fy2012 budget volume 1

8/7/2019 Fy2012 Budget Volume 1

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Government of the District of Columbia

FY 2012 Proposed Budget and

Financial PlanVolume 1

Executive Summary

One City

Rising to the Challenge

Submitted to the

Council of the District of Columbia

by

Vincent C. Gray, Mayor


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The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished

Budget Presentation Award to District of Columbia Government, District of Columbia, for its annual budget for the fis-

cal year beginning October 1, 2009. In order to receive this award, a governmental unit must publish a budget doc-

ument that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a com-munications device.

The award is the tenth in the history of the District of Columbia. The Office of Budget and Planning will sub-

mit this FY 2012 Budget and Financial Plan for consideration by GFOA, and believes the FY 2012 Proposed

Budget and Financial Plan continues to conform to the GFOAs requirements.


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Government of theDistrict of Columbia

Vincent C. Gray, Mayor

Allen LewCity Administrator

De'Shawn WrightDeputy Mayor for Education

Victor L. HoskinsDeputy Mayor for Planning and Economic

Development

Beatriz OteroDeputy Mayor for Health and Human Services

Paul QuanderDeputy Mayor for Public Safety and Justice

and Interim Chief of Staff

Members of the Council

Kwame R. BrownChairman

David A. Catania ........................................................ At LargePhil Mendelson ............................................................At LargeMichael A. Brown .......................................................At LargeSekou Biddle....................................................At Large (Temp)Jim Graham ....................................................................Ward 1Jack Evans ......................................................................Ward 2

Mary M. Cheh ................................................................Ward 3Muriel Bowser .................................................................Ward 4Harry Thomas, Jr.. ........................................................Ward 5Tommy Wells ...................................................................Ward 6Yvette M. Alexander.......................................................Ward 7Marion Barry ..................................................................Ward 8

Jennifer BudoffBudget Director

Natwar M. GandhiChief Financial Officer

Eric GouletDeputy Chief of Staff and Budget Director


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Deloras ShepherdHuman Support Services

Education Agencies

Rumman Dastgir (Acting)Government Services

Mohamed MohamedGovernment Operations

Education Agencies

Cyril Byron, Jr.Economic Development and Regulation

Angelique HayesPublic Safety and Justice

George Dines (Interim)

D.C. Public Schools

Lasana Mack

Deputy Chief Financial Officer

Office of Finance and Treasury

Fitzroy Lee


Office of Revenue Analysis

Anthony F. Pompa


Office of Financial Operations and Systems

Stephen Cordi


Office of Tax and Revenue

Associate Chief Financial Officers

Office of the Chief Financial Officer

Angell JacobsChief of Staff

Office of the CIOMichael Teller, Chief Information Officer

Lillian Copelin, Deputy CIONarayan Ayyagari

Patricia GracyalnyAssistant General Counsel

David Tseng

General Counsel


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Office of Budget and PlanningGordon McDonald


Michael Sheaffer, Special AssistantLakeia Williams, Executive Assistant

James SpauldingAssociate Deputy Chief Financial Officer

Budget AdministrationEric Cannady, Director

Renee Waddy, Executive Assistant

Human Support ServicesSunday Okparaocha, Team Leader

Daniel Kalegha

Hilton Marcus

David Smith

Grants Management

Janice Walker, Team Leader

Robin Moore

Government Operations and Economic Development

Randall Myers, Team Leader

William Powell, Team LeaderCharles Pryor

Lee Hayward

Ernest Chukwuma

Public Education

Alonso Montalvo, Team Leader

Seblewengel Mulaw

Public Safety and Justice and Public Works

Joshua Agbebakun, Team Leader

Rasheed Dawodu

Timothy Mattock

Financial Planning and AnalysisLeticia Stephenson, Director

David Kobes

Duane Smith

Financial Management Servicesand Operations

Sumita Chaudhuri, Director

Robert Johnson

Darryl Miller

Carlotta Osorio

Sue Taing

Margaret Myers, Office and Production Manager

Travis Allen

Sharon Nelson

CapitalImprovements Program

David Clark, Director

Sherrie Greenfield

Omar Herzi

Bharat Kothari

Joseph Wolfe

A special thank you to the analysts from other District agencies who assisted the Office of

Budget and Planning during the preparation of the budget.


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Executive Office of the Mayor

Office of Budget and Finance

Kenneth EvansDeputy Director

Human Support Services

Susan BantaSenior Budget Analyst

Economic Development and RegulationRevenue Analysis

Chris MurraySenior Budget Analyst

Governmental Direction and SupportBudget Request Act

Tiffanie ThompsonBudget AnalystPublic Works

Chris HootonCapital City Fellow, Budget Analyst

Capital Improvements Program

John McGawDirector

Capital Improvements Programs

Justin ConstantinoSenior Budget Analyst

Public EducationBudget Support Act

Gizele RichardsBudget Analyst

Public Safety and JusticeFederal Payments

Deborah KellyContract and Reprogramming Specialist

Brandon WhiteBudget Clerk

Budget Support Act

Photo Credit: Anacostia Library, 2011 - Mark Herboth, Photography and the Freedom Group


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District of Columbia- Organization Chart


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EXECU

TIVE

BRAN

CH

LEGISLATIVE

BRANCH

JUDICIAL

BRANCH

DCWater(WaterandSewerAuthority)

DistrictofColumbiaRetirementBoard

OfficeofEmployeeAppeals

PublicEmployeeRelationsBoard

WashingtonConventionandSportsAuthority

HousingFinanceAgency

PublicDefenderService

PretrialServicesAgency

DCLotteryandCharitableGamesControlBoard

BoardofLibraryTrustees

UniversityoftheDistrictofColumbiaBoardofTrustees

OfficeofthePeoplesCounsel

DCHousingAuthority

ContractAppealsBoard

BoardofRealPropertyAssessmentandAppeals

AlcoholicBeverageRegulationAdministration

CriminalJusticeCoordinatingCouncil

IndependentAgencies

ZoningCommission

PublicCharterSchools

PublicServiceCommission

BoardofElectionsandEthics

CharterIndependentAgencies

MetropolitanWashingtonCouncilofGovernments

NationalCapitalPlanningCommission

WashingtonMetropolitanAreaTransitAuthority

WashingtonMetropolitanAreaTransitCommission

WashingtonMetropolitanAirportsAuthority

RegionalBodies

GOVERNMENTOFTHEDISTRICTOFCOLUM

BIA

OfficeofBudgetand

Planning

OfficeofTaxand

Revenue

OfficeofFinancial

OperationsandSystems

OfficeofFinanceand

Treasury

OfficeofRevenue

Analysis

OfficeoftheChief

FinancialOfficer

Officeofthe

InspectorGeneral

OfficeoftheState

Superintendentof

Education

OfficeofPublic

EducationFacilities

Modernization

OfficeoftheDeputy

MayorforPlanningand

EconomicDevelopment

DCPublicSchools

Departmentof

EmploymentServices

DepartmentofHousing

andCommunity

Development

DepartmentofConsumer

andRegulatoryAffairs

OfficeofTenant

Advocate

Departmentof

Insurance,Securities

andBanking

DepartmentofSmalland

LocalBusiness

Development

OfficeofMotionPicture

Development

OfficeofPlanning

CommissiononArtsand

Humanities

OfficeofDeputyMayor

forEducation

OfficeoftheDeputy

MayorforPublicSafety

andJustice

MetropolitanPolice

Department

FireandEmergency

MedicalServices

Department

OfficeofUnified

Communications

HomelandSecurityand

EmergencyManagement

Agency

Departmentof

Corrections

OfficeoftheChief

MedicalExaminer

JusticeGrants

Administration

OfficeoftheDeputy

MayorforHealthand

HumanServices

DepartmentofHealth

DepartmentofHuman

Services

ChildandFamily

ServicesAgency

DepartmentofDisability

Services

OfficeofDisabilityRights

DepartmentofMental

Health

DepartmentofYouth

RehabilitationServices

DepartmentofHealth

CareFinance

OfficeofAging

DepartmentofParksand

Recreation

Departmentofthe

Environment

DepartmentofHuman

Resources

DepartmentofMotor

Vehic

les

DepartmentofPublic

Works

Departm

entof

Transportation

Departmen

tofReal

EstateSe

rvices

OfficeofRisk

Manage

ment

OfficeofHum

anRights

Officeofth

eChief

TechnologyOfficer

OfficeofCon

tractsand

Procure

ment

TaxicabCommission

OfficeoftheCity

Adminis

trator

OfficeoftheAttorney

General

ExecutiveOfficeofthe

Mayor

O

fficeoftheChiefofStaff

OfficeofBudgetandFinance

O

fficeofCommunications:

MayorsCorrespondenceUnit

O

fficeofCableTelevision

OfficeofPolicyandLegislativeAffairs

Office

ofBoardsandCommissions

OfficeofCommunityAffairs:

