. This model will provide businesses with a single point of contact for all permitting and inspection requirements. Each business will be assigned a “Business Service Representative” to ensure all regulatory processes are conducted in adherence to the highest standards of customer service.

d. Rent Control
Rent control exists to address the paucity of affordable housing in the District. However, rent control is not the most efficient means to achieving affordable housing. A long-term policy is needed that supports the construction of affordable housing in the District . In the short term, rent control continues to bridge the gap
between housing costs and income levels.

e. Building Permits and Certifications
The building permit process is one of dozens of services that has suffered from incompetent management where customer service is an afterthought and not a priority. This process requires a top-down review in which every unnecessary step will be eliminated and managers who do not adhere to strict standard of customer service will be removed. An efficient building permit process will reduce time dedicated to red tape and paperwork and focus efforts on the number one priority: ensuring the health and safety of District residents and visitors.

f. General Business License Procedure The consolidation of business licenses and use of single ID number are reforms which are long overdue. The entire business license process is currently designed to serve the bureaucracy instead in of serving the business community. Streamlining and consolidating these functions are essential steps which will improve efficiency without sacrificing the government's role in ensuring businesses are properly licensed to operate. The key to improvement in this area is updating the information technology dedicated to this process.

g. Vendor licensing
Street vendors are an excellent example of micro-enterprises which have flourished in the District. However, these businesses present a unique regulatory challenge due to the sidewalk location of vendors and the intense competition for prime vending locations. Stifling these entrepreneurs with special regulations and requirements will send a message that the District is unfair and capricious in its treatment of small business. Thus, the regulatory treatment of vendors in other large cities will be reviewed in order to develop a fair and equitable policy.

h. Boards and Commissions
The proliferation of boards and commissions in the District are a clear signal of bureaucratic inefficiency. Many of these boards and commissions no longer fulfill a useful regulatory function and only to serve to clutter the regulatory landscape.Each board and commission should be systematically reviewed and must pass a common sense test of usefulness. Those that fail will be eliminated. Any new boards and commissions will only be established to achieve a specific function with a clearly delineated start and end date.

i..Professional License Tax
This issue must be viewed in the context of overall tax reform. The District imposes unduly high tax burdens on both residents and businesses compared to surrounding jurisdictions. I will work with the Congress to secure an ongoing Federal contribution tied directly to reducing taxes. The professional license tax will be on the top of the “endangered tax list.” Both the “Tax Revision Commission” and the Brookings Institution have proposed the elimination of this “nuisance tax.” I support this position and will work vigorously to eliminate the professional license tax as part of an overall tax restructuring plan.

j. Parking Regulation The District must provide a more customer friendly parking environment to attract both resident and non-residents to the variety of shops, restaurants, and entertainment outlets in the city. Parking regulations must be viewed as part of a comprehensive economic development strategy to attract people to retail areas of the city. This strategy must balance the interests of residents, retail businesses, visitors without adding to rush traffic congestion.

k. Unemployment Insurance Compensation
As with worker's compensation, unemployment compensation should be viewed in the context of a collaborative process with business and labor working as a partnership to ensure the local-term economic viability of the District. In terms of competitiveness the District does not have the luxury of greater benefits at greater costs then surrounding jurisdictions. In fact, cost comparability with surrounding jurisdictions will a key component in improving the District’s economic competitiveness with the Maryland and Virginia suburbs.

l. Department of Consumer and Regulatory Affairs (“DCRA”) DCRA is the District’s day-to-day contact with the business community. As such the mission of DCRA must be to both support business development while ensuring that vital health and safety regulations are followed. The mindset of DCRA must change from that of a sustaining the existing bureaucracy to providing an efficient and effective services to the business community. This change in organizational culture can be achieved when professional employees work in an environment that utilizing streamlined processes and cutting edge technology to deliver the highest level of customer service.

