[House Hearing, 105 Congress] [From the U.S. Government Publishing Office] DISTRICT OF COLUMBIA APPROPRIATIONS FOR 1999 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTH CONGRESS SECOND SESSION ________ SUBCOMMITTEE ON DISTRICT OF COLUMBIA APPROPRIATIONS CHARLES H. TAYLOR, North Carolina, Chairman MARK W. NEUMANN, Wisconsin JAMES P. MORAN, Virginia RANDY ``DUKE'' CUNNINGHAM, MARTIN OLAV SABO, Minnesota California JULIAN C. DIXON, California TODD TIAHRT, Kansas ANNE M. NORTHUP, Kentucky ROBERT B. ADERHOLT, Alabama NOTE: Under Committee Rules, Mr. Livingston, as Chairman of the Full Committee, and Mr. Obey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. Americo S. Miconi, Staff Assistant ________ PART 1 (Pages 1-1014) Page Budget for FY 1999............................................... 1 Public Schools (including Public Charter Schools)................ 97 Corrections and Related Functions................................ 215 Public Safety and D.C. Courts.................................... 313 Public Witnesses................................................. 493 Appendix......................................................... 742________ Printed for the use of the Committee on Appropriations ________ U.S. GOVERNMENT PRINTING OFFICE 54-921 O WASHINGTON : 1999 COMMITTEE ON APPROPRIATIONS BOB LIVINGSTON, Louisiana, Chairman JOSEPH M. McDADE, Pennsylvania DAVID R. OBEY, Wisconsin C. W. BILL YOUNG, Florida SIDNEY R. YATES, Illinois RALPH REGULA, Ohio LOUIS STOKES, Ohio JERRY LEWIS, California JOHN P. MURTHA, Pennsylvania JOHN EDWARD PORTER, Illinois NORMAN D. DICKS, Washington HAROLD ROGERS, Kentucky MARTIN OLAV SABO, Minnesota JOE SKEEN, New Mexico JULIAN C. DIXON, California FRANK R. WOLF, Virginia VIC FAZIO, California TOM DeLAY, Texas W. G. (BILL) HEFNER, North Carolina JIM KOLBE, Arizona STENY H. HOYER, Maryland RON PACKARD, California ALAN B. MOLLOHAN, West Virginia SONNY CALLAHAN, Alabama MARCY KAPTUR, Ohio JAMES T. WALSH, New York DAVID E. SKAGGS, Colorado CHARLES H. TAYLOR, North Carolina NANCY PELOSI, California DAVID L. HOBSON, Ohio PETER J. VISCLOSKY, Indiana ERNEST J. ISTOOK, Jr., Oklahoma ESTEBAN EDWARD TORRES, California HENRY BONILLA, Texas NITA M. LOWEY, New York JOE KNOLLENBERG, Michigan JOSE E. SERRANO, New York DAN MILLER, Florida ROSA L. DeLAURO, Connecticut JAY DICKEY, Arkansas JAMES P. MORAN, Virginia JACK KINGSTON, Georgia JOHN W. OLVER, Massachusetts MIKE PARKER, Mississippi ED PASTOR, Arizona RODNEY P. FRELINGHUYSEN, New Jersey CARRIE P. MEEK, Florida ROGER F. WICKER, Mississippi DAVID E. PRICE, North Carolina MICHAEL P. FORBES, New York CHET EDWARDS, Texas GEORGE R. NETHERCUTT, Jr., ROBERT E. (BUD) CRAMER, Jr., Washington Alabama MARK W. NEUMANN, Wisconsin RANDY ``DUKE'' CUNNINGHAM, California TODD TIAHRT, Kansas ZACH WAMP, Tennessee TOM LATHAM, Iowa ANNE M. NORTHUP, Kentucky ROBERT B. ADERHOLT, Alabama James W. Dyer, Clerk and Staff Director (ii) C O N T E N TS __________ PART 1 (PAGES 1-1014) 1. Thursday, June 18, 1998, Room H-144, Capitol Page D.C. Budget for FY 1999.......................................... 1 Mayor Marion Barry, Jr. Council Chairman Linda W. Cropp D.C. Control Board 2. Wednesday, June 24, 1998, Room H-144, Capitol Public Schools (Including Public Charter Schools)................ 97 Corrections and Related Functions................................ 215 Public Safety and D.C. Courts.................................... 313 Public Witnesses................................................. 493 Appendix......................................................... 742 PART 2 (PAGES 1-2160) 3. Budget Justification Material.................................1-2160 (iii) DISTRICT OF COLUMBIA APPROPRIATIONS FOR 1999 ---------- Thursday, June 18, 1998. FISCAL YEAR 1999 BUDGET WITNESSES HON. MARION BARRY, JR., MAYOR, DISTRICT OF COLUMBIA HON. LINDA W. CROPP, CHAIRMAN, COUNCIL OF THE DISTRICT OF COLUMBIA ANDREW F. BRIMMER, CHAIRMAN, D.C. FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY Mr. Taylor. Good afternoon. I am pleased to call to order this first hearing of the House D.C. Appropriations Subcommittee for the second session of the 105th Congress to receive testimony on the fiscal year 1999 budget for the District of Columbia. We are pleased to hear this afternoon from Mayor Barry, District Council Chairman Linda Cropp, and Financial Management Board Chairman Andrew Brimmer. I would like to apologize for having to reschedule this from yesterday but we had an 8-hour appropriations meeting, and then they had to reschedule the Interior Subcommittee meeting. So I appreciate your coming today. Before we begin, I want to thank Dr. Brimmer and the other control board members, Joyce Ladner, Steve Harlan, Connie Newman, and Ed Singletary for their service to the Nation's Capital and the Congress. Now while we have not always agreed, I want you to know that we appreciate your service and the fine attitude that you have had, even in our disagreements. I want to also welcome the Mayor and to say we appreciate our relationship with you in the last year and a half. control board projections $500 million in error During this Congress, the Nation has seen significant changes in the Nation's Capital, not all of them for good. First the city and control board submitted a fiscal year 1997 budget with a $99 million deficit, which turned out to be a $186 million surplus. Then the city had a fiscal year 1998 budget in balance, which is turning out to have a surplus of $254 million. Half a billion dollars off in just 2 years. Not bad for government work. Had the fiscal year 1999 budget, which you bring to us today, held the line on increased spending, it would have shown a surplus of $508 million instead of the $41 million now proposed. And yet, the budget increases spending, and you are asking for new massive doses of Federal funds for infrastructure. We will be reviewing that very carefully. accumulated deficit This year's budget does make strides in eliminating $254 million of the accumulated deficit. However, while the budget shows a surplus of $41 million, there remains $37 million worth of accumulated debts. We will look closely at why this accumulated deficit--the results of years of overspending--is apparently carried on for another year when the budget shows an operating surplus. revitalization act impact $1 billion Last year, in the D.C. Revitalization Act, the American taxpayers relieved the city of a billion dollars in annual spending. Congress took over the pension system, the courts, prisons, and increased to 70 percent the Federal share of Medicaid payments. Although there is no longer a--and I put this in quotes--a ``Federal payment'' to the city, you may be assured that this Chairman is very much aware of the vast amount of Federal tax dollars poured into the city daily, and he takes seriously the constitutional charge of the Congress to exercise exclusive jurisdiction over the Nation's Capital. In that spirit, we will review this proposed budget. opening statement of congressman moran I will now call upon our Ranking Member, Jim Moran, to make any opening statement. Jim. Mr. Moran. Thank you very much, Mr. Chairman. I am glad that you have had this hearing and I am pleased to see the leaders of the District of Columbia before us. I do want to say, since this is apparently the last hearing we will have with Mayor Barry, I want to thank him for his many years of public service to the city and to the country. I also want to thank Dr. Brimmer. I understand that even though you will be continuing for a few months, that you intend that to be a relatively short period of time. I think you have done a very fine job and I want to thank you for your judgment and leadership as well, Dr. Brimmer, particularly if we don't get another opportunity to do this for the record. And I am looking forward to working with Chairwoman Cropp. The areas of interest that I hope that we can cover will include what, in addition to the Revitalization Act, the Federal government can properly be doing to help the District develop its tax base. One thing, for example, in the original bill, we had a provision where the Federal government would pay for 400 miles, I think it was, of roads within the District; there was some provision in the recent highway bill, and I would like for you to address that. I think that maintaining the Metro system throughout the entire region, particularly since it is a radial system that originates in D.C., is critical to the financial health of the District, and I hope we will address that because we have $100 million per year now in maintenance costs that are going to have to be gotten throughout the region. tax reform and business regulatory relief The D.C. tax reform measures are measures that this committee felt quite strongly about, in addition to the regulatory relief that we had proposed, and if you have any comments on that, I would like to hear them; because in looking at the difference, for example, between Northern Virginia, my district, and the District of Columbia, it made it a pretty easy decision for a lot of businesses to locate in Virginia. Now with those changes, it is a tougher decision and I think that is in the best interest of the entire region. We want to play fair. commuter tax There is a matter of a commuter tax that we are undoubtedly going to disagree on, but I would like to understand the ramifications of that and your planned implementation date, if you feel that is going to go forward. I suspect the Congress may want to assert its role in thatissue because it is something that we don't feel is in the long-term best interest of the region as a whole. residency requirement for employment We don't think we ought to have residency requirements in our own suburbs. I don't think it should be in Alexandria, Arlington or Fairfax County that I represent; I don't think it should be in the District of Columbia either. I think we want to get the very best people and leave it to them to decide where they want to live. But I would like for you to address that. Beyond that, I think enough has been said, probably more than needed to be said, about the proposal. Dr. Brimmer ran up the flag pole on three managers or commissioners to manage the District and apparently you have perhaps taken that down from the flagpole after it got shot up a lot, I don't know; I will leave that to you to address. public safety and other issues But we are going to talk with the Police Department. I understand we are going to have a separate hearing, so we won't get into that specifically. We have a lot of issues, obviously, on public safety in the schools. But I am looking forward to your testimony and I am looking forward to continuing with your leadership, Madam Chairwoman. And, again Marion, thank you for all the time and effort and energy and personality and everything else that you have contributed to the District of Columbia. And thank you, again, Dr. Brimmer. Mr. Brimmer. Thank you. Mr. Taylor. Do other Members have statements? Mr. Cunningham. opening statement of congressman cunningham Mr. Cunningham. Just a very short one. I join with my colleagues in welcoming you, and I think that whether you have a tax, whether it is a city, a State, or at a Federal level, I guarantee you the bureaucrats will spend it. And the efforts that your group, Mayor, have made on doing it better and doing it smarter has been noted. And I think that is the direction we should go, because what we found is a higher tax usually means more work and more problems on your constituents, and then it just is not effective. There is a curve where that is a point of diminishing return, I realize. But I want to thank you for that. I look forward to working with you, and I think in the last meeting, you will find that the Committee is willing to bend over as much as we can and work with you, within the limits of the Constitution. waterfront issues I live in DC when Congress is in session, and I would like to talk to you individually about some infrastructure down on the waterfront, and the law enforcement problem that we had, where they drew down a lot of law enforcement in the wintertime because they said there would be ice on the water. But there was no ice, and yet we still had the same problems. And I want you to know, your chief of police worked with us and did a very good job and limited the number of law enforcement that moved away. He realized we need sound policies on law enforcement on the job which is very important. But I would like to work with you in talking to you about some issues on the waterfront, and I think where the infrastructure can help all of us, realizing there are limited funds, especially after I said no new taxes. waiving Davis-Bacon for school repairs Another area I would like to work with you on is education. We support children and they support helping children. By just waiving Davis-Bacon for school construction and repairs, with your 60-year-old schools--which the majority, up to 70 percent of union members wish to do--can save you 30 to 35 percent on school construction and repairs. Those are ways in which I think that we can make investments and give a little ground on each side. It doesn't mean we have to waive Davis-Bacon across the country, but they have done it in some States. But for the schools and education and considering the shape they are in, it is one area I would ask you to take a look at, realizing the political pressures in doing that. Other than that, I welcome the control board and thank you, Mr. Chairman. Mr. Taylor. Thank you. Mr. Tiahrt. Congressman Tiahrt's Remarks Mr. Tiahrt. I want to welcome the panel to the committee and I appreciate you, Mr. Chairman, for holding the hearings. I want to congratulate Mayor Barry on his new venture and I wish him the best. I am ready to proceed. Mr. Taylor. Thank you. Mr. Aderholt. Congressman Aderholt's Remarks Mr. Aderholt. I don't have anything to add. I just thank you for being here today. And of course being a new Member not only to Congress but to this committee, I have enjoyed working with this committee over the past year, and I look forward to another year. So thank you for being here today. residency requirement--congressman moran Mr. Moran. Mr. Chairman, can I make a slight correction in my statement? I mentioned the commuter tax, but I didn't discuss that; what I discussed was the residency requirement, which was the second thing. I don't want to confuse people. The residency requirement is actually on track here from D.C.'s perspective. I don't think that the Congress is in full agreement with that, and I would like to hear from you. I think we discussed the commuter tax in depth, but really the residency requirement is something I know you are taking very seriously. But, again, I think there is a lot of discussion about that. Thank you, Mr. Chairman. Mr. Taylor. Certainly. The Congress on the residency requirement cannot be in full agreement, but many of us appreciate that. We will proceed with the Mayor first and then Chairman Cropp and then Dr. Brimmer. swearing in of witnesses It is our procedure to swear in all witnesses before the subcommittee, at all times. If the witnesses will stand and raise your right hands. [Witnesses sworn.] Mr. Taylor. Thank you. We have written statements that will be included in the record. I would suggest that you summarize as much as you can, and if it's agreeable, we will hold questions until all witnesses have testified. Mr. Mayor. opening statement of mayor barry Mayor Barry. Good afternoon, Mr. Chairman and members of the subcommittee. First of all, let me thank the members of the committee for those kind words in terms of my own departure from my 40 years of service. It has been a labor of love during this period and I intend to be not doing the same thing but I will be around. I want to thank you for the opportunity to share my views on District finances and to place in the appropriate context the 1999 financial plan. I would like to ask that the entire 20 pages be entered into the record. Mr. Taylor. Without objection. Mayor Barry. The committee has it. new chief financial officer--earl c. cabbell First, I would like to introduce my newly appointed interim chief financial officer, Mr. Earl C. Cabbell. Stand up. He is our interim CFO. He is a certified public accountant. He has served as deputy chief financial officerof financial operations and systems since 1996. He was previously the deputy director of finance and chief accounting officer for the City of Detroit. He brought them into an unqualified audit for the first time in the history of that city. He has also served as director of finance for the State of Maryland's Department of Transportation, a position he assumed in 1992 after serving as the accounting systems director for the City of Baltimore. In the past 2 years, he had successfully handled the challenge of helping to bring financial stability to the District, so I would like to welcome him here. I am in the process of looking nationally for a candidate that I can recommend to the Financial Management Systems Authority, but Mr. Cabbell has full authority to move ahead, and he will continue to keep us financially disciplined and carry on the work that was carried on by his predecessor, Tony Williams. Budget Development Mr. Chairman and members of the committee, the development of a budget provides an opportunity to reflect on the past, to measure progress, and to plan for the future. The fiscal year 1999 budget is the last budget I will present to the executive and legislative branches of the Federal Government. Problems Confronting the District Before I comment on the fiscal year 1999 budget request, I would like to present a contextual framework relative to the inherent problems confronting the District. Many of us may have forgotten about the fact that more than 25 years ago, we were given a home rule charter that was structurally and fundamentally flawed. I think the Revenue Commission has come to the same conclusion and Carol O'Cleireacain came to the same conclusion about the disfunctionality of that structure. We were so enthusiastic about getting any kind of representation that we did not look as carefully at the structure as we should have, and we have now learned. In fact, the Revitalization Act of 1997 was a clear indication there was a relationship that had to be changed between the Federal government and the District government. No other city has a municipal, county, and State function. These are real: 41 percent of our budget goes to a State function, and more importantly, there are 40-some agencies reporting to the Mayor, and all of us know that is a span of control that is almost impossible for anybody to effectively manage. With the restructuring of our government, the Revitalization Act sort of lessened that management span of control. Federal TakeOver of Health System/medicaid More needs to be done and we need to look further at the Federal Government taking over for the financing and operation of our health system, which is clearly a State function, and some other changes in the Medicaid. We still pay 30 percent over the other cities in America. New York City only pays about 15 percent and California and Los Angeles and San Francisco don't pay any; the county pays 2 percent and the State pays 98 percent. Tax Base Constrained Also, when we came into the office in 1979, as indicated on page 3 of my statement, Carol O'Cleireacain clearly stated in her book that the District's tax base is severely constrained because it is the Nation's Capital. Forty-one percent of the property tax is exempt from property taxes. Sixty-five percent of the people who work in the city live elsewhere and do not contribute to the income tax base. Congress has not allowed the District to impose a nonresident income tax to pay for the services provided to commuters during their work day. The District does not collect taxes on the income of a large number of military personnel. I happen to agree with her as we look at the structural relationship. Financial Management--Dismal Record Also, Mr. Chairman, on the view that the District really wasn't interested in financial management or was not interested in balancing the budget prior to the Control Board, nothing could be further from the truth. In 1979, when I first took office, the finances of the District were in total disarray. We had not been audited in 100 years. In 1976, Arthur Andersen had called the District's financial management system unauditable. I say that to show that we have been committed to balancing the budget and working hard, as clearly indicated on page 6. You will find starting with 1981 up until 1988, there were balanced budgets and smaller surpluses every year under my previous administration. You also will find that in 1990, there was a $118 million deficit. But at that time the Council refused to reduce spending and so we ran up a deficit. But the point I am making is we have been committed to balanced budgets for a long time. Police Department On page 7, we talk about some of the things that have been done in the last few years. Let me also say there is great program turnaround, Mr. Chairman, in the District of Columbia. The police department is working better. You will hear from my chief later. Crime is the lowest in 20 years. Twenty years. Murders are lowest in 10 years. You can get a driver's license now in about 25 or 30 minutes, as opposed to the 3 or 4 hours it used to take sometime back. The streets are cleaner, alleys are being cleaned, the environment is better. Public Schools The only point that we have to do a lot more work in our public schools. We had 18 months of downhill. Ms. Ackerman is here now. She brings to bear, I think, a lot of ideas on reform, a lot of finesse and a lot of energy, and we are going to see major changes. In fact, we have seen test scores going up this year compared to last year. And I predict they will be higher again next year and the next year until we get to the point where they are the national average. In fact, one of our public schools, Benjamin Banneker, an academic high school, had 105 graduates, and all 105 of those graduates are going to college, and they had scholarships totalling $5 million, which means there are a number of things happening, even in spite of the change of superintendents and the back and forth. We have enough people getting out of here with a lot of the skills and who want to become America's outstanding members. Municipal Services So the quality of services in our city are greatly improving. Our employees are being awarded for that in the sense that this budget contains a pay increase. We all know that if employees are not paid commensurate with the rate of inflation, the morale goes down and they don't work as hard as they would ordinarily be working, so I would just point that out. Deficit of $335 Million in FY 1994 Also, Mr. Chairman and members of the committee, when we came into office in 1995--and some of you were here, when we had a deficit of $335 million from 1994. And that deficit, quite frankly, was a trigger to Congress to impose this Control Board on us. We were not allowed to go to the Treasury to borrow money, and the Control Board was put into place. [CLERK'S NOTE.--Regarding the preceding statements by Mayor Barry, the following excerpts of testimony presented by former Mayor Sharon Pratt Dixon Kelly and former Council Chairman John A. Wilson provide a perspective of conditions in the District after Mayor Barry's 12 years as mayor and include Chairman Wilson's remarks that the City Council had a hard time getting information because ``* * * the (Barry) Administration was not forthcoming with the Council in most situations. We have a hard time getting information''. The excerpts are taken from hearings before the House Subcommittee on D.C. Appropriations:] FY 1992 House Hearings on D.C. Appropriations Part 1, pages 8 and 9 May 21, 1991 Mayor Sharon Pratt Dixon ``When I took office on January 2, 1991, (after former Mayor Barry's 12 years as mayor) my first order of business was to drastically cut this city's budget, Faced with a $316 million deficit I had no choice but to act * * *'' * * * * * * * ``Much more needs to be done. I remain determined to change the work ethic that now dominates our government. This government can no longer be seen as the employer of first resort. And, attitudes that lead a few workers to believe that every job is permanent and every task is at their leisure have got to go * * *'' * * * * * * * ``We must restore financial discipline to the District's budget * * *'' FY 1993 House Hearings on D.C. Appropriations Part 1, pages 37 and 768-770 May 27, 1992 Mayor Sharon Pratt Dixon Kelly (page 37) ``When I took office almost 17 months ago the District budget had hit an iceberg. We were sinking in red ink. The 1990 $118.2 million deficit (Mayor Barry's last full fiscal year in office prior to his sabbatical) had brought the accumulated deficit to over $331 million and we were facing an operating deficit for 1991 of over $316 million (based on budget prepared by Mayor Barry prior to his sabbatical). Council Chairman John Wilson (pages 768-770) ``We have tried every way we know to identify and cut vacant funded positions * * * I do not know what happened to them. That is my business * * * It is difficult, because the Administration (referring to the Barry Administration) is not forthcoming with the Council in most situations. We have a hard time getting information.'' ``* * * in the previous Administration (referring to the Barry Administration), they hired about 3,000 people a year, and the escalation would go up around 4,000 on the fourth year of the term. So you added over that period of time almost 10,000 people to the (D.C.) government in what we called the good years.'' ``Mr. Dixon. From 1981 to 1990, the average increase in revenue over the previous year was roughly 10 percent. ``Mr. Wilson. That is right. ``Mr. Dixon. In one year it was 19.6 percent higher.'' * * * * * * * FY 1995 House Hearings on D.C. Appropriations Part 1, page 101 May 11, 1994 Mayor Sharon Pratt Kelly ``Part of cleaning house has got to be to ferret out corruption. And I was very quick to forge a partnership with the FBI and other Federal authorities * * *''. * * * * * * * ``There was no training in this government. None. There were no job descriptions. None. No automation. None. And when you have a massive government in desperate need of it and you look like you have walked through the door in a time warp, you have got to begin to prioritize where you can put that effort.'' [CLERK'S NOTE.--Regarding Mayor Barry's remarks on the deficit, see news article on pages 1619-1620, volume 2, FY 1996 hearings before the House Subcommittee on D.C. Appropriations, which documents changes in the District's projected deficit for FY 1995, and then Chairman Walsh's remarks on page 1544, of the same volume summarizing the inconsistency of Mayor Barry's deficit numbers as follows: ``According to the press, District officials told Wall Street investors the City has run a budget deficit of $25 million to $40 million in fiscal year 1994. The deficit turned out to be ten times that amount--$335 million. The City also said it expected a budget gap of $129 million in fiscal year 1995. Then the estimate jumped to $500 million, then $531 million, then $600 million; and finally, in February 1995, the Mayor said it would be $722 million. It went from $129 million in December to $722 million two months later''. Alleged Reduction of 9,000 Personnel or 27 Percent Mayor Barry. And also there is a view that we have had this big government and have not done much about it. Let me just saythat since 1995, we reduced almost 9,000 people off of the D.C. government's payroll, a decrease of 27 percent. Dr. Brimmer talked about this before the Senate and we all agree that is unprecedented. New York took 5 years to get down to about a 16 percent reduction. And Philadelphia didn't lose anyone off the payroll because they just made changes in the way the union operated. But I think we ought to be commended for taking the bold initiative to do this, and in some instances, it did lessen service in the area because you can't have 9,000 people off a payroll without impacting services in someplace or another. Either they weren't working or something was happening, so we were seeing a decrease and now we made some adjustments and the service area is increasing. surplus of $186 million in fy 1997 Also, there was some growing pains with the Control Board and with the CFO that I think you will find now they are working very, very closely together. We had a vision plan that is working. As the Chairman pointed out, we went from a $99 million projected deficit to a $186 million surplus, which is a $250-some million turnaround. That is no small achievement. That took the work of the District working awful hard, being disciplined, making tough decisions on the part of the policymakers and implementing those decisions, and so I want to commend our workers for being that disciplined to achieve this. [CLERK'S NOTE.--The FY 1997 surplus resulted from the Chief Financial Officer collecting additional revenues and the turnaround in the national economy; very little, if any, of the surplus was due to ``tough decisions'' on budget reductions.] new mci center Also, the economy is growing. We have a new MCI Center, as you probably know, and unfortunately, the Washington Caps couldn't beat the Detroit Red Wings, but they did beat Ottawa and Buffalo and I predict they are going to win the Stanley Cup next year. I go out and cheer them on. Downtown is moving ahead. You will have before you sometime some of the legislation bills of our Convention Center. So a lot of things are happening for our economy as we go forward. fy 1999 consensus budget Let me just say that the 1999 budget is a consensus budget. It took a lot of work on the part of the Council, the Financial Management Assistance Authority and the Mayor's Office to come to this conclusion because in some instances, we had philosophical and program differences, and where you stand in some instances, also depending on where you sit, you looked at those policy areas and spent about 7 days, almost 5 or 6 hours a day going back and forth with those, on page 17, and we talked about what those were. [CLERK'S NOTE.--The FY 1999 budget is by no means ``an austere budget''; it reflects increases of almost $400 million in new/enhanced operating programs.] eliminate accumulated deficit And one of our main focus points was to eliminate the accumulated deficit to budget surpluses, reduce it, reduce the cost to government, and you will find we have gone to a potential $500-and-some million deficit, a real deficit, to $41 million. Now I think that we won't find that happening anywhere else in America, whether it is at the State level, the county level, certainly not at the Federal level where the turnaround has been that drastic in 1 year to go from a $500-and-some million accumulated deficit down to $41 million. I think that is tremendous. special education At the same time as we did that, we still funded some very priority programs, such as our summer job program, gave our employees wage increases and we gave the schools an $81 million increase. I am sure that you all recognize that special education is driving the school board crazy. An $81 million increase. We have 1,400 young people in special education, in schools, Mr. Chairman and members of the committee, outside of Washington, averaging a cost of $48,000. We had a court order to do this in 50 days. The evaluation of the judges placed these young people in these very expensive places outside of our city, and we in some instances don't know exactly whether or not those young people are getting the kind of care they need and we are working awful hard to try to bring a number of those young people home by having programs in the city and in the suburbs that could take care of those young people. Forty- eight thousand dollars is a lot of money to be paying for the education of one person. special education--transportation costs Our transportation system has cost us $10,000 per student to transfer these students for the school year. There are instances of one bus and one attendant with one student. So we wanted to try to meet with the judges and others to try to get that changed. That is $105 million we have spent this year on special education, another $145 million for next year. So I hope you are able to work with us in trying to figure out a way to keep these judges from imposing these unreasonable standards on us. We believe our young people's special needs ought to be adequately taken care of, but not at this cost and in this manner. consensus budget This is truly a consensus budget. Last year was a functionary consensus budget. The Council had a budget, along with the Mayor, the Control Board had a budget. As a tactical move, we decided to go with the consensus budget so we could work together, so it is safe for you to see this is truly something we all believe in. And when you have a consensus budget, each person gives up something they want. I lost a few things I wanted, but it worked well, and I would commend Dr. Brimmer, Ms. Cropp and the Board for putting that time in and doing that. infrastructure needs In terms of infrastructure, you will hear some discussion about a need there. As you all know, there are 1,100 miles of streets in the District and we only qualify for about 400 in Federal funds. A lot of these streets are beat up by the 300,000 cars that come into our city. Three hundred thousand cars come into our city every day--I won't go into the taxes-- and don't contribute to the infrastructure. We get the same kind of Federal funds other States get, so we are not getting anything special by being in the District now. street repair--deferral of local match What the Congress did that was special was allow us to spend the Federal money for the last 2 years, 1995 and 1996, without a match, without abating that match back, and we spent over $235 million on infrastructure. Some of you may come down Constitution Avenue, which was full of potholes but it has been fully repaved now. In fact, we filled to the tune of about 65,000 potholes; there are about another 9,000 or 10,000 to go, so our streets are less bumpy now. There is still a lot of work to be done because the streets have been neglected for years. water and sewer authority infrastructure The water and sewer side of the role, the good news is that the Water and Sewer Authority would issue bonds where they are going to do a major amount of work on our infrastructure in terms of cleaning these pipes out and other kinds of things and making this possible for our water to be safe. And incidentally, the Water and Sewer Authority is working very well to find representatives from the suburbs and they have gotten an A bond rate for their bonds, so things are happening in that regard. conclusion of mayor's statement I want to thank the committee for allowing me to testify. We are not out of the woods yet financially. Certainly we have made great progress between this time last year and this time 2 years ago or this time in 1995, January 22nd, my first appearance before Congressman Davis' subcommittee when we talked about a $722 million potential deficit. Now we aredown to $41 million. This is truly a successful budget. And, finally, members of the committee, I would urge you all to practice as much democracy--well, practice full democracy to honor and respect this budget. As you know, last year we had some differences about these amendments that were attached to the House side of the budget. Our own view is these amendments ought to be taken through the regular process, through the authorizing committees, hold hearings and let that be the process for any amendments, because many of those amendments we did not agree with. So I urge you all not to attach any amendments to this budget. Look in depth at this budget and ask all the questions you want, demand all the answers we are supposed to give to you, and in the final analysis, respect these local elected officials and appointed officials and adopt the consensus budget. Thank you for the opportunity to be here. Mr. Taylor. Thank you, Mr. Mayor. prepared statement of mayor barry [Mayor Barry's prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Chairwoman Cropp. Opening Statement of Chairwoman Cropp Ms. Cropp. Thank you very much, Chairman Taylor and other members of the House Appropriations Committee. I am here to testify on the District's fiscal year 1999 budget and financial plan. This is done on behalf of the citizens of the District of Columbia, who happen to be residents of the number one city on the East Coast, and it is with great pride and pleasure that I can say that. work done on budget This budget, balanced and unanimously approved by the Council, was a result of months of hard work, tough decisions, and protracted negotiations. It is no small feat that this consensus budget, bargained by the Council with the Mayor and the Financial Authority, illustrates the story of how District stakeholders can get together to design something good for our city. This $5.2 billion spending plan, with tax relief increases, funding for the schools, a $41 million accumulated deficit reduction, and pay adjustments for city employees, proves that the District's fiscal condition is improving and it can now focus on more rehabilitation and service delivery. We worked many hours, Saturdays, Sundays, weekends, all of us, from the Council, the Mayor, and the Financial Authority, to come together on this consensus budget. I also have a copy of the Council's committee reports that I would like to submit for the record. [CLERK'S NOTE.