OfficeofCommunityRelations

OfficeonEx-OffendersAffairs

OfficeonWomensPolicyandInitiatives

ServeDC

YouthAdvisoryCouncil

OfficeofAfricanAffairs

OfficeofAsian&PacificIslanderAffairs

OfficeofGLBTAffairs

OfficeofLatinoAffairs

O

fficeofReligiousAffairs

OfficeofVeteranAffairs

OfficeoftheSecretary

OfficeoftheGeneralCounsel

PublicCharterSch

ools

AdvisoryNeighborhood

Commissions

DCAuditor

May

or

CommissiononJudicial

DisabilitiesandTenure

JointCommissionon

JudicialAdministration

CounciloftheDistrictof

Columbia

DistrictofColumbiaBar

JudicialNomination

Commission

DCSuperiorCourt

DCCourtofAppeals

SentencingandCriminal

CodeRevision

Commission

UniversityoftheDistrict

ofColumbia

DCCommunityCo

llege


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Table of Contents


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FY 2012 Proposed Budget and Financial Plan: Executive Summary

FY 2012 Proposed Budget

and Financial Plan

Volume 1

Executive Summary

Contents

1. Transmittal Letters

2. How to Read the Budget and Financial Plan..........................................................i

3. Introduction............................................................................................................1-1

4. Strategic Budgeting ...............................................................................................2-1

5. Financial Plan.........................................................................................................3-1

6. Revenue..................................................................................................................4-1

7. Operating Expenditures ........................................................................................5-1

8. FY 2012 - FY 2017 Capital Improvements Plan

(Including Highway Trust Fund) .........................................................................6-1

AppendicesD.C. Comprehensive Financial Management Policy.............................................A-1

Grant Match and Maintenance of Effort .................................................................B-1

Basis of Budgeting and Accounting.........................................................................C-1

Glossary of Budget Terms........................................................................................D-1

FY 2012 Proposed - General Fund...........................................................................E-1

FY 2012 Proposed - Gross Funds.............................................................................F-1

FY 2012 Proposed - FTEs - General Fund.............................................................G-1

FY 2012 Proposed - FTEs - Gross Funds...............................................................H-1

The FY 2012 Budget Request Act


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Volumes Bound SeparatelyVolume 2 - FY 2012 Proposed Budget and Financial Plan - Agency Budget Chapters - Part 1

Volume 3 - FY 2012 Proposed Budget and Financial Plan - Agency Budget Chapters - Part 2

Volume 4 - FY 2012 Proposed Budget and Financial Plan - Operating Appendices - Part 1

Volume 5 - FY 2012 Proposed Budget and Financial Plan - Operating Appendices - Part 2

Volume 6 - FY 2012 Proposed Budget and Financial Plan - FY 2012 - FY 2017 Capital Improvements Plan

(Including Highway Trust Fund)


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Transmittal Letters


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How toRead the

Budget andFinancialPlan


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How to Read the Budget and Financial Plan

i

How to Read the Budget and Financial

Plan

The District of Columbias FY 2012 Proposed Budget and FinancialPlan is a communications tool that presents and explains policy prior-ities, agency operations, including programmatic/organizational struc-

tures, and performance measures in the context of the Financial Plan,which shows the Districts sources of revenue and planned expendi-tures. The Budget and Financial Plan include forecasts of economicand financial conditions, current and planned long-term debt financ-ing, policy decisions, and other important financial information forthe District's government, all of which are essential elements for accu-rate financial reporting and sound management of public resources.

letter from the Mayor, information on the strategicbudgeting process, the Districts five-year financialplan, detailed information on the Districts projectedrevenues and expenditures, and summary informa-tion about the Capital Improvements Plan. In addi-tion, this volume includes information about theDistrict's budgetary and financial management poli-cies, including grant match and maintenance of effortdata, policies, a glossary of budget terms, budget sum-mary tables by agency and fund type, and the BudgetRequest Act legislation that serves as the basis for theDistricts federal appropriations act.

Agency Budget Chapters (Volumes 2 and 3) -describes by appropriation title the operating budgetsfor each of the District's agencies. Appropriationtitles categorize the general areas of services providedby the District on behalf of its citizens and are listedon the table of contents. Examples are PublicEducation System and Human Support Services.

This chapter, How to Read the Budget and FinancialPlan, is a guide for understanding the sections of thisbudget volume that define the budget priorities forthe District. These sections are consistent with theNational Advisory Council on State and LocalBudgetings recommended budget practices, whichcall for a presentation of information to provide read-ers with a guide to government programs and organi-zational structure. Additionally, these sections areconsistent with the standards of the GovernmentFinance Officers Association for the DistinguishedBudget Presentation Award.

The FY 2012 Budget and Financial Plan is pre-sented in six volumes summarized as follows:

Executive Summary (Volume 1) - provides a high-level summary of the budget and financial informa-tion, including sections describing new initiativeswithin the District's proposed budget, the transmittal


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FY 2012 Proposed Budget and Financial Plan

ii

Operating Appendices (Volumes 4 and 5) - includesdetailed supporting tables displaying the proposedexpenditures and full-time equivalents in the operat-ing budgets that are described in Volumes 2 and 3.Note: These volumes are available exclusively on theGovernment of the District of Columbia website at

http://cfo.dc.gov/.

Capital Improvements Plan (Including HighwayTrust Fund) (Volume 6) - describes the Districts pro-posed six-year Capital Improvements Plan for all ofthe District's agencies. The Highway Trust Funddescribes the Districts proposed FY 2012 to 2017planned projects.

Detailed information on the chapter contents of eachvolume include:

Volume 1: Executive SummaryIncludes the following sections:

Introduction: FY 2012 Proposed Budget andFinancial Plan

This chapter is a narrative and graphic summary ofthe proposed budget and financial plan. It describesthe overall proposed budget, including the sourcesand uses of public funds, and compares the prioryear's approved budget to the current one. The chap-

ter also explains the budget development process andcalendar for FY 2012.

Strategic BudgetingThis chapter describes the initiatives that the Districtis undertaking to improve budgeting and manage-ment of resources. It includes a description of theDistrict's continued efforts in and progress towardPerformance-Based Budgeting (PBB), which is theDistrict's initiative to align resources with resultsthrough benchmarking, performance measurement,performance planning, and service-level budgeting.PBB greatly improves the District's ability to makepolicy and funding decisions based on anticipatedresults and improve the District's ability to hold pro-gram managers accountable to achieve quantifiableresults.

Financial PlanThe Financial Plan summarizes planned revenues andexpenditures from FY 2012 through FY 2015. Thischapter includes financing sources and uses and theassumptions used to derive the Districts short-termand long-term economic outlook.

RevenueThis chapter shows current revenue projections foreach revenue type as certified by the Office of theChief Financial Officer. It also details the District'srevenue sources, provides an overview of the Districtsand regional economy and economic trends, andsummarizes the revenue outlook from FY 2012through FY 2015.

Operating Expenditures

This chapter describes the District's recent Localfunds expenditures. It includes analysis of expendi-tures between FY 2007 and FY 2010, both by agencyand by expense category, e.g. personnel, supplies, andfixed costs.

Capital Improvements Plan (CIP)This chapter describes the overall CIP, including thesources and uses of Capital funds.

AppendicesThe last section of the Executive Summary includesexplanations of specific items to the District's budget:

The D.C. Comprehensive FinancialManagement Policy provides a framework forfiscal decision-making by the District toensure that financial resources are available tomeet the present and future needs of Districtcitizens;

The Grant Match and Maintenance of Effortsection includes a table by agency and grant

number that provides the required grantmatch and maintenance of effort contribu-tions for federal and private grants received bythe District;


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iii

The Basis of Budgeting and Accounting sec-tion describes the basis of budgeting andaccounting, enabling the readers to under-stand the presentation methods of theDistrict's finances;

The Glossary of Budget Terms sectiondescribes unique budgeting, accounting, andDistrict terms that may not be known by thegeneral reader;

The Summary Tables detail the District's pro-posed operating budget by agency and fundtype for both budgeted dollars and positions;and

The Budget Request Act section is the legisla-tion that the District uses to enact theDistrict's budget via local law, and serves asthe basis for the Districts federal appropria-tions act to be enacted into law by the UnitedStates Congress and President through thefederal appropriations process.

Volumes 2 and 3: Agency BudgetChapters - Part I & IIThese volumes include agency chapters that describeavailable resources, their use and the achieved andanticipated outcomes as a result of these expenditures.Chapters in these volumes are grouped by appropria-tion title, and each chapter contains the following sec-

tions, as applicable:

Header Information: Agency name and budget code; Website address and telephone; and FY 2012 proposed operating budget table.

Introduction: Agency mission; and Summary of Services

Financial and Program Information: Proposed Funding by Source table; Proposed Full-Time Equivalents table; Proposed Expenditure by Comptroller Source

Group table; Division/Program descriptions; Proposed Expenditure by Division/Program

table;

FY 2012 Proposed Budget Changes; and FY 2011 Approved Budget to FY 2012 Proposed

Budget, by Revenue Type.

Performance Measures Information Agency Performance Plan Objectives; and

Agency Performance Measures table.