12. Please discuss your review on comprehensive tax reform in the District of Columbia? a. Do you support a value added tax? Why? b. Do you support a gross receipts tax? Why? c. Of the existing tax proposals under consideration from the Office of Tax Revenue and the Tax Review Commission, which proposal would be best for the District of Columbia?

a. Do you support a value added tax? Why?
b. Do you support a gross receipts tax? Why?

Comprehensive tax reform is vital to the long-term economic viability of the District. Both businesses and residents face tax burdens that are much higher the surrounding suburbs. D.C.’s business tax burden exceeds the suburbs in the metro Washington area by 50 to 70 percent. D.C. tax burdens are highest in the region on commercial real property, corporate incomes, and public utilities and toll communications.

However, reducing tax burdens in the District should not be accomplished by replacing the current taxes with new form of taxation. At this time, the District does not have the capacity to administer a value added tax or a gross receipts tax. Only recently has the administration of the current business taxes been reformed to ensure the current taxes are administered fairly and efficiently. Replacing the current business taxes with a new tax is not the right approach to comprehensive tax reform.

Comprehensive tax reform must be linked to an ongoing federal contribution which addresses the unfair tax burden imposed on the District due to Congressional legislation restricting the ability of the District to fully tax income earned in this city. The legislation that authorized the Federal contribution explicitly stated that one of the rationales for such a contribution was to compensate the District for revenue lost due to Congressional legislation impacting the District’s revenue raising ability. Such restrictions, such as the inability to tax non-resident income, have resulted in higher tax burdens on District residents and businesses. A federal contribution for the purpose of tax reduction would address this issue.

c. Of the existing tax proposals under consideration from the Office of Tax Revenue and the Tax Review Commission, which proposal would be best for the District of Columbia?

The proposals from the Office of Tax and Revenue and the Tax Review Commission are both based on the sound fundamental principles of restructuring the tax system so that it is fair, competitive with surrounding jurisdictions and simple to understand and administer. I would apply this principles to restructured tax system that lowers both business and residential taxes while maintaining fiscal integrity.

13. Would you support proposals to lower the district’s corporate franchise tax to a rate comparable to surrounding jurisdictions? How would you finance this reduction?

Proposals for the elimination or reduction of the District’s corporate franchise taxes have been put forth by the Tax Revision Commission, the Office of Tax and Revenue and the Brookings Institution. I support a reasonable reduction in the corporate franchise tax rate that fits into fiscally sound financial plan for the District As CFO, I constantly stressed that both revenue and expenditure decisions must be made the context of structurally balanced multi-year financial plan. As discussed above, in order to reduce the corporate franchise tax without increasing the tax burdens on others or harming service delivery, I would link such reductions to an ongoing federal contribution.

14. How do you evaluate the performance of the Mayor, D.C. Council and the Control Board over the last three years in addressing the fiscal crises? In hindsight, what could have been done differently?

In evaluating the performance of the Mayor, the D.C. Council, and the Control Board, I defer to the citizens of the District. They are dissatisfied with the current government as it exists. They have concluded that it is time for new leadership. This is why the citizens of the District have drafted me to run for Mayor. They have asked me to provide new leadership to guide the District into the 21 Century. I have accepted this challenge.

During the past three years, the Mayor, the Council and the Control Board made only limited investment in our people and the businesses that make our neighborhoods thrive. Yet, during this same period, I made significant strides in improving performance in the financial area. I responded to this crisis by providing firm and focused leadership in the areas under my control. In my three years as CFO, the District achieved the following goals:

a. Received a clean financial audit
b. Fixed a broken tax collection system
c. Repaired our reputation on Wall Street
d. Generated a $185 million budget surplus

As Mayor, I intend to use the same principles to fix service delivery in the District. This is why the citizens of the District have asked me to run for Mayor. I accepted the challenge of running for Mayor so that together, we can make the City of Washington a vibrant and secure place to live and work.

15. What is your vision for the District of Columbia going into the next century regarding (a) fiscal accountability, (b) management, and (c) restoration of home rule?