--The reports referred to have been retained in the Committee's files.] Ms. Cropp. I will not go through all of them, but I think that you will find and see the hard work that the committees of the Council did in order to reach our decisions with regard to the budget. council's four basic priorities Prior to receiving the fiscal year 1999 budget in early March, the Council had already developed its platform to achieve a balanced budget--premised upon four basic priorities espoused by the Council at a retreat that we held in January: The four priorities are to improve service delivery to the citizens in the District of Columbia; to eliminate the accumulated deficit; to invest in our work force with appropriate compensation; and to also begin our process for tax relief and restructuring. financial audits/infrastructure/service delivery The financial audits show that we ended 1997 with an operating surplus of $186 million. However, this is not a true surplus. And I caution us, Mr. Chairman, members of the committee, we still have much more work to do, and we must succeed because it is the rehabilitation of our financial position that becomes the underpinning for service delivery efforts, and then these efforts will provide the foundation for economic growth. We don't have a true surplus until our infrastructure is repaired, until our buildings for our schools are done, until the service delivery for our citizens have been done properly. In addition, we anticipate $254 million available for a deficit paydown for this fiscal year, although the numbers are not final yet. This new-found prosperity is not just because of our strong economy, but more important, it demonstrates how the District can get back on its own two feet financially, by adopting sound budgeting procedures, conducting stringent fiscal oversight, and exerting prudent control over our spending. impact of revitalization act (public law 105-33) And I want to say to you that while I think the Revitalization Act certainly will have an impact on helping the District move to recovery, I want to remind you that the $186 million surplus that was found in the District's budget for last year was pre-Revitalization Act. So what we see from the Revitalization Act will be growth, more growth. What we saw last year was due to other efforts that had been done prior to the Revitalization Act. y2k projects Let me also say that the Council has taken the initiative to finance some long-term capital projects, for example, the Year 2000 compliance that certainly everyone is going to be dealing with. Besides saving the District's money in years to come, this action reflects our determination that no financial good fortune will be squandered unwisely. deficit savings due to not borrowing to fund Likewise, when we decided not to borrow $110 million to pay down our accumulated deficit as initially planned, the District saves $16 million in annual debt service costs. performance management hearings In this budget, the Council and its standing committees devoted many hours to discussion and spent much time and effort in judiciously reviewing the agency's performance and numerous budget and legislative oversight hearings, and in fact, we had performance management hearings earlier, prior to the regular budget hearings we held, because we wanted to make sure that our work force is kept to certain standards with regard to performance measures. The Committee of the Whole proceeded to take more revisions in order to bring the budget into balance. But be it program enhancements for the schools or young people, or net reductions, let me reiterate the Council has supported additional funding for the schools and directed $2.3 million for youth programs. We were able to discipline our spending by allocating some $41 million for deficit reduction. Prompted by this first unqualified audit or clean bill of health in several years, the Council took steps to jump-start the rehabilitation of our city. public works projects For example, we pushed for $7 million worth of public work projects to transform our neighborhoods and enrich our living environment because we care about houses lined up on smooth streets without potholes. We don't care for unsightly garbage and recycled trash littering our corners. We care about a better community, and better community policing. We don't care for criminals and prostitutes lurking around our residences. We care about spaces for our kids to play andfrolic in. We don't care for violence and drug markets. In sum, we care about building an idyllic district, because as one of the most overburdened taxpayers in America, we deserve it. Tax Relief Reflected In Budget And for the city employees who have labored to produce the surplus and contributed directly with layoffs and benefit reductions, I am pleased to say that we want to invest in our work force, who have been without a pay raise since 1994. In this budget package, we have offered $11 million worth of tax relief to the residents and businesses and hope to encourage people to move back to the District by eliminating motor vehicle excise tax for our new residents. Public Schools--$62 million Deficit We originally intended to give more tax reductions, if not for the news in late April that the schools had a $62 million deficit, and the escalating special education and transportation cost that could not be ignored, due to court orders, and had indicated some $12 million worth of pre- kindergarten programs might have to be cut. This tax relief, however, is just one small step in our joint efforts to resuscitate the Nation's Capital. It is, I believe, a down payment on the future tax reform program because we have to make the District a friendlier and more welcome place to live and do business in. Tax Revision Commission Last week we had a public hearing with the D.C. Tax Revision Commission, which the Council had the foresight to create in 1996. It presented its proposal, ``Taxing Simply, Taxing Fairly'', for the city. Because we cannot tax Federal or foreign-owned properties, which accounts for 41 percent, 41 percent of our property base, we inflict a high 10 percent gross receipts tax on utilities. Because we cannot tax non- residents' District income, we burden D.C. taxpayers and businesses with higher tax rates. If we don't do anything about this onerous taxation, we will lose more businesses and taxpayers. Revamping Tax System The Council is not close to making any decisions on how to revamp our tax system, but we are examining a good tax system that will pay for government services by taxing broad bases at lower rates. And I have a copy of ``Taxing Simply, Taxing Fairly,'' that was produced by the tax commission that the Council brought about, and I would like to introduce that and submit that for the record. [Clerk's Note.--The document referred to has been retained in the Committee's files.] Ms. Cropp. The Council also hopes to be making recommendations on that issue fairly soon. New Economic Initiatives $100 million federal funds To further recharge the District, we need to install a new economic engine. In other words, we need to invest the $100 million as promised by the President in new economic initiatives. More specifically, we need a locally charged corporation to lure more businesses into the District. We envision a new Convention Center that the Council passed yesterday, so that the District can compete with other cities across this country and stop the exodus of businesses, which in turn hurt our hospitality industry and ourselves. You know, government is the number one business in the District, but the hospitality industry is the number two business and it is extremely important for us to have our Convention Center, so we can strengthen our hospitality industry, because that is in fact a strong, strong, part of our economy. We need to upgrade some of the city's most deteriorated buildings and streets. We need to improve the quality of life for the District, period. All of these needs cost money. Given the present improved financial situation, this money should be given to us so that we can transform the District into a thriving metropolis, and this goal cannot be achieved without these funds. Let's face it, economic development is going to be an antidote that propels this city to a fiscal veracity and physical wellness. No doubt, we are in better economic times, but we must be prudent and strive to find other resources to establish an accumulated surplus to cushion us against the next economic slowdown. What I have described in our process is akin to what your budget process in the House will be. While you strived to fund your priorities, the Council did likewise. While you agonized over the budget reductions, the Council endured the same. While we empathize with your considerations, we implore you to recognize the fact that we need more Federal funds to help change this city. This request is a fine line in the Federal budget item. We besiege you to consider favorably the Federal fund portion of our budget request, as you successfully approve a balanced budget for our Nation. Request for $254 Million in federal funds for Infrastructure Fund We urge the Congress to grant our $254 million infrastructure request. This fund is intended to support the city's existing infrastructure needs of over $3 billion. This fund can further alleviate our financial and structural burden so that the District can provide and perform efficiently all of the State, county and city functions. Residency Requirement for Future Hires Congressman Moran asked about specific issues, one was the residency requirement. The Council did recently pass legislation asking for residency requirement on all future hires in the District of Columbia. More than 50 percent of those people who work for the District of Columbia Government, and I am not talking about the Federal Government nor the private sector, but people who work for the District of Columbia Government, live outside of the District of Columbia. There is some sense of inequity there. We are talking about people who work for the government. They should leave some money back in the city. They take the city's money, and some money should be left in the city. It imbalances our economy considerably. You know, when you live in Chicago or work in Chicago, and you live outside of Chicago, the State of Illinois still gets part of those dollars, and it helps Chicago in their infrastructure. If you work in Richmond, but you live outside of the City of Richmond, Virginia still helps with the problems, the urban problems of that city, of Richmond. Washington, like every other city in this Nation, has a population that is older, sicker, and poorer, and because of that, it costs us more to deal with that population. We have some of our suburban jurisdictions who actually bring some of those people to the District of Columbia for us to pay the cost of their needs. We become like every other urban center, the place to send your older, sicker and poorer population who is in need. Yet, at the same time, we cannot even tax those people who work for the District to help pay the cost. That is problematic. If you work in Philadelphia, you still pay taxes to Pennsylvania, and they can help Pennsylvania and Philadelphia. But if you work in Washington, D.C. but you live outside, then we pay for the people who live in Baltimore and Richmond, and that is wrong. commuters--Use of Roads and Highways With regards to the roads and highways, I believe the Mayor stated there were about 300,000 cars that come into this city every day. That type of burden--very few other urban cities have that type of burden. Because we are the Nation's Capital, and I am proud that we are the Nation's Capital, we are overburdened. That is the bitter sweetness of being the Nation's Capital because people want to come to the capital of the best Nation in the world. But when they come, they tear up our streets, and when they tear up our streets, the burden is on the taxpayers of the District of Columbia to pay for them. That is why you see in our budget a request for infrastructure costs, so that we can keep the streets of the Nation's Capital beautiful, the way we would all want them to be. Regional Transportation Problems I recently attended a regional conference on transportation. Congressman Moran also asked us to address that issue, and the transportation issue certainly is an issue of great concern to us in this entire region. It is my belief that we must take a regional approach to address that issue. We have the Council of Governments working on it, there is a special committee within the Board of Trade who is working on it, and you may hear back from us as we talk about our regional transportation problems. I am going to put it on another level for us in the District, why it would be important for us to improve our transportation problem. As we deal with welfare reform in the District and as we look at trying to get individuals who were on welfare back to work, the unemployment rate in the District is still unreasonably high. It is much, much too high. I believe it is 9 percent. And while our employment rate is extremely high, there are jobs to be had in Maryland and Virginia. However, these same welfare recipients don't have the transportation to get to these jobs. So it is extremely important for more reasons than one for us to resolve our transportation problems that are there. Tax Issues The tax issue that was asked that we talk about, I did submit that to the committee, the tax issues, our report. It is our hope we will be looking at the way to restructure our taxes in the District. I want you to take note that the District of Columbia, even during our worst and most crucial and critical financial times, we did not increase taxes because we very clearly understand that, when we increase taxes, it truly exacerbates the problem and, in the long run, we end up sending more people out of the District of Columbia. We do believe and understand---- Restructuring of Taxes Mr. Cunningham. I knew you were a Republican. Ms. Cropp. Not really. But we do believe that we need to restructure our taxes so that we can come up with a way to help our economy grow, and you will see more restructuring of our District taxes in the very near future. Conclusion of council chair cropp's statement I want to say, in conclusion, that I join with the Mayor in his request that the committee please do not add any attachments or riders to this budget. Please do not deal with the social issues that impact the District of Columbia and our citizens. We work very hard in the District to give our citizens access to their local elected leadership so that we can meet their needs. And while we are meeting their needs, I think you will see by our budget, by our financial condition, by the fact that we are improving in the city, that we have done this without overspending. So we ask that the Committee not attach riders. Let us handle our social issues in the District. We do ask, we do implore, that you join with the Mayor, the Financial Authority, and the Council and support this consensus budget that we have worked extremely hard to accomplish. It is a good budget that will keep us moving towards the path of financial stability and financial health. I truly believe that, for the District of Columbia, if we stay on this track, the best is yet to come. Thank you so very much. Mr. Cunningham [presiding]. Thank you, Madam Chairman. Prepared Statement of Council Chairman Linda Cropp [Council Chairman Cropp's prepared statement referred to follows:] [The official Commmittee record contains additional material here.] prepared statement of control board chairman Mr. Cunningham. Dr. Brimmer, we will place your prepared statement in the record at this point. [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Opening Statement of Control Board Chairman Mr. Brimmer. Thank you very much, Mr. Chairman and members of the Committee. My colleagues have described the process by which this budget was put together. I will not repeat that. Let me say that, in terms of the mandate given to the Authority with respect to the budget, this budget meets all of those standards. It also puts us further on the way of achieving the financial stability, which went beyond the size of the budget. Above all, we were mandated when we dealt with the financial affairs of the city to seek to re-establish access to the capital markets. That was achieved last year. With respect to that mandate, it is already a goal that has been achieved. $254 Million in federal funds for Infrastructure Fund What I would like to do is to review a brief summary of the report which indicates some places where additional material will be supplied to the Committee. I also want to address somewhat more fully the reasons why, among other things, we end up asking for an appropriation of Federal funds of $250 million for infrastructure. My colleagues have mentioned that the physical infrastructure is one of the most critical priorities facing the city. Mr. Chairman, I have summarized the financial dimensions of the budget in two tables in my remarks. On page 6, you will note there is a table on revenues. There are a couple points I would like to make and call the committee's attention to this table. growth in Revenues First, you will note that there is very, very little revenue growth embedded in this budget. Moreover, if you look at tax revenue, you will note that there is even less growth. I also call the committee's attention, specifically, to the individual income taxes. There is some growth in 1998. Compared with 1997, there is a sizable amount of growth. For 1999, much less growth. That reflects the fact of the yield of the income tax. Not that incomes are not rising. Quite to the contrary. Personal income earned in the District has been rising significantly at a substantial rate. The projection is that it will rise at a substantial rate through 1999. The point is that only between 30 to 33 percent of any growth in income in the District accrues to District residents. And I want to say something about that later. What it means is that, as economic growth takes place in the District, that we are growing, income is being generated, but a substantial fraction of that income is received by persons who work here, earn here, but live outside the city. So revenue growth is a serious problem facing the city, and the income tax yield also is a problem facing the city. expenditure profile Mr. Chairman, the expenditure profile in this budget is described in table 2 on page 9 of my statement. I will call the committee's attention to several features. First, you will note that the expenditures for government direction, financing, safety and justice--in other words, substantially bureaucratic functions--that those expenditures grow virtually not at all, very, very little. The substantial growth is in public education, I want to stress that, and in human support services. special education expenditures I will call the committee's attention particularly to public education. Virtually all of that growth that is projected here reflects the mandated expenditures for special education. For example, in 1998, the public schools are spending about $105 million on special education. For 1999, the level of expenditures for special education is projected at just under $160 million. That is mandated. It is a problem that is very serious. Much of that expenditure, much of that activity, is under court orders, we see this, and it is imposing substantial inflexibility. In terms of budget making, it is the Court who decides on that. It is a serious problem, you need to look at it, and we will talk more about it. reduction in personnel I would now like to mention, Mr. Chairman, with respect to what we have done in terms of personnel. As the Mayor said, over the last several years, there has been a substantial reduction in personnel. When we assumed office in the summer of 1995, we were handed a budget, for fiscal year 1995 with a full-time equivalent position count, of 43,000. A projection in the proposed fiscal year 1996 budget that would rise to 45,000. That was a number which we found unacceptable, and we ordered a reduction of 5,600. We actually achieved a reduction of 5,200. As the Mayor said, there have been further reductions over time, and my numbers suggest 25 percent reduction. The Mayor's numbers are 27 percent, but those are just rounding differences. The point is, in substance, there has been a substantial reduction in the number of employees. Nevertheless, this government still has some way to go. As productivity improves, as training improves, there can be further reductions in the number of employees. [CLERK'S NOTE.--Virtually all of the personnel reductions are illusory and have been achieved by (1) transferring the function ``off budget'', e.g., the Water and Sewer Authority; (2) ``privatizing'' the function, i.e., the service is still being provided by the District government but payment is made to a ``contractor'' instead of to District government employees; or (3) eliminating authorized positions that were vacant. See also page 92, this volume, for personnel increase of 1,330 in FY 1999 budget.] department of corrections budget Also, I want to mention a problem that is left over from the Federal Government's assumption of responsibility for the prisons. The Committee might recall the Federal Government took responsibility for sentenced felons, and there is a trustee who is already responsible for their oversight. That trustee prepares the budget, the component of the Federal government's budget covering corrections in the District. The trustee has recommended a budget for 1999 of $185 million. However, the Authority has determined that this amount seriously underfunds the projected cost of running the system. The District's budget office has indicated that the true cost of running the system for 1999 is approximately $204 million, leaving a funding gap of $19 million. In addition, other direct and indirect costs to the District associated with the sentenced felon population totals $25 million, for a total underfunding of $44 million. Now, as part of the city's 1999 financial plan and budget, the Authority is asking the Federal Government, which is now, as I said, responsible for the system transfer, to assume the proper cost by appropriating an additional $44 million. The function has to be before--and if the Federal Government does not reimburse the District, then the city has to cover that extra cost, and that is an effective budget cut of $44 million. If we do not get assistance this budget is going to be much bigger, and I wanted to stress that. infrastructure fund--$254 million federal funds I also want to stress for a moment the infrastructure question. A detailed description, illustrative description, of the kinds of projects on which the funds will be spent is provided in the operating budget on page VII-6. [The exhibit on page VII-6 referred to follows:] [The official Commmittee record contains additional material here.] roads and bridges Mr. Brimmer. In addition to public school and public safety facilities the roads and bridges have deteriorated. Now the Federal Government will permit the city to use a substantial part of its Federal highway system to shore up many of the bridges, but not all. There are local matching requirements. Let me assure you, there are far more bridges in this city that are not just in danger of collapsing but are already exposed to a substantial deterioration, and the traffic over them, is adding substantially to the problem. Mr. Chairman, there are other parts of this government that are decrepit. In particular, in the schools where there are dozens of boilers, that simply have to be replaced. There are numerous buildings and other facilities in this city that are so ancient that they cannot accommodate basic systems--the wiring systems cannot accommodate the new computers and so on. Communications must be improved. Many of these needs are identified on page vii-6 of the operating budget as well. I once thought of asking staff to get some pro bono assistance so we can make a video of these conditions in this city. The Committee would be quite taken with what they would see. This city's infrastructure is literally falling apart. residency requirement Mr. Chairman, I mentioned the court orders, and I won't say any more about that. But let me take up the one question Congressman Moran asked about, about the residency. I have the results of an analysis I have asked our staff to undertake with respect to residents versus nonresidents and city employees, and this has a direct barring on the measure that is now before the Congress that the Council passed, and we are sending it forward to you without objection. where d.c. employees live This analysis shows the status of District employees of the last pay period. There were 39,000 employees--these are not FTEs, but employees, people who get paychecks--39,000 employees in the last pay period. 18,000 lived in the District; almost the same number, 17.6 in Maryland; 3,000 in Virginia. But, the District accounted for only 47 percent of those employees. 45 percent lived in Maryland, 8 percent in Virginia, and the rest in West Virginia or some other place. salaries received by Non-resident employees The total annual salaries received by those employees in the District was $609 million. $691 million went to employees who lived in Maryland, $139 million to employees who lived in Virginia, for a total of $1 billion, 442 million. About 42 percent of their salaries, of the salaries paid, went to District employees, 42.2 percent. Forty-eight percent of the salary amounts were received by employees who live in Maryland. average salaries of nonresidents The thing I found particularly striking is the District employees have lower average salaries, $33,000. Employees in Maryland have $39,000 average salaries and, in Virginia, $42,000. Mr. Chairman, as I look at these facts, I was taken with the disparities. So, as Ms. Cropp said, what this amounts to is that taxes are being levied on District residents, some of those taxes are used to pay salaries and compensation to people who live outside of the District and who return nothing to the District. ``common'' tax revenue I asked the staff an additional question. I said, what if the employees who live in Maryland and Virginia were subject to the same tax rate as residents of the District? What would the impact be? I was told that the amount of District income tax paid by District residents was 7 percent. Using that percentage, if the District employees who live in Maryland and Virginia and other States paid income tax--paid District income taxes, the amount of any common tax revenue generated would be $59 million. That is a significant fraction. That would be a significant fraction of the total income tax receipts in the District. So, Mr. Chairman, those figures, I believe, go a long way to demonstrate that careful consideration needs to be given by the Congress to the measure that the Council sent to the Congress. I will stop at this point, Mr. Chairman. Thank you very much. Mr. Taylor. Thank you, Mr. Brimmer. Mayor Barry. Mr. Chairman, could I speak to something in my opening statement? Mr. Taylor. Sure. residency requirement in other cities Mayor Barry. Congressman Moran, in terms of residency, let me point out that if you work for the City of Chicago every employee has to move into the city within a 6-month period or not work for the city. The same is true for the City of Boston. The same is true for the City of Detroit. The same is true for the City of New York. And there has been no evidence that any cities have had any great difficulty attracting the right employees. In fact, our Police Chief, Chief Ramsey, came from Chicago, and that system works very well. taxing non-resident dc employees We need to turn this around. And then it is compounded by the fact, as these numbers point out, the fact we can't tax non-D.C. residents. These persons are getting taxpayers' money and taking it to Maryland and Virginia, mostly Maryland, and spending almost $700 million primarily in Maryland. Where you live usually determines where you buy your food, where you buy your clothes. So we would urge you to do that. exceptions to residency requirement On the other hand, this measure allows for exception in hard-to-fill positions. Which means if we are looking for a computer specialist, et cetera, and you find you can't fill it, the measure allows the Mayor to make a determination thisis a hard-to-fill position. So you get this example all over the country where residency has worked, and you all may know we had it at one point, before the Congress moved us away from it. Most of the positions found qualified people to do work. It is working well in those cities where you have it. It does not mean you don't get the brightest and the best. It means that once you decide you are going to work for the District, you have 6 months to move in. And in many of our neighborhoods the price of housing is substantially lower. residency of new police chief Mr. Taylor. You and I agree on that. Where does the Chief live, by the way? Our new Police Chief? Mr. Brimmer. The Chief is in the process of moving in. He is living temporarily in an arrangement, but the Chief has assured me that he will live in the city. Mr. Taylor. Within the 6 month time period? Mr. Brimmer. Oh, he will be in the city in a much shorter time than that. residency of school superintendent In that regard also, Mrs. Ackerman, the CEO/Superintendent of public schools, who came in from outside, is already living in the city and will remain in the city. So, at that level, it is clearly understood that living in the city is the thing that is preferred. On the other hand, I should say, what the Mayor just said, about flexibility, they recognize that. chairman's position on residency issue Mr. Taylor. Well, the employees you need can come from anywhere in the country, but I agree, within a reasonable period of time, which you are providing, they should reside in the District. I maintained that same position last year, and I think it is important for not only the revenue but for the community. If you are losing half of your employees, it looks like, to the suburbs, it is difficult to build a city together. That is important. But we will get into that debate, I am sure, in a moment. Mr. Moran. Let me join this debate a bit here, too, Mr. Chairman. Mr. Taylor. Let me do this. Jim and I probably have--we have a difference of opinion on this issue, but we will take that up at another time. I will focus my questions in other areas. gao opinion on overpaying control board's executive director and general counsel First of all, the GAO has found that the Board has been overpaying two employees--your executive director and the general counsel--in violation of the Control Board Authorizing Act, Public Law 104-8. We will insert a copy of the GAO report in the record at this point. [The GAO report referred to follows:] [The official Commmittee record contains additional material here.] status of efforts to correct salary overpayments Mr. Taylor. Now, does this budget contain provisions to reduce the pay of those staff who are being paid more than the law allows and to secure from these individuals a repayment to the taxpayer of the excess salary? Mr. Brimmer. I will address that, Mr. Chairman. First, the GAO report is not reflective of the actual situation. There were two main points made by the GAO, the general counsel of the GAO, in his opinion to this Committee. First, it asserts that the Authority had no legal basis for appointing a chief management officer or for paying the chief management officer compensation in excess of the rate for the executive level rate four. That is an interpretation that is in error. I have responded to those comments in some detail. The key point is that--and I will submit a copy of my statement for the record, along with some additional material. need for chief management officer It was clearly understood when Congress transferred to the Authority the oversight of the nine departments and the four governmentwide functions that we would need administrative assistance in carrying out those responsibilities. I said so in hearings. I said so on the day of the signed order and said we would proceed promptly to recruit such a person. The Congress took note of that, of the need for such a person. In the Appropriations Act for fiscal 1998, adopted by the Congress in September, 1997, there is a statement which said that up to $8 million of appropriations was to be used to cover part of the cost of management reform and the activities of the CMO. And that has been documented. And at least on the Senate side last week I asked the Chair of the Appropriations Subcommittee whether our recollection and our reading of the record was correct. He said, yes, and he invited me to provide a recommendation for legislation to make certain that it is done, and we were asked to supply drafts of that legislation, and we are doing it. I have also said that we would recruit nationally for that position and we would be prepared to pay competitive compensation. That is exactly what we did. That is exactly what we had to do, and so that is the position with respect to the CMO. locality pay for executive director and general counsel The GAO also made the statement that said, we, theAuthority, did not have any basis for providing locality pay which resulted in a payment to the executive director and to the general counsel at rates above the rate four. Actually, the reference made by the GAO, in effect, amounts to modifying the reference in section 102 of the statute, which reads, the executive director shall be paid at a rate to be determined by the Authority, except that the rate--that it may not exceed the basic rate of pay that is payable to level four. Actually, what the GAO did, in effect, was to take ``basic rate of pay'' and read it as ``aggregate compensation,'' and that is not correct. If you look at the ultimate source of the reference which the GAO adopted in its letter, you will notice that--and this is from the civil service regulations--that ``aggregate compensation'' is composed of several components, of which basic pay is only one. It is the most important piece. It is the first piece cited. But locality-based comparability pay--you must read the whole thing. Locality-based comparability pay--that is the second item, sir--then a whole list of others. So in administering the compensation of employees at the Authority--and this is my responsibility. I have administered that compensation policy on the basis of providing competitive compensation, compensation necessary to enable us to attract the level of skills and competence which we feel are needed to help carry out our responsibilities. compensation for executive director and general counsel So when I reviewed the position of the executive director and the general counsel with respect to compensation I focused on aggregate compensation, not just base pay. And in that regard--and the documentation shows it was entirely in keeping with the best, not just good, but the best of compensation practices, not only in this neighborhood but nationally. So, Mr. Chairman, I do not accept the GAO's argument. I feel in both cases, with respect to the CMO and with respect to comparability pay and notice, comparability pay was to narrow-- the purpose of it in the Federal statute was to narrowly get between compensation for comparable positions in the private sector and positions in the Federal Government. It had nothing to do with geography. It had to do with the gap between the compensation in Federal--the Federal job and in the private sector. In that regard and in that framework, the decisions I made were entirely in keeping with, and help to carry out the purpose of the statute. Mr. Taylor. It is your case and you are sticking to it, I know. not first time control board ignored law This is not the first time that the law has been ignored since I have been on this Committee, and I can appreciate the fact that it may be changed in the future and that it might be competitive. But I am going to ask our Committee to investigate it. I would like to ask your counsel to appear with the GAO and this Committee and look at it, and we will take whatever action we think is appropriate. Because all of us take an oath to obey the law, and if we interpret it in a way that flaunts it, then that is a serious consideration. Mr. Brimmer. May I add one point? In my written statement, which I will share with the Committee, we also had not just the view of our inside counsel but the matter was referred to an outside law firm, and there is an opinion. What I would like to do is to offer the Committee the entire package of the legal position, our counsel's opinion with substantial documentation and the outside counsel, our own outside counsel's opinion. outside counsel opinion requested after decision made Mr. Taylor. Did you get that opinion before you broke the law or was it after? Mr. Brimmer. I did not break the law. Mr. Taylor. I will keep that in parentheses. Mr. Brimmer. The outside counsel opinion came later. The basis on which I made my decision, not only the written opinion but the documentation, and I want to stress this, this was not a frivolous, spur-of-the-moment decision. [CLERK'S NOTE.