The FY 2012 Proposed Budget Changes sectionprovides a comprehensive explanation of the changesin the FY 2011 Approved Budget and the FY 2012Proposed Budget, by Revenue Type table thatappears in nearly every chapter. This section includesmajor changes within the agency budget by programand from the initial request through the policy deci-sions made by the Mayor. The FY 2012 ProposedBudget Changes section uses the following terms todescribe budgetary or programmatic changes:

Re-Directions: Describes any redirections offunding that result in the enhancement of aprogram and or activity;

Transfer: Describes the movement afunction,and associated expenditures and FTEs, fromone agency to another;

Shift: Describes the movement an existingprogram or operation from one appropriatedfund type to another;

Intra-Agency Adjustments: Describes

changes within the agency across programs,activities and/or object classes; Operational Adjustments: Describes Personal

Services increases, fixed costs changes, fleetcosts, assessments, debt service, increase ordecrease in cost of supplies and materials andother Nonpersonal Services items;

Cost Savings: Describes reductions that off-sets operational costs and cost increases.

Enhance: Provides more funding to improvethe quality or quantity of an existing service;

Cost Increases: Describes funding increases

that continue services at current levels; and Policy Initiatives: Describes new programs or

enhancements to existing programs that arenot related to increases in operational costsbut also represent a change in the delivery ofservices.


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iv

The descriptions shown within the FY 2011Approved Budget to FY 2012 Proposed Budget,by Revenue Type table use the following 11 bud-get adjustment types:

I. Actions with an impact on services:

Create: New funding for new programs thatpreviously didnt exist (e.g., EstablishPermanent Supportive Housing program totransition vulnerable individuals from home-less to stable housing);

Enhance: More funding to improve the qual-ity or quantity of an existing service (e.g.,Increase Summer Youth EmploymentProgram to connect youth with jobs);

Eliminate: Total elimination of an existingservice, with no anticipation of the servicebeing provided by another entity (e.g.Eliminate funding for Motor Vehicle TheftPrevention Commission);

Reduce: Reduction, but not elimination, ofan existing service (e.g., Close Service Centerand provide services at other locations;Realign staffing in the Fleet Managementdivision; and

Optimize: Increase service while decreasingcost (e.g. Transition service provision fromcontracted providers).

II. Actions with no service impact Cost Increase: Additional funds necessary to

continue service at current levels (e.g., Fundannual contract escalator);

Cost Decrease: Reduction in cost without aservice impact (e.g. Align energy budget withrevised estimate);

Transfer In: Shift of an existing program oroperation from another District agency (e.g.,Transfer video monitoring personnel fromother agencies to VIPS center);

Transfer Out: Shift an existing program oroperation to another District agency (e.g.,Transfer 911 call center to OUC);

Shift: Shift an existing program or operationfrom one Fund type to another (e.g. Shift eli-gible administrative expenses to Federalgrant); and

Correct: Make a change with no dollar impact(e.g. such as eliminate unfunded FTE posi-tions).

Please see an example of an agency narrative atthe end of this chapter to see how to navigate the

Agency Budget Chapter volume. The exampleshows an agency with a performance plan.Callout boxes highlight the features discussedabove.

Volumes 4 and 5: OperatingAppendices - Part I and II

These two volumes provide supporting tables to eachagency's proposed operating budget. The tables gen-erally include FY 2010 actual expenditures, FY 2011approved budgets, the FY 2012 proposed budget, andthe change from FY 2011 to FY 2012 (unless noted).The following tables are provided:

Schedule 30-PBB - dollars summarized by program,activity, and governmental fund (governmental fundbreakout is for FY 2012 only and includes generalfund detail);

Schedule 40-PBB - dollars summarized by program,comptroller source group and governmental fund;

Schedule 40G-PBB - dollars summarized by pro-gram, comptroller source group and appropriatedfund within the General Fund;

Schedule 41 - dollars and FTEs summarized bycomptroller source group and governmental fund;

Schedule 41G - dollars and FTEs summarized bycomptroller source group and appropriated fundwithin the General Fund; and

Schedule 80 - dollars and FTEs summarized by rev-enue type, appropriated fund, and revenue source (forthe FY 2012 Proposed Budget only).


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v

Volume 6: Capital Improvements Plan(Including Highway Trust Fund)

This volume covers the District's FY 2012 - FY 2017Capital Improvements Plan (CIP) and the HighwayTrust Fund.

Capital Improvements Plan section includes: An Introduction chapter that describes the over-

all CIP, including the sources and uses of capitalfunds, the District's policies and procedures for itscapital budget and debt, and the FY 2012 plan-ning process;

Project Description Forms that comprise themajor portion of the capital appendices volume.The project description forms provide details oncapital projects funded by general obligation

bonds, pay-as-you-go (PAYGO) capital, theMaster Equipment Lease program, and the LocalTransportation Fund. Each page shows one sub-project's planned allotments for FY 2012 throughFY 2017, including a description, its annual oper-ating impact, milestone data, and its location; and

Appendices that provide supporting tables and aglossary about the District's capital budget,including:

- The FY 2012 Appropriated Budget AuthorityRequest table that summarizes proposed new

projects and changes (increase or decrease) forongoing projects by agency, subproject, andfunding source;

- The FY 2012 - FY 2017 Planned Expendituresfrom New Allotments table that summarizes thenew allotments planned FY 2012 - FY 2017expenditures by agency, project, and subproject;

- The FY 2012 - FY 2017 Planned Fundingtable that summarizes the FY 2012 and six-year funding sources for all new allotments by

agency, subproject, and funding source;

- The Balance of Capital Budget Authority, AllProjects table that summarizes the lifetimebudget authority, life-to-date expenditures,total commitments, and balance of budgetauthority for all ongoing capital projects byagency, project, and authority (District versus

federal);

- The Capital Project Cost Estimate Variancetable displays changes to project costs since theFY 2012 Budget;

- Rescissions, Redirections, and Reprogrammings;and

- An overview of the District of Columbia'sWater and Sewer Authority's FY 2010 - FY2019 capital improvements plan.

Highway Trust Fund section includes: An Introduction chapter describes the Highway

Trust Fund program, including the sources anduses of the funds, the District's policies and pro-cedures for the trust fund, and the FY 2012 plan-ning process; and

The Project Description Forms, which comprisethe majority of the Highway Trust Fund volume.Each page shows planned allotments for FY 2012through FY 2017, description, annual operating

impact, milestone data, and location.


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vii

Agency budget codeAgency name

This shows the agencys FY 2010 actual expendi-tures, FY 2011 approved budget, the FY 2012 pro-

posed budget, and the variance from FY 2012 to FY2011. This includes the agencys operating budgetand FTEs.

A Summary of Services is a conciseexplanation of the agencys keyfunctions.

Agency Website address and Telephone number This section describes the agencysmission and purpose.


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viii

This table presents the agency's total operating budget from each fundingsource (Local, Dedicated Taxes, Special Purpose Revenue, FederalPayments, Federal Grants, Medicaid, Private Grants, and Intra-Districtsources). It shows a comparison of the FY 2009 actual, FY 2010 actual, FY2011 approved, and FY 2012 proposed budgets.


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ix

This table lists the agencys FTEs fortwo prior years, the current year, andupcoming fiscal year by revenue type.

This table lists the agency's totaloperating expenditures for FY 2009,FY 2010, FY 2011 Approved Budget,and FY 2012 Proposed Budget at theComptroller Source Group level.


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This indicates the specific programs (or divisions) andactivities within an agency. It contains detaileddescriptions of their purpose and how they contributeto the lives of District residents and visitors.


x


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This provides an overall budgeted funding level and number ofapproved FTEs for FY 2010 actuals, approved FY 2011 and FY2012 proposed budgets for specific programs (or divisions) andactivities.


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xii

Describes policy changes that are the result ofproposed cost-saving initiatives, transfers offunding or function from one agency to another,and other budget changes.

This table describes the changes made to anagency during the overall budget formulationprocess by fund and by program (or divisions).

The FY 2012 Proposed Budget Changes sec-tion provides a comprehensive explanationof Table 5; it includes major internalchanges within the budget including initialagency adjustments, cost savings, policy ini-

tiatives, protected programs, and use of fed-eral stimulus funding.


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Describes specific agency perfor-mance objectives from FY 2009 actualthrough FY 2013 projected result.


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The challenge for the District is to navigate this juris-dictional complexity while facing decreasing revenuesand increasing service needs. Totaling $10.8 billion,the gross budget in the FY 2012 Proposed Budgetand Financial Plan is $322 million, or 3.1 percent,more than the FY 2011 Approved Budget of $10.5billion, including Enterprise Fund agencies butexcluding intra-District funding. Figure 1-1 showsthe major source of gross funds for FY 2012. Figure1-2 does the same for Local funds revenue. The gross

Introduction to the FY 2012 Budget

and Financial Plan

The District of Columbia government is unique and extremely com-plex. As one entity, the District government provides services typicallydelivered elsewhere by states, counties, cities, and special taxing dis-tricts.

budget excluding Enterprise Fund agencies is $9.0billion.

The budget funds services as diverse as streetcleaning, affordable multi-family housing develop-ment, voter registration, business inspection, firefighting, police patrol, running a lottery, managing avast multimodal transit system, educating children,promoting economic development, encouraging peo-ple to move into the District, and protecting at-riskyouth.