My vision for the future of the District of Columbia can be summed up by the phrase:

“One Government. Good Government. Self Government.”

One government because we need to end the fragmentation that currently exists. In order for government to effectively serve the people of the District, it must act together as one government, not as centers of power competing against each other. This means more than just the Mayor and the Council working together. Only as partners working together can we make the District a vibrant community to live and work. One government embodies the idea that everyone must participate in order for government to serve the people. Businesses, labor, Advisory Neighborhood Councils, not-for- profits, and most importantly the citizens must all be willing to participate as members of the governing coalition. Only as partners working toward a common goal can the wheels of government start turning as smoothly as it should.

One government leads to good government. The vision of good government requires more than just ensuring that the government maintains its course down the road of sound financial management and fiscal accountability. It also requires sound operational management. The government must not only balance the books, but also deliver high quality services to the citizens and businesses that demand them. Good government means that the District must be able to:

• Create an environment for learning
• Foster economic development
• Improve public safety
• Provide basic services

Good government leads to self government. By proving to Congress, other governmental entities, business, Wall Street, and the general public that the District is a well managed city, we generate professional credibility and can command the respect of others through our ability to manage well as one government. This provides the framework in which Representative Eleanor Holmes Norton can make the case for home rule in the Congress.

The District like all other jurisdictions is entitled to home rule. The citizens deserve it, but regardless of whether right or wrong, this government must earn the right to serve its citizens without congressional interference.

16. What unique policies would you implement as Mayor of the District of Columbia?

The policies that must be implemented must foster the idea of good government that government can work for the people and the businesses that it serves. In this regard, there are four key areas that public policy must address:

a. Public Education
b. Public Safety
c. Economic Development
d. Basic Services

In each of these four critical service areas, as a government, we must rethink our approach to provide services.

We must end the dysfunctional approach to public education. Education does not occur just in the classroom. It also occurs at home, after school, and on the weekends. Our approach must be comprehensive and expand beyond the classroom. We need to foster a climate in which learning can take place. This means that we must find ways to make our neighborhoods safer, provide role models in the home, improve the resources available to the family and the student in which learning can take place.

Improving public safety will be critical to making our neighborhoods safer and improving the quality of life in the District. Police of ficers that are sitting behind desks must get on the streets. Officers in the squad cars must get on the sidewalk. Neighborhood policing involves knowing the people, the homes, and the businesses that live and work in our communities. Most importantly, our policies must be preventive rather than reactive. We must stop crime before it happens rather than trying to find the criminal after it takes place. This will require our police officers, citizens, and businesses to work together as neighborhood teams to take back our city.

Economic development will be essential revitalizing our neighborhoods and our city. This does not mean simply eliminating bureaucratic red tape or reducing the tax burden on businesses. These actions are important and all steps should be taken to foster a friendly business climate. This will require a partnership between the government, businesses, not-for-profits, and other organizations in the District. We must all work together to achieve the common good. The Chamber of Commerce will play a large role in ensuring that this partnership takes place. Specific actions we can take to improve economic development include:

• Eliminating red tape
• Reducing the tax burden on businesses
• Ensuring that our taxes are fair and equitable compared to the surrounding jurisdictions
• Developing commercial corridors that can be used to attract visitors to our city

While these actions are important, economic development does not mean developing downtown. It means taking back our neighborhoods and revitalizing the communities in which we live and work.

All of these actions are dependent on good government services. Currently, citizens and businesses with requests for services must overcome a seemingly endless series of obstacles to reach the appropriate agency or department to receive the service it needs. Frustration and futility often are the only result that citizens receive. My goal is to institute a one-stop hotline that anyone - citizens, businesses, and tourists — can call to receive an answer to his or her request. Customer service representatives will be trained to assist callers with all issues from garbage service to where to file tax forms or renew a license. This will provide a coordinated approach to improving service delivery to the people that matter most: citizens and businesses living and working in the District.