--High level government officials such as Assistant Secretaries, Chief Financial Officers, Inspectors General and Chief Information Officers of the major departments of the Federal government are paid at Executive Level IV. The General Counsels of the executive departments of the Federal government also are Executive Level IV positions. They do not receive locality pay because there is no explicit statutory authority for those positions to receive locality pay. Similarly, there is no explicit statutory authority for control board personnel to receive locality pay.] Mr. Taylor. Mr. Brimmer, we have a lot to move ahead on, and I will certainly withhold judgment until we get the report from your counsel as well as any reports you have here as well as GAO and anything else on that issue. management improvement--poor returns While the budget does make some progress, it seems that increases in spending are automatically categorized as ``management improvements''. Is this a euphemism for we are going to spend a lot more? Because, in looking at the improvements, which, by the way, are piled on many years of improvements since we have been here in the last 3 years, and yet the returns versus what we spent for management improvements are minuscule compared with what is being spent for that efficiency. One thinks you can put a dollar in and get a hundred times or ten times or something, but when you put a dollar in and you get 10 cents for efficiency, it is going the wrong way, isn't it? Mr. Brimmer. I would not characterize the process as you do. First, I would ask the Chair to recall while we were already engaging in a series of efforts to improve management and productivity we were mandated by the statute in the summer of 1997 to engage outside consultants to undertake a program of management reform using consultants. We carried out the law, as required by the Revitalization Act. We did that. surplus for management improvement and deficit reduction As a result of that, we got a series of recommendations from the consultants. The mandate to us was take actions to implement the management reform plans and that is what we have been doing. And let me assure you--and we said that if you permitted us to use some of the net benefit from the Revitalization Act which had been forecast, we would use some of it to improve management and use some to reduce accumulated deficit. That is going forward. financial management system Mr. Taylor. Let me ask you--and we had this conversation last year--you are asking for $43 million for financial management computer systems. Against my better judgment and others, we allowed the control board to go forward last year with $26 million for the District's financial management system. At that time, we were told everything was set and that it would be--that was all of the money that was required. Now, have you spent the $26 million? And what is this $43 million? Are we going back over the same tier? I am for efficiency, but you all are running it into the ground, it seems like. Mr. Brimmer. Mr. Chairman, you recall our discussion of the Financial Management System. That is the FMS system. That is a separate operation, and it is already under way. The plans are under way. I have a report here on the status of those. I will submit that report for the record. [The information follows:] [The official Commmittee record contains additional material here.] fms on ``very close schedule'' Mr. Brimmer. Let me summarize it quickly to say that that part of the plan with respect to the Financial Management System is under way. It is being prosecuted very vigorously, and it is on or very close to the schedule. Mr. Taylor. Does that mean that you spent all $26 million? Mr. Brimmer. The expenditures are being made as the program proceeds. Mr. Taylor. When did you find that you were $43 million off, when you said that the $26 million was all that was required, that it would fix the problem? management reform for computers Mr. Brimmer. Mr. Chairman, the money for the management reform for computers and so on are not the same project that you and I have just been discussing. Remember, this applies to all of the departments and all of the cost-cutting functions. In virtually every one of the management reform recommendations the consultants found efficiencies with respect to computers, communication equipment; and the money for management reform is being used to finance those activities. funding for y2k problem Let me give one example which was clearly not focused on here last year, the so-called year 2000 problem with information systems. The District is far behind with respect to trying to resolve that problem. It is going to cost a lot of money. We have something in here now, at least $10 million. Mr. Chairman, these systems permeate the whole District. There is virtually no aspect of management that can be implemented today without adequate systems. We have to spend money on that. Mr. Taylor. Our investigation showed last year that it would be pouring money down a rat hole because the invoice and vouchers were being stuffed into drawers. It wasn't a computer problem at that time. And what you are saying now, ``we spent $26 million, and we have another $43 million for the financial management computer systems, and we don't know whether that will bring us any closer.'' If you follow the investigation that we had last year, it won't. Next year, it will be $70 million. That is something that we want to get more information on certainly, and you can send it at another time because it is difficult for us to analyze all of it here at one sitting. Mayor Barry. In that regard, conceptually to separate out the Financial Management System, which is a calendar-keeping track of money and the control system from the technology infrastructure, we have a number of computers that are old, antiquated. They don't talk to each other. A lot of the money is going to hardware. Mr. Taylor. It is not a Financial Management System, it is for anybody else that has a computer? Mayor Barry. Not anybody. What happened is we had aManagement Reform Committee on IT, the technology, and the Chair will recall Council Chairman Ambrose went through in great detail. And, believe me, no one is as critical about this money as I have been, and we do have a need to move into the 21st century, and it does include the delivery of services. training for employees Mr. Taylor. I can tell you from personal experience, you can spend whatever you want to and you can't make me productive on a computer because I missed that generation and I am just hunting and pecking on the computer keyboard. So if we spend $43 million and we have not trained the people, we have the same procedures, the same systems, and then expect that we are going to be having efficiencies. It would be futile. Ms. Cropp. That is the issue. That is the management reform that we are talking about. That is the very crucial part that we are talking about. When we did the management reform, if you look at that, one important element that goes through everything, we had to retrain our work force if necessary in order to improve the service delivery. You are absolutely right. It is a component of it, and all of that is included in the management reform. We haven't had training. Mr. Taylor. Then you wouldn't be against my sitting on this for another year, the $43 million, while you trained the employees on the existing computers? y2k problem Ms. Cropp. We have another problem, Mr. Chairman. We have that year 2000 problem that is coming up, and all of the dollars that are invested in the IT--quite frankly. I was shocked to find the amount of dollars that needed to be invested for us to deal with that. If we sit off of that, if we don't do anything with that, not only, quite frankly, will the citizens suffer, but so will our whole transportation system with all of our streetlights. That will all be impacted when none of our streetlights work. I would like to refer you, and if we have another opportunity even beyond this hearing, to the management reform that we did--and, again, this was a consensus effort between the Mayor, the Council and the Financial Authority. I submitted our committee reports for the record. I would like the staff to look at the committee reports, and it will show how the Council even reduced it because of those things that could not be done that were needed in management reform. But this is for service delivery, for us--to bring us into the world so we can do those things that you have always said that we need to do in the District of Columbia. Mr. Taylor. I need to go on with this. I want to recognize, though, the Delegate from the District of Columbia, Congresslady Eleanor Holmes Norton, and I would also like to recognize City Council member, Hilda Mason. Ms. Mason. Right here. residency requirement for employees Mr. Moran. Should we start with the residency requirement? We have been trying to develop, in perception and reality, a constructive, cooperative relationship with the District of Columbia, particularly among the suburban members, whether it be Tom or Stephanie, Al, Connie, Frank. And this is the kind of thing that erodes that constructive relationship. Now, if you were going to get it, it still might make sense. But I will buy you lunch, the three of you, if you can get this residency requirement enacted. I feel that strongly. I know that you are not going to get it. In fact, we will let Marion pick the restaurant because he knows the restaurants, the most expensive ones. But it is not going to happen, and that is really the problem with it. I think it sets a very bad precedent, in addition to eroding the kind of constructive relationship that we are trying to establish. The numbers that you read off, Dr. Brimmer, of the number of people who have left the District who were working for the District and where they went, that correlates exactly with what has happened to the middle class in the District of Columbia. And as you know, they are leaving because they want better schools and safer streets, and that is what it is all about. And for the most part they are going to Prince George's County. Some are going to Virginia but not so many that it is going to have any real impact on us or our society. I don't want to represent their interests, and I believe people should be able to live where they want, and it is not going to make that much difference. But it is going to make a difference to the District of Columbia, because our principal objective, it seems to me, has got to be to get the best possible people working for the District of Columbia. And every time you foreclose their options, you make it more restrictive, more difficult to work for the D.C. government, you limit the number of people, the pool from which you want to attract the best people. I am sure that there are a lot of people that have now bought homes in the suburbs who are going to look for alternatives to working for the D.C. government if this is passed. I don't really blame them, and I don't argue with your ultimate objective. We have that objective. I will use Alexandria for example. When we approve a major residential project, we get the developer to set aside a certain number of units at subsidized sales prices I am suggesting it to you, but we do it in Alexandria. For people who work for the Alexandria Police Department, if you live in one of these residential developments, you can buy a home for $100,000 versus $160,000. A great deal. The developer is happy. We made it as part of the contract anyway, so we have the same objective. We want people working within our jurisdictions, but we feel very strongly it would be counterproductive if we use the stick approach rather than the carrot. residency proposal applies to future employees Mr. Brimmer. First, the legislation grandfathers everybody currently on the payroll. It would apply only to future employees. It would be so that those who are currently employed and living outside of the District would not be required to move into the City. Next, I shared with you the result of the first piece of the puzzle. I asked staff to examine this question. The other piece was practices in the surrounding jurisdictions. I have not gotten all of the results. But the first permutation, and it ought to have some variation with a new mayor, what was the requirement in Alexandria? Did the city have a residency requirement? no residency requirement in suburbs Mr. Moran. Absolutely not. We had incentives like I just described, but no residency requirement. And none of the suburbs have a residency requirement. So you would be the only one with a residency requirement. Just like when you put restrictions on housing, you discourage people. You limit the number of people that you are able to recruit from, and that is why I oppose it, really. It is not going to affect my district. district employees who live in district Mayor Barry. Congressman, one thing is when you look at the numbers of people who live in Maryland and Virginia, without being scientific, the great majority have never lived in the District. Mr. Moran. How do you know that? It seems to correspond with residency. Mayor Barry. Because I have looked at a number of records. Police officers have the lowest numbers; 31 percent live in the District. I know that from following it over the last 16 years. We had residency, but there were police officers who never lived here, and once it was taken off and new ones came in, they never lived here. Chicago---- Mr. Moran. But Chicago is a much bigger city. Mayor Barry. It has to do with people's interest in working. When we had it, we did attract the best and brightest. You may not think so, but---- Another thing, Congress would have to pass it in the House and the Senate and be signed by the President, and we certainly shouldn't allow the President to veto this. So somebody should lose this bet. Mr. Moran. I would be shocked if it goes through. state assistance to cities Ms. Cropp. Congressman, if I may add, when you talk about Alexandria and you were saying that Alexandria did not have workers there, a residency requirement, and they may live in Fairfax. When I talked about this issue, when they live in Fairfax, they are still paying taxes to the State of Virginia. So Alexandria still benefits from those workers. People who may live in Baltimore, if they don't have--work in Baltimore, they may not have a residency requirement if they live in Baltimore County or Howard County or Montgomery County, but they still pay taxes to the State of Maryland and, therefore, Baltimore City benefits. The same with Richmond. I bet in Richmond you will find many people who work in Richmond and live outside Richmond, but they live in Virginia and Richmond benefits, and Richmond has an urban population that is older, sicker and poorer. And Philadelphia, if you work in Philadelphia and if you live outside of Philadelphia, you have to pay part of your taxes to Philadelphia to offset their cost. You pay part of it, and you can still live where you want, but you have to pay something where you work. More than 50 percent of our workers live outside. And when they move outside, unlike these other jurisdictions, they are not moving into a State that still gives the city money. They move into the Commonwealth of Virginia or the State of Maryland, and we get absolutely nothing, and that is what it is all about. Mr. Moran. They should be paying taxes where they are sending their children to school and where they are most reliant on public safety, because those are the greatest public expenditures. Mayor Barry. Do you support a tax on D.C. employees? Mr. Moran. I think the argument is less compelling in opposition to that. I think the principle still holds. I don't want to Balkanize the metropolitan region. per capita expenditure--mismanagement [See Appendix, pp. 743-897, this volume, for copy of report ``The Necessity and Costs of District of Columbia Services.] You have a $5 billion expenditure. You have 500,000 people. That is $10,000 a person--per capita. You say we are maintaining a State and local government. The $10,000 per capita is more than any other jurisdiction requires. It is the greatest infusion of public funds. And not only do I not think that either a residency requirement or commuter tax is a silver bullet to the problem, but I think they expose you to further criticism that the money isn't being well spent. And that is the principal reason that you are not going to get a commuter tax, because the suburbs don't trust that the money is going to be spent effectively, at least at this point in time. transportation tax I think you would be better off with a regional transportation tax. A gas tax would benefit the District of Columbia, because you can rely on the Metro system, and the Metro system would greatly alleviate your other expenditures if we can find a regional source to pay for that. Also roads--roads are a service that people outside the District of Columbia use. There was a proposal to pay for those. I think you can justify doing that. This 400 miles of main roads out of a total of 1,100--you could make a legitimate case that there ought to be more Federal compensation for the maintenance of the District's road and bridge system. But you are going up--these aren't going to work, the residency requirement and commuter tax. I know that we have taken up a lot of time. I had a lot of other issues. I had a suspicion that if I brought this one up, it would take more than 5 minutes. philadelphia residency requirement Mr. Taylor. We asked the mayor of Philadelphia last year when he was here if he had a residency requirement, and you mentioned it is not exactly that. He said yes. One of the things that he said, if your city police go home and they experience the same things, such as crime, it will serve as a motivation for them to protect their own kids at the same level that we want all of our kids protected. That is what I was saying. It is more than just money. I think it helps build the city, but we will have this debate, Jim and I and the whole committee, and we will act on the issue. I would like to yield to Mr. Cunningham. Mr. Cunningham. Thank you, Mr. Chairman. It is an interesting issue. I am surprised that there isn't a constitutional problem with that kind of requirement, as they have in other cities. Maybe there is not. reasons people move from cities But Mr. Moran made a statement which I happened to agree with. When we take a look at a lot of different inner cities-- Los Angeles, Chicago, New York--a lot of times people flee out of the area because the schools have declined. And the crime and drugs also forces businesses out, which forces your jobs out, which means that there are more crimes and more poverty. And that is a self-contained system that I think we have tried to eliminate in the welfare reform bill. But let me speak to a couple of things that I think can help. special education plan I sat as chairman on the K through 12 education two Congresses ago, and I puffed out my chest when the President signed the plan for special education. But I did that in parentheses because--I don't know if you have ever tried to take two cats that don't like each other and put them in a hot car together. That is kind of like it was, taking the parent groups and the school groups together to try to bring together a compromise to get through a special education bill. We know that special education costs the schools too much. The problem is that every day a parent, thinks they are going to have a little homecoming queen or a football star or academic champion, all of a sudden is forced into a situation where their child is physically or mentally handicapped. And that is a very emotional thing. special education--attorney fees The special education issue is very contentious. The intent of the bill was for better education. I didn't want lawyers to be there whenthe parents met with the school for the first time. What I wanted is a parent group to come to the school for the first time and sit down and talk and say, can you help my child without a lawyer, and see if they could work it out. But, unfortunately, that doesn't work. And I found out since we signed the bill that the lawyers are presigning them up with the activists and circumventing the whole issue. I don't know how we can help you, but it is not just your problem, it is a national problem. Mayor Barry. We all want the best education for our children, regardless of their condition. But after the evaluation, after the 50th day, on the 51st day they are lined up at the door requiring the expenditure of thousands of dollars in legal fees---- Mr. Cunningham. And they usually sue for five or six items, and they usually only qualify for one. I understand. Ms. Cropp. They go to the school. They are waiting outside of the school. 21st century classrooms act--upgrading computers Mr. Cunningham. I know. There is an area where I think you can help yourself. I also puffed up my chest--the President signed in his budget the 21st Century Classrooms Act which allows businesses to give computers to the school. But what we do in California, we use a nonprofit; and it serves two purposes. The business gets a tax break. The school computers go to Detweiler. They use the prison labor to upgrade those computers, so it teaches the inmates a skill, and then the school receives that computer ready to plug in. I understand that you have a problem with the infrastructure, the wiring and the cables. That is something to look at. We have the Detweiler program now in 29 States, and it is working well, and it will enable us to give upgraded computers. I am trying to get California on a rotational system where business turns it over every 2 years so we keep upgraded computers in our school system. That might be something that you want to look at for your schools. davis-bacon--steals from children Something else I would recommend--maybe in your politics, just like Mr. Moran says, you can't do this. But Davis-Bacon steals from our children. Here is my wallet. Without Davis- Bacon, there is 35 percent more money in there for your schools to build them and repair buildings. I think you would grab it. If I offered you two wallets, one with 35 percent more and one with 35 percent less, if you can help us waive Davis-Bacon just for school construction you get the wallet with 35 percent more. That will help. The unions will hate it and fight us. offer to visit schools I will help you. I live right down on the waterfront. I offered in the past to visit your schools, and I have yet to get a single request to do so. My wife is a principal. I was a teacher in high school and college and a dean of a college, and I would love to go into those schools and sit with the children. Let me empathize a little bit. And I say the $10,000 per capita, when you have a system that you are building from the ground up, you need a certain amount of money. But when you have a system that you have to tear down and build up, you may need a little more money, if you understand what I mean, because of the neglect. Not a lack of investment, but a lack of wise investment. It is the same reason why we have a concern about putting brand new computers in without trained people to use them. They are going to sit there, and they are not going to bring the productivity and the better investment. I think we have come a long way in the last 2 years. training and computers Mr. Brimmer. May I say quickly, the funding says computers, but it also includes training. A substantial part of all of the management reform expenditures we are making reflects accumulations of human capital and training. Mr. Cunningham. Let me say two things. One, if I hire somebody, I am going to make sure that they are computer literate so I don't have to make that investment. Secondly, I supported Eisenhower grants to bring teachers up to a higher level. Because if I want a teacher to teach a child in the 21st century, she can't teach at her present level. But my wife does it on her own nickel. She says I want to be more professional, so there is a curve there also. Mr. Brimmer. Aside from the physical infrastructure is training the teachers. So we are supplying substantial detail. Mr. Cunningham. My time has run out, but one of the issues before the Senate right now, which I saw in the papers, is, in some ways, unfortunate, the tobacco legislation. We see it as an increase in tax and making trial lawyers rich. drug and smoke-free zones in schools But is the school system--Mayor Barry, are you doing things to make sure that you have tobacco--I see young kids smoking around the schools. I don't smoke. My family doesn't smoke. You don't smoke in my house or car. I believe in the right to smoke but not in the schools or around kids. Are they doing anything for drugs and tobacco, and I include tobacco as a drug, in those free zones? If we want to focus as a nation on things, I remember when we used to throw papers out as a kid. The country was shrouded with paper. Now you throw a piece of paper out, and I bet somebody is going to honk their horn and scream an obscenity. It is an attitude change. I would like to see the schools focus on drug and smoke- free zones, and I include tobacco. I don't want tobacco ads or alcohol ads that focus on kids. Ms. Cropp. We have legislation before the Council now--and, in fact, I introduced one piece of it that deals with that issue that you are talking about. We hope to have hearings fairly soon, and we are working with children's groups and with the schools in order to get the appropriate information. We have had a lot of research done on that, and we hope that the legislation will be passed fairly soon. Mr. Cunningham. I thank the Chairman. Mayor Barry. Just yesterday I was at a press conference in southeast Washington where the community had gotten the majority of merchants to voluntarily agree not to sell cigarettes to anybody and cigarette papers and other things, butts of cigars that they make cigarettes out of, and we launched a major campaign last fall against smoking among teenagers. Also, we have a moratorium on certain classes of liquor licenses. We have tried to stop the proliferation of Class B licenses. Mr. Cunningham. The San Diego Chargers talk to kids at every event about staying away from drugs and smoking to the sports athletes--and not just the sports athletes but the academic athletes as well. I support those kinds of programs that go into the schools, because kids listen to them better than they listen to their parents. I know that with my own two daughters. Ms. Cropp. Teenagers are God's way of helping us let go of our children. 1,330 increase in number of employees in fy 1999 Mr. Taylor. It is my understanding that the District continues to employ far more employees per capita than any other city or county and State in the Nation. We have 30,000 more or less. And, in fact, our numbers show that most of the reductions have been as a result of transferring functions to the Federal taxpayer or off-budget to enterprise funds. I am astounded that the District's population is dropping and you come to us with a request to increase city employees by 1,300. How can you bring that before us? Ms. Cropp. We will do a tag team here. The D.C. public schools--in the Mayor's testimony, he talked about the significant increase in the schools, $81 million. A lot of it is court mandated, and what you will see is a herculean share of the increased positions being in the schools, and we don't have choices, to some extent, to that. I would like to also state the Mayor has also suggested in his testimony that we have reduced--and I think Dr. Brimmer also, that we have reduced our work force significantly over the past several years. We are now trying to readjust that and make sure that we have the appropriate workers in the appropriate areas. disproportionate increase in school population and employees Mr. Taylor. If I am correct, the city population from last year is 248 increase and the increase in employees is 1,330, so the great proportion is not inside the schools, although we could get into that. What we seem to have is a bottomless pit, and I haven't broken those down, but still it is a small percentage increase in the number of students. Ms. Cropp. Most of it is going into special education for the schools; and, in fact, the school system is reducing the number of administrators. Mr. Taylor. 