Figure 1-1

Where the Money Comes From - Sources of Gross Funds for FY 2012($10.8 Billion, excluding Intra-District funds)(Dollars in Billions)

1

* The amount from this source is $23.2 million.

Introduction

1-1

Enterprise Funds

$1.8B17.0%

Local$5.5B51.1%

Dedicated Taxes$0.4B3.6%

Federal Grants and Medicaid$2.5B22.8%

Private Grants & PrivateDonations

$0.0B*0.2%

Special Purpose Revenue$0.4B3.9%

Federal Payments$0.2B1.4%


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necessitates an increase in local funding in orderto sustain healthcare service delivery to approxi-mately one-third of District residents served byMedicaid and Alliance programs. DHCFs bud-get proposal continues to seek maximum benefitsfrom the federal healthcare reform legislation. By

implementation of the Early Option, certain cat-egories of childless adults that were served by theAlliance are being transitioned to Medicaid, there-by attracting the benefit of federal funding for ser-vices that were hitherto covered by 100 percent oflocal funds.

The budget proposal for the Department ofMental Health (DMH) preserves the necessaryfunding for the agency to continue to function inits dual capacity as the regulator of the Districtsmental health system as well as a public providerof mental health services partly through the SaintElizabeths Hospital (SEH) and also through anetwork of contractual providers via theCommunity Services Agency (CSA). The FY2012 budget proposal confronts the fiscal chal-lenges of ensuring District residents continuedaccess to mental health services despite a recessiondriven limitation on resources available to DMHto support service utilization.

The Child and Family Services Agency (CFSA)

The District's proposed budget is similar to anyother budget in that it identifies resources (revenues)and uses (expenditures) to accomplish specific pur-poses developed by citywide strategic planning anddepartmental business planning. In addition to thesebasic elements, the proposed budget includes a finan-

cial forecast for policy priorities of the Mayor and theCouncil of the District of Columbia and detailed costinformation for agency programs and activities.

The Districts FY 2012 proposed budget includesa number of agency reorganizations and programshifts. These changes are being made to improve ser-vices and accountability and meet strategic businessgoals. They include the following:

The proposed budget ensures District residentscontinued access to healthcare services throughthe Medicaid and DC Healthcare Alliance pro-grams, both of which are administered by theDepartment of Health Care Finance (DHCF).The local budget is being increased to compensatefor the expiration of the enhanced FederalMedical Assistance Percentage (FMAP), whichwas originally provided by the enactment of theAmerican Recovery and Reinvestment Act of2009 (ARRA). The end of ARRA-relatedenhanced FMAP in the third quarter of FY 2011

Non-Tax Revenue$0.4B6.6%

Lottery$0.1B1.4%

Proposal, Transfersand Other

$0.2B3.3%

Property Tax$1.8B32.1%

Sales Tax$0.9B17.4%

Income Tax$1.6B29.8%

Gross Receipts Tax$0.2B4.6%

Other Taxes$0.3B4.8%

Figure 1-2

Where the Money comes From - Sources of Local Fund Revenue for FY 2012($5.5 Billion Excluding Dedicated Taxes)(Dollars in Billions)

FY 2012 Proposed Budget and Financial Plan: ExecutiveSummary

1-2

*The amount from this source is $4.2 million.


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proposed budget is planned to provide sustainablefunding for the agencys core services and keyfunctions. This strategy ensures that CFSA willcontinue to function in the areas of protectingchild victims and those at risk of abuse andneglect, and assisting their families in FY 2012.

The budget proposal will maintain CFSAs strate-gic plan to focus on improving the overall qualityof practice and build on the progress of past years.

In FY 2011, the Office of Public EducationFacilities Modernization and the Fixed Costagency were absorbed into the Department ofGeneral Services (DGS), formerly theDepartment of Real Estate Services (DRES).Additionally, the facilities and maintenance com-ponents of the Fire and Emergency MedicalServices agency and the Department of Parks andRecreation were transferred to DGS. The FY2012, DGS budget includes two new divisionsand the restoration of a division not included inDRES in FY 2011. The new divisions are theEnergy- Centrally Managed and Rent: In-Leasedivisions and contains the budget for the formerFixed Cost agency. The restored division is theProtective Services program which consolidates allprotective services personnel in the District.

The Office of Risk Management is establishing anew program entitled the Returned to Work pro-gram. The Return to Work program will assist the

District of Columbia in impacting the humancost of disability for injured employees. The pro-gram is designed to provide the injured employeewith the best medical treatment as well as avenuesby which we can limit their loss of income, self-esteem and personal and professional relation-ships. The District will benefit from the programby minimizing the cost of replacing the injured/illworker with the cost of hiring temporary employ-ees.

In previous years, agencies advanced Local fundsto the Office of the Chief Technology Officer

(OCTO) via intra-District, to fund their infor-mation technology services. This year the Localbudget for IT assessment is consolidated inOCTOs budget as Local funds.

Funding is included in the FY 2012 ProposedBudget for 3 new branch libraries opening in theDistrict of Columbia Public Library system.

For FY 2012, the Districts Uniform Per Student

Funding Formula (UPSFF), which forms thebasis for funding the public school system, hashad its foundation level increased 2.0 percent,from $8,770 per student to $8,945.Appropriations for the UPSFF return to 100 per-cent Local funding after being partially funded in

FY 2011 through Education Jobs Fund receivedfrom the federal government under provisions ofPublic Law 111-226. Please refer to the AgencyBudget Chapters volumes, chapters for District ofColumbia Public Schools, District of ColumbiaPublic Charter Schools, and Office of the StateSuperintendent of Education.

The Office of the Deputy Mayor for Public Safetyand Justice was established during FY 2011. InFY 2012, the role of the Office is expanded toinclude the functions previously performed by theCorrectional Information Council, the Office ofVictim Services, the Office of GrantsAdministration, the Motor Vehicle TheftPrevention Commission, and the LoanRepayment Assistance Program formerly in theOffice of the Attorney Genera.l

The Fire and Emergency Medical ServicesDepartment includes all current fire stationsand/or units remaining in operation while elimi-nating 79 vacant positions.

The Metropolitan Police Department includesthe transfer of $26,375,303 budgeted expendi-

tures and 20 FTEs that had been associated with5 Special Purpose Revenue accounts in FY 2011to the Local fund to streamline the budgetingprocess. An additional 243.5 FTEs of Local Fundvacant positions are being eliminated.

The School Transit Subsidy, administered by theDistrict Department of Transportation (DDOT)who provides school students with a subsidy fortheir travel to and from school within the publictransportation system, was merged into theDepartment of Transportation. Also, the Unifiedfunds and a Special Purpose Revenue fund (SPR)

in the Department of Transportation wasreviewed and determined that all proceeds bedeposited into the Local funds. Due to thereview, the Department of Transportations bud-get was shifted from SPR to Local funds.The operations of Washington Metro AreaTransit Authority (WMATA) and DDOT werereviewed and certain operations, such as the

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Circulator Bus and DC Specific projects wereshifted to DDOT.

In FY 2011, the Office of Community Affairsand Serve DC were absorbed into the ExecutiveOffice of the Mayor pursuant to the Revised FY2011 Proposed Budget approved by the Council

of the District of Columbia December 7, 2010.The FY 2012 Executive Office of the Mayor bud-get reflects the Office of Community Affairs andServe DC as programs in its budget. In addition,the Executive Office of the Mayor created a newprogram called the Mayors Office of Budget andFinance, which provides programmatic and fiscalanalysis of District agencies.

In FY 2011, the District of Columbia OpenGovernment Office was created pursuant to theRevised FY 2011 Proposed Budget approved bythe Council of the District of ColumbiaDecember 7, 2010. This independent agency ischarged with issuing opinions and rules forDistrict agencies so that they can comply with theOpen Meetings Amendment Act of 2010, whichalso provides assistance for those seeking informa-tion about the District government.

Where the Money Comes FromMoney for providing District services comes from avariety of sources. The District's general fund consistsof Local Tax and Nontax Revenue, Dedicated Taxes,

and Special Purpose Revenue funds. Federal Grants,Federal Medicaid, and Federal Payments constitutethe District's federal resources. Private resources andEnterprise and Other funds make up the balance ofthe District's gross funds (Figure 1-1). In FY 2012,federal stimulus funding will primarily consist ofavailable unobligated grant funding from previouslyawarded grants.

Local tax revenue accounts for most of the moneysupporting services and includes such commonsources as income, property, and sales taxes butexcludes Dedicated Taxes (Figure 1-2). Detailed rev-

enue information, including FY 2012 to FY 2015revenue estimates, projection assumptions, and theestimated revenue impact of proposed policy changesare included in the Revenue chapter of this budgetbook.

A full-year FY 2011 appropriation was not enact-

ed at the time of this publication and the District isoperating under a federal Continuing Resolution;therefore, the FY 2011 federal payments shownthroughout the budget volumes represent the FY2011 Presidents Budget request and not the finalappropriated amounts.


