Budgeting for an Inclusive Economy

Line items in the 2022 DC budget uplift Black workers & business owners

When the DC Council approved the 2022 fiscal year budget, it included a dramatic expansion of programs and benefits for communities & individuals systematically disadvantaged in our economy. The DC Fiscal Policy Institute’s (DCFPI) recently released toolkit, The District Moves Towards a More Inclusive Economy analyze how these investments will benefit Black workers and business owners in particular.

730 learned more from Doni Crawford, a Senior Policy Analyst at DCFPI who authored the toolkit.

This interview took place over email and has been edited.

Anne Dolan, 730DC: Where in the city is home for you? And where physically did you write this toolkit?

Doni Crawford, DCFPI: I wrote the toolkit from my apartment in the Trinidad neighborhood of Ward 5. I’d also frequent 7th Street Hill Cafe, The Village Cafe or Kaldi’s Social House in Silver Spring when I wanted to focus with a delicious iced chai or caramel latte.

Can you tell me about the mission of the DC Fiscal Policy Institute? How does your role fit into the organization’s mission?

The DC Fiscal Policy Institute (DCFPI) uses research and analysis to advocate for budget choices and policies that address racial and economic inequities and build prosperity in DC. My work focuses on policies that either benefit or harm Black people and communities, who often have less in income, wages, wealth, and economic mobility due to historic and systemic racism.

What prompted you to write this toolkit?

Each year, DCFPI publishes a series of toolkits that dive into DC’s investments across key issue areas (affordable housing, education, homelessness reduction, policing, and core income and health supports for residents). The goal is to help residents and advocates understand how the budget impacts our everyday lives and to analyze how successful lawmakers were at using it to build a more inclusive economy.

The report outlines new funding streams designed to uplift Black workers, communities and business owners. Budget dollars will be targeted towards supporting those excluded from pandemic unemployment assistance, expectant and new parents, kids and families with low incomes, returning citizens, and members of the LGBTQIA+ community through grant programs, direct cash assistance, and district services. If we go rapid fire through the line items in the 2022 budget, which of these programs is:

The most radical?

Guaranteed income pilot program. Although the program structure is to be determined, research shows that flexible cash assistance provides stability, reduces stress, and averts extreme hardship. It also allows families to pay for the things they need without the government deciding for them how to do that. I also believe that making guaranteed income programs a standard part of public conversations gets us closer to similar conversations and action on reparations for Black people.

The easiest to implement?

​​I’ve learned that no program is easy to implement! …but I’m hopeful that since the DC Paid Family Leave program is already up and running, the expansion of personal medical leave and prenatal medical leave will be easier to implement. From October 2021 to September 2022, the program will cover up to six weeks — up from two! — for workers to take care of their health needs and up to two weeks of prenatal medical leave for pregnant claimants prior to the birth of their child.

The hardest to implement?

​​I don’t want to speak this into existence…

Has the catchiest name?

Baby bonds! Technically, the Child Wealth Building Act of 2021, which would provide government-sponsored trust funds to children born into DC families with lower incomes and aims to help close the racial wealth gap.

Is your personal favorite?

Cash assistance for excluded workers. There are 15,000 excluded workers in DC, who include workers who are undocumented and those in the informal cash economy. These are mostly Black and brown people and have been excluded from unemployment insurance benefits. The campaign for this program was led by excluded workers and successfully won $41 million — about three times the investment that the District made in 2020! I served on the leadership team for the excluded workers coalition and campaign and published analysis to help with advocacy to the DC Council, and I have never participated in a more rewarding and inspiring campaign!

Doesn’t go far enough to support those in need?

I love the baby bonds program, but I wish there weren’t strict residency and income requirements, which will likely make it harder for Black residents to benefit. New census data already show that DC lost 19,315 Black residents over the past decade. Rising housing and living costs in the District will likely force many additional Black residents to leave and forego receipt of all the savings. Additionally, eligibility is based on income instead of wealth even though Black families and other families of color have significantly less wealth no matter their income. A better design would extend children’s eligibility to receive contributions even as their families’ incomes increase or base eligibility on wealth.

While some of these new programs will be funded by the increased taxes on DC’s wealthiest, many budget items were made possible through the federal American Rescue Plan. How much of the 2022 budget is one-time stimulus?

Federal stimulus funds make up 55% ($831.6 million) of the growth in the gross budget from fiscal year 2021 to fiscal year 2022. This is why the local tax increase was so important — it ensures revenue for the city even when the stimulus money is gone. The Just Recovery DC campaign made this modest income tax increase happen because DC needs ongoing investments in order to produce transformative change.

Your toolkit specifies several different agencies, departments, and nonprofits that will help distribute funds and administer new programs. What is the city doing to ensure that eligible individuals can access these benefits?

​​District leaders, including the Mayor, government agencies, and the DC Council, are starting to share information regarding the application process for newly funded programs. Some programs, such as cash assistance for excluded workers, include funding for outreach so that the nonprofits and administering agencies can help ensure that residents know of their eligibility.

At the start of each year, the DC Council holds performance oversight hearings on each DC agency. This is the time for the public and Council to hear how well programs are serving their intended targets and achieving racial equity. I recommend that you tune in to those hearings and testify if you have personal experience (both good and bad) on how a program, like paid family leave or the Small Business Rent Relief, is running thus far.

If you or someone you know qualifies for one of the programs or benefits outlined, where should you go to get started?

The executive branch (led by Mayor Bowser) will largely be responsible for implementing these programs and they have already started to roll-out program announcements and applications.

You can go directly to the agency that will be implementing the program (i.e. Department of Small and Local Business Development, Office of the Deputy Mayor for Planning and Economic Development, Department of Employment Services, etc.) or you can sign-up for various DC government listservs here to be up to date on program announcements.

Additionally, if you live in DC, you are represented by your ward representative and the five at-large representatives. You can always reach out to their constituent services teams if you need assistance.

How can readers get involved in the budgeting process? Where should you go if you want to learn more about the budget?

Check out DCFPI’s resident’s guide to the DC Budget for basic information about how it works. We are continuing to publish more toolkits about the fiscal year 2022 budget, too. You can also sign up for our email newsletter! Residents of DC have several opportunities to weigh in on the budget throughout the year, including the Council’s hearings on agency performance and spending and the final Council hearing on the Mayor’s proposed budget.