248. I don't know how that---- Mayor Barry. I respectfully disagree with you on the numbers about per capita. I have seen some studies, and I don't know where they are now, but if you take Baltimore, take all of the functions that the City of Baltimore, take all of the help that the county gives, add the State, and you find that you will find more people per capita for the City of Baltimore than you do in Alexandria or Richmond. So just take those raw numbers without looking at---- police officers per capita (see report on pp. 846-847, this volume) Also, I can refer you to a study that the Greater Washington Research Center did, and I can give it to your Committee staff tomorrow, but it talks about the level of employees per capita compared to other places, and the only area that we are really down in is police. We have almost four times the police officers per capita than any other city in America. Almost seven police officers per 1,000 people. employees--increase for schools More importantly, if you look at the budget, the actual employees in the city schools are 9,374, and we are asking for 10,000 for the school. So if you look, the school asked for a thousand more people. I think the basic premise is wrong. It really is. Ms. Cropp. But the thousand--the people that the schools are asking is mandated. So, in many instances, we don't have the choice with regard to increasing the budget actually. It is court mandated. employees increase for corporation counsel Mr. Taylor. The 232 employees that you are adding to the Office of the Corporation Counsel, that sounds excessive, and that has nothing to do with the schools nor is it court mandated. I could go through and break it down more, but what about---- You have a declining population. The Mayor and I were talking about the city and county functions. We could also get into questions of the maintenance of that 41 percent Federal property. Those employees are paid for by the Federal Government, and so there are a lot of people working here in form and functions that most cities do not have. But without getting into the particulars, can't we make further reductions rather than adding? If we get in and look at the schools and put those aside for a moment, can we not go down in the number of overall city employees? Mayor Barry. A major part of the increase is transferring the child support function. There are over 130 positions where the Corporation Counsel this year is administering the child support function in the District, as in Texas, and you will find that the great majority of those increases are transfers from the Department of Housing. Mr. Taylor. There is still an increase in employment, but we will be glad to---- Mayor Barry. It is the FTEs. Mr. Taylor. I would love to have any defense you have and here again spend a little time on it, because it is going to be hard for us to increase employment, especially after this enormous amount of burden that the Federal taxpayer has taken over for the city in the Revitalization Act. Ms. Cropp. Mr. Chairman, if you have issues like that such as the Mayor pointed out where there were transfers, contact us and let us know. contracting out costs Let me tell you another place where you may see some increase in our employment. I am trying to remember from a couple of years ago when we had the ceiling that was imposed on us and we had to do some contracting out. What we found out was that, in some instances, it actually ended up costing us more dollars in the long run where, as we reduced our number of employees, not all, but in some areas it ended up costing us more money, and we were forced to reduce our employees, and I could share with you some of that. So you may see instances where we may have increased employees, but in doing that it makes it more cost-effectivefor the District to run the government and, overall, it is much cheaper. So I would ask for that opportunity to share that also. Mayor Barry. Those specific budgetary increase kinds of questions, would you submit questions and we will do the research? Mr. Taylor. Sure. We will operate with the best facts. I would like to end since we are probably going to have another vote. Mr. Dixon, do you have any questions? Mr. Dixon. Thank you very much. I don't have any questions; but, in listening to the conversations, it doesn't seem that I missed anything. These discussions have been going on for 18-20 years. The lines of questions and the line of responses seem to be just about the same. salary overpayments--executive director and legal counsel Let me ask, Mr. Chairman, I did read with interest the GAO letter and report on the salaries, and although I wasn't here for Dr. Brimmer's testimony, he was kind enough to send it to me, and I have read it. The staff tells me that you intend to have a special hearing on that issue, and so I don't have any questions today. Is that correct? Mr. Taylor. Yes. We would like to go into that some and ask the counsel from the committee and GAO. Mr. Dixon. So we will have a hearing on that issue? Mr. Taylor. It may be just bringing in all of the members of the committee rather than a public hearing, but we would like to get to the bottom of the legalese. Mr. Dixon. I suspect that there is more to this than the GAO report and more to this than the response, and I think we have to get to the bottom of it. Mr. Taylor. Thank you. Congressman Moran. special education--rip-off of 50-day rule Mr. Moran. Let me say that this 50-day rule on special ed; it is a rip-off. People are gaining from the system. If you are living in the District of Columbia, middle or upper class, and you claim that your child is in some way challenged, you know that the D.C. government doesn't have the ability to review it within 50 days. So you end up sending them to a very expensive school at public expense. They are getting away with it, and it should not be done. It is depriving the other children of needed resources. The stupid 50-day requirement---- Ms. Cropp. We changed that. We passed emergency legislation. Mr. Moran. So it is now 120 days which is uniform with the rest of us? Ms. Cropp. Yes. Mr. Moran. Good. tax and regulatory changes The other thing that I hope that you can get through are these tax and regulatory changes. I understand that a lot of them have bogged down at the D.C. Council level, is that true? The recommendations that were made on the professional license tax, the unincorporated business tax, corporate franchise? Mr. Brimmer. Those are recommendations. You might recall that Congress mandated that the control board-- Mr. Moran. We wanted you to do more than just look at them. Mr. Brimmer. There were a number of orders and recommendations that were made. The Council Chair and I were discussing that. Ms. Cropp. They were in the document that I passed out to the committee. The Council is reviewing it. We wanted to wait until we got the report of the tax revision commission. We had a hearing last week, and they just reported back to us, and we wanted them to have an opportunity to make their recommendations. Mr. Moran. That bolsters your case substantially. Because, right now, as you know, D.C. is so uncompetitive when businesses are trying to decide where to go, given the tax situation. medical malpractice issues (see pp. 898-966, this volume) The last thing, I hope you look at some of the medical malpractice issues. There are other ways to deal with it. For example, we have a Federal liability scheme that you may be able to employ. There is virtually no OB-GYNs in the neighborhoods that need them the most, and that is not fair to the citizens. I don't want to get into issues that will prolong the hearing, because we do have a vote. Mr. Taylor. Thank you very much. Mr. Brimmer. Thank you. Mr. Taylor. We may have you back or we may personally correspond with you. The hearing is adjourned. Wednesday, June 24, 1998. D.C. PUBLIC SCHOOLS (INCLUDING PUBLIC CHARTER SCHOOLS) WITNESSES MAUDINE R. COOPER, CHAIR, EMERGENCY TRANSITIONAL EDUCATION BOARD OF TRUSTEES WILMA HARVEY, PRESIDENT, D.C. BOARD OF EDUCATION ARLENE ACKERMAN, SUPERINTENDENT, D.C. PUBLIC SCHOOLS JOSEPHINE C. BAKER, CHAIRPERSON, D.C. PUBLIC CHARTER SCHOOL BOARD U.S. GENERAL ACCOUNTING OFFICE GLORIA L. JARMAN, DIRECTOR, HEALTH, EDUCATION, AND HUMAN SERVICES ACCOUNTING AND FINANCIAL MANAGEMENT ISSUES; ACCOUNTING AND INFORMATION MANAGEMENT DIVISION Opening Remarks of Congressman Cunningham Mr. Cunningham [presiding]. Good morning. I'm Duke Cunningham. For the second year that I have been on the committee, the chairman has allowed me to chair the education issues in Committee. I was a former teacher in high school and a coach. I was a teacher and coach in the college level, and I was dean of a college. My wife, who has her doctorate degree in education, is an elementary school principal of two different schools. So you can imagine what workload she has. My sister- in-law has just been named a principal in a special education school. So we have got education in our family throughout, and it is a personal interest of mine and has been for a long time. I think, not just in D.C. but across the country, if you want to take over a business, instead of taking over a good business, if you can take over a business that was not doing well and make it a good business, then I think you can really make your mark. And I think that that is what all of us are trying to do here is restore a school system. Let me say first, I have been through D.C. and I have seen some very good teachers. I have seen some very good schools. But if you look across the country and overall, I think we would all agree that we would not give our school system an ``A.'' And I think that that is the only direction that we can go is give our schools an ``A.'' We have got a lot of testimony today. We have got not only education, but corrections, public safety, and on down the line. increase of $85 million for public schools The D.C. school budget request for $545 million for fiscal year 1999 is an $85 million increase over fiscal year 1998. So three-quarters of the increase, or $69 million, is identified as mandatory increases, the result of court orders and mandates for special education. special education and attorney fees Now, when I was K through 12 chairman on the Education Committee--I do not know if you have ever tried to bring a Siamese and a Persian cat together, but that is what it was like trying to bring together parents of special education children and the schools. It was a very difficult bill to get through. And where both sides were not completely happy, we got a bill through that we thought was an improvement. It lacked some of the improvements that the schools wanted. We found also that the lawyers are trying to circumvent the system, in many cases costing the schools, not just in D.C. but across the country, too much money that should be given to other children. We are going to try and fix that too. children first We have got to put children first. That is more than just a statement. Your commitment shows that you do. And I would hope that throughout the year that we can get more of our colleagues and allies to put away the politics and sit down and take a look and say, ``What is really good for each individual child within the school system?'' Because they are all different. I have got three children and I guarantee you they are different critters. Each and everyone of them. [Laughter.] test score improvements The good news is that D.C. school children are scoring better on the Stanford 9 standardization reading and math tests. That is fantastic. When you take a look at the move and the general direction that the city is making itself, and then the education system, any positive move, that is good and you can take credit for that. But we have got a long way to go. I think all of you agree with that. public/private partnerships One of the recommendations that I would wish you would take a look at, the President signed the bill that I put forward. It's called the 21st Century Classroom Act. And what that does is encourage some businesses to donate more quality computers to schools. But, in some cases, when a school got a donated computer, it didn't have the right software. It may be a computer from a bank. The teachers and the professional people did not know how to upgrade them. So they basically sat in a corner, useless. What we do in California and 29 other States, we give it to a nonprofit organization called Detweiler. Detweiler takes the computer from business. It has to be within two years old. They then let prison labor upgrade it, which teaches the prisoners a skill so that maybe they are not going to end up back there in the prison. And then they upgrade those computers with the software ready to plug into the school. Now the business gets an expanded tax break. So it is a benefit. You teach the prisoners. And then the school gets a computer ready to use, upgraded for that year. And we are trying to get California schools and businesses on a two year cycle, all businesses. So that that way we have upgraded computers in our school system from private sources. And it has been a big success. And it is one area in which I think you can take a look at. president vetoed scholarship act favored by d.c. residents Last month, the President vetoed legislation that would have given many school children real hope, The D.C. Opportunity Scholarships Act. The day after the President's veto, the Washington Post published a poll indicating that D.C. citizens supported these opportunity scholarships by a 56-to-36 margin, and especially the African-American community which supported it 2 to 1. And these are scholarships for children that if you have a child in an area that just has no hope in that school, then as a parent you want that child out of that area. Last October, the Washington Scholarship Fund did announce monies available, $1,000 scholarships for children of low-income families. The Fund received applications from 7,573 children. So there is a need out there and I think that when we take a look at whether you support vouchers or what, there are some children in areas that we need to reach out to and help. charter schools--budget not fair I think the budget does not treat the charter school students fairly and equally. You may want to take a look at that. It has been a big success in California where I am from, and supported by the Governor. special education--attorney fees We want to make a real difference. But that difference, especially in special education, again, should take the money out of the lawyers' pockets and put it into the schools' pockets. davis-bacon--waiver would save 35 percent Let me give you a couple of other examples in which I think we can save money, and where I am talking about where people really put children first instead of politics. For school construction, you can save 35 percent in school construction if we can waive Davis Bacon. Now, it is a big union issue. It is a powerful issue. But if we really want to focus on the children, here is a chance. I am not asking the unions to waive Davis Bacon across the United States. I am talking about D.C. schools, just for the construction and maintenance of our schools systems that are over 60 years old. If I was going to offer you 35 percent more money for your grocery bill or to go to Nordstroms, I think you are going to take it. And I think that we can do the same thing for our children. electrical power deregulation With respect to electrical power needs, by putting those out to bid, we can save money and be very successful. And I think it is supported by many of you. It has been estimated we can save up to $2 million in that. And that money would go into the school system. So I am here to listen to your ideas, and to offer some ideas that we have found in different school districts that can help. We call it D.C. Power for Children, and I think we all support that as well. I see Mr. Moran is not here yet, but when he comes, I will ask if he would like to make a statement. electricity pilot program for d.c. schools At this time, I would like to enter into the record this D.C. Power for Children information and you'll get copies if you would like. [The material referred to follows:] [The official Commmittee record contains additional material here.] DC Power for the Children: Selected Congressional Testimony From School Administrators Showing How Choice for Power Works Well and Saves Schools Money, House Commerce Committee statement of michael vanairsdale Mr. Vanairsdale. Yes sir. Mr. Chairman, members of the subcommittee, my name is Mike Vanairsdale, I am the Assistant Superintendent for Support Services for Fulton County Schools. I am pleased to be here today to represent the American Association of School Administrators and school districts across the country who believe that deregulation of the electric utility will allow them to spend more money in the classroom and less on electricity. Please allow me to give you a brief overview of the average school district's budget. The largest line item in the budget is personnel-- the people who teach the students, feed the students, get the students to and from school, maintain school facilities, coordinate all these activities. Public school personnel are called upon to do a lot of things and consequently their salaries and benefits consume a large portion of our budgets. The second largest budget item, right after personnel, is utility costs, primarily electricity. That is why we are interested in deregulation. Electricity is a significant expense for us, there is real money to be saved. In fiscal year 1998, my school system will spend approximately $9.5 million on utilities. Approximately 70 percent, or $6.5 million of that will be spent on electricity. If we could save only 15 percent each year as a result of deregulation and the ensuing competition for our business, that would mean nearly $1 millionthat could be spent in the classroom to help kids, rather than on electricity. A million dollars would provide salaries and benefits for 20 teachers in Fulton County schools. And because of our size, my system's bill is relatively low. In Chicago, a city I understand you will be visiting next month, public schools spend approximately $40 million every year on electricity. A 15 percent savings for them would mean $6 million each year they could spend on programs to help their students. Mr. Chairman, certainly you can do the math, but allow me to provide you some additional data. Nationwide kindergarten through 12 public schools spend about $42.5 billion each year on electricity. If we could save 15 percent each year through deregulation, the result would be a nationwide savings of more than $635 million, which local districts would be able to spend to address classroom needs. In Georgia, because of the Georgia Territorial Electrical Services Act of 1973, utilities compete for the business of new schools as they come on line. To demonstrate the savings that competition can provide, let me give you a comparison between recent rates recorded under this limited competition and our average rates of Fulton County Schools. Our lowest rate on an elementary school we opened last fall is about 3.5 cents per kilowatt hour, while our average rate is about 7.5 cents per kilowatt hour. The highest rate we pay, among seven different suppliers, is almost 10 cents per kilowatt hour. As you can see, even this limited competition results in significant savings as we bring these schools on line. Furthermore, we have not encountered reliability problems, as I have heard used as a barrier to competition. A second obstacle mentioned is the assertion that no one will want to market to schools and other small consumers. I have found the opposite to be true. As I mentioned, we are served by seven suppliers. Further more, as I understand the situation, utilities and power marketers, including giants like the Southern Company, Enron and UtiliCorp are actively marketing themselves to secure the business of school districts even though competition is currently allowed only in a few States. As I stated earlier, school districts nationwide use more than $4 billion in electricity annually, so I am not concerned that we will be left out. But Mr. Chairman, we will not see these savings or opportunities nationwide without Federal action. As I mentioned, right now in Georgia, schools enjoy a small degree of competition for their business, however, most of my colleagues across the country cannot shop around and find out who will give them the best deal on their electricity. School districts can buy everything from chalk to school buses to natural gas competitively, but not electricity. And based on my understanding of the issue, without Federal action, including a date certain for competition to begin, it will never come. Mr. Chairman, I spent 26 years in the United States Army before retiring as a Colonel last July. One of my responsibilities was to develop efficient means to save money and them implement those plans. Now, as an assistant superintendent for support services for Fulton County Schools, I do the same thing. But, I cannot implement savings on electricity without your help. I believe that if we leave the decision about whether to implement competition to theStates. Many or my colleagues around the country will never be able to take advantage of the opportunities that competition offer. But, with Federal legislation, I believe deregulation can be implemented in a way that benefits all customers. In closing, I am reminded of a remark that Willie Sutton once made when asked why he robbed banks. Sutton responded that he robbed banks because that is where the money is. As someone who is charged with saving my school system money, I need to look for where they money is. In my area, that money is in high utility costs. We could be spending the money saved on kids and not on electricity. Again, Mr. Chairman, thank you for inviting me to appear before your subcommittee. If I can be of further service, please do not hesitate to call on me. [The prepared statement of Michael Vanairsdale follows:] Prepared Statement of Michael Vanairsdale, Assistant Superintendent for Support Services, Fulton County Board of Education Mr. Chairman and members of the subcommittee, I am pleased to be here today to represent The American Association of School Administrators and school districts across the country who believe that deregulation of the electric utility industry will allow them to spend more money in the classroom and less on electricity. Please allow me to give you a brief overview of the average school district's budget. The largest line item in that budget is personnel-- the people who teach the students, feed the students, help keep the students healthy while they are at school, provide services to the students, get the students to and from school, maintain school facilities, and coordinate all these activities. Public school personnel are called upon to do a lot of things, and consequently their salaries and benefits consume a large portion of our budgets. The second largest budget item, right after personnel, is utility expenses, primarily electricity. That is why we are interested in deregulation--electricity is a significant expense for us--there is real money to be saved. In fiscal year 1998, my school system will spent approximately $9.5 million on utilities. Approximately 70 percent, or $6.5 million of that will be spent on electricity. If we could save 15 percent each year as a result of deregulation and the ensuing competition for our business, that would mean nearly $1 million dollars that could be spent in the classroom, to help kids--rather than on electricity. In Fulton County, a million dollars would provide salary and benefits for 20 additional teachers. And, because of our size, my system's bill is relatively low. In Chicago, a city I understand you will be visiting next month, the public schools spend approximately $40 million every year on electricity. A 15 percent savings for them would mean $6 million dollars each year that they could spend on programs to help their students. Mr. Chairman, certainly you can do the math, but allow me to provide you additional data. Nationwide K-12 public schools spend about $4.25 billion each year on electricity. If we could save 15 percent each year through deregulation the result would be a nationwide savings of more than $635 million annually which local districts would be able to spend to address their classroom needs. In Georgia, because of the Georgia Territorial Electrical Services Act of 1973, utilities compete for the business of new schools when they come on line. To demonstrate the savings that competition can provide, let me give a comparison between recent rates recorded under this limited competition and our average rates. Our lowest rate on a school we opened last fall is about 3\1/2\ cents per kilowatt hour while our average rate is about 7\1/2\ cents per kilowatt hour. The highest rate we pay--among 7 suppliers--is almost 10 cents a kilowatt hour. As you can see, even this limited competition has resulted in significant savings as we bring on new schools. Furthermore, we believe this competition results in better service; we have not encountered ``reliability problems'' as I have heard used as a barrier to competition. A second ``obstacle'' to competition that I have heard is the assertion that no one will want to market to schools and other small consumers. I have found the opposite to be true. As I mentioned, we now receive service from seven suppliers. Furthermore, as I understand the situation, utilities and power marketers, including giants like Southern Company, Enron, and UtiliCorp are activity marketing themselves to secure the business of school districts even though competition is currently alloweddegree of competition for their business, however, most of my colleagues around the country can't shop around and find out who will give them the best deal on electricity. School districts can buy everything from chalk to school buses to natural gas competitively, but not electricity. And, based on my understanding of the issue and my experience working in this area, without federal action including a date certain for competition to begin, it will never come. Mr. Chairman, I spent 26 years in the United States Army before retiring as a Colonel last July. One of my responsibilities was to develop efficient means to save money and then implement these plans. Now, as an assistant superintendent for support services for Fulton County Public Schools, I do the same thing. But, I cannot implement savings on electricity without your help. I believe that if we leave the decision about whether to implement competition to the states, many of my colleagues around the country will never be able to take advantage of the opportunities competition offers. But, with federal legislation that includes a date for competition to begin, I believe deregulation can be implemented in a way that benefits all customers. In closing, I am reminded of a remark that Willie Sutton once made when asked why he robbed banks. Sutton responded that he robbed banks because that's where the money is. As someone who is charged with saving my school system money, I need to look for those savings where the money is. In my area the money is in high utility costs. We could be spending the money saved on kids and not on electricity. Again, Mr. Chairman, thank you for inviting me to appear before your subcommittees. If I can be of further service, please do not hesitate to call on me. Mr. Schaefer. Thank you very much, Mr. Vanarisdale. Mr. Smith. statement of charles d. duffy Mr. Duffy. Mr. Chairman, Chairman Bliley, Representative Crapo and members of the subcommittee, I am pleased to be here today to represent the American Association of School Administrators and school districts across the country who believe that deregulation of the electric utility industry will allow them to spend more money in the classroom and less on electricity. I am the executive director of an educational service agency in West Virginia. Basically, educational service agencies, or ESAs, asthey are commonly called, provide services and take advantage of economies of scale for groups of school districts. My agency provides services and educational experience to eight school districts in West Virginia. As you know, electricity is the largest nonlabor item in most school system budgets. In fact, utility costs are generally the second largest item in the average school budget. That is why school superintendents and educational service agency directors like me are interested in deregulation. Electricity is a significant expense for us. And we believe that there is real money to be saved. In fiscal year 1996, the eight school districts that I represent spent over $3 million on electricity. Three million dollars may not seem like much for eight districts, but if you could save just 15 per cent as a result of deregulation, it would be nearly a half million dollars we could spend on students instead of electric bills. For small districts like ours, that would mean enough money to buy 21 new computers for each of our 16 high schools and help give the students the technological skills that they need in the workplace. Or a half million dollars would be enough for us to hire at least 12 additional teachers. And the examples I am offering you are just 1 year's savings. Fairfax County Public Schools in the northern part of Virginia spends about $30 million each year on electricity. Therefore, a 15 percent savings would mean $4.5 million each year to spend in their classrooms rather than on electricity. Fairfax County is about to embark on an ambitious capital improvement plan to accommodate their increasing enrollment and aging buildings. I am sure that $4.5 million extra, each year, could be an important tool for solving these problems. Here around Richmond, the Richmond and Henrico public schools spend more than $5 million a year on electricity. A 15 percent savings would give these two school systems more than $750,000 each year to spend on the students from this area rather than on electricity. Mr. Chairman, I know that you are aware of this, but allow me to provide the subcommittee a little additional information. Nationwide, K-12 public schools spend about $4.25 billion each year on electricity. That is more than the Federal Government, Chairman Bliley. A 15 percent savings as a result of deregulation would mean a nationwide annual savings of more than $635 million, which local districts would be able to spend in their classrooms rather than on their electric bills. There is some concern that under deregulation no one will want to sell power to schools because we have an unusual load factor. We use electricity at unusual times compared to normal electric load. I do not believe that this will be the case. Right now, with competition existing in only a few States, utilities and power marketers are already actively courting the business of schools. As I said earlier, the school systems nationwide use more than $4 billion in electricity annually, so I don't think that we will be overlooked. But, Mr. Chairman, without Federal action, most school systems will never be able to take advantage of the savings that deregulation offers. Right now, school districts can join together and pay forthings like pencils and paper, to computers, cooperatively to save money, but we can't do that with electricity. My job, and the job of other ESA directors, is to provide efficiency and savings to the school districts I represent. But we cannot achieve savings on electricity without your help. We should be spending money on kids and not on electricity. Again, Mr. Chairman, it has been my honor and a pleasure to appear before your subcommittee. If I can be of further service, please do not hesitate to call on me. [The prepared statement of Charles D. Duffy follows:] Prepared Statement of Charles D. Duffy, Executive Director, Regional Education Agency VIII Mr. Chairman, and members of the subcommittee, I am pleased to be here today to represent The American Association of School Administrators and school districts across the country who believe that deregulation of the electric utility industry will allow them to spend more money in the classroom and less on electricity. I am the executive director of an educational service agency in West Virginia. Basically, educational service agencies, or ESA's as they are commonly called, provided services and take advantage of economies of scale for groups of school districts. My agency provides services and educational expertise to eight school districts in West Virginia. As you know, electricity is the largest non-labor items in most school system budgets. In fact, utility costs are generally the second largest item in the average school budget. That is why school superintendents and education service agency directors like me are interested in deregulation--electricity is a significant expense for us--and we believe that there is real money to be saved. In fiscal year 1996, the eight school districts I represent spent over $3 million on electricity. Three million may not seem like much for eight districts, but if we could save just 15 percent as a result of deregulation, it would be nearly a half-million dollars we could spend on students instead of our electric bills. For small districts such as ours, that would mean enough money to buy 21 new computers for each of our 16 high schools and help give the students the technological skills they will need in the workplace. Or, a half million would be enough for us to hire at least 12 additional teachers. And, the examples I am offering you are from just one year's savings. Fairfax County Public Schools in the northern part of Virginia spends about $30 million each year on electricity, therefore a 15 percent savings would mean $4\1/2\ million each year to spend in their classrooms rather than on electricity. Fairfax County is about to embark on an ambitious capital improvement plan to accommodate their increasing enrollment and aging buildings. I am sure that $4\1/2\ million extra--each year--could be an important tool for solving these problems. Here around Richmond, the Richmond and Henrico public schools spend more than $5 million each year on electricity. A 15 percent savings would give these two school systems more than $750,000 each year to spend on the students from this area rather than on electricity. Mr. Chairman, I know that you are aware of this, but allow me to provide the subcommittee a little additional information. Nationwide, K-12 public schools spend about $4.25 billion each year on electricity. A 15 percent savings as a result of deregulation would mean a nationwide annual savings of more than $635 million, which local districts would be able to spend in their classrooms rather than on their electric bills. There is some concern that under deregulation no one will want to sell power to schools because we have an unusual load factor--we use electricity at unusual times compared to the normal electric load. I don't believe that this will be the case. Right now, with competition existing in only a few states, utilities and power marketers are already actively courting the business of schools. As I said earlier, school systems nationwide use more than $4 billion in electricity annually, so don't think we will be overlooked. But, Mr. Chairman, without federal action most school systems will never be able to take advantage of the savings that deregulation offers. Right now, school districts can join together and pay for everything from pencils to personnel cooperatively to save money, but we can't do that with electricity. My job--and the job of other ESA directors--is the provide efficiency and savings to the school districts I represent. But, we cannot achieve savings on electricity without your help. We should be spending money on kids and not on electricity. Again, Mr. Chairman, it has been an honor and a pleasure to appear before your subcommittee. If I can be of further service, please do not hesitate to call on me. Mr. Schaefer. The Chairman thanks the gentleman very much for his testimony. We will now turn to Mr. Lepinsky, who is with the United Homeowners Association in Fredericksburg, Virginia. statement of cheryl h. wilhoyte Ms. Wilhoyte. Good morning, Chairman Schaefer and honored members of the subcommittee. I bring you greetings from Madison, Wisconsin, Money Magazine's Number 1 city this year and the home of high achieving schools and high achieving students. I represent the American Association of School Administrators and school districts across this country. We believe that customer choice of electric power will allow us to spend less on electricity and more on improving our classrooms and producing productive citizens for the 21st Century. School superintendents, like other CEOs, seek to improve quality. In Congressman Hall's words, that make it good. We also seek to lower cost. Again quoting Congressman Hall, cheap. We like to maximize our return on investment for not only our taxpaying customers, but most importantly, for our student customers. We believe customer choice for electric power will lower costs and allow us to focus those resources on the classroom, where they belong. Electricity is the highest non-labor costs for public schools. It takes a lot of money to run schools these days, and children at risk are only transformed into children of promise when they have the opportunity to excel and the resources to match student needs. Superintendents are not just looking for more money. We are committed to being quality stewards of the moneys we have. However, archaic laws in the electric industry are barriers to our working smarter. Cooperative and collaborative buying power for electricity is an essential win-win for school districts across the country. Right nowI, and other superintendents, can purchase just about every service or commodity we need in volume. We can take advantage of economies of scale and bulk discount. That is everything from pencils to desks, to computers, to special services, and even natural gas, but we cannot do that with electricity, and that just does not seem right. Let's talk a minute in terms of a practical example. Right now a school district cannot even aggregate their load. This means a huge district like Chicago that uses over $40 million in electricity annually pays for each of its 600 schools based on individual usage. That is just about as absurd as my telling 46 Madison principals to go out and buy 46 school buses one by one instead of having our business manager and transportation director buy about 20 buses and share the runs between home and school. With electricity being our highest non-labor cost, in