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Governmental Directionand Support

$0.6B5.2%

Economic Developmentand Regulation

$0.4B4.0%

Public Safetyand Justice

$1.1B10.4%

Public EducationSystem

$1.9B17.5%

Human Support Services$3.4B31.3%

Public Works$0.6B5.2%

Financing and Other$1.0B9.4%

Enterprise Fund$1.8B17.0%

Figure 1-3

Where the Money Goes -Gross Funds Expenditure Budget, by Appropriation Title for FY 2012(Excludes Intra-District Funds)($10.8 Billion)(Dollars in Billions)

Table 1-1

Gross Funds Expenditure Budget, by Appropriation Title(Excluding Intra-District)(Dollars in Thousands)

FY 2011 Approved FY 2012 Proposed Change % ChangeBudget Budget from FY 2011 from FY 2011

Governmental Direction and Support 491,986 567,359 75,373 15.3%

Economic Development and Regulation 395,469 428,190 32,722 8.3%

PublicSafety and Justice 1,202,730 1,122,630 -80,101 -6.7%

Public Education System 1,797,972 1,894,354 96,382 5.4%

HumanSupport Services 3,382,965 3,391,343 8,377 0.2%

PublicWorks 597,505 561,680 -35,825 -6.0%

Financing and Other 953,024 1,020,785 67,762 7.1%

Subtotal, General Operating Funds 8,821,652 8,986,342 164,690 1.9%

Enterprise Fund 1,682,024 1,839,554 157,530 9.4%

Total District of Columbia 10,503,676 10,825,896 322,220 3.1%Note: Details may not sum to totals because of rounding.

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Table 1-2a

Local Funds Expenditure Budget, by Appropriation Title(Excluding Dedicated Taxes and Enterprise and Other Funds)

(Dollars in Thousands)FY 2011 Approved FY 2012 Proposed Change % Change

Budget Budget from FY 2011 from FY 2011

Governmental Direction and Support 399,965 493,660 93,695 23.4%Economic Development and Regulation 101,632 94,246 -7,386 -7.3%

PublicSafety and Justice 890,748 917,369 26,621 3.0%

Public Education System 1,466,490 1,537,407 70,917 4.8%

Human Support Services 1,360,992 1,425,227 64,236 4.7%

PublicWorks 388,822 385,989 -2,834 -0.7%

Financing and Other 678,142 683,589 5,447 0.8%

Total 5,286,791 5,537,488 250,697 4.7%

Note:Details may not sum to totals because of rounding.

Table 1-2b

Dedicated Taxes Expenditure Budget, by Appropriation Title(Excluding Enterprise and Other Funds)

(Dollars in Thousands)FY 2011 Approved FY 2012 Proposed Change % Change

Budget Budget from FY 2011 from FY 2011

Economic Development and Regulation 19,962 32,302 12,340 61.8%

HumanSupport Services 60,159 50,613 -9,545 -15.9%

PublicWorks 15,000 58,936 43,936 292.9%

Financing and Other 242,634 244,742 2,108 0.9%

Total 337,755 386,593 48,838 14.5%


How the Money is AllocatedTo facilitate policy decisions concerning expendituresand to provide summary information for reportingexpenditures, the District's budget is developed, pre-sented, and executed along several lines. Theseinclude fund types, appropriation titles, agencies, pro-grams, and expense categories. As with revenues,expenditures can be grouped by the source of funds.The total of these funds is referred to as gross funds.Totaling $10.8 billion, the expenditure budget in the

FY 2012 Proposed Budget and Financial Plan is $322million, or 3.1 percent, more than the FY 2011approved budget of $10.5 billion, includingEnterprise and Other funds but excluding Intra-District funds.

For purposes of appropriating the District's bud-get, agency budgets are grouped by appropriation titleor function, such as public safety or public education.


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Table 1-1 shows the FY 2012 proposed gross fundsexpenditure budget by appropriation title and theirchange from FY 2011. Figure 1-3 shows the per-centage distribution of FY 2012 gross funds expendi-ture budget by appropriation title. The largest appro-priation titles, Public Education System and HumanSupport Services, represent 48.9 percent of theDistricts proposed budget meaning nearly one-halfof every dollar generated is directed to these two areas.

The FY 2012 proposed Local budget operating

margin is $501,892. As shown in Table 1-2a, the pro-posed Local funds budget excluding Dedicated Taxesand Enterprise funds for FY 2012 is $5.5 billion,which is $251 million, or 4.7 percent, more than theFY 2011 approved budget of $5.3 billion. The tablealso displays expenditure budgets by appropriationtitle and their change from FY 2011.


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Volumes 4 and 5 - Operating Appendices: theseprovide detailed information about operatingfunds by agency (available on-line).

Volume 6 - FY 2012-FY 2017 CapitalImprovements Plan (Highway Trust Fund)

Additional details about the organization of theDistricts FY 2012 budget and financial plan may befound in the How to Read the Budget and FinancialPlan chapter.

The FY 2012 Budget CalendarThe FY 2012 Budget and Financial Plan is the cul-mination of a year-long process. Some of the criticalsteps in the budget formulation process and their gen-eral schedule are described in Table 1-6.The DistrictsBudget Process: A Brief OverviewThe District ofColumbia Home Rule Act (Public Law 93-198; 87Stat. 777) (D.C. Official Code 1-201.01 et. seq.),approved December 24, 1973, prescribes a procedurefor the approval of the annual budget for the Districtof Columbia Government. Under section 424(a)(5)(D.C. Official Code 1-204.24(a)(5)), the ChiefFinancial Officer for the District of Columbia pre-pares and submits to the Mayor and the Councilannual estimates of all revenues of the District ofColumbia (without regard to the source of such asrevenues), including proposed revenues. These rev-enue estimates are binding on the Mayor and the

Council for purposes of the annual budget to be sub-mitted to Congress, except that the Mayor and theCouncil may base the budget on estimates of revenuesthat are lower than those prepared by the ChiefFinancial Officer. Under section 442(a) (D.C.Official Code 1-204.42(a)), the Mayor prepares andsubmits a proposed annual budget to the Council. Inpreparing the annual budget, the Mayor may use abudget prepared by the Chief Financial Officer forthis purpose under section 424(a)(2) (D.C. OfficialCode 1-204.24(a)(2)).

The Mayor may also prepare and submit supple-

mental or deficiency budget recommendations to theCouncil from time to time, pursuant to section424(c). A statement of justifications must be includ-ed.

Under section 603(c) (D.C. Official Code 1-206.03(c)), the Mayor is required to submit a bal-anced budget and identify any tax increases that shallbe required. The Council is required to adopt such

The proposed Dedicated Tax budget for FY 2012 is$387 million, which is $49 million, or 14.5 percent,more than the FY 2011 approved budget of $338million. Table 1-2b shows the FY 2012 proposedDedicated Taxes funds expenditures budget by appro-priation title and their change from FY 2011.

Within the appropriation titles are the agenciesthat operate the programs, activities, and services pro-vided to District citizens and businesses. For example,the Public Works appropriation title includes theDepartment of Public Works, the Department ofTransportation, and the Department of MotorVehicles. The FY 2012 proposed Local budgetincludes approximately 100 agencies receiving Localfunds in seven appropriation titles. To provide contextas to the types of expenses for a particular program,information is presented by expense category (Tables1-3a, Local funds; and 1-3b, Dedicated Taxes). Thesesame categories are used by all District agencies.Specific agency costs by expense category are includ-ed in the agency chapters.

A large expense category is personal services, total-ing $2.0 billion and representing 36.5 percent of theFY 2012 Local funds proposed budget, excludingDedicated Taxes. This funding will support 25,948Local full-time equivalent (FTE) positions, anincrease of 528 FTEs, or 2.1 percent, over FY 2011(see Table 1-4). Including all fringe benefits, butexcluding extra compensation like overtime and shift

differential, the average Local FTE for FY 2012 willcost $74,626.The District's FY 2012 gross funds proposed

budget, including Intra-District funds, includes32,874 FTEs, a decrease of 162 FTEs, or 0.5 percent,over FY 2011. Major gross funds FTE changes byagency and appropriation title are detailed in Table 1-5. One major reason for the decrease was the elimi-nation of vacant positions.

Organization of the FY 2012 Budget andFinancial Plan

The FY 2012 Budget and Financial Plan is com-posed of the following volumes: Volume 1 - Executive Summary. Volume 2 and 3 - Agency Budget Chapters: these

provide all summary information regarding theDistrict's proposed budget.

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Table 1-3a

Local Funds Proposed Expenditure Budget, by Category(Excluding Dedicated Taxes and Enterprise and Other Funds)

(Dollars in Thousands)FY 2011 FY 2012 Change % Change

Approved Proposed from from

Budget Budget FY 2011 FY 2011Regular Pay - Cont Full Time 1,387,333 1,474,579 87,246 6.3%

Regular Pay - Other 146,157 152,823 6,666 4.6%

Additional Gross Pay 43,322 42,814 -508 -1.2%

Fringe Benefits - Curr Personnel 257,260 308,998 51,738 20.1%

Overtime Pay 36,702 43,000 6,297 17.2%

Subtotal, PERSONNEL SERVICES 1,870,775 2,022,214 151,439 8.1%

Supplies and Materials 39,970 41,626 1,656 4.1%

Energy, Comm. and Bldg Rentals 83,983 94,902 10,919 13.0%

Telephone, Telegraph, Telegram, Etc 24,906 26,759 1,853 7.4%

Rentals - Land and Structures 103,643 112,353 8,710 8.4%

Janitorial Services 388 1,569 1,181 304.4%

SecurityServices 9,012 10,339 1,327 14.7%Occupancy Fixed Costs 2,534 5,852 3,318 130.9%

Other Services and Charges 137,188 136,223 -965 -0.7%

Contractual Services - Other 244,053 304,237 60,184 24.7%

Subsidies and Transfers 2,239,431 2,218,097 -21,334 -1.0%

Equipment and Equipment Rental 19,542 19,890 348 1.8%

Debt Service 511,366 543,429 32,063 6.3%

Subtotal, NON-PERSONNEL SERVICES 3,416,016 3,515,274 99,258 2.9%

Total 5,286,791 5,537,488 250,697 4.7%

Note: Details may not sum to totals because of rounding.

