Understandably, I am disappointed that the Mayor has chosen to veto the Budget Support Act and two sections of the Budget Request Act, relying on legal arguments that would eviscerate Council authority over the budget.   Although he has tried to spin this action in the best light, a careful reading of his letter reveals two issues: (1) restoration of streetcar funding over tax cuts; and (2) objection to limitations on the Mayor’s unilateral ability to spend.

The streetcar program is already well-funded.  The Council’s budget has $587 million dedicated for streetcars, although the Council did adjust out-year funding to more sustainable levels.  The $587 million is far more than the government has been able to spend to date.

The tax cuts are broad, and will be eliminated by the veto.  When fully implemented, the average resident will pay hundreds of dollars less in income taxes.  Low income wage earners will see a doubling of the Earned Income Tax Credit.  Wealthy individuals will be able to pass more of their estate to their heirs.  Seniors will benefit from an interest-free deferral of their real property tax, or an increase in the Schedule H refundable credit.  Businesses will see a 17% reduction in the franchise tax.  All of this would be wiped out if the Mayor’s veto is sustained.

The limitations on the Mayor’s unilateral ability to spend are best practice.  The Mayor couches the unfettered ability to draw from the Contingency Cash Reserve as necessary to solve problems and protect the health of our residents, but this is not the practice.  The $9 million supercan replacement program, for example, was funded out of these reserves without any ability for the Council to act.  Our language is identical to what then-Chairman Gray pushed through the Council in 2008.

The Mayor’s veto is predicated on a legal theory that would eviscerate the power of the Council.  The Mayor’s letter claims that if the veto is sustained, the budget for a vetoed line “will revert to the Mayor’s proposed budget.”  By this theory, the Mayor could veto the entire budget and thereby restore his original proposal.  This would fundamentally weaken the Council’s role in the budget process, and is unacceptable.

I will work with colleagues to ensure that we override the veto of a budget that was passed almost unanimously last month.  Indeed, the budget needs to be transmitted to Congress as soon as possible in order to have it in place for the upcoming fiscal year.