most school district budgets we figure that K-12 public school districts use about $4.25 billion annually to buy electricity. If we could save only 15 percent nationwide, and as I understand it, the pilot programs currently underway are generating even greater savings, 15 percent savings would yield over $635 million to be returned to today's classrooms. We could help youngsters read and write and compute and think and resolve conflicts and problems at the high standard that we are going to need for our 21st Century graduates. That sort of savings would mean different things certainly to different school systems. In rural West Virginia, my colleague Dr. Charlie Duffy estimates that he could save enough in 1 year to outfit 15 high schools with 21 new computers to help his students become technologically literate. In Madison, we have success for our goal. It means we leave no child behind. We do not accept failure. For us, that savings could mean five more reading recovery teachers to teach between 60 and 70 6 to 7 years olds how to read because increasingly Madison's children are poor, and while they once know few letter-sound relationships. And while I appreciate the value of volunteers to share a love of reading, it takes a highly skilled professional to interrupt predictions of school failure and allow those youngsters to become successful readers. Electric rates in Madison are really not too bad. The most our district pays is about 4 cents a kilowatt hour, and we pay a little less off peak, and yet here in Chicago, 120 miles away, the school system pays an average of 9 cents per kilowatt hour. Their average rates are more than double any in Wisconsin. Chicago's public schools spend about $40 million annually. If they paid what I paid, they could save $20 million a year to redirect students services. School districts across the country would benefit from choice. Savings would perhaps not be a dramatic as they might be in Chicago. If we only saves 10 percent in Madison, or $140,000 a year, those reading recovery teachers would have a significant impact on our achieving our 100 percent success rate for our third graders to read above the State standard on the third grade reading test. There are a number of compelling arguments for Federal action, and as Congressman Shimkus reminds us, we are in the Land of Lincoln, so I will reference his perspective. Where you stand depends on where you sit, and I see public schools everywhere in every State, in every community seeking revenues to meet student needs. Because my colleagues and I believe Federal legislation is necessary to restructure this vital industry, we cannot move schools to take advantage of savings in different regions or States. They have got to be where the youngsters are. Without Federal action, I do not believe the savings will come to all school districts. All districts should have this opportunity, and that is why the rules and the regulations that you must decide upon must assure the equity and fair play much like we do at the play yard at recess each day. Being our largest non-labor cost, cutting for us is not an issue of profit or price. It is quality stewardship in tax dollars that we are seeking. It is our students who will profit because we can devote more resources to them and less to electric bills. In closing I want to share with you that in Madison we judge student performance at four levels: emerging, developing, accomplished, and exemplary. We are looking to your leadership to develop the safeguards and rules that will provide equity of access, reduced costs, and good electrical service while helping superintendents work smarter and giving us a choice in electric power to be sure that we achieve accomplished and exemplary high school graduates. We thank you for this opportunity to speak before you, and I wish you well in your deliberations on customer choice for electricity. [The prepared statement of Cheryl H. Wilhoyte follows:] Prepared Statement of Cheryl H. Wilhoyte, Superintendent, Madison Metropolitan School District Mr. Chairman, and members of the subcommittee, I am pleased to be here today to represent the American Association of School Administrators and school districts across the country who believe that deregulation of the electric industry will allow them to spend more money on services that help students in the classroom and less on electricity. Mr. Chairman, superintendents all over the United States are interested in deregulation because electricity is a significant cost for us. Let me be frank. It takes a lot of money to run schools these days--especially in urban districts like mine or Chicago. This is not a popular reality, but it is a reality nonetheless. We need resources from both the government and the private sector to help us serve the diverse student body we are serving today. Our children are children of promise if the learning opportunities and resources are available. But, we are not only looking for additional resources, we want to spend the funds we have now in the most effective way possible but because of archaic laws concerning the electric industry, we cannot do that with our electrical service. Right now, I can, and superintendents across the country can, cooperatively purchase just about every service or commodity we use. This allows school districts or groups of districts to buy in volume and take advantage of economies of scale and bulk discounts. We do this with about everything we use, from pencils and desks to special services and even natural gas--but we can't do it with electricity. In fact, Mr. Chairman, right now most school districts in this country can't even aggregate their load within a district. This means a hugh district like Chicago that uses about $40 million in electricity annually pays for each school based on its individual usage rather than the total usage of the more than 600 buildings in the system. If this sounds a little absurd, it's because it is. It would be like me telling eachof my principals to figure out how many new school buses they need each year and to order them independently from all the other schools in Madison. Rather than my business officer going to the bus company and working out a deal for 15 new buses, there would be 15 principals each negotiating a price for one bus. You don't have to be an economist to see which way would garner a better price. As I mentioned, electricity is a major cost for us. It is the largest non-labor item in most school district budgets. Nationwide, K- 12 public school districts use about $4.25 billion annually in electricity. If we could save only 15 percent nationwide--and as I understand it, the pilot programs currently underway are generating savings greater than that--15 percent would give school districts nationwide $635 million that they could spend in the classroom to help students rather than on electricity. Mr. Chairman, these sort of savings would mean different things to different school systems. In rural West Virginia, my colleague, Dr. Charles Duffy, who I understand you know, estimates that he could save enough in one year to outfit each of the 16 high schools he serves with 21 new computers to help his students become more technologically literate. In Madison, each year we could hire five more Reading Recovery teachers to assure basic literacy competency for 60 more six and seven year-olds who have yet to learn to read. Learning and mastering the tools of reading are major factors in reducing the dropout rate and ensuring a high graduation rate. With over 96 hours of graduate and post-graduate study and research in reading and learning disabilities, I appreciate the value of volunteers to reinforce and share a love of reading and learning. However, it takes highly skilled professionals to teach children who are not only coming to school not reading and writing, but coming to kindergarten and first grade with few, if any, letter-sound relationships. Unfortunately, these skilled professionals don't come cheaply. My point, Mr. Chairman, is that various school systems across the country could be spending money on a variety of proven programs and services related to raising student achievement, but right now they are spending that money on electricity. Frankly, Mr. Chairman, as electric rates in this country go, Madison's are not too bad. The most my district pays per kilowatt hour is about 4 cents, and we pay less off peak. Here in Chicago, only 120 miles away, the school system pays an average of 9 cents per kilowatt hour. This average rate is more than double my district's highest rate. As I said, Chicago public schools spend about $40 million annually--if they paid what I pay, that would be more than $20 million dollars--each year--that they could spend in their classrooms rather than on their electric bills. Twenty million dollars! If that is not an imperative to act on this issue, I don't know what is. Mr. Chairman, there are school districts across this country that would benefit as a result of deregulation. For most, the savings would not be as dramatic as they could be for Chicago, but they would save money nonetheless. Even if we only saved 10 percent in Madison, that would still be more than $140,000 each year that we could spend in the classroom rather than on electricity. This is not an insignificant amount of money. Five more Reading Recovery teachers would have a significant impact on achieving our goal of 100% success for every third grader to read above standard on their grade reading test. There are a number of compelling arguments for federal action on this issue, but as Lincoln once said, ``where you stand depends on where you sit'' and from where I sit, I see public schools everywhere, in every state, and every community. Because of this, my colleagues and I believe that federal legislation is necessary for restructuring this vital industry. When people talk about businesses and industry relocating to find cheaper power, it reinforces the belief of my colleagues that federal action is necessary. We can't move schools to take advantage of savings in different regions or states. Schools have to be where the students are. Without federal action, I don't think the savings will come to all school districts. Power marketers and utilities are actively courting the business of schools in states where deregulation has taken place. All school districts should be able to take advantage of these opportunities. Mr. Chairman, as I said, electricity is the largest non-labor item in most school district budgets. For us, cutting this cost is not a profit or price issue as it is for many other consumers. If we can save on electricity, it is our students who will profit because we can devote more resources to them and less to our electric bills. In Madison, our parent hotline is 608/266-HELP! I hope we can count on your help to most effectively realign more of our available dollars away from electricity and directly toward improving student and school achievement. Thank you very much for inviting me to testify before your subcommittee. If I can be of further assistance, I hope that you will not hesitate to contact me. Mr. Schaefer. Thank you very much, Dr. Wilhoyte. The next witness, Ms. Drummond. statement of jim jeffrey Mr. Jeffrey. Good afternoon. My name is Jim Jeffrey, and I am president of Power Ed Corporation in Houston, and I am an elected member of the Goose Creek Consolidated Independent School District Board of Trustees in Baytown. PowerEd was recently formed to assist public schools in obtaining the lowest possible prices for electricity through aggregation and power purchase coordination. The problems that face our country's school systems, such as shrinking budgets and work forces and increasing student populations, are well-known. As an elected official on the school board, I have experienced these problems firsthand; however, many people don't stop to think about what financially strapped schools are forced to spend on electricity. During the years that I have spent working with Goose Creek School District, I realized that utility companies were taking advantage of school systems throughout Texas, and indeed throughout the country. Because of their favorable regulatory status, the utilities were completely inflexible when it came to the possibility of giving schools a break on rates, and the public schools had neither the resources nor the manpower to explore their options. Mr. Chairman, I have seen the electric bills, and, in fact, after teachers' salaries, the monthly electric expenses are the second largest item on most school budgets throughout the country. The numbers are eye-opening. In Goose Creek, which has a district consisting of 23 facilities serving 18,000 students, last year our electric bill totaled $3.1 million, and that is a fairly small district. Much larger Houston Independent School Direct spends close to $20 million annually. Many people assume that because school districts are heavy users of electric power, they can negotiate better rates with the utility companies. This is a false assumption. The Goose CreekDistrict actually approached Houston Light & Power to attempt to negotiate better terms for the schools. We asked if we could purchase in bulk to cut the electric bills. We were told nothing could be done. Nothing could be done, Mr. Chairman, because HL&P, like all the other local utilities in Texas, faces no competition. These companies advise schools to lower their electricity costs by sealing windows and installing more efficient lighting and air conditioning. This most of the schools have already done. That advice is what passes for innovative service in today's noncompetitive environment. Our schools cannot shop around for a better price. In fact, our current laws prevent an independent power provider or other utility coming into the market to offer lower cost electricity or enhanced services. HL&P told us that the current price and service levels were the best that they could do. At that point I realized the electricity situation in Texas had gotten completely out of hand. Schools were crying for a change, and yet the local monopolies refused to do anything to help. I knew they could make changes, but without the threat of competition, why should they? Most estimates suggest that electric power rates could drop by 20 to 30 percent if the system were competitive. Even if every public school in the country achieved a relatively modest 15 percent cut in utility bills, the savings would be larger than the amount President Clinton proposed spending in fiscal year 1998 on his Goals 2000 education initiative. That is in excess of $600 million. Something obviously had to be done to meet the needs of Texas public schools as well as schools around the country. In the spirit of American entrepreneurship, I took my experience from unsuccessful dealings with an inflexible government-sanctioned monopoly to formulate a common-sense solution. The result of these experiences was the formation of PowerEd, my own aggregation company, to take on the monopolies. I want to prove just how easy and uncomplicated it is to provide our children the benefits of cheaper electricity. PowerEd is a power purchasing consultancy targeted at public schools. We have begun approaching public schools to let them know that they will soon, hopefully, have a choice in electricity providers and the simple option to save a substantial amount of money. Although the company is still in its infancy, there is already a demand for our services. We have partnered with and are endorsed by the national organization, the American Association of School Administrators, in DC PowerEd, to my knowledge, is the only company that is concentrating on providing schools with specialized services aimed at lowering public schools electric bills. We hope PowerEd will be growth company, and we don't hide the fact that we are in business to give our eventual investors a return on their capital, but as we continue to add jobs to meet consumer demand, I am overwhelmed by the sense of personal fulfillment. The idea of helping public schools came from my commitment to helping schools. I have chosen to work with public schools because when these schools operate more efficiently, at a lower cost, our kids, or future are the ones who benefit the most. And it is my hope that this Congress will provide a date certainto allow, sooner rather than later, all consumers, including our public schools, the choice about their electricity provider. I thank you, Mr. Chairman and committee members, for allowing me to share my views on this important issue. [The prepared statement of Jim Jeffrey follows:] prepared statement of jim jeffrey, board member, goose creek consolidated independent school district The problems that face our country's public school systems, such as shrinking budgets and workforces and increasing student populations, are well known. As an elected school board official, I've experienced these problems firsthand. However, many people don't stop to think about what financially-strapped schools are forced to spend on electricity. During the years I've spent working with the Goose Creek Consolidated Independent School District, I've realized that the utility companies are taking advantage of school systems throughout Texas. Because of their favorable regulatory status, the utilities are completely inflexible when it comes to the possibility of giving schools a break on rates. And our public schools have neither the resources nor the manpower to explore other power options. Mr. Chairman, I have seen the electric bills. Page after page after page of bills. After teachers' salaries, the monthly electric expenses are the second largest item on most school budgets. The numbers are eye-opening. The Goose Creek School District has 23 facilities serving 18,000 students. Last year, our electric bill totaled $3.1 million--and it is a fairly small district. The much- larger Houston School District spends close to $20 million annually. Many people assume that because school districts are such heavy users of electric power, they can negotiate better rates with the utility companies. This is a false assumption. The Goose Creek District actually approached Houston Lighting & Power to try to negotiate better terms for the schools. We asked if we could purchase in bulk to cut the electric bills. But we were told that nothing could be done. Nothing could be done, Mr. Chairman, because HL&P, like all of the local utilities in Texas, faces no competition. These companies advise schools to lower their electricity costs by sealing windows and installing more efficient lighting and air conditioning, for example. That advice is what passes for innovative service in today's non- competitive environment. Our schools cannot shop around for a better price. In fact, our current laws actually prevent an independent power provider or other utility from coming into the market to offer lower cost electricity or enhanced service. HL&P told us that the current price and service levels were the best they could do. At that point, I realized that the electricity situation in Texas had gotten completely out of hand. Schools were crying for change, and yet the local monopolies refused to do anything to help. I knew they could make changes, but without the threat of competition, why should they? Most estimates suggest that electric power rates could drop by 20 to 30 percent if the system were competitive. Even if every public school in the country achieved a relatively modest 15 percent cut in their utility bills, the savings would be larger than the amount President Clinton proposed spending in fiscal year 1998 on his goals 2000 education initiative. Something, obviously, had to be done to meet the needs of Texas public schools as well as schools around the country. In the spirit of American entrepreneurship, I took my experience from unsuccessful dealings with an inflexible, government-sanctioned monopoly to formulate a common-sense solution. The result of these experiences was the formation of Powered--my own aggregation company--to take on the monopolies. I want to prove just how easy it is to provide our children the benefits of cheaper electricity. Powered is a power purchasing consultancy targeted at public schools. We approach public school districts to let them know they will have a choice in electricity providers and a simple option to save money. Although the company is still in its infancy, there is already a demand for our specialized services. We have partnered with, and are endorsed by, a national organization--the American Association of School Administrations (AASA). Powered is the only company I know of that is concentrating on providing schools with specialized financial, accounting, technical and risk management assistance tailored towards crafting the most efficient lowest cost electric bill. Powered is a growth company, and we don't hide the fact that we're in business to give our investors a return on their capital. But as we continue to add jobs to meet consumer demand, I am overwhelmed with a sense of personal fulfillment. The idea of helping schools came directly from my heart, because I know of their desperate needs, and I can provide common-sense solutions. I have chosen to work with public schools, because when these schools operate more efficiently and at a lower cost, our kids--our future--are the ones who benefit most. Mr. Schaefer. The committee thanks the gentleman. [The official Commmittee record contains additional material here.] introduction of public school witnesses Mr. Cunningham. At this time, I am pleased to introduce today's public education witnesses. Maudine Cooper is Chair of the Emergency Transitional Education Board of Trustees; Wilma Harvey chairs the elected D.C. Board of Education--I know what a job that is--Dr. Arlene Ackerman is the new superintendent of D.C. Public Schools; Josephine Baker chairs the D.C. Public Charter School Board; and Gloria Jarmon--being from California, I always look to see if it should be Harmon, but it is Jarmon-- is a director of Health, Education, and Human Services Accounting Issues with the U.S. General Accounting Office, who will provide us information about the roof replacement project for D.C. public school facilities. [Witnesses sworn.] There is another young lady in the audience, a shadow Senator, Florence Penelton, and I would like to welcome you. Thank you, Ms. Penelton. We had our superintendent of schools is named Bertha Pendelton and who has left San Diego, and I worked--as a matter of fact, she made me Education Man of the Year. Now, go fish. I am a conservative Republican and she is a Democrat, and she made me Education Man of the Year. With that, I do not think there is any real set order. If you have a set plan, then I will do that, otherwise I will go right down starting with Maudine Cooper, Chair of the Emergency Transitional Education Board of Trustees. opening statement of maudine cooper Ms. Cooper. Mr. Chairman and members of the subcommittee, good morning. I am Maudine Cooper, Chair of the Emergency Transitional Education Board of Trustees, and in my other full- time job, I am also president of the Greater Washington Urban League. I appreciate this opportunity to discuss with you the Fiscal 1999 budget request of the D.C. Public Schools. And I also ask, Mr. Chairman, that my entire statement be put into the record. I will be brief. I also appreciate your comments and I can assure you that the trustees will look very closely at those recommendations that you have made. [Chart.] accomplishments of transitional board Since this is my first appearance before this Committee in my new role as Chair of the trustees, I would like to begin by saying what I have seen so far and where we are headed. If you look at the charter we were given by the Control Board in November of 1996, you will find that substantial progress has been made. These range from new principal evaluation systems based on student achievement to new promotion policies that have begun eliminating social promotions. And in my written testimony, there is a list of other accomplishments. Of course, the bottom line is student achievement. And the recently reported gains in the city-wide test scores justify optimism. But we know that parents, taxpayers, and members of this Committee are watching for very tangible results in the following areas, and we have identified only a few: Number one, for all of its logical challenges, summer school has got to run smoothly and produce strong academic progress so that retention in grade is held to a minimum. Number two, schools must open on time. Number three, when schools open, textbooks and supplies have to be ready. Number four, the food served in our schools must be safe, nutritious, and appetizing. And we know that children's view of ``appetizing'' may be very, very different. [Laughter.] Number five, we have to have decisive improvements in the performance of school personnel. That means ample professional development. These will be visible, immediate signs of progress that will further bolster the confidence of our community that DCPS is on the right track. The trustees have every expectation that Superintendent Ackerman will deliver on these points. She knows what a good school system looks like, and she is providing strong, effective leadership in getting us there. superintendent needs help But she will need our help and especially yours in some critical areas, and each has important budget implications. First, we need massive, rapid improvement in personnel and finance systems. Second, the same applies to student information systems. Third, we continue to face a critical facilities problem. special education--need 120 days Fourth, and most significant, we must get control of special education spending. On the issue of special education spending, we also need your support for a legislative change already endorsed by the D.C. Council, that will put us on the same footing as other jurisdictions and give us 120 days in which to complete evaluation and referral processes. charter schools--relationship and Problems I would like to say a few words about the complex relationship between charter schools and D.C. Public Schools. You mentioned that earlier, Mr. Chair. I am proud that the National Urban League is helping to create charter schools in a number of cities. And as Chair of the trustees, I believe Superintendent Ackerman and her staff deserve praise for helping to improve the working relationship between charters and DCPS. But I must report that my colleagues and I share some misgivings about the unexpected impact of the new charter law on our public schools. And, more importantly, on children. We have already seen one charter school fail; and while the adults argued, politics prevailed, and children were scattered to different sites. In the final analysis, thosechildren became the responsibility of D.C. Public Schools. Superintendent Ackerman and her staff, at the request of the Board of Education, spent long hours trying to straighten out the mess. charter Schools--Need Greater Fiscal accountability This episode illuminated some gaps in the framework of fiscal accountability for charter schools. It was the clear intent of the D.C. School Reform Act that dollars should follow students. But in its current form, the law is a one-way street. When a charter school receives 75 percent of its annual payment in October, then collapses in mid-year, it is not clear who has the power to recover funds that may be misspent, or even whether this is an exercise in futility. Given the extraordinary length to which DCPS has gone to establish credible enrollment numbers, now confirmed in a recent audit by Thompson, Cobb, Bazillio and Associates, we should expect routine scrutiny of charter enrollments just as we have of the DCPS. We suggest that some dialogue is in order about how to ensure greater accountability in charter funding. But I think we also need to catch our breath and take stock of this entire phenomenon. With the best of intentions, this city is about to launch more than a dozen new charter schools. Several charters have prudently decided to wait a year before opening but we are concerned that others may be opening prematurely. We ask that you consider a pause in the rush towards charters. Let's make sure that accountability is clear, that the fiscal issues are resolved, and that we are on the same page with regard to the knotty questions, especially special education. budget increase for public schools Finally, I know that this budget appears to reflect a large increase from fiscal year 1998. In raw numbers, that is true, but as Superintendent Ackerman will detail, a substantial portion of this increase is court-mandated and the rest is essential to our reform efforts. I hope that you will consider our proposals in light of the remarkable early progress already achieved. And I hope you will agree with me that pursuing our Superintendent's vision of an exemplary school system is the best investment that we can make in the future of our children. Thank you, and I look forward to your questions. Mr. Cunningham. Thank you, Ms. Cooper. prepared statement of maudine Cooper chair, Transitional board [Maudine Cooper's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Cunningham. Ms. Harvey? Ms. Harvey. Good morning. Mr. Cunningham. You are president of the D.C. Board of Education. Opening Statement of Wilma Harvey, Board of Education Ms. Harvey. Good morning. My name is Wilma Harvey. I am the president of the District of Columbia Board of Education, and the representative from Ward 1, which covers the Adams Morgan, Mount Pleasant, Rock Creek Park, and Columbia Height area of northwest Washington, D.C. I would like to thank you for the opportunity to speak to you on behalf of the members of the elected Board of Education. I will give highlights of my testimony, and ask that my entire testimony be submitted for the record. budgetary process in disarray at local level First of all, let me indicate that the Board of Education has some serious concerns about the budgetary process used this year. The Board of Education has not been able to enter into the type of dialogue it normally does when we are talking about the budget in relationship to our communities throughout the city. For the record, the Board of Education has always conducted public reviews of its budgets, and has gotten input and impact back from the constituents throughout Washington, D.C. The Board of Education has also worked with school administrations in the past to produce a defensible budget and to produce it on time. However, the 1999 budget is not the product of a structured budget process. To be honest, the Board of Education has little documentation to justify the mark of the 1999 budget. I am a little uncomfortable in making this statement but I believe in the reality in how the Board has perceived working through the 1999 budget. For the first time in the history of my tenure on the Board of Education, the process of developing the budget is in disarray, and some of it is due in part because of the situation that exists in the District of Columbia. First, the roles of the appointed and elected Board of Education are not clear. The communities of the District of Columbia were left out of the process. Our charter schools have two separate boards that are operating this year, and, as indicated, up to 12 schools will be funded. This will have a great impact on funding requirements. The current chief financial officer has been on the job only a few weeks. For the last 19 months, we have had four different CFO's. As a result, the budget before you is only, in my opinion, an approximate and preliminary and incomplete document. I take seriously my responsibilities to consult with my fellow colleagues and with the parents and citizens of the District of Columbia. Therefore, it is impossible for me, as the president of the Board of Education, to view the budget in the same light as the unelected Board of Trustees. This budget, although I have serious concerns about the process, is a budget that is needed for the children in the District of Columbia to help with the education reforms and initiatives for our children. We must provide comparable pay for our teachers and administrators. We must create a personnel and financial system, excuse me, I have an allergy. We cannot break---- Mr. Cunningham. Would you like some water? Ms. Harvey. I have some here. Thank you. We cannot break our commitment with the long overdue payments of maintenance and staff support. We cannot neglect our buildings and our special needs children. I will pause and ask to come back after I deal with my allergy, after Ms. Ackerman, please. Thank you. Mr. Cunningham. Thank you. [CLERK'S NOTE.