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Table 1-4

Local Funds Proposed FTEs, by Appropriation Title(Including Dedicated Taxes and excluding Enterprise and Other Funds)

FY 2011 FY 2012 Change % ChangeApproved Proposed from fromBudget Budget FY 2011 FY 2011

Governmental Direction and Support 2,397 2,925 528 22.0%

Economic Development and Regulation 300 369 69 22.8%

PublicSafety and Justice 8,427 8,100 -326 -3.9%

Public Education System 9,208 8,985 -223 -2.4%

Human Support Services 3,585 3,582 -3 -0.1%

PublicWorks 1,494 1,986 493 33.0%

Subtotal, General Operating Local Fund 25,411 25,947 536 2.1%

Economic Development and Regulation 4 0 -4 -100.0%

Human Support Services 5 1 -4 -89.0%

Subtotal, General Operating Dedicated Taxes 9 1 -8 -93.9%

Total, General Operating Local and Dedicated Tax Funds 25,420 25,948 528 2.1%


Table 1-3b

Dedicated Taxes Proposed Expenditure Budget, by Category(Excluding Enterprise and Other Funds)

(Dollars in Thousands)FY 2011 FY 2012 Change % Change

Approved Proposed from from

Budget Budget FY 2011 FY 2011Regular Pay - Cont Full Time 343 60 -282 -82.4%

Regular Pay - Other 264 0 -264 -100.0%

Fringe Benefits - Curr Personnel 109 13 -96 -88.5%

Subtotal, PERSONAL SERVICES 716 73 -643 -89.8%

Supplies and Materials 5 0 -5 -100.0%

Other Services and Charges 2,409 0 -2,409 -100.0%

Contractual Services - Other 1,741 885 -856 -49.2%

Subsidies and Transfers 320,510 378,944 58,434 18.2%

Debt Service 12,374 6,691 -5,683 -45.9%

Subtotal, NONPERSONAL SERVICES 337,039 386,520 49,480 14.7%

Total 337,755 386,593 48,838 14.5%

Note: Details may not sum to totals because of rounding


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Table 1-5

Major Gross Funds FTE Changes(Including Enterprise and Intra-District Funds)

FY 2011 FY 2012

Approved Proposed Increase

Agency Name FTEs FTEs (Decrease) Explanation of Major FTE ChangesOffice of Contracting and Procurement 101 84 -17 Eliminate unfunded positions due to budget

constraints

Office of the Chief Technology Officer 330 315 -15 Realign staffing to budget and streamliningoperations

Department of General Services 73 710 638 Positions transferred in from multiple agencies

Board of Elections and Ethics 44 60 16 Special Election

Municipal Facilities: Non-Capital 226 0 -226 Agency absorbed into District Service Agency(AM0)

Office of the Attorney General for the District of Columbia 742 726 -16 Eliminate unfunded positions due to budgetconstraints

Office of the Chief Financial Officer 905 869 -36 Eliminate unfunded vacant and filled positionsdue to budget constraints

Other Agencies 727 699 -28 Net Changes

Governmental Direction and Support 3,148 3,463 315

Department of Insurance, Securities, and Banking 102 112 10 Change in legislation

Other Agencies 1,401 1,425 25 Net Changes

Economic Development and Regulation 1,502 1,537 35

Metropolitan Police Department 4,867 4,605 -262 Due to elimination of vacant positions

Fire and Emergency Medical Services Department 2,207 2,128 -79 Due to elimination of vacant positions

Office of Deputy Mayor for Public Safety and Justice 3 17 14 New Agency created in January 2011

Other Agencies 1,573 1,559 -14 Net Changes

Public Safety and Justice 8,650 8,309 -341

District of Columbia Public Schools 7,807 7,928 121 Realign staffing to budget

Office of the State Superintendent of Education 320 333 13 Additional positions to fulfill Federal Grants

District of Columbia Public Library 441 429 -12 Eliminate unfunded positions due to budgetconstraints

Office of Public Education Facilities Modernization 252 0 -252 Agency absorbed into District Service Agency(AM0)

Special Education Transportation 1,667 1,610 -56 Realign staffing to budget and streamliningoperations

Other Agencies 42 42 0 Net Changes

Public Education System 10,528 10,342 -187

(Continued on next page)

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Table 1-5

Major Gross Funds FTE Changes(Continued)

FY 2011 FY 2012

Approved Proposed Increase

Agency Name FTEs FTEs (Decrease) Explanation of Major FTE Changes

Department of Human Services 859 842 -17 Eliminate unfunded positions due to budgetconstraints

Department of Mental Health 1,275 1,256 -19 Realign staffing to budget and streamliningoperations

Department of Health 775 734 -41 Eliminate unfunded positions due to budgetconstraints

Department of Parks and Recreation 577 509 -68 Transfer positions to District Service Agency(AM0)

Other Agencies 2,085 2,081 -4 Net Changes

Human Support Services 5,571 5,422 -149

Department of PublicWorks 1,429 1,341 -88 Realign staffing to budget and streamliningoperations

Department of Transportation 320 558 238 Moved Capitol funded positions to Operating

FundsOther Agencies 560 566 6 Net Changes

Public Works 2,309 2,465 156

Total General Operating Funds 31,708 31,538 -171

University of the District of Columbia 1,203 1,209 6 Realign staffing to budget

Other Agencies 125 127 3 Net Changes

Enterprise Fund 1,328 1,336 9

Grand Total, District Government 33,036 32,874 -162


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Table 1-6

How and When the FY 2012 Budget was Prepared

Budget GuidanceAugust 2010 September 2010The FY 2012 budget process began with the Office of the City Administrator (OCA) and the Office of Budgetand Planning (OBP) creating guidelines on how agencies should prepare the agency budget submissions. Theseguidelines were conveyed to all District stakeholders at the annual Budget Kickoff held on November 5, 2010.

Agency Budget Request DevelopmentOctober 2010 January 2011Taking into consideration the Executive Office of the Mayors (EOM) citywide strategic plan, and following thebudget guidance from the EOM and OBP, agencies began formulating their FY 2012 budget requests. Agenciessubmitted their FY 2012 Proposed Budget to OBP on January 17, 2011.

Budget AnalysisNovember 2010 January 2011

OBP reviewed agency budgets during the various development stages for adherence to established guidelines, iden-tified opportunities for efficiencies and incorporated revised economic data into the formulation process.

Budget PresentationJanuary 2011 April 2011OBP provided the EOM with a thorough and sound analysis of the budget as it was developed and collaboratedduring the Budget Review Team meetings where policy priorities were determined, and the Mayors FY 2012 pro-posed budget was finalized for submission to the Council on April 1, 2011.


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Strategic Budgeting

2-1

Performance-Based BudgetingDistrict Code requires the presentation of budgets ina Performance-Based Budgeting (PBB) format. Thelaw specified that the following be included in thebudget presentation:

Program Name; Agency strategic result goals; Estimated total program, activity, and service

costs;

Program overview describing activities; Program performance measures; Estimated program costs; Full-time equivalents (FTEs) for the prior, cur-

rent, and next fiscal year; and Program benchmarks providing comparisons

with other jurisdictions.

Performance-Based Budgeting links spending toprograms, activities, and services, allowing results tobe measured. This linkage enables public officials,program managers, and the public to evaluate

whether funding is being spent wisely on a programthat is meeting its goals, or if the money could be bet-ter spent on other services.

Since the above legislation was passed and imple-mented, several practices have evolved. In FY 2007,agencies transitioned from Strategic Business Plans toPerformance Plans. As part of this process, agencyperformance measures underwent a rigorous review

2

Strategic Budgeting

The District continues to improve budgetary and financial executionpractices to provide accurate and timely financial data to decision-makers. Over the years, there have been a number of strategic projectsto improve fiscal and performance management. This chapter outlines

the current status of these initiatives.and validation. These revisions led to updated orenhanced agency-wide performance measures.During FY 2010, selected agencies further transi-tioned to Division-Based Budgeting, and thePerformance Plans were expanded from the agencylevel down to the operating divisions within theagency. Additional measures were developed to assessperformance within the agencys divisions, and objec-tives were created for the divisions.

Agency Management ProgramAn additional benefit of PBB is the Districts ability totrack specific types of expenses across various agencies.

