About This Testimony:
The Greater Washington Board of Trade submitted written testimony before the D.C Council’s Committee of the Whole regarding Mayor Bowser’s proposed Fiscal Year 2027 budget.
The testimony emphasizes that Washington, D.C. is at a pivotal economic moment as shifting demand patterns, lower office utilization, slower population growth, and changes in the tax base create both fiscal pressure and an opportunity to redefine the District’s economic model. The Board of Trade urges the Council to focus on long-term growth, competitiveness, fiscal discipline, and policies that expand opportunity rather than relying on broad-based tax increases or short-term budget fixes.
The testimony also calls for a multi-year fiscal framework, a comprehensive review of the District’s competitiveness, streamlined permitting and approvals, reduced regulatory burdens, and stronger performance standards for core services such as public safety, transportation, permitting, and education.
Submitted Testimony:
Chairman Mendelson, members of the Council. My name is Jack McDougle, President and CEO. Thank you for the opportunity to submit testimony on the Mayor’s proposed Fiscal Year 2027 budget.
Established in 1889, the Greater Washington Board of Trade is the region’s longest-standing business organization. We convene leaders across business, government, academia, and the nonprofit sector to advance policies and partnerships that drive economic growth, innovation, and opportunity. We are committed to a fiscally sound, economically competitive, and forward-looking District of Columbia.
The budget before you arrives at a pivotal moment, not only because of the fiscal pressures it reflects, but because of the opportunity it presents. Washington, D.C. is undergoing a structural economic transition. Demand patterns are shifting, office utilization remains below prior levels, population growth has slowed, and the composition of the tax base is changing in real time. These dynamics are creating near-term fiscal strain and urgency for the District to redefine its economic model and sharpen its competitive position.
The District has the assets to compete at the highest level: a mission-driven workforce, proximity to federal policy, and a strong base in technology, professional services, and emerging industries. The question is not whether D.C. can grow; it’s whether policy choices will enable that growth or constrain it.
Too often, fiscal discussions focus on closing short-term gaps through one-time measures or incremental tax increases. That may balance a budget, but it does not position the city for long-term success. This moment calls for a different lens, one grounded in economic aspiration and competitiveness. Delivering for residents, particularly those most vulnerable, requires a growing economy that expands opportunity rather than redistributes within a constrained base.
At its core, the choice before the Council is straightforward: manage through extraction by raising costs on a constrained base or expand the base through growth by making D.C. more competitive.
Align Fiscal Strategy with Long-Term Growth
The District’s fiscal challenge is structural and will not be resolved through temporary measures. Recent budgets have relied on fund balance drawdowns and tax increases to sustain spending, neither a substitute for structural alignment. One provides one-time relief; the other increases the cost of living and doing business, often at the expense of the growth needed to sustain the very programs residents rely on.
A growth-oriented fiscal strategy requires discipline: aligning recurring expenditures with sustainable revenues while prioritizing investments that expand the economic base. We recommend adopting a multi-year fiscal framework establishing a clear path to structural balance, with defined milestones and transparency.
Make Competitiveness a Core Budget Principle
The District operates within a highly competitive regional and national landscape. D.C.’s tax burden is already high relative to neighboring jurisdictions and many peer cities causing households and businesses to increasingly explore other options. Additional increases would directly impact decisions about where to live, work, and invest.
The experience of other cities is instructive. In New York City, reliance on a narrow base of high-income taxpayers has increased revenue volatility. In Seattle, targeted business taxes are influencing long-term investment decisions. In San Francisco, cumulative high costs and regulatory friction have contributed to weaker demand and slower recovery. As the Brookings Institution Metro Monitor notes, the Washington region has lagged peer regions in delivering broadly shared growth, underscoring the need to expand the economic base, not simply redistribute within it.
We urge the Council to hold the line on new broad-based tax increases and undertake a comprehensive review of the District’s competitiveness across tax and regulatory policy. Competitiveness should be a standing principle in fiscal decision-making.
Remove Barriers to Growth
Expanding the tax base requires removing barriers to housing, business formation, and economic activity. Housing production is slowed by lengthy permitting timelines, uncertain entitlement processes, and high regulatory costs, limiting population growth and demand. Businesses face similar friction in starting, scaling, and operating in the District.
The District should prioritize:
- Streamlined permitting and faster approvals
- Greater predictability in zoning and entitlement
- Reduction of unnecessary regulatory and cost burdens
These are high-impact, low-cost reforms that can materially improve the District’s growth trajectory and expand access to opportunity across communities.
Improve Core Service Performance
Competitiveness is not defined by cost alone; it is defined by performance. Public safety, transportation, permitting, and education shape how residents and businesses experience the city. When these systems underperform, they disproportionately affect communities that rely most on consistent, high-quality services.
The District should establish clear performance standards, measure and publicly report outcomes, and align budgets with demonstrated results. Improving service delivery strengthens both competitiveness and equity and is central to a growth strategy that works for all residents.
Conclusion: Define the Next Economy
The decisions made in this budget will shape the District’s economic trajectory for years to come. This is not simply about closing a fiscal gap, it’s about defining the next phase of D.C.’s economy.
We urge the Council to take the long view: focus on growth, strengthen competitiveness, and align fiscal policy with clear economic aspirations. A growing economy is the foundation for delivering sustained opportunity and support for all residents.
The Greater Washington Board of Trade stands ready to partner with the Council and the Executive in advancing this work. Thank you for the opportunity to submit this testimony. We welcome any questions.
ABOUT THE BOARD OF TRADE
The Greater Washington Board of Trade, founded in 1889, is the region’s premier non-partisan business organization representing industry, nonprofits, universities, and government agencies. The Board of Trade addresses complex and always-evolving business concerns that stretch across the District of Columbia, suburban Maryland, and Northern Virginia, with a priority focus on inclusive economic growth, improving the business climate, and enhancing the region’s economic competitiveness.
Additional Advocacy Statements and Testimonies
Testimony to DC Council: Board of Trade Supports Bill for RFK Site Redevelopment
Letter of Support: ‘District of Columbia Fiscal Autonomy Act’ Advancing to House Floor