--See p. 171, this volume, for continuation of Ms. Harvey's statement.] Opening Statement of Superintendent Arlene Ackerman Mr. Cunningham. Ms. Ackerman, Superintendent of D.C. Public Schools. Ms. Ackerman. Good morning, Mr. Chairman. Mr. Cunningham. Good to see you again. Ms. Ackerman. Good to see you. We come from similar family backgrounds--educators. Good morning to you and to other members---- Mr. Cunningham. Probably so. My mom and dad are Democrats. [Laughter.] Ms. Ackerman. I am Arlene Ackerman, superintendent of the District of Columbia Public Schools. And I would like to thank you for giving me the opportunity to testify this morning to give you an update on the reform efforts that are currently underway in the District of Columbia public schools, and to discuss the schools' portion of the District's Fiscal Year 1999 budget. I joined General Becton in the Washington, D.C. schools last December and became superintendent on May 1. When I arrived, we set a clear goal for the District. We said and believed that the District of Columbia Public Schools can be, should be, will be exemplary. We know that this will not happen overnight and this is not going to be easy. We certainly have our challenges. But I sincerely believe that this is a doable process, and we are putting together an experienced staff at all levels, which share our vision and have the experience to make this happen. progress during 10-month tenure In the 10 months since I came to Washington, D.C., we have made real tangible progress towards that goal of exemplary status. I am pleased to report good news on several fronts: We recently received our Spring 1998 test scores on the Stanford 9, and our students showed solid progress in both reading and math district-wide between last spring and this spring. And I did attach a copy of the test scores to the statement. We put a singular focus on improving student achievement. We put in place intensive reading instruction, before and after school tutoring programs, and ``Saturday Academies,'' we enlisted the entire community in a reading campaign, and we set academic standards and provided special instruction materials to help support teachers and students. We targeted our second- grade, third-grade, and fourth-grade teachers with special reading instructions. This is all to say that this improvement in test scores was not an accident. It was strategically putting in place strategies that we knew would ensure that we would be successful. We told our students, our parents, aunts, uncles, the entire community, as well as our teachers and principals, that we all have a role to play to help ensure that our students will succeed. promotion guidelines Finally, we built accountability into the system by establishing promotion guidelines for students and telling them they would not be promoted to the next grade without first achieving grade-appropriate skills, and by revising our principal evaluation system to make student achievement 50 percent of their annual performance rating. gains in test results And we did get results. We made gains in every grade where students were tested in both 1997 and 1998. We saw fewer students scoring in the below basic range and more students at the basic and proficient levels. We are moving in the right direction. summer school program for 20,000 students Now, we are putting in place the necessary programs to ensure that we can continue to see improvements in student achievement. Next week, we will launch the largest summer school program in the District's history. We are planning for up to 20,000 students, and as of yesterday, over 17,000 had registered and more registration forms are coming in every day. I am also pleased to say, that many of the students who are now registering are not students who have to go, must go, but rather students who are coming because they ``should'' or ``may'' come, under our guidelines. And that is what we want: we want summer school to be an opportunity for children to get extra help and enrichment. Eighty of 146 schools will be open for summer school from June 29 to August 7. The program will be focused on the basics: 2 hours of reading with a phonics base and 2 hours of math everyday. Instruction will be highly structured. We will have daily lesson plans for every teacher. In fact, I was over at one of our schools yesterday and teachers were coming in, picking up their supplies. They will have their supplies and curriculum on hand on the first day. Classes will be small, with 15 students per reading class and an aid in the reading class also. increases for professional development and staffing In addition, we have included funds in the 1999 budget for professional development for teachers and administrators to support additional improvements in our instruction. Finally, we have included additional staff in the fiscal year 1999 budget staffing formula for schools that continue to show low performance. enrollment count--credibility problem Before I discuss the budget, I want to mention one more piece of good news. Over the years, there have been serious questions about the credibility of our school systems' enrollment count. As you may know, the General Accounting Office did a study of our enrollment process in 1997 and pointed out weaknesses in that area. In response to the study, we did make some changes to our process last year to ensure that we would provide Congress and the Control Board with a credible number. That number, 77,111, was audited by an independent auditor, as required by Federal law, and the auditors found that our count was fairly stated. In fact, while their estimate was within 1 percent of our official enrollment, their number was actually higher than ours. In order to address the issue that non-residents may be attending our schools, we will substantially strengthen our rules next year for establishing District residency, and we started that process this Spring. A letter has been sent to all DCPS parents explaining the requirements of the new rule. And an early enrollment period has been scheduled in August so that we can begin this process early. Over the summer, we will work with the news media, churches, social service organizations, recreation centers, our libraries, all of those who come in contact with our parents so that we can ensure that our parents know the new rules. Now, I would like to talk a little bit with you about our 1999 budget. I recognize that you may also have questions about the 1998 deficit, but since my time is limited, I would like to focus on the 1999 budget and answer those specific questions that you may have on FY 1998 a little later. A detailed explanation of the steps we are taking to close the 1998 deficit is also attached to my statement. increase of $85 million for public schools The city's consensus budget includes $545 million in local funds for the District of Columbia Public Schools. This funding level represents an increase of $85 million from last year's Congressionally approved funding level of $460 million. The majority of the increase is required to fund either increases in the scope of services DCPS must provide orcourt-mandated or otherwise legally required budget increases. special education--$48,000 average cost Special education, as you know, is our larger budget driver. The budget for special education was substantially increased to cover the growing cost of private school tuition. Our average cost is $48,000 per student for students who go to a private, out-of-district program. In addition, transportation costs approximately $10,000 per student to transport our students who receive special education transportation. And these costs are all resulting from the Mills Decree and orders of the Special Master in the Petties case. In this area, we budgeted for an increase of almost $44 million over last year's budgeted level. However, spending could be even higher since we have no way of gauging what other costs these court mandates will generate over the course of the next year. DCPS has undertaken a major effort to reform our special education programs. We are reorganizing, and we are putting in place a community task force to take a look at this, with parents and community representatives, and asking them put forth recommendations to reform our special education program. special education--120 days needed for assessments We also are trying to put in place an infrastructure to support a more timely assessment and placement of students. Since my arrival we have gone from 50 students being assessed and placed a month to over 300. We will also focus on expanding special education programs so that we will have programs within the District to some children. However, we believe that legislative relief is needed to extend the time frame for assessing and placing our children in special education under the Mills Decree. As Chairman Cropp mentioned here last week, the City Council has endorsed our proposal to extend the time line from 50 calendar days to 120 calendar days so that we can achieve parity with the surrounding jurisdictions. I am hopeful that Congress will include legislative language to this effect in this year's D.C. appropriations bill. other budget increases Other legally required spending increases in our FY99 budget include water and sewage charges, previously paid by the city, rent increases, back-pay for our employees who are members of the Teamsters Union, and step increases required by collective bargaining in our agreements. increase of $17 million for reforms The remaining spending increases, which total approximately $17 million, are necessary for our reform efforts. We intend to spend $4 million to increase our starting salaries to $30,000 a year for teachers so that we can compete with the surrounding school districts for the best new teachers. Today, DCPS' starting salary for teachers is at or near the bottom in the region. As a result, we have had severe difficulty recruiting new teachers, and are placed at a competitive disadvantage in reaching the most talented candidates. I believe raising the salary for our new teachers, will help make us be more competitive and that, with higher starting salaries we will be more successful with our recruitment efforts. We also intend to invest $3 million in professional development as we move forward next year in putting in more standards in other content areas. We also have included $8 million for next year's Summer Stars program because we know there are no quick fixes and summer school will be just as important next year. Finally, we are investing in an additional $2.5 million in textbooks in the 1999 budget. We are trying to address the chronic problem of outdated textbooks in our classrooms. We have spent this year $5 million preparing for next year so we will have textbooks, K-12, in reading and math in all of our schools. And they will be in schools in time for the beginning of the new school year. budget categories and comparisons In order to put DCPS' budget in perspective, I asked our budget office to break down the system's spending into functional areas. We looked at instruction, instructional support, non-instructional support, building administration, and central administration, and we looked at the shift in spending in these areas from 1998 to 1999. I also asked them to compare our budget to the Seattle Public Schools budget. They may not appreciate that but we needed to have some basis of comparison that I was familiar with. The analysis shows that DCPS spending on instruction will increase this year, while the percentage of funds used for central administration will decrease. So we are increasing classroom spending and decreasing spending in the central office. It also showed that we will spend the greater portion of our budget on instruction than they did in Seattle, which they like to brag about and we can brag a little bit more. We will be spending a substantially smaller amount on central administration, about 3.3 percent. bloated central bureaucracy I know that there is a strong belief that DCPS has a bloated central bureaucracy, which is another reason I wanted to break it out in a way that we could look at actually what is in central office. I want you to know that the reduction-in-force implemented in May has reduced our central administration now by another 25 percent. We have gone from 646 to now 445. In addition, we have closed the budget deficit by releasing approximately 400 school custodians and other non-classroom based school personnel. We expect to eliminate an additional 200 positions over the summer. In total, we will reduce our staff numbers by approximately 790 positions. conclusion of superintendent's statement In summary, Mr. Chairman, and I know it has been a while, my statement has taken a while, but there is a lot that I am trying to get in. We do have a clear vision and a mission for the District of Columbia Public Schools, and we are making steady progress toward our goal of exemplary status. We know it won't happen overnight but we believe by instituting clear standards for performance, and by implementing accountability systems for the school system, its employees, and our students, we have begun moving toward results. We have a long road ahead of us but I am firmly committed and I do believe that one step at a time, school by school, classroom by classroom, we will reach our targets. Mr. Chairman, that concludes my prepared statement and I am happy to respond to questions. prepared statement of superintendent arlene ackerman [Superintendent Ackerman's prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Cunningham. Thank you, Ms. Ackerman. Ms. Josephine Baker, Chair-- Continuation of Board President's Statement (see p. 146, this volume) Ms. Harvey. Excuse me. Can I just finish my few remarks? Mr. Cunningham. Briefly, yes. Ms. Harvey. Thank you. I will be very brief. Mr. Cunningham. Are you okay now? Ms. Harvey. Yes, I have these allergies that are acting up this morning. I do apologize. I would like to leave with you, Mr. Chair, and members of the Committee, the following questions: What resources would be available in the schools? How much discretion will be given to local schools in using these resources? The elected Board of Education strongly believes that the 1999 budget must provide parents with the assurance that their children will have well-qualified teachers and administrators who are paid accordingly, that well planned instructional programs are in place with support required such as textbooks, instructional materials, and computers, and that all schools are safe for children to learn in and to attend. These must be the major priorities in the budget. In short, parents will measure the budget by its means and what happens in the local schools. The parents and the citizens of the District of Columbia want the same thing for their children as other communities throughout the country. Taxpayers of the District of Columbia expect the same level of accountability that is demanded by taxpayers elsewhere. And I am confident that this can be accomplished because the children of the District of Columbia deserve no less. Thank you. Prepared Statement of Wilma Harvey, School Board President [Ms. Harvey's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Cunningham. Thank you, Ms. Harvey. Opening Statement of Josephine C. Baker, Public Charter Board Mr. Cunningham. Our next witness is Ms. Josephine Baker, Chairperson of the D.C. Public Charter School Board. Ms. Baker. Good morning, Mr. Chairman, members of the subcommittee, and distinguished colleagues. I am Josephine Baker, chairperson of the District of Columbia Public Charter School Board. I am delighted to have been asked to testify on behalf of public charter schools this morning. And, yes, we are working to make schools better. During my testimony today, I will cover four topics: One, the fiscal year 1999 budget request for public charter schools in the District of Columbia; Two, the fiscal year 1999 budget request for the District of Columbia Public Charter School Board's operations; Three, recommendations for possible changes in the District of Columbia School Reform Act of 1995; and Fourth, a summary of what the D.C. Public Charter School Board has accomplished over the past year, particularly in the area of accountability. FY 1999 Budget for Charter Schools The fiscal year 1999 District of Columbia budget request of $12,235,000 for public charter schools falls far short of what is needed to support the number of students who will be enrolled in public charter schools when public schools open in the Fall of 1998. At a base rate of $5,500 per student, with no allowance made for grade levels or students with special needs requiring higher funding levels, the amount requested will support only 2,225 students. The Board anticipates that in September, 1998, 2,275 students will attend schools we recently chartered. If you add this number to the number of students who will be enrolled in the 11 schools chartered by the D.C. Board of Education, the problem becomes frighteningly clear. All of us have promised alternatives to the families and students in Washington, and have raised hopes and expectations among communities. We look to the Congress to ensure that promises are kept and that public charter schools are fully funded. Increase for Charter Board The D.C. Public Charter School Board is requesting an increase of $80,000 in its appropriated funds for fiscal year 1999, from $400,000 to $480,000. number of charter schools In Fall 1998, 8 of the 10 schools the Board recently chartered will be in operation and the Board anticipates awarding up to 10 new charters this year. Suggested Changes In Charter School Legislation We have learned much during the past 15 months about the District of Columbia School Reform Act and how to work within the framework it provides. However, there are two provisions of the law that if changed would strengthen efforts to charter schools that will be successful. The law requires that public charter schools admit students using a random selection process when there are more students than there are spaces available. The law should be changed to make it more family friendly. The random selection provision for new public charter schools should give preference to siblings, just as that preference is given for existing public or private schools that convert to public charter school status. The authorization of the D.C. School Reform Act should be extended beyond the current April 2001 expiration date. Stability and consistency in governance and oversight are critical in the success of any new venture, especially one that makes the kind of break from tradition that public charter schools do. It is imperative that the structure and direction provided by the D.C. Reform Act remain in place for enough time, 10 years, to permit real change to occur and to take hold. charter board's application review process As a Board, we have been consistent in our determination to ensure that attention to accountability is evident in the operations of the schools we charter and in our own work. Accordingly, we have focused our resources over the past 15 months on building and strengthening what we believe to be the four pillars of charter school quality and accountability. First, the Board created and managed a carefully designed and rigorous application review and decision process to be sure that the applicants approved for a charter offer an exceptionally strong educational program and have a high probability of success. Second, the Board is structuring comprehensive and legally sound charter agreements that are individually tailored to each school's structure, mission, goals, and educational programs. Third, we are working in partnership with our first cohort of public charter schools, providing them with guidance and technical help in the development and implementation of school- based accountability procedures that will enable them to: (1) set challenging but achievable goals; (2) track their progress toward goals; (3) make program adjustments when needed; and (4) report to parents, the community, and the Board on their performance progress. Fourth, the Board is completing its own procedures for monitoring each school's progress. ensuring accountability (see p. 185) Mr. Chairman, I have attached a document to my written testimony explaining our efforts to ensure accountability and ask that it be submitted for the record. And, Mr. Chairman, and members of the subcommittee, on behalf of the D.C. Public Charter School Board, I thank you for the opportunity to speak to you today. I will be happy to provide more information about our schools and our joint efforts to ensure success and accountability. prepared statement of josephine c. baker, charter school board [Ms. Baker's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Cunningham. Thank you. Thank you very much. We have been joined by my colleague, Congressman Jim Moran. Jim, do you wish to say anything before---- Mr. Moran. No, that's okay. Mr. Cunningham. Next we have Ms. Gloria Jarmon, a director with the U.S. General Accounting Office, which we rely on a lot. opening statement of gloria l. jarmon, gao Ms. Jarmon. Mr. Chairman, and members of the subcommittee, I am pleased to be here today to update you on the status of the D.C. Public Schools' roof replacement. This really updates you on a report that we issued in March this year. I would like to briefly summarize my statement and ask that the full statement be made part of the record. I am going to update you on four issues: First, availability of funds; secondly, the current status of roof repair process for 1998; the estimated cost of the roof repairs; and, fourth, the additional capital improvement plans for Fiscal Year 1999 through 2004. school roof replacements--$84 million available First, on the availability of funds, again, funding is not an issue, at least $84 million has been designated for roofing and other capital improvement project work during fiscal year 1998. On the current status of the roof repair process, 38 schools are planned to have roof replacement work done during Fiscal Year 1998, five of those roof replacements have already occurred. They occurred in the Fall of 1997. For the remaining 33, the plan is to start sometime in early July. Of those remaining 33, 8 of them will be managed by GSA. And the remaining 25, by DCPS. And of the remaining 25, most of those contracts were awarded last week, for 23 of the 25 schools. Estimated cost of the roof repairs, the cost of those 38 roof repairs are estimated at $34 million for fiscal year 1998, and $28.4 million of that $34 million is for the construction contract, and about $5.8 million is for design work, contract management fees, DCPS salaries, and 8 percent for a contingency. The fourth area, additional capital improvements for fiscal year 1999 and beyond, in the capital improvement budget indicates that about $27 million will be spent on roof replacements during the next six years with about $14 million designated for 1999. Mr. Chairman, and members of the subcommittee, this concludes my brief summary of my statement, and I will be happy to answer any questions. prepared statement of gloria l. jarmon, gao [Ms. Jarmons prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Cunningham. It was a very brief statement. Thank you. Mr. Moran, would you want to make any opening statements? Mr. Moran. I do not need to make an opening statement, Mr. Cunningham, as much as I do have a number of questions that I want to ask of, particularly the school system themselves, so probably, Ms. Ackerman. Have you asked those questions? Mr. Cunningham. Not yet. We will just start here. Mr. Moran. We were under the impression that the hearing started at 10:00 so I will try to catch up to where we are. Can I go ahead Mr. Chairman? You are in charge here so shall I ask some questions of Ms. Ackerman? Mr. Cunningham. Go right ahead. special education--restrictive 50-day limit Mr. Moran. Okay. Let's talk about special education first. I understand that you have gotten some relief for the restrictive 50-day limit imposed by the court decision, I believe it was the Mills decision? Ms. Ackerman. The Mills Decree. Mr. Moran. The Mills Decree, but you are no longer limited by that 50-day requirement? Ms. Ackerman. No, we are still very much limited. Mr. Moran. Well, somebody told us in the last hearing we had, that that has been fixed. I think it was Dr. Brimmer or Council Chairman Cropp. So that is no longer a problem. We have addressed that? The City Council made a decision to extend, the time period. Ms. Ackerman. Yes, the City Council did pass, endorse the release that we asked for. But we need Congressional approval. Mr. Moran. So you are still operating under the 50-day limit? Ms. Ackerman. On the 50-day, yes. Mr. Moran. And the 50-day limit obviously does not work. It is too restrictive. It is the most restrictive in the Nation. Ms. Ackerman. Right. Mr. Moran. And it is one of the reasons we have so many families gaming the system---- Ms. Ackerman. Yes. Mr. Moran [continuing]. From what we understand. You are requesting a total of 120 days, though? Ms. Ackerman. Right. Mr. Moran. Which would take it from the shortest time period to the longest period. Sixty days for setting up a plan and then another 60 days for actually placing the students. Ms. Ackerman. Right. Mr. Moran. Wouldn't it make more sense to make it say 30 days for placing the student? Two months seems to be a long time to place the students. How about a little compromise, maybe 60 and 30? Ms. Ackerman. No, but we are certainly willing to compromise here. I think what we were looking at was the average in the surrounding school districts, but 50 is---- Mr. Moran. Is it the average? Ms. Ackerman. It is around 120 days. Mr. Moran. Because I am told that 120 would be the longest time period that any school system would have. That is not the case? Ms. Ackerman. I am sorry. I am hearing something in the back. Virginia is 121. So we just looked at---- Mr. Moran. Virginia is 121? Ms. Ackerman. One hundred and twenty-one. Mr. Moran. Do you know what Maryland is, off-hand? Ms. Ackerman. One hundred and five. Mr. Moran. Okay, I was not aware that Virginia was 121. Okay, apparently the issue is placement, the 60 days to place the student after you determine what the education plan should be, would be the longest. So Virginia must take more time to develop the education plan and do the review, determine the need. Ms. Ackerman. Right. Mr. Moran. It just strikes me that, I do not want you to be the longest. I would rather you fit in, right in themiddle someplace. But 50 days, that was another in what seems to be a series of court decisions that reflected poor judgment on the part of the court, as far as I am concerned. Why this would not have been fixed before now boggles the imagination. And, given the fact, it is such a financial burden to the school system and given the fact that we have so many families that apparently are gaming the system through clever lawyers taking advantage of the situation, knowing that you do not have the ability to review special education needs in that time frame, it is surprising we have not done anything. But I am glad that something will be done. And I would like you to check on if it is consistent with Virginia or Maryland, or if it fits right within what the rest of the region is doing, that would be fine. duke ellington school--question of excess teachers Let me ask you about the Duke Ellington School. I understand that whereas Duke Ellington has a graduation rate of over 90 percent going on to college, that 18 teachers are going to be let go, six were going to go anyway, but you are essentially firing another 12? Ms. Ackerman. No. Mr. Moran. Is that not true? Ms. Ackerman. I do not know where that number is coming from. I am now in the process of looking at the final number of excess staff at Ellington and trying to verify that. I do not think there are 18 teachers, though. In the last month we have looked at excess teachers in schools across the system. As we were trying to close this budget deficit, we looked at areas where we were spending and where dollars were not allocated in the budget for that spending. And one of them was excess staff in the schools. We found $7 million was being spent on excess staff in the schools. I do not know any school that lost 18 teachers. But I think Ellington lost about 10 percent of their total staff. It should have been about 10 teachers but I am looking in to that now and I expect to have that information soon. And nobody was fired. None of the teachers were fired. All of the teachers have an opportunity to seek placement in other schools, and I believe we will find jobs for them. I was trying to make sure we are holding schools accountable for their staffing standards, which we have not done in a very long time. competent, qualified teachers should not be fired Mr. Moran. Well, I read the articles about the measures you have taken. And they seem terrific. They have been very positive articles. Obviously, there is a lot of public approval of what you are doing, particularly, since it is eliminating administrative layers which seem to be excessive, particularly compared to other school systems. But I do not think anyone has been pressuring you to get rid of teachers, unless they are clearly non-performing. But to reduce teaching staffs just to reduce the number of personnel in the school system is not something anybody wants. If you are finding that teachers are not certified or, more importantly, if they are not producing, then that should be done, but I would hope you would never feel compulsion to fire teachers that are performing just to get down to some kind of personnel level. Ms. Ackerman. No. Mr. Moran. Certainly not to meet a level that was occasioned because of high administrative staff. Ms. Ackerman. No, even with reducing Duke Ellington and some of the other specialized schools, they are still above the staffing for other schools, due to the fact that they have special areas of emphasis. But we had some schools that had as many as 20 teachers over the staffing allocation. Now, those teachers will not lose their jobs. They will be absorbed in the system. So no teachers are losing their jobs. We are not firing any teachers. We are, though, shuffling the teachers so that they are appropriately placed. But I will look at Duke Ellington because I have heard the 18. support for low student-teacher ratio where warranted Mr. Moran. Good. This is just a personal comment but as far as I am concerned, I do not want you to be reducing teachers that are producing, even if they are above the norm in terms of teacher-student ratio. I think if we want to get excellence out of our school system, the smaller the student-teacher ratio, the better. And I know you have limited resources but there are other places where I would hope you would look. If Ellington or Banneker or any of these schools are consistently getting 90 percent of their kids into college, whatever they are doing is worth the expense as far as I am concerned. I would like it to be replicated in other schools rather than drawing their resources to put into other schools. I have no problem with pushing for more money for the school system as long as it is money that is going most directly into teaching and improving the outcome. I do not want to see--and I am sure you would not want to leave any kind of a legacy that was associated with reducing the quality of any of the best performing schools. When we want to promote D.C. schools, it is the few schools that we can really use to do that. I hope that we continue to have that opportunity. I have taken up my time, and I will let us move on. And we have other questions that I want to ask you for the record, particularly with regard to facility maintenance. Mr. Cunningham. Thank you, Jim. special education--concern over advocate attorneys I would look at a couple of different areas. As I mentioned in my opening statement, we understand that the monumental burden that special education places on the schools, not only monetarily but in the training of teachers themselves, is not limited to D.C. My sister-in-law is one of those teachers, a principal now. And when we were doing the special education bill, like I said, there are certain things that we wanted to come through. For example, the first time a parent comes to the school, I think it is unreasonable that an advocate lawyer accompanies. We wanted that parent to be able to come to the school in good faith and say, ``My child has a problem. Will the school work with my child?'' without having to pay a lawyer. And that was the incentive of legislation. The lawyers have tried to circumvent that by signing up the parents. And what I will do is promise you that we will revisit the IDEA bill. I was very proud of it when the President signed it. Did it make all the changes that we wanted? No. Another problem area we had was in the area of discipline. For example, if a sight-impaired child was caught selling drugs, you could not treat that child as a normal child even though it had nothing to do with the problem. These are some of the changes that we tried to make. special education--120 days for assessment and placement Also, the IEP, I think it is very reasonable that a school have 120 days to complete the assessment and placement process. There are certain children, for example, that have dyslexia that you do not know have dyslexia because they cannot read in the first place. You have the time to identify these children andto put them in quality programs. We are very familiar with the different issues of that. Unfortunately, in our government, things take too long. Just like in your own system, transformation will not happen overnight. But I will guarantee you that we will work in that direction to try and help. I think maybe with regard to placement, once you decide what are the problems of the child after the IEP, Individual Education Program assessment, then maybe you could place that child a little quicker. Tension Between Elected and Appointed school Boards I sense a turf battle in some of the statements from the elected Board to the appointed Board to the superintendent. Maybe there was not a direct link. Basically, I think the D.C. school system was put in Chapter 9 and that is why there was a board appointed to take over. And I think sometimes--I am an elected politician myself--but I also know that sometimes private could probably do it better than our elected politicians because private enterprise does not have such a political environment. For example, we are going through a vigorous campaign finance reform right now addressing the influences of outside interests. And I think we could appoint a board to do that and to take charge of that and make a recommendation. But at the same time, I would recommend that the board incorporate, and encourage and listen to, the elected officials that reach out there and touch the citizens. There is an advantage and a disadvantage. The advantage is that in an appointed body you can be more business-like in your business practices in running the school. The disadvantages of an appointed board is that they do not have the sense and the pulse of the constituents to add into that. And if you do not work together, then I think there is going to be a conflict. And I sense that from the testimony. Maybe I am wrong. Ms. Harvey. Could I just respond to that? Mr. Cunningham. Yes. Elected Board Supports Superintendent Ackerman Ms. Harvey. As president of the Board of Education, I just would like to really make the record extremely clear, that the Board of Education is 100 percent in support of Ms. Ackerman and her administration. We have worked closely with Ms. Ackerman since she has come on board. Ms. Ackerman has been very supportive to the Board of Education, especially when we had to revoke the charter of one of our schools. I am the president of the Board and I sit on the Emergency Board of Trustees. I have sensed a different atmosphere and tone recently on the Board of Trustees that makes me feel as a representative of the Board of Education a sense at least we can carry forth a concern that is raised by the constituents that we serve. I do agree with you, sir, that because I am elected, as an elected official, we do have to respond to those needs of the community. And what I was trying to say in my opening statement is that because of the concerns raised in the community around the budget process with the various constituency not being able to have dialogue, then that was the way in which we needed to improve the budget process for the next coming years. Mr. Cunningham. I agree. I do not disagree with that at all. As a matter of fact, our Speaker says you have got to be able to listen before you can learn before you lead. Ms. Harvey. Right. Mr. Cunningham. And I think that is the problem with a lot of things is that people do not listen enough and they try and lead without incorporating that. All I am saying is I recommend a little closeness even on the budget. My wife, as I said, is a principal of two schools and I see her wringing her hands sometimes with the parent groups, and the teachers. I know those battles very well. It is like I am in the principal's seat because I hear all the problems between the students, the parents, and the different interest groups. Another thing I would recommend is if I was a superintendent, just like I am maybe a CAG or a commanding officer in a fighter squadron, I gave my department heads authority. I said, ``Here is the rudder. You do it. You are responsible for your department.'' A little guidance, but hands off. You make them break or make their own schools and give the power to the principal. A lot of that does not exist in the State of California. The superintendent controls a lot of the things. And I would think that the lower the level that you can reach down to the students, the better the schools can be. Charter Schools--Accountability I am interested in the charter schools. I appreciate the example of a charter school failing in the spring that has all of its funds from the past October. I can understand that. What happens to the funds once a school fails? But if you are mixing apples with oranges, take a look at the D.C. school system and its record versus losing one charter school in a new system. You