The Agency Management Program (AMP) wasdeveloped to track costs for common administrativeexpenses both within each agency and across theDistrict. The AMP can include up to 15 activities,depending on whether the agency performs thatfunction or not. The AMP was retained in theDivision-based agencies, and there is no change to theAMP from the prior year. A partial listing of the

AMP activities includes: Personnel - provides human resource services tothe agency so that they can hire, maintain, andretain a qualified and diverse workforce;

Training and Employee Development - providestraining and career development services toagency staff so that they can maintain/increasetheir qualifications and skills;


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2-2

Labor-Management Partnership - creates a struc-ture in which agencies can collaboratively resolveworkplace issues;

Property Management - provides real estate andfacility services to the agency in a timely, efficient,and effective manner in keeping with current

District operations, industry standards, and bestpractices; Information Technology - provides network, tele-

phone, and computer hardware and software sup-port and information services to agency staff sothat they can use technologies to produce, com-municate, and manage information; and

Court-Ordered Supervision - identifies theadministrative expenses of court supervision oroversight of the agency or any of its functions.

The AMP brings consistency in budgeting andperformance reporting to the Districts administrative

services and allows for more accurate tracking ofadministrative costs.

Agency Fiscal OperationsThe purpose of the Agency Fiscal Operations (AFO)program is to provide comprehensive and efficientfinancial management services to, and on behalf of, allDistrict agencies. The AFO program was retained inthe Division-based agencies, and there is no change inthe AFO program from the prior year.

Agency fiscal operations are managed by theAssociate Chief Financial Officers (ACFOs), whoserve as the key contact between the Office of theChief Financial Officer and the Districts senior lead-ership in managing agency finances. The ACFOs rep-resent the following areas: Government Operations,Economic Development and Regulation,Government Services, Human Support Services, andPublic Safety and Justice. With the exception of theDistrict of Columbia Public Schools, Agency FiscalOfficers (AFOs) for the respective agencies undereach area report to their respective ACFO.

Service-Level BudgetingPerformance-Based Budgeting created a uniformreporting structure within every agency. Agenciesmanage divisions/programs; divisions/programs aremade up of sub-divisions/activities; and sub-divi-sions/activities consist of services. The District pri-marily budgets at the sub-division/activity level.Starting in FY 2006, District law required the presen-

tation of selected agency budgets at the service level.Service-level budgeting allows for greater clarity andtransparency in agency budgets by informing stake-holders about the operations of government.

Benchmarking

For the District, benchmarking is a comparisonbetween the District and comparable jurisdictions toassess performance and efficiency. Benchmarkinghelps identify potential program efficiencies by com-paring them with similar programs in comparisonjurisdictions. These jurisdictions are selected based onseveral factors, which include size, similar servicedelivery techniques, and proximity. Another benefitof benchmarking is the development and fostering ofa culture of program management focused on con-tinuous improvement. The FY 2009 benchmarkingstudy incorporated higher level outcomes into thebenchmark listing, and that practice continues in FY2012. The benchmarks are located atwww.cfo.dc.gov on the Annual Operating Budgetand Capital Plan page.

Cost Driver StudyThe Cost Driver project will bring the District a new,systems-based dimension to financial and manage-ment analysis, mainly volume counts (for example,number of meals served) that correspond to key costcomponents of an agency. A reliable database of such

counts, integrated with the Districts accounting sys-tem of record, will make possible the development ofunit cost trends (for example, cost per meal served)over time and relative to other organizations. Unitcost trends and comparisons to unit volume trendshelp management pinpoint cost areas that requiremore research in order to explain the root causes dri-ving the trends. Additionally, analyses of cost driversfacilitate the comparison of actual costs with project-ed costs based on actual utilization levels. In FY 2010,62 agencies were involved with the study, representinga gross funds operating budget of $5.6 billion.

Information SystemsIn FY 2004, the CFO$ource Executive Dashboard a web-based tool which brought financial informa-tion together from various sources was broughtonline. The tool provided District stakeholders withcritical financial data that allowed them to make data-driven decisions. In addition, the Budget Formulation


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Strategic Budgeting

2-3

Application (BFA) was developed as a tool thatallowed for a systematic approach to budget formula-tion. Since their initial rollouts, CFO$ource and theBFA have been enhanced each year, as needed, to pro-vide richer analysis, more powerful data management,and a robust infrastructure.

The technology supporting the CFO$ource solu-tion reached the end of its useful life in FY 2009. Thissolution was modernized and replaced by the newCFO$olve system. CFO$olve retains the data analy-sis functionality and is a District web-based financialreporting tool. It enhances data integrity by provid-ing a single source for reporting financial data. Itaffords District stakeholders the ability to cross refer-ence and analyze multi-faceted data that it has gath-ered from source systems such as the ProcurementAutomated Support System (PASS), PeopleSoftHuman Resources, PeopleSoft Payroll, and theSystem of Accounting and Reporting (SOAR).

In FY 2009, the OCFO also released a new web-based tool called the Agency Operational Dashboard(AOD) as part of the CFO$olve system. AOD isdesigned to provide a snapshot of an agencys financialperformance, including the ability to track procure-ments, purchase orders, payments, vendors, operatingbudgets, capital projects, and Human Resource (HR)information. The dashboard provides a link betweenprogrammatic and financial information, thus allow-ing District managers and decision-makers ready

access to key data that is most relevant to them. TheAOD also provides a platform to add many addition-al data repositories and analysis tools.

Within the BFA, several enhancements weremade to the automated budget formulation processenabling the ability to better track and manage bud-get changes from year to year. These improvementsalso enhance the ability of the Executive and theCouncil to make judicious budgetary decisions.Changes were made to the capital budget modules totrack the estimated life cycle costs of capital projectsand to provide the ability to re-allocate existing cur-

rent year allotment balances across the capital projectportfolio. Improvements to the position budgetingmodules include the ability to move a position fromone agency to another and to automatically trackfringe benefits and step increases.

During FY 2010, CFO$olve was enhanced witha public-facing financial dashboard named CFOInfo.This dashboard contains four fiscal years of data,

which includes two years of actual expense data andtwo years of budget data. Users can view data ingraphical or tabular views and can create comparisonsand cross-tabs for more detailed analysis of budgetdata. All data mirrors the information contained inthe District's budget books. This dashboard

enhanced the transparency of the OCFOs budgetand financial data by providing an interactive, user-friendly version of the Districts budget catalog onlinefor taxpayers.

Moreover, the OCFO is interested in initiating aproject in conjunction with the Executive and theCouncil to modernize and replace the BFA solutionwith a robust industry-proven public sector budgetdevelopment solution. The replacement solution willsignificantly improve the Districts ability to develop,analyze, approve, and implement the Districts bud-get, allowing for scenario-based planning, trendanalyses, cost drivers, and automatic integration withHR, procurement and financial systems of record.

SummaryThe projects within the Districts strategic manage-ment efforts are dynamic. Strategic managementprocesses must provide a broad-based capability toprovide timely financial information to city leaders,and our efforts must positively impact managementsability to improve the effectiveness and efficiency ofthe delivery of city services. This task is not without

challenges, but it is an achievable goal for a city andgovernment determined to achieve world-class status.


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The District uses the multi-year financial plan asa working tool throughout the fiscal year to monitorthe impact of legislative proposals, programmatic ini-tiatives, and economic changes on the District's near-

term fiscal outlook. This financial plan focuses on theProposed FY 2012 Budget and its impact on FY 2013through FY 2015.

Below are line-item descriptions of the financialplan elements. For explanatory purposes, the plan isbroken into two sections:

Revenues; and Expenditures.

The numbering scheme noted below refers to theline numbers on Tables 3-1, 3-2, 3-3, and 3-4.

Revenues

2. Taxes. This category includes property, sales,income, and other taxes, which are projected by theOffice of Revenue Analysis. See the Revenue chapterfor details.

3. Dedicated Taxes. This includes tax revenuesthat are dedicated by law to a particular agency for aparticular purpose. The dedicated portion of tax rev-enues is transferred out of the local fund and is not

available for general budgeting. See the Revenuechapter for details.

4. General Purpose Non-Tax Revenues. This lineincludes revenue from licenses and permits, fines,charges for services, and other revenue sources that arenot dedicated to particular purposes. See the Revenuechapter for details.

5. Special Purpose (O-Type) Revenues. Specialpurpose non-tax revenues, or O-Type or Other rev-enues, are funds generated from fees, fines, assess-

ments, or reimbursements that are designated for useby the District agency that collects the revenues tocover the cost of performing the function. The desig-nation of the revenue for the use of the collectingagency is what distinguishes this revenue from thegeneral-purpose non-tax revenues.

3

Financial Plan

The Financial Plan projects the Districts results of operation for threefiscal years beyond the proposed operating budgets of the GeneralFund (comprised of Local funds, Dedicated Taxes and Special PurposeRevenue funds) and the Federal and Private Resources Funds (com-

prised of Federal Grants, Federal Payments, and Private Grants andDonations) for the next fiscal year. The actual results for the prior fis-cal year and the approved and revised budgets for the current fiscal yearare also included as context for FY 2012 through FY 2015 of thefinancial plan.

Financial Plan

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million of revenues from the Washington Center forAging Services and JB Johnson Nursing CenterReserves will be transferred to the General Fund in FY2011.

