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ch n Wednesday, October 2, 2013 T he Current
The Northwest
Current
Davis Kennedy/Publisher & Editor Chris Kain/Managing Editor
Staying open
The word went out last week: Mayor Vincent Gray would make a major, tangible stand for D.C. autonomy by thumbing his nose at the federal government’s shutdown. The mayor sent notice to the feds Sept. 25 declaring every single D.C. employee “essential” and thus exempt from the furlough. But as the city awaited a response to that announcement, officials came up with another solution, thanks to a suggestion from local nonprofit DC Appleseed. It turns out that the city’s Contingency Cash Reserve fund, with its $144 million on hand, has already been appropriated for our use. So our leaders could use that money for city operations until the cash runs out. Thus when Congress sent federal agencies into a standstill Tuesday morning, D.C. services kept on chugging. It was business as usual — and that was great news. It’s bad enough — and it’s very bad, really — that Congress’ squabbles are threatening air travel, jeopardizing veterans benefits and hampering health efforts. But the absurdity of the situation is heightened when those federal fights are allowed to hamstring D.C. doings. Unfortunately, the unique structure of our city’s governance requires Congress to approve all of the District’s spending, even when the funds in question are locally raised. Attempts to carve out a shutdown exception for D.C. have gained little traction. And citizens, of course, have no say in the matter, as the District has no vote in Congress. Thankfully, come Jan. 1, a charter amendment passed by voters this year promises to take away the requirement for explicit congressional approval of the District’s local budget. But that doesn’t solve our problems in the meantime or foreclose the possibility of future intrusions on local governance. Still in question is what would happen if this shutdown extends longer than two weeks, the period for which the contingency funds are expected to last. Would Mayor Gray rely on his all-employees-are-essential stance, which the D.C. Council backed yesterday? We hope the federal Office of Management and Budget will weigh in on that concept before then — ideally in the affirmative. Though it’s an unusual means to an end, we could imagine the plan will receive support, since President Barack Obama has made it clear that he backs D.C. budget autonomy. But in the meantime, we’re happy to rely on our cash reserves. It’s not as flashy as a mass declaration of essentialness, but maybe it’s an even better approach: The result is the same, and perhaps the city’s careful action will endear us to the lawmakers who have been preventing us from making our own decisions. Though that would assume they’re acting out of rationality.
A taxing misconception
Most local businesses owners think they pay far more in taxes to the District than they would if they were located in Virginia. Thankfully, this is often not the case, according to a new report prepared for the D.C. Tax Revision Commission. Tax considerations are often a major factor when regional firms decide whether to locate in D.C., Maryland or Virginia, particularly given the geographic reality that firms in one jurisdiction can easily serve customers in the other two. And the new report shows that companies may want to think again about D.C. True, our 9.975 percent profits or “franchise” tax is far higher than Virginia’s 6.0 percent (except for high-tech businesses in D.C., which pay 6.0 percent after an initial five-year exemption). But small businesses based here avoid several taxes that they would pay in Virginia. If a D.C. business has revenues of less than $5 million, it does not pay a “gross receipts tax” — though most do in Virginia. And if the business has nonfinancial assets that are less than $225,000, it would not pay a “personal property tax,” as most Virginia firms do. For bigger firms, the Virginia gross-receipts tax often makes up for the higher District franchise tax, as our gross-receipts tax is capped at $16,500. In Arlington, this fee is 6.5 times that of the District’s for a firm with revenues of $30 million. Larger District firms also have a lower personal-property tax rate than firms do in nearby Alexandria, Arlington or Fairfax. Study authors Robert Aceituno and Karen Yingst, of a regional certified public accounting and business advisory firm, recently urged the city to publicize their findings so that businesses are “more aware of the true tax costs of the District compared with its neighbors.” Mayor Vincent Gray should indeed follow their advice. Doing so would undoubtedly help attract more businesses to the District — producing more jobs for District residents and more tax revenue for the city.