have got one charter school that failed but I know across the country charter schools are blossoming. And it is a welcome relief to the system. I believe personally most of the children go to public education. My wife is in public education. As I say, I was in public education. And that is where we need to bring up the level of education, not just in D.C. but across the country. But we also have to be able to support these new initiatives that cut the cost per student, that drive in a positive direction. Testing of Principals And I was very, very happy to see that you have testing programs for principals. We have some teachers in California that are retired on active duty. They do not improve themselves. That is why I supported the Eisenhower grants to upgrade the teachers' skills. If I wanted a teacher that could teach computers in 21st century technology, how is she going to do that if she went to school 40 years ago, or 30 years, or even 10 years ago? Charter Schools--inadequate Funding So I do not disagree with you. But I would also say that although I am a very strong proponent of charter schools, with 12 additional charter schools, the responsibility is monumental for accountability and direction. And also we have got the responsibility to make sure we fund them so that they are not under-funded. We must not give you a course in the wrong direction that sets you over the edge of the world before you ever start. Public Charter Board--Process For New Schools Ms. Baker. That is a statement well received. I would just like to say, and I think I alluded to it in my comments, that the D.C. Public Charter School Board started up front, at the very beginning of its application process, dealing with accountability, and using technical assistance provided by experts in business and finance in the city who came and looked at every application and made comments about the business and financial plans of those applications. Their comments were used by peer reviewers, who came from many walks and many professions. And now accountability plans are being developed with each individual school that did indeed get approval. So that before they open their doors, there will be a substantial accountability plan in place. And that isthe way we are working---- Mr. Cunningham. Even though I am a strong supporter, we will hold you to that. Ms. Baker. Well, we want to be held to it. We want to be held to it. And we want to be sure that in the process the funding that is necessary for these schools to be successful is not something that we will have to wonder about. Mr. Cunningham. I see I have gone over my time but what I will do is extend my time and then I will come back to Mr. Moran so he can go. And I will just take mine up front. Charter Schools--Elected Board's Process Ms. Harvey. I just have to say one point because the D.C. Board of Education is also the other chartering agent, and as the other chartering agent, we, too, have put in place an extremely stringent monitoring process, and a schedule, and we work very closely with the two running charter schools and we work very closely with the nine remaining charter schools that will come on board in September. So the Board of Education is truly trying to work with the charter schools on the issues of accountability, standards, and educational concerns and et cetera. Charter Schools--Comparison With Public Schools Mr. Cunningham. How do you see the charter schools, any of you, doing compared to the public school system? Ms. Harvey. My honest opinion is that in some of the monetary reports that we have gotten on the remaining three that are working, we have one that is very outstanding, is doing an excellent job. There is some work that needs to be done. It is a new area. There needs to be some training for boards of charter schools so they can understand what ``boardsmanship'' is, what the policies are, and how they interface with the chartering agent, being in this instance, the Board of Education or the other chartering board. Now, what the Board of Education has tried to do is work collectively with the chartering board so that we cannot duplicate efforts in relationship to our responsibility and oversight of the chartering boards of education. But to be very honest with you, we do need to look at how we can modify and adjust some of the issues around charter schools to give us the flexibility to work with them more effectively. Transition Board--Charters Will Continue to be Awarded Ms. Cooper. Mr. Chairman, my testimony was so specific today. We did not ask for a cessation of the awarding of charters, we simply asked for a pause while we look and address some of these various issues. We keep bringing the schools on and no one is stopping to put in all the processes that are needed to make sure that they are working. And I started, also, by saying in my testimony, that as a national organization, we support charters. That is not the issue. The issue is with 19 schools under our wing as charters, we need to make sure that the processes are in place so that the superintendent does not get called by the Board of Education who say, ``Can you help?'' Or something does not happen with one of the charter board's schools, God forbid, and she is once again called to try to straighten it out. We need to just take maybe a year and the two boards working together, with the superintendent, to make sure that if those schools close or have a problem, then the impact and the role of the superintendent is clear and manageable. Mr. Cunningham. Are you working together--is the dialogue there today between the boards and the superintendent? Public Charter Board--Relationship With Charter Schools Ms. Baker. A dialogue with the Board of Education's Committee on Education was established almost immediately by this Board when we were authorized to become a Board. I have a strong relationship with Mr. MacLaury, had a strong relationship with Robert Childs, and had made contact with General Becton I am in the process of making contact with Ms. Ackerman. So that we are continually working toward maintaining good communication and dialogue. In relation to finance and how that is to work, that is a key element of our charter agreements which require that schools give the Board a monthly financial report. We are setting up a system where each of our schools will be electronically linked to our office. They will electronically send us financial reports and other reports that they are required to send on a monthly basis. So that when we go out to monitor, we will already have financial and statistical data that will enable us to assess a school's programs and identify potential probelms. And there are other safeguards that are built into our charter. It is unlikely that a school would be able to completely fall off without our knowing it. All kinds of red flags will go up before us because we are asking for that kind of information. Mr. Cunningham. Ms. Harvey are you in agreement? Ms. Baker. Well, they are not familiar with our process. That is the process that has been developed by the D.C. Public Charter School Board for the schools it charters. Charter Schools--Impact on Superintendent When Charter Revoked Ms. Harvey. I think the issue that really lies is the revocation process. The Board of Education, the law says that if the Board of Education, or any chartering board, revokes a charter, then the Board of Education takes over the responsibility for the operation of that charter. At the current time, we do not have the capacity to do that. So, as a result, we have to go to the administration. So that is why I am saying that something needs to be worked so we do not overload the superintendent. But we do monitoring with the charter but it comes to the issue of a revocation, when a charter is in crisis, as a chartering agent, what role does the chartering board play and what capacities are provided for us to carry that role. Student-Teacher Ratio and Per Pupil Costs Mr. Cunningham. Let me ask one last easy question, a quick one, before I go to Mr. Moran again. Now that you know that there are 77,111 students, plus or minus 1 percent--I will take that in a poll any day--do you think you can get a handle on the cost? First of all, if you have 15 students per classroom in summer school, what number does that place in the normal school year per classroom, on average? And the cost per student? You can provide that if you do not have those figures available. But I would like to see. One of the driving factors for better education is smaller classrooms. If you have 30 students and a teacher with no help in that classroom, it is very difficult. Just for my own information, I would like to see what your average classroom size is and what the cost per student is. I know it cannot help when you have got to invest and do roofs and infrastructure. That all fits into the budget. But I would like to thank you personally. These are always educational for me even though you deal with these issues everyday. Education--Interference of Interest Groups The only problem I have is so many times I see politics interfere with what we really need to do for children, from outside interest groups, like the unions, and some private groups as well. So I hope we can set thoseaside and push on and do what we actually do is provide for children instead of interest groups. Jim? Remarks of Congressman Moran Mr. Moran. Thank you, Mr. Chairman. I am reading through Maudine's statement. I have known Ms. Cooper for some time in a number of capacities. Welcome, aboard. I am happy having you chairing the Board of Trustees, although I did not have as much of a problem with the Board of Trustees as a lot of people did, I am happy to see you where you are. And this is an excellent statement. I could not take issue with anything. I do not take issue with anything that anybody else has said. NEW SCHOOL FACILITIES--LEASE/PURCHASE ARRANGEMENTS But let's talk about some of the implementation. First of all, we have got to build a whole new physical school system. We have got far too many buildings, as you know, that have outlived their useful life. I do not think we are going to get the public funds we need to do that. Would you look into the possibility of having private developers build the schools and lease them back to the school system so that you did not have to put up the money up front, nor did the Federal Government? But since we have to educate kids every year, there has to be an annual amount going to pay for their education and the use of their buildings. It seems to me that if you could lease them, with private ownership, and there would be some tax advantages for the private sector to undertake that, that it could become an attractive opportunity for the private sector to build some of these schools, leasing them back without the front-end costs. You would probably get some very good schools at lower costs, perhaps, than it would cost the public sector. And I think it is the kind of thing that we might be able to better help you with. So I would like for you to look into that possibility. I think they have tried that in other places. I know that we have done it in other circumstances. We build lots of Federal buildings--the private sector does and then the Federal government simply gives them a determinant amount of time and lease costs so that they are guaranteed a lease and it becomes a profitable venture on both sides. We have this arcane scoring system where we have to find an offset in the year in which the school is built instead of paying for the school over its useful life. So I would hope that we could look at something like that. The D.C. school system might be a good place to start. SUMMER SCHOOL--IMPACT ON CRIME REDUCTION I am just elated that you have got 20,000 kids in the summer school system, not only for academic reasons but I think it is going to help a lot in terms of peace in the neighborhoods, and reduce crime. I know in the suburbs crime in every area has gone way down except from the hours of 2 to 5 o'clock. That is where the crime is increasing and we know exactly why. It is young people with nothing to do. Putting 20,000 kids in productive activity in summer school is just wonderful. VOCATIONAL EDUCATION--IMPROVEMENTS NEEDED Let me address vocational education a bit because I think that is one area where the D.C. school system has dis-served much of its population. There are a lot of jobs out here. You pick up the Washington Post, and there has got to be 50,000 jobs available on any given week in the area. And a lot of those jobs, at least half of them, do not require a college education. They require some specific skills. And many of those skills can be taught in high school. But when I ask about vocational educational, it seems as though we have very little going in the way of vocational education. We are starting some charter schools I understand that are focused on specific skills training. And I have been involved in some of that. I am excited about that. But we ought to be doing more within the traditional school system in that respect. And we ought to bring in more teachers, more people with career experience in that area to do some teaching. Not having sufficient certified teachers from the teaching schools should not be too much of an impediment. We ought to be able to find people in the private sector. And there are a lot of companies that are just begging for workers--who I know because they have told me--would love to lend people to the school system to teach those specific schools. And one in particular is construction. We have tried unsuccessfully in the past to do that. But I do not know why we cannot have a vocational training school that teaches specific trades, whether we bring in labor, we can have union and non-union teachers. That has got to be worked out and that should not be the obstacle. But we have skilled tradespeople who I know construction companies would pay just to teach those specific skills to high school students. And we can be doing that in the summer too. I know that you agree that if a child is not going to go on to college, it should not be the end point of our responsibility to see that they are going into the workforce when they get out of high school or going to some kind of advanced training. COMMUNITY COLLEGE SYSTEM IN DISTRICT INADEQUATE The community college system is also deficient in the District compared to what we offer in the suburbs, it, again, is a disservice to our young people. So I would like for you to tell me a little about what you are doing in the area of vocational education, and maybe--I don't know who can address what we can do in terms of community colleges? But let's talk about vocational education? VOCATIONAL EDUCATION--SUPERINTENDENT ACKERMAN Ms. Ackerman. Okay. It is certainly an area that we are now revisiting. We have gone through, as we do in education, sort of trends where we move away and then we come back. We have now come, I think, full circle, around vocational education. We realize that not all of our students go from high school to college. Many of them may eventually get to college but in between there are some work-based experiences that they must have. So we are looking at that and folding into our new School-to-Work Program a new vocational educational emphasis. Some of the finest vocational education programs, I think, in the country were here in Washington, DC, for a while, and they have been dismantled. VOCATIONAL EDUCATION--IMAGE PROBLEM Mr. Moran. Well, we cannot reform schools it seems. It seems as though other school systems were just dumping kids that were disruptive into the vocational education schools. And it was a stigma to even go to those schools. But they started out as wonderful opportunities. Ms. Ackerman. But I think we should be folding vocational education into the comprehensive high school so that it is not seen as coming from the outside. It has got to be built into the comprehensive program which is what we are doing now so that students have opportunities to get those kinds of work- based experiences and skills. Personally, I went on to college but I did take business education classes in high school that helped me throughout my college career to have summer jobs. So I think there is away to build them into our comprehensive high schools which we are trying to do as we set up the career academies in our high schools and also partner with some of our area businesses. I think you will see us now moving in that direction but putting programs in our high schools, instead of outside them, in alternative schools. And we can still have a couple of those. But its better to put them into our comprehensive high schools and make those programs available knowing that all students are eventually going to get to the world of work, but some get there sooner than others. And some take detours and go to college. But even with that they need those work-based experiences and they need to develop the skills that they can fall back on. APPRENTICESHIP PROGRAMS AND VOCATIONAL EDUCATION Mr. Moran. Do we have businesses offering apprenticeship programs during the summers, for example? Ms. Ackerman. We do and we are getting more of that. We just wrote a $9 million School-to-Work grant and it looks very hopeful. We are using the School-to-Work initiative to put back in place some of the vocational educational programs in all of our high schools so that there are some experiences that all students will get. So we are where you are and unfortunately it has taken us a while in education to come full circle. And there are students who have sort of been lost in that black hole because they were not going to college and they did not get the skills. But we are there now and we are in partnership with the businesses here. So we are there and I want you to know that we have revisited this. It is one of the things that we have put in place in the new initiatives. Mr. Moran. I would like for us to publicize some of those businesses that are reaching out and providing that kind of opportunity---- Ms. Ackerman. Okay. NEED TO BRING VOCATIONAL EDUCATION AND ACADEMIC PROGRAMS CLOSER Mr. Moran [continuing]. In collaboration with the school system. Ms. Cooper. If I could just add a little personal note on that. I am a product of the St. Paul-Minnesota school system. We had a system whereby you could get your certificate in vocational educational and still get the curriculum in the public school system. It allowed me to go to school and to work while I was there. I think somehow with the divorce of vocational education and the academic programs, you do have that stigma. So I think that as we go along in this planning process of bringing those closer together we remove the stigma. It will also remove the dumping ground mentality that goes into the thinking of some around vocational education. I have the greatest respect for vocational education and some exciting things are happening. And as we get those functions going, we should provide you with a list. We will keep you posted because some things that were talked about the other night in one of our sessions suggests that the superintendent is heading in the right direction not only in terms of vocational education but in alternative education for those who dropped out or felt themselves pushed out. So I think you are going to hear some very exciting things. ADULT BASIC EDUCATION Mr. Moran. Are we doing some things in terms of adult basic education as well? When you say they dropped out, essentially they become adults once---- Ms. Cooper. Exactly. Mr. Moran. So it really is an adult basic education; and we are using the schools in the evenings? UDC PICKING UP SOME ADULT EDUCATION PROGRAMS Ms. Ackerman. Well, we have those programs now and adult education is also going to be available through UDC. They are going to be taking over some of those programs. But we do have students who are older students who have dropped out and they are back in, and we are providing them with alternative ways to get their high school diploma, other than at a traditional school. But I believe the academic process and the vocational education process should be linked, because it is another way to keep students in school. Mr. Moran. Wilma wanted to say something. BELL MULTI-CULTURAL HIGH SCHOOL Ms. Harvey. I just wanted to add, we just finished the graduation season here in the District of Columbia. And I just wanted to bring up one example of where we do have currently in place at the Bell Multi-Cultural High School in the ward in which I have had the honor of representing for the last 12 years where students actually receive a diploma from the D.C. public schools where they have met the academic requirements but they were also given a certificate for an accomplishment in vocational area. And there was a young lady that graduated and got a certificate in cosmetology, but also met the academic requirements. And I think, as Ms. Ackerman said earlier, we are doing it school by school. And if we continue to move the process, we can rebuild the vocational educational programs within the D.C. public schools. Mr. Moran. Terrific. Charter schools? CHARTER SCHOOLS--ADULT EDUCATION COMPONENT Ms. Baker. Charter schools, yes. We do have, of course, the Rosario School, which serves particularly the immigrant population. So that is certainly an adult education component. Also, a number of our schools, at least two of them, are dealing with young people who have been involved in the juvenile justice system, some who are drop-outs who are now coming back into small settings where they will get the kind of support that they need so that they can indeed graduate with high school diplomas or with GEDs. So charter schools are in another way filling an important gap. We are trying to make sure that we can close that gap and keep these young people moving forward. CHARTER SCHOOLS--AUTO MECHANICS PROGRAM Mr. Moran. George Stark was trying to develop a couple of charter schools. I think he has. Are those going okay? Are they getting the basic education in addition to these skills? Ms. Baker. Stark is not one of my applicants. Mr. Moran. No. But I think it is within the---- Ms. Harvey. The public school that you are referring to is a part of an academy school model, which is headed by Ken Amos. And Mr. Stark's program, the auto mechanics program, will be starting in September of this particular school year. Mr. Moran. September of 1998? Ms. Harvey. Of 1998. Yes, we approved that charter, and we have met, on several occasions, with the entire group that is going to be working with that particular charter. They have an auto mechanic program and then they have a campus approach, an academy model approach. And that will be an academy model. The youngsters will go through the auto mechanics aspects of that charter school. CHARTER SCHOOLS--HOSPITALITY HIGH SCHOOL Ms. Baker. There is one other and that is the Hospitality High School---- Mr. Moran. Yes. Ms. Baker [continuing]. That is being sponsored by the hospitality industry. They will not open until 1999, at their own request. They want to make sure that they have everything all lined up. Students will get a full academic high school education and will also have an opportunity to move intothe hospitality industry here in the District of Columbia, which, of course, is---- Mr. Moran. So it will be one of the charter schools. That is all very positive, Good. Thank you. Roof Replacements--Completion in time For School Openings Mr. Cunningham. Let me ask a question on looking at the last term. When you were putting the new roofs on the schools, the problem came that there was no slack time, that the roofs were not ready when the school opened. If you are going to build a car for Indy 500, you want the car there for the preliminaries, not just the race. With these 38 roofs that you are going to put on, is there some slack time in there to make sure that we have them finished by the time the school starts? And also last year, I remember that a couple of the schools were broken into because they did not have security. When you have them open for maintenance or something, someone finds an opening. They are going to get in there and steal computers and things. So we have a need for security. Do you have a plan to have the schools open on time? Ms. Jarmon. The contract we looked at, one of the contracts that was awarded and the plans we have looked at show that the work will be substantially complete by August 15 and finished by the end of August and the school is scheduled to open September 1. Ms. Baker. But you do not have it locked---- Mr. Cunningham. Okay, I would hold the contractor accountable. ``Oh, well, my dog had to take it to the market, had to do this and that.''[Laughter.] Let's just make sure we ``hold their feet to the fire,'' as we say. Communities Support Successful School Systems I have a prediction. Do you know who Jaime Escalante is? And I would ask you how many of the parents supported Jaime Escalante when he first started? How many of the students? They thought he was nuts. The school boards thought he was crazy. He insisted ``Dammit, I am going to teach kids math. I can do that. I do not care if they are minority kids or what.'' And after he started, the first thing is he got the kids behind him; then he got the parents. Was a rejuvenation. And then the parents started volunteering. But when you have a system that people perceive as not doing well, people are not going to support that system. But when they can see positive change, which you all are bringing around, people will support you. I want to commend you for that; I can see glimmers of this. I'd say we've got a long way to go. I think that you're going to have a better and better system. It's not going to happen overnight, but I think that constant positive change, working together with charter schools, with elected officials, the board, the GAO, I think you're going to have that. I think that's very, very important. You probably know who Bishop McKinney is. He is in San Diego. Bishop McKinney has a black private school that only deals with at-risk kids. And it is privately funded. I give money to it every year. But 97 percent of those children go to college. Now, I agree with Mr. Moran, college is not the only direction. We need to focus on vocational education too. But there needs to be educational opportunity in between where you can go back and forth, and have real choices. Vocational Education Programs For Women I have two daughters--who are college-bound. I've very proud of them. They are A-plus students. I want to be sure we have vocational education for our women, our females. In vocational education programs, too many times, the women have not been taken care of. Not all women are going to go to college and they need these skills. I lived down here on Water Street, on the waterfront, and I met a lady, I bet she weighs 90 pounds dripping wet. You know what she does? She drives Caterpillars. Yes. And so, there are construction jobs out there, too, for women, so don't rule them out. Job Applicants Lack Reading and Writing Skills But I would like to make one other recommendation. In your summer schools, you have reading and you have math. Well we had eight different hearings in the Education Committee in the last Congress. They said that a large portion of children did not qualify for entry-level jobs. That was not in D.C.; that is across this nation. These are CEOs of major companies that testified, at eight different hearings. They said applicants do not qualify because they cannot read and they cannot write. They cannot write a declarative sentence. They cannot speak the English language. They do not have the high-tech skills. And that is where it is important for you to have computers and the writing skills, and the reading, which is very, very important--and the math All of them belong in a summer program. Or maybe you would make it optional for them. Something for you to take a look at. Ms. Ackerman. No, we want you to know that daily writing exercises are a part of our summer school program. Mr. Cunningham. Good. Ms. Ackerman. We have it under the umbrella of reading, but every day there are writing exercises for our young people, K- 12, as a part of the summer school program. I do agree with you. Mr. Cunningham. Good. Effort To ``Link'' Classes For Basics Ms. Cooper. Could I just raise two points? One of the things that Arlene is also doing and we, the trustee board, certainly applaud is linking class work. You know, sometimes in schools you'd have reading class. There's absolutely no relationship to any other class in the curriculum. So she's beginning to do that which will get the youngsters, perhaps, reading in one class, in a math class, then writing in the math class. And somehow there's a linkage. Maybe there's some discussion in the reading class of the history of math and what it means. But she's beginning to link those things together. And, hopefully, by September, that will be in place. Roof Replacements--Contract With Corps of Engineers The second point is on the roofs. The superintendent has entered into a contract with the Corps of Engineers and I'd like for her to speak to that, briefly, to give you a sense of how that oversight on the major maintenance activities will occur. Ms. Ackerman. Well, I think that that collaborative partnership that we have with the Corps is one that's certainly moving our facilities program forward, and moving our capital improvements program forward. And we have been working with both the Army Corps of Engineers and the city procurement office to ensure that the program goes smoothly. Procurement Now Centralized Procurement is now centralized with the city, it is out of D.C.PS and part of a centralized city procurement office. And everybody's represented here today. corps of engineers--legislative language needed We meet weekly, sometimes more than once a week, but at least once a week to coordinate activities. I think we're going to need some help, though, some additional assistance from Congress. With the Corps, we'd like for them to play a larger role in this procurement effort and we're going to need some legislative language to accomplish that. What we need is language allowing them to exercise some contracting authority in our non-Federal projects. Right now they don't have it. GSA does have. The Army Corps does not. But it would make it move a lot quicker if we could have that kind of same authority given to the Corps. So we will send forward to you, for your consideration, some language that would help that happen. Vocational Education--Use of Experienced Professionals As Teachers Mr. Cunningham. One other area that you might take a look at. I don't use the term, ``senior citizen,'' I use the term, ``chronologically gifted.'' [Laughter.] My mom likes that. But you have vast reserves of people that are very, very talented. When you bring them into vocational schools--not just babysitters, but the people that can actually contribute to the education system--they are delighted. They set up student programs where the students,go into the senior homes on a volunteer basis, at the same time the seniors pay back to the education system. It helps their quality of life in the homes and it helps the children too. Union Resistance And we had a problem with the unions. They did not want the non-union people coming in. And that is where I say sometimes we need to set aside some of these things and look at what is really best for the children. So I want to thank the panel. We have a large responsibility to---- Mr. Moran. Could I just ask---- Mr. Cunningham. Sure. Security Officers In Schools--contract Mr. Moran [continuing]. One question on violence in the schools. There was a contract let to--I believe it was--MVM Security Systems in 1996. You brought in--what was it?