13c. Transfer of Community Health Care

Financing Fund to Local. $30.1 million of funds inCommunity Health Care Financing Fund are to betransferred to Local Funds.

13d. Transfer from Capital Fund Paygo. $28.8million transferred from Capital Paygo fund to theLocal Fund in FY 2011 to cover general operatingcosts including $13.0 million for WashingtonMetropolitan Area Transit Authority (WMATA)operating costs. Also, $4.2 million and $5.5 millionof Capital Paygo fund transferred to local funds in FY2012 and FY 2013, respectively, to cover generaloperating costs.

14. Fund Balance Use. This represents unex-pended funds that fell to the bottom line, or fundbalance, in prior years but which the District isproposing to use in the current year. The GeneralFund Balance includes Local funds (including dedi-cated taxes) that finance transfers to other Districtfunds, certain one-time expenditures, and SpecialPurpose Revenues that some agencies plan to spendfrom accumulated fund balances.

14a. Conversion of Special Purpose RevenueFund Balance to Local. In Table 3-2, this line showsO-type Special Purpose Revenue funds converted toLocal funds.

14b. Local Fund - Fund Balance Use. In Table 3-2, this line shows $95.1 million of fund balance usein FY 2010 as certified in the DistrictsComprehensive Annual Financial Report (CAFR).The FY 2011 Approved Budget uses $34.9 million ofLocal fund balance.

14c. Dedicated Taxes - Fund Balance Use. InTable 3-2, this line shows $22.7 million of fund bal-ance use in FY 2010 as certified in the DistrictsComprehensive Annual Financial Report (CAFR).This consists of $14.6 million of NeighborhoodInvestment Trust Fund and $8.2 million of NursingHome Quality of Care Fund.

6. Transfer from the Lottery Board. This linereflects the portion of D.C. Lottery and CharitableGames Control Board revenue that is transferred tothe District's General Fund.

7. Interfund Transfers. This line includes trans-

fers from Enterprise Fund and other non-GeneralFund agencies. In Tables 3-1 and 3-2, this line repre-sents transfers in to the Local Fund from the BaseballSpecial Revenue Fund.

8. Subtotal General Fund Revenues. This linereflects the sum of lines 1 through 7.

9. Bonds Proceeds for Issuance Cost This is theportion of the bond proceeds that will be used tocover the cost of issuing General Obligations (orIncome Tax Revenue) bonds.

10. Revenues set-aside for subsequent yearsexpenditures. This reflects the reservation of project-ed fund balance in Fiscal Year 2013 for use in FiscalYear 2015.

11. Interfund transfers between Local,Dedicated Taxes and O-type Special Purpose funds.In Tables 3 2 and 3 3, this line shows the move-ment of funds within the General Fund.

12. Transfer from Federal and Private Resources.This line reflects the movement of federal grant dol-lars into Local funds to pay for certain indirect costs.

13. Transfer from Enterprise Fund and OtherFunds. In Table 3-2, this lines shows transfer of fundsfrom Enterprise and other Special Revenue Funds aslisted below.

13a. Transfer from Ballpark Fund. This lineshows the amount transferred from the BallparkSpecial Revenue fund balance to the General Fund to

assist in gap closing operations in FY 2010 and FY2011.

13b. Transfer from Other. In FY 2010, $0.8 mil-lion of Library Agency funds were transferred to theGeneral Fund. $5.9 million of revenues held by theOffice of Aging in their Client Reserve account willbe transferred to the General Fund in FY 2011. $5.1


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14d. Fund Balance Use. In Table 3-3, this lineshows total amount of fund balance use certified bythe Office of Revenue Analysis in the relevant fiscalyear for particular Special Purpose Revenue funds inagencies.

14e. Certified Resources not used. In Table 3-3,this line shows the total amount of certified resourcesnot used by agencies in their particular funds andreturned to their relevant fund balances.

15. Revenue Proposals. This line reflects pro-posed revenue changes that are detailed in theRevenue chapter of this volume.

16. Total General Fund Resources. This lineshows the sum of the individual revenue and fundbalance items presented in lines 8 through 15 above.

17. Line intentionally left blank.

Expenditures (by Appropriation Title)

Lines 18-24. These lines reflect agency expendi-tures by appropriation title

25. Financing and Other. This line includesRepayment of Debt, Short-Term Borrowings,Certificate of Participation, and other items in this

appropriation title that are not specifically shown inlines 26 to 33

26. Bond Issuance Costs. The cost of issuingGeneral Obligation (or Income Tax Revenue) bonds.Same as line 9.

27. Operating Cash Reserve. The FY 2011Approved Budget sets aside $40.0 million inOperating Cash Reserve to be used to cover spendingpressures. The FY 2011 Revised Budget shows areduction of $14.8 million in this category, which

covered spending pressures in District of ColumbiaPublic Schools, $14.2 million, and Board ofElections, $0.6 million.

28. Subtotal, Operating Expenditures. This lineshows the sum of lines 19 through 27.

29. Paygo Capital. Table 3-2 reflects FY 2011Budget Support Act directive to set aside 25% ofincrease in revenues for Paygo Capital use starting inFY 2012 using FY 2012 revenues as the base year.

30. Transfer to Trust Fund for Post-

Employment Benefits. This line reflects a transfer toreduce the District's accumulated liability for healthinsurance costs for retirees. These costs must be rec-ognized beginning in FY 2008 in accordance with theGovernmental Accounting Standards Board (GASB)ruling on the treatment of such costs.

31. Repay Contingency Reserve Fund. This linein Table 3-2 reflects the amount needed to replenishthe Contingency Reserve Fund for $3.0 million in FY2011 and FY 2012. This total of $6.0 million is theremaining amount of a $26.0 million loan to theUnited Medical Center that is to be replenished ineach year.

32a. Transfer to HPTF Special Revenue Fund(Enterprise Fund). This line in Table 3-2 reflectstransfers of dedicated tax revenues to the HousingProduction Trust Fund (HPTF) Special RevenueFund outside of the General Fund

32b. Transfer to Baseball Revenue Fund(Enterprise Fund). This line in Table 3-2 reflects

transfers of dedicated tax revenues to the BaseballRevenue Fund Special Revenue Funds outside of theGeneral Fund.

32c. Transfer to TIF/CBF (Enterprise Fund).This line in Table 3-2 reflects transfers of dedicatedproperty and sales tax revenues to the to the TIF (TaxIncrement Financing, Community Benefit Fund andPILOT Payment in Lieu of Taxes funds) EnterpriseFund.

32d. Transfer to Convention Center. This line in

Table 3-2 reflects transfers of dedicated sales tax rev-enues to the Convention Center Enterprise Fund.

32e. Transfer to Highway Trust Fund(Enterprise Fund). This line in Table 3-2 reflectstransfers of dedicated motor fuel and parking tax tothe Highway Trust Fund ouside of the General Fund.

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32f. Transfer to WMATA. This line in Table 3-2reflects transfers of parking sales and use tax revenuesto the Washington Metro Area Transit Authority tosupport the operations of the agency.

32g. Transfer to Highway Trust Fund. This line

in Table 3-3 reflects transfers of motor fuel tax to theHighway Trust Fund.

33. Operating Impact of CIP. This line in Table3-2 reflects the estimated cost of operating and main-taining newly completed capital projects. See Volume6 FY 2012 FY 2017 Capital Improvements Planfor details.

34. Total Expenditures and Transfers. This is thesum of lines 28 to 33.

35. Operating Margin, Budget Basis. This is thedifference between Total General Fund Resources andExpenditures (line 16 minus line 34).

36. Line intentionally left blank.

37. Composition of Cash Reserves

38. Emergency Cash Reserve Balance (2 percent,formerly 4 percent). The District was required toestablish an Emergency Reserve, by the end of FY

2004, equal to 4 percent of the District's Local expen-ditures. The requirement was satisfied in FY 2002.In FY 2005, the requirement was changed to 2 per-cent, and the base for the calculation was alsochanged.

39. Contingency Cash Reserve Balance (4 per-cent, formerly 3 percent). The District was requiredto establish a Contingency Reserve, by the end of FY2007, equal to 3 percent of the District's Local expen-ditures. The requirement was satisfied in FY 2002.In FY 2005, the requirement was changed to 4 per-

cent, and the base for the calculation was alsochanged.

40. Total Cash Reserves Emergency andContingency. This line reflects the cash reserves avail-able during a given fiscal year.

Federal and Private Resources Fund Federal Grants are grants the District receives

from federal agencies, including block grants, for-mula grants, certain entitlements, and competi-tive grants.

Federal Payments are direct appropriations fromthe Congress to the District, usually to a particu-lar District agency for a particular purpose.

Federal Medicaid Payments are the federal shareof the District's Medicaid costs. Generally, thefederal government pays 70 percent of the cost ofMedicaid while the District pays 30 percent,although the proportions differ in certain circum-stances.

Private Grants are grants the District receives fromnon-Federal sources. This category includes pri-vate donations.

Table 3-4 displays a summary financial plan forthe Federal and Private Resources Fund. The lineitems are as follows:

fy2012 budget volume 1

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