Justice is served …
O
ccasionally we like to share one or two notes on the criminal justice system to remind us how important the courts can be. Lawyers for U.S. Attorney Ronald Machen prosecute some of the most heinous crimes. A recent news release told us about Mark Coates, 28, of the District. He was sentenced this summer to a 23-year prison term by Judge Herbert B. Dixon Jr. after Coates pleaded guilty to a charge of seconddegree murder while armed. What did he do? Prosecutors say Coates and another man attacked 56-year-old Leroy Studevant in Marvin Gaye Park in Northeast Washington. At first, the victim escaped and ran from his attackers. “However, Coates and the accomplice chased Mr. Studevant through the park, until Coates ultimately cut off Mr. Studevant’s flight path. Using a knife, Coates and his accomplice then stabbed Mr. Studevant. After forcing Mr. Studevant to the ground, Coates and his accomplice kicked him, and Coates was able to unhook and remove Mr. Studevant’s belt from around his waist. The belt was placed around Mr. Studevant’s neck as a noose, and he was choked with the belt until he no longer resisted.” What prompted this vicious assault? “The victim would not share his cigarettes.” ■ A program note. The Notebook will be doing an hourlong interview with Mr. Machen at 7 p.m. on Oct. 15 at the Hill Center at the Old Naval Hospital, 921 Pennsylvania Ave. SE. It’s part of a quarterly interview series we’re doing with various leaders of our city. You’re welcome to attend. ■ Fresh air. Maybe the air was fouled the past couple of weeks by the shutdown shenanigans, but there’s good news to breathe in. The council’s Air Quality Committee reported recently that the region’s air quality has “continued to show major improvement,” and there were just four unhealthy air quality days this past season. Still, the good news has its limits. D.C. Council Chairman Phil Mendelson was quoted as saying, “The region can’t lose sight of the challenges ahead. Even as the region’s air quality improves, EPA is considering lowering the health standard for ozone.” Those stricter standards could come in 2014. ■ “Securicrat” world. The federal Department of Homeland Security has been around long enough for
some people to start talking about breaking up what they fear is an impossibly large hodgepodge of federal agencies. It might be tough to unwind some of the staff titles that populate the department or the dense language that has developed around it. The Notebook has mentioned a few mind-benders before. This caught our attention. It’s from an article in The Domestic Preparedness Journal: “Over the past few months, The Infrastructure Security Partnership (TISP) has been participating in a publicprivate collaborative effort, led by … the U.S. Department of Homeland Security’s (DHS) Office of Infrastructure Protection, for the purpose of updating the National Infrastructure Protection Plan (NIPP). Public-private sector collaboration and partnerships are now frequently mentioned in case studies, reports, policy directives, and articles addressing topics related to regional and infrastructure security and resilience. There are many reasons for companies and agencies of all sizes to work together for the common goal of building resilience.” ■ A semi-final word. Barbara Lang is stepping down after leading the DC Chamber of Commerce for the past 11 years. Lang is credited with giving the chamber more oomph in city politics and business circles. It’s a 75-year-old organization, but it has always been overshadowed by both the Greater Washington Board of Trade and the Federal City Council. Lang elbowed her way into the business circles and helped small and minority-owned businesses gain a voice. She has often talked to the Notebook and been interviewed on NBC4 about the dramatic changes in the city over the past 15 years. Lang most recently agreed that the city’s $8.25 minimum wage likely needs to be raised. Rather than just oppose it for businesses’ sake, she said the chamber would help find the right increase to help workers but not disadvantage city businesses. And this is a “semi-final” word because Lang is not retiring. She spent her previous career at Fannie Mae and is ready for a new challenge. You might say, watch this space. Tom Sherwood, a Southwest resident, is a political reporter for News 4.
TOM SHERWOOD’s
Notebook
Letters to the Editor Don’t let D.C. throw E6 under the bus
Approximately two years ago, District transportation officials tried to eliminate Chevy Chase’s E6 bus, an important route that links the Friendship Heights Metro station and Knollwood. Officials are trying again this year, by other means. This time, instead of slashing the entire route, their proposal will cripple it. With scant notice, the Washington Metropolitan Area Transit Authority has proposed a 20 percent reduction in service for the E6, a route with already-sparse weekday-only service. This proposal will have a huge impact on hundreds of riders, many of whom may be forced back into their cars and onto crowded D.C. streets. It would be the latest erosion of bus service in Northwest, following the previous
E6 cut and the elimination of the N8 line that served Glover Park and Tenleytown. Not one of the six public hearings was scheduled in the Chevy Chase area. E6 riders had to travel to Maryland, Virginia, Southwest D.C. or Northeast D.C. to voice their opinions at the hearings. The transit authority’s documents cite low ridership as the reason for the service reduction, yet E6 ridership has soared in the last two years. It has reached a five-year high of 450 riders every weekday — not the highest ridership among Metrobus routes, but an impressive increase of 27 percent from just two years ago. Given the community’s commitment to the E6, Metro should be considering more frequent service to encourage continued growth. This loss of service would also impact local businesses, including the popular Broad Branch Market and the commercial strip on upper Connecticut Avenue. Many of the workers at the Knollwood nursing home would be affected as well.
If the Metro board approves the E6 proposal, riders will lose 14 trips throughout the day. This will mean a reduction in earlymorning service and almost no service in the mid-afternoon, affecting area students; the final bus of the day will leave Friendship Heights just after 8 p.m. E6 riders already experience long weekday wait times of 40 minutes during non-peak hours. We strongly urge officials to reject the proposal to reduce service on the Chevy Chase line. Growing ridership and the hundreds of signatures collected in support of the current level of service show that many riders hold the same view. Don’t leave hundreds of residents in Upper Northwest without any good public transportation options. This proposal runs counter to the sustainable community so many council members tout. Michaela Platzer Barnaby Woods
Lucinda Wade Hawthorne