--222 security officers and you let the police that were assigned to the schools go back into community policing. What are the results of that? Has that been successful? Ms. Ackerman. There have been mixed reviews about that. We have one more year on that contract. What we are doing, though, is looking at reviewing that whole issue of school safety, creating, next year, a department of school safety. We have, on loan to us from the Department of Ed, Sidney Yeldell, who will be coming and working with us. He has been on loan to a lot of school districts across the country. But he will be working with us to create this school safety department, to look at the issue of the MVM contract that we have and determine whether or not we want to continue with that. I also have been working closely with Chief Ramsey to develop some other measures around safety, not only in our schools, but in and around our schools. When we look at the serious incidents that we've had this year, they have not been in school, they have happened as our students are on their way home. So we have got to do some things differently to create safe passageways for our children to get from school to home. This area is under review and we will have, in place, a plan beginning with the new school year, to address this issue and to determine, very early on, whether or not we want to continue with that contract. Mr. Moran. You know, good. I am glad you are doing that. When you get 360 weapons being brought into school, you have a very serious situation and, from the papers, even though they may seem like isolated instances, they have an enormous detrimental impact on the schools when you do have situations-- tragic violence at the schools. That has got to be stopped. No parent should have to send their child to a school where they do not think that child is safe and so I hope that we are going to work that out so that we can guarantee that security. But, thank you, and I want to thank all the members of the panel. I didn't have any questions for GAO, but GAO does a good job. [Laughter.] And I see your reports---- Vocational Education--Gavel Used to Open Republican Congress Mr. Cunningham. I brought this gavel for a special reason. Students at Scripps Elementary made this gavel for me. It was a school that was a model school, that has computers. They have a vocational education system where the students build modular units. The unions come in and help them with OSHA rules and, make sure that they are following the law. They sell these units to other schools that need space and then they add money into their own computer systems and education systems. And they made this for me. This is the gavel that opened the Congress after Republicans took the majority--it was used by the Speaker. [Laughter.] But it was also very personally given to me by the students, a vocational education group where some of the students make woodwork. Some of them are in construction. But others go on with those computers that design and actually build the modular units in homes and architecture and so on. Conclusion of Hearing on Public Schools So I want to thank the Board. I think we are going to have a lot of positive times ahead in D.C. thanks to your efforts. The last thing I would say is I miss General Becton. I thought he did a good job. He was in a very difficult position, but I am sorry to see him leave. Mr. Tiahrt is here. Do you want to ask any questions about schools or do you want to go on? Mr. Tiahrt. Not at this time. Mr. Cunningham. At this time I will ask Congressman Tiahrt to assume the chair. [Recess.] Wednesday, June 24, 1998. CORRECTIONS AND RELATED FUNCTIONS WITNESSES MARGARET A. MOORE, DIRECTOR, DEPARTMENT OF CORRECTIONS JOHN L. CLARK, CORRECTIONS TRUSTEE FOR THE DISTRICT OF COLUMBIA JOHN A. CARVER, TRUSTEE, COURT SERVICES AND OFFENDER SUPERVISION AGENCY FOR THE DISTRICT OF COLUMBIA Mr. Tiahrt [presiding]. I call this meeting to order. I am very pleased to welcome our next panel to discuss the District of Columbia's corrections functions for fiscal year 1999. We want to welcome our witnesses: Margaret Moore, director of the D.C. Department of Corrections; John Clark, D.C. Corrections Trustee; and John Carver, Trustee for Court Services and Offender Supervision. The Committee's policy is to swear in all witnesses. [Witnesses sworn.] We have your written statements and they will be included in the record and we would ask that each of you summarize your statements. If it is agreeable, we will hold questions until all three of the witnesses have made their comments. Ms. Moore, we would be pleased to hear from you first. Opening Statement of Margaret A. Moore Ms. Moore. Thank you. Good morning, Mr. Chairman members of the committee. I appreciate the opportunity to appear before this committee today, along with Corrections Trustee John Clark and Offender Supervision Trustee Jay Carver to discuss the fiscal year 1999 budget request for the D.C. Department of Corrections. The fiscal year 1999 proposed budget for the Department of Corrections is based on the requirements of the National Capital Revitalization and Self Government Improvement Act of 1997, which mandates that the District's sentenced felon population be transferred into the Federal Bureau of Prisons and that the correctional complex in Lorton, Virginia, be closed by December 31, 2001. I'm sure you know, Mr. Chairman, that the proposed gross budget for the Department of Corrections for fiscal year 1999, including the Medical Receiver's budget, is $270,313,000 and 3,022 FTE's of which $203,500,000 and 2,217 FTE's represents our proposed Federal government reimbursement. As you're aware, Mr. Chairman, the task of closing an entire prison complex is unprecedented. And, although my correctional experience is broad-based, the actual closure process, including the transfer of approximately 5,000 prisoners and the displacement of more than 2,000 employees presents many formidable challenges. It will require the collective work and cooperation of many Federal and local agencies as well as frequent collaboration between the corrections trustee and the trustee for offender supervision. progress in closing lorton complex Now we have already demonstrated our capacity to work together and I'm confident that we will continue to do so over the next three and a half years to ensure the safe and orderly closure of Lorton. Substantial progress has already been made in that regard and I'm pleased to report that the following tasks have been completed, as evidence of the progress that we've made. First, over a 135 sentenced female felons have been transferred to the Federal Bureau of Prisons, resulting in the closure of the minimum security annex in January of 1998, consistent with the Lorton closure plan. Second, the Federal Bureau of Prisons has trained over 60 Department of Corrections case managers in the application of the Federal classification instrument. To date, more than 1,500 inmates have been reclassified and, by the end of this Fiscal Year, we expect that the entire population will be reclassified, preparing for eventual transfer into the Bureau of Prisons system. Approximately 2,500 District of Columbia prisoners are already in private-sector prison beds. As a result of that, the medium security facility was closed and the population at Occoquan has been reduced from 1,651 in 1997 to 1,195 today, which represents approximately a 28 percent reduction in the population at that very troubled institution. The overall inmate population at Lorton has reached an all-time low. Today the count is 4,250 compared to 5,445 at this time last year. contract with virginia and closure of occoquan facility The proposed fiscal year 1999 budget will enable us to maintain our very aggressive efforts to close Lorton and to carry out other requirements of the Revitalization Act. And I'll mention just a few of them. You are probably aware that we're currently in negotiations with the Commonwealth of Virginia Department of Corrections for 1,200 prison beds. Those negotiations are progressing well. We anticipate having a fully executed contract by no later than the end of the first quarter of 1999. Execution of this contract will enable us to close the Occoquan facility by the third quarter of 1999. 2,000 prisoners to private sector beds We have reclassified and identified--or we have in process the ongoing reclassification and identification of low-and minimum-security prisoners for transfer to the Bureau of Prisons. Consistent with the Revitalization Act, we anticipate that 2,000 prisoners will be moved into private-sector prison beds by the end of fiscal year 1999, consistent, again, with the Revitalization Act. We've entered into a partnership with the corrections trustee and the trustee for offender supervision to provide a program of intensive supervision for inmates in the community. There are currently over 124 inmates in Lorton who have been recommended for parole by the D.C. Parole Board and the U.S. Parole Commission that we believe could be benefitted by this program, thereby further reducing the population at Lorton. capital repairs of lorton complex We're real pleased that capital funding in the amount of $6 million of the total $7.1 million identified for the Department of Corrections in the corrections trustees budget has been received from the trustees to assist us in much-needed repairs of the wall at the maximum security facility and other security enhancements throughout the complex to enable us to reasonably ensure the safety of staff, inmates, and the general public as we move through this unprecedented closure of the Lorton complex. career transition center at lorton Mr. Chairman, prison work, under the best of circumstances, is difficult and stressful. But the imminent closure of Lorton and the displacement of thousands of employees have exacerbated the challenge for correctional workers. And, therefore, we have worked collaboratively with the corrections trustees to open a career transition center on the grounds of Lorton. At that center, employees have access to employment assistance, individual and family counseling, financial planning assistance, crisis intervention, as well as other support services. The transition center is staffed by D.C. Department of Corrections staff, staff from the Office of the Trustee, and additional support services and workshops are provided by the Department of Employment Services, the Federal Bureau of Prisons, the U.S. Office of Personnel Management, the D.C. Office of Personnel, and others, and will be open to corrections employees throughout the transition and until the year 2002. stabilizing correctional workforce Finally, Mr. Chairman, the 1999 budget will enable us to complete the following tasks. First, to stabilize the correctional workforce. Our ability, our capacity, to complete this transition, to do the very difficult work ofcorrections is contingent upon the presence and the availability of correctional workers. This budget includes a number of incentives that will enable us to retain and recruit corrections personnel. internal audits and controls Second, with the assistance of the corrections trustee, we will update policies and procedures and put in place systems for internal audits and controls that will enable the overall efficiency and effectiveness of our system to be significantly improved. health care delivery system With the cooperation of the Bureau of Prisons, we have appointed a senior correctional health administrator, under the Intergovernmental Personnel Act, also known as IPA. We intend to restructure the Department's health care delivery system to improve the efficiency of that operation, as well as the effectiveness of our management structure. contract monitoring program In conjunction with the chief management officer and the corrections trustee, we have begun to develop a comprehensive contract monitoring program. As we move additional prisoners into contract prison beds, the need for enhanced monitoring is quite evident. lorton closure--schedule adjustments Also, along with the trustee and the Federal Bureau of Prisons, we're in the process of revising the Lorton closure schedule to make necessary adjustments in the schedule, for contract changes, as well as the Federal Bureau of Prisons construction schedule. But it's important to note that we are firmly committed, firmly committed, to ensuring that all facilities at Lorton are closed by December 31, 2001, consistent with the Revitalization Act. strategic plan development And lastly, Mr. Chairman, along with the chief management officer, the corrections trustee, and the courts and as well as other members of the criminal justice system, such as offender supervision, trustee Jay Carver, we're in the process of developing a comprehensive, strategic plan and implementation strategy that will enable the D.C. Department of Corrections to transition from an integrated prison system to a municipal jail system. I'm happy to respond to any questions you have at this time. prepared statement of margaret a. moore, director [Ms. Moore's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Tiahrt. Thank you. We will wait and ask our questions after we have heard from all those who have testimony. I appreciate it very much, Ms. Moore. Mr. Clark, we would be glad to hear from you next. Opening Statement of John L. Clark, Corrections Trustee Mr. Clark. Good morning, Mr. Chairman, members of the committee. I'm pleased to have my first opportunity to appear before you as the Corrections Trustee for the District of Columbia. It's certainly an honor and a pleasure to appear here with Director Moore and Mr. Carver, whose offices worked so closely with us on the current transition. responsibilities of corrections trustee As you know, this office was established by the National Capital Revitalization Act of 1997. The primary responsibilities of my office are threefold. First, the financial oversight of all aspects of the District of Columbia Department of Corrections. Secondly, to facilitate the closure of the Lorton complex and the transfer of sentenced prisoners from the District to the Federal Bureau of Prisons by 2001. Third, to assist the DOC in its own reformation and long-term stabilization. The 1999 request of $184.8 million will meet the requirements of the Revitalization Act to assist the District of Columbia in housing those felons who will not have been transferred to the Federal Bureau of Prisons. reduction in number of prisoners Progress has been made in the transition. Director Moore pointed out a number of the areas of progress. I'll reiterate just a couple. The total number of prisoners held in the facilities directly operated by the DOC, including Lorton and the D.C. jail, has been reduced from over 9,500 3 years ago to about 6,000. Under the present closure plan, that number should be reduced to well under 5,000 during fiscal year 1999. At the Lorton complex itself, one facility was closed last September and two are scheduled to be closed in the next year. At the 5 facilities currently in operation at Lorton, the overall count is about 4,200, down from 6,000 1 year ago, and from about 7,700 3 years ago. So there's progress in downsizing the numbers. However, to be clear, planning for the next steps of the closure in fiscal year 1999 presents an unusual challenge, because the pace of the transition depends upon the DOC's ability to secure suitable contract bids outside the system. With the assistance of our office, the District is working diligently with several jurisdictions. Director Moore mentioned one of those options in Virginia. And we're hopeful of a favorable outcome in the very near future. impact on 3,000 corrections employees I must say that possibly the most difficult aspect of this transition is the impact on the almost 3,000 employees of the DOC. The Lorton closure will require that the number of staff be reduced to under 1,000 by the end of 2001. There's ample evidence that the staff, because of all of these changes, primarily, has become dispirited, confused, and the attrition in the workforce has increased significantly. In this regard, as Director Moore mentioned, the DOC, in cooperation with our office, is participating in an interagency taskforce that is working aggressively to provide an array of resources to assist staff who are facing separation. inadequate internal controls Another major concern of our office is that the DOC does not yet have an adequate system of internal controls and accountability at the operational level, which would ensure that policies are carried out as written or that the performance of contractors is closely monitored by DOC staff. Our request includes funds targeted to the development of such a system of internal controls. In my estimation, a successful long-term reformation of the Department requires this resource. joint efforts with corrections department Finally, on the positive side, Director Moore and I, as well as our staffs, communicate regularly. We're working jointly on a number of fronts to accomplish the required transition and to improve the efficiency of the Department's operations. I've seen improvements in a number of vital areas in the DOC operations in recent weeks and months, including short- and long-term planning, inmate classification, financial record keeping, and community release procedures, to mention a few. With Director Moore and other leaders in her department, I have seen, in the months that I've been in this office, a great desire on their part to succeed, a great desire to repair the problems of the system. In that regard, I havegreat hope for the long-term success of our difficult joint ventures. Mr. Chairman, this concludes my remarks. I'd appreciate if you would include my full statement for the record. Again, I'd be glad to take any questions that you and the committee might have. prepared statement of john l. clark, corrections trustee [Mr. Clark's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Tiahrt. Thank you very much, Mr. Clark. Mr. Carver, please proceed. Opening Statement of John A. Carver, Trustee Mr. Carver. Thank you, Mr. Chairman, Mr. Moran. It's a real pleasure to be here today, invited to testify on our budget. This is my first appearance before this Committee in my capacity as trustee of the Court Services and Offender Supervision Agency, but it's not my first visit before the Committee. There have been many times, in another life. But it's good to be back. My function as Trustee of the Court Services and Offender Supervision Agency is to oversee the reorganization and the transition to the Federal government of the Pretrial Services Agency, the Adult Probation function, and the D.C. Parole Board, as well as the Public Defender Service. I really view this as a unique opportunity--perhaps unique for the entire country, but certainly unique in the District of Columbia--to build a truly effective system of offender supervision that will serve our community in ways that we've never been able to in the past. I sincerely believe that, by putting in place this system, we will have a significant effect in cutting crime; certainly cutting drug use, which of course is very much associated with crime; and generally providing a much safer environment for the citizens of our community and those who come to visit. I am optimistic about this, and, given the nature of the problem, you might wonder why I am so optimistic that these ambitious goals can be accomplished. But I think they can be accomplished, based on what we know from a lot of empirical evidence that underscores the fact that most of the crime being committed is committed by people who are repeat offenders; who are, by and large, already under the supervision of the justice system; and for whom we have very poor mechanisms for providing effective levels of intervention, treatment, and sanctions- based supervision. So I think when you look at the fact that we already have, in effect, a captive population of folks under criminal justice supervision, the real challenge is to make that supervision and those interventions effective. I'm convinced that it can be done not just out of some pie-in-the-sky, optimistic belief, but because I have seen it done on small scales in this jurisdiction, and in other jurisdictions and I see it as my challenge to take what works on a small scale and to make that the norm across the board. I'm here to address our FY99 budget request. I would also like to transmit a separate budget request from the Public Defender Service. I believe the Committee has that. [CLERK'S NOTE.--See pp. 301-306 this volume, for prepared statement of the Public Defender Service.] budget request for offender trustee Mr. Carver. I'll turn straight to the budget figures. The initial President's budget requested $59.4 million for fiscal year 1999 for the new agency. This budget was prepared, Mr. Chairman, at a time shortly after I took on this new responsibility and, to a certain extent, it was based on data that was not fully developed at that time. It was based on some assumptions that, upon further refinement of the data, rounding out the picture of what we're dealing with as a base, proved to be completely inadequate to the challenge we are facing in this city at this time in developing an effective system of offender supervision. 30,000 individuals under criminal justice supervision I'd like to just give you a sense, Mr. Tiahrt, of the nature of the problem that we're facing. Right now, we have over 30,000 individuals in this city theoretically under criminal justice supervision. If you can just picture this. If you've ever been to RFK Stadium, that would basically fill every seat in the upper deck at RFK Stadium. That's how many people we have right now theoretically under supervision. It's about 1 in 20 D.C. residents, given the size of our community. Now a lot of those folks are heavily involved in drugs. We know this because we do have a comprehensive drug testing program at intake. We know this and the experience in the District is similar to that in other jurisdictions. Basically, we have two-thirds to three-fourths of the individuals under supervision with either active drug use or a history of addiction. arrest record for parolees We also know that this group has extensive criminal history records. We recently pulled a sample of drug-involved offenders and defendants from Pretrial Services, Probation, and Parole, and the mean number of arrests for parolees was 9.6 arrests and 10.2 for probationers. Now that's arrests. When you look at the number of---- Mr. Moran. Excuse me, each person on probation has been arrested 10 times? This is on the average? number of convictions per parolee Mr. Carver. Mean number. That is exactly right, Mr. Moran. And when you look at convictions, the mean number for probationers was 4.8 and the mean number for parolees was 4.5. Now this, as I say, is not, perhaps, a representative sample, because we are in fact in the process of gathering across-the- board, baseline data. This was a sample of the most troublesome folks, those that have documented histories of substance abuse. And the point I'm trying to make is that our system just cycles people through without effective intervention and without good supervision. In fact, John Clark and I were, just a couple of weeks ago, over at the community transition center that Director Moore described. We had about 30 inmates there that had just been released from Lorton and they're coming into this strict residential transition housing before they go back to the community. We asked for a show of hands of all those who had been through the system before. And every hand went up with, I think, 1 exception, out of about 30 people. So we are cycling people over and over through this system. parolees--inadequate supervision and lack of sanctions And the reason for that, Mr. Moran, and the reason that we have so many parole violators in jail right now--I think it's 600 or 700--is because we just don't have--and historically have not had--adequate supervision for when they do come back to the community. We don't have immediate and graduated sanctions. We don't have the ability, right now, to intervene at the first sign of drug relapse. And without the ability to do that, without the ability to bring somebody back and put that individual in a structured, residential setting where you can deal with the relapse, what you see happening is that relapse intensifies, it leads to criminal behavior, eventually the individual picks up a new criminal offense, and, of course, then you've got him back in prison on a parole violation. So the goal here, Mr. Tiahrt and Mr. Moran, is to build a system that can first of all provide effective supervisionthroughout the course of criminal justice oversight and then have the ability to move very quickly, within a day, ideally, and provide certain predictable, intermediate, and graduated sanctions when people start to slip. The fact that we can't do that now is, I'm convinced, a major factor in this endless recycling. It contributes to a deterioration of public safety and we know how to fix it. We have fixed it in small areas, but we need additional funding to be able to apply the benefits and apply the knowledge to a much broader segment of the criminal justice population. $38 million budget amendment And that is why the administration is now supporting a budget amendment to the initial Presidential request in the amount of $38 million which would bring the total request, with this budget amendment, to $97.6 million. This is set forth in both the budget and the written statement that I submitted for the record. [The information follows:] [The official Commmittee record contains additional material here.] amendment redirects funding from department of justice Mr. Carver. Basically, it redirects discretionary funding from within the Department of Justice, so it doesn't affect the allocations of this Committee. Mr. Moran. Do we have a problem with 302 (b) allocation for this money? We better get into this in depth. I do not want to interrupt his---- Mr. Tiahrt. Yes. Let him finish his testimony and we will get into it in depth. Mr. Moran. Okay. opportunity to ``enhance'' public safety Mr. Carver. Okay. I'll summarize very quickly so you can get into questions. But the main point I want to make is that the Revitalization Act does far more than just federalize former D.C. government agencies. There's an opportunity here to make a significant enhancement to public safety in this community. And then when you look at what's going on and what Director Moore has described and what other witnesses will describe throughout the day, I think you can see that the real direction here is not just to do more of the same. More of the same would mean just continuing to nibble around the edges of a very large problem. We need, right now, a massive effort to build a better supervision infrastructure in order to intervene effectively and reverse this downward spiral of drug abuse and crime. We know this has worked. drug count In my previous capacity as Director of the Pretrial Services Agency, I worked very closely with Chief Judge Hamilton to establish a drug court that provided a foundation, a model for the kind of sanctions-based intervention, coupled with plenty of drug treatment and social services, delivered in this framework of accountability. And we have seen, from this example, that effective supervision can substantially cut drug use, which has a corresponding reduction in crime. And we know what works. The challenge before us is to take what works on a small scale and apply that across the board. Now this, I recognize, is a very large, very ambitious goal. It's not going to happen overnight and it certainly can't happen without the support of Congress. Fortunately, the administration is on board and fully supports this effort and I believe has found a way to structure this budget amendment in a way that addresses the 302(b) issue. And with that I will be happy to conclude. Prepared Statement of John A. Carver, Trustee [Mr. Carver's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Tiahrt. Thank you for your testimony. I am sure we are going to have some questions. budget amendment not officially transmitted Before I yield to Mr. Moran, I would like to know when you think you are going to formally transmit the amendment of the $38.3 million? You noted it in your testimony. Will there be a formal request submitted? Mr. Carver. Yes. Mr. Tiahrt. And when will that be? Mr. Carver. I believe it has been approved, as I understand it, by OMB and is going through the final sign-off procedure to be formally transmitted by the President. $38 million budget amendment to reduce caseload ratios Mr. Tiahrt. Now you have talked about the need for the additional funding, but how will you expend the additional funds, if they are received? Mr. Carver. First of all, we will change the ratios of supervision. Right now, we have a situation where parole officers and probation officers, no matter how committed they are--and there are a lot of highly committed and dedicated folks--they are dealing with caseload ratios of, in many cases, from 1 to 200. In the case of one agency, it's 1 to 900. So one of the first things that would have to be done is--and that's where most of the new positions are--to get those caseload ratios down to Federal standards, best practice standards. And that's where most of the positions would go. Mr. Tiahrt. What is that caseload approximately? Some supervisors are, I believe, up to 900 cases. Mr. Carver. Right. And in Pretrial Services, when you look at the number of Pretrial Services officers providing direct supervision, the caseload ratios are 1 to 900. Now that is the agency where there's a very high level of automation and a very high level of drug testing, so it is in effect, not as bad as it is in the other agencies where it's routine to have caseload ratios as high as 1 to 200. So that has to be addressed. information technology infrastructure There's another major initiative, and I'll be happy to spell out for you the actual numbers--but just in some general terms, information technology infrastructure is absolutely essential. You've got to have information on compliance and on status instantly available to those in a position of making decisions and actually implementing a system of graduated sanctions at the first sign of trouble. So there's an initiative to continue work that's already well along the way in one component of the overall agency, to make sure that this is available throughout the agency. sanctions center Another very important initiative, and this is something that we've worked closely with Director Moore and John Clark on, is to develop a sanctions center. We have $7.5 million identified from discretionary DOJ funding from the Truth-in- Sentencing Prison Construction Grant program that would fund the renovations necessary, or the development necessary, to establish the kind of combinationresidential, halfway-back option, sanction center where, when people start to slide, you can address that slide before it turns into crime and get them back into a residential, structured, secure setting. Mr. Tiahrt. Is that what you mean when you say ``we know how to fix it''? Mr. Carver. Yes, that's exactly right. drug court intervention--frequent testing When we set up our drug court intervention program--and this, Mr. Tiahrt, reaches just maybe 200 of the 20,000 drug- involved folks that are out there--but when we set that up, we designed it in such a way that people were tested very frequently, twice a week or three times a week, and the day they tested positive, a sanction would be applied. The sanction would be either referral to a secure detoxification program or a jail-based sanction. The idea is that you've got to move very quickly when individuals begin to relapse. Right now, we do not have the capability to intervene effectively when we detect trouble. Mr. Tiahrt. Are you saying this because of the number of employees available for counseling? Mr. Carver. It's a question of employees. Mr. Tiahrt. For supervision? Mr. Carver. It's a question that we don't have the infrastructure. We do not have the physical facility to put people on the scale that will be needed. And the other point is drug testing. Right now we have very good drug testing in one of the component agencies, Pretrial Services. It's automated. It does a very high-volume of urine testing, but we are just beginning to expand the benefits of this automated drug testing into the larger population of individuals under probation or parole supervision. So part of this infrastructure that has to be built is the capacity to provide regular, probably twice-weekly, drug testing for anybody that has any history of substance abuse. If we don't do that at a bare minimum, we are really closing our eyes and cutting off the opportunity for the most effective form of intervention. We know that a slide back into drugs is also associated with a slide back into criminal behavior and that the failure to act, almost immediately, invariably will lead to crime and a reduction of public safety for the community. budget amendment funded with department of justice funds Mr. Tiahrt. Why is the administration proposing to go to Commerce, Justice, State, and Judiciary for funding of this amendment? Mr. Carver. Well, as Jesse James said---- [Laughter.] When they asked why he robs banks, because that's where the money is. Mr. Tiahrt. Because that's where the money is. Okay. What's the impact if we don't have a budget problem? Mr. Carver. But a more serious answer, Mr. Tiahrt, is the fact that we already have in Commerce, Justice, State, a number of Department of Justice discretionary grant programs allocated to States for very similar purposes. We're in kind of a unique situation in that we are a transitioning Federal agency providing what would be a State function in any other State. So the mechanism there, which is a one-time-only redirection from discretionary funding, is to take in a number of program areas, prison construction, COPS program, drug testing, those funds that would be available to a State and simply direct them to the Court Services and Offender Supervision Agency for the implementation of this infrastructure that is so necessary given the extent of the problem. budget amendment--impact if not approved Mr. Tiahrt. If we cannot provide this funding because of our allocation problems, what would be the impact? Mr. Carver. Well the impact is that we will not be able to address the public safety issues that face us and we'll have to continue to work with the administration and with Congress to somehow find the resources that would be necessary for building the kind of system that can serve the public. use of community-based organizations Mr. Tiahrt. In your strategic plans, have you considered using private organizations or faith-based organizations for some of these people who have slipped back into the problem of drugs? Mr. Carver. Yes, we have. And, in fact, what we're moving to much more of a neighborhood-based, community justice model. It's been my experience that there are many, many organizations in the community who are doing lots of good work and I think the entire field is kind of moving to the point where we really have to form new partnerships with faith-based organizations, with social service providers, and with other partners in the criminal justice system. We're working very closely with new Police Chief Ramsey to develop a new kind of a partnership between community-oriented policing and community-oriented offender supervision. But the answer to your question is: absolutely. We are even discussing the feasibility of reconfiguring offender supervision caseloads to match the PSA configuration, that's the patrol service area geographical reconfiguration of the police department. So you'd have community-oriented police officers working hand-in-hand with community-oriented supervision officers in a partnership that, I think, would be very beneficial. You'll see in the budget request that one of the infrastructure items we have is to add eight additional community supervision centers so that we can move our officers from downtown locations into the neighborhoods themselves. availability of qualified applicants for hiring Mr. Tiahrt. If we can find the money, do you have the capacity to hire and train qualified people for this job? Mr. Carver. Yes, we do. Mr. Tiahrt. The unemployment rate in northern Virginia is about 1.9 percent. So these people that are available can be trained? Mr. Carver. Yes. We haven't even done as much recruiting as we can do, but right now, for example, we have a stack of resumes, and about 80 people in the pipeline for community supervision officer positions. We have the foundation of a very good training program already in place in terms of about eight individuals whose sole function is staff training and, especially, computer training. So, we see this, Mr. Tiahrt, as something that has to be done. After all, the statute requires that I certify, by August 5, 2000, that the agency is ready to assume its full functions, consistent with Federal standards. And so it's really a situation where we don't have any option butto ensure that we have the capacity, the pipeline in place, the training in place by what's really a statutory deadline for accomplishing these objectives. Mr. Clark. If I could interject. One crossover area here is that, while he's building a large agency, we're downsizing Director Moore's agency. So there are a number of well- qualified caseworkers and others in the Department of Corrections who might be able to transition into Jay's system here. indirect administrative costs of $44 million for corrections Mr. Tiahrt. I have one more question and then I am going to change gears a little bit. First the prison takeover cost; the budget request is $44 million over what was asked for by the administration for the Federal corrections trustee. Was there miscommunication in this or is this about not being able to get our arms around the task? And are there any other administrative indirect costs that are somewhere in the budget that we don't know about? Mr. Carver. I can't speak to the corrections budget, but with respect to the Offender Supervision budget, I think that's a very fair question, Mr. Tiahrt. And I have now, since that initial budget was fairly hurriedly put together and transmitted last November, done a very lengthy and careful analysis of who's under supervision, what the level of risk is, what would be required to build a truly effective system of offender supervision. I am now confident that we do have our hands around the problem. We do know the scope of the problem. Some of this developmental effort has already been going on. So that gives us a pretty good gauge, for example, of what it's going to take to build the information technology infrastructure that will serve this agency. So I think we're now to the point where I personally have a very high level of confidence in the budget projections and the implementation plan necessary to get us where we need to be by August 5, 2000. Mr. Tiahrt. Ms. Moore, are you familiar with the budget request for increased support? Ms. Moore. Yes, sir. Mr. Tiahrt. Are there other costs that are associated with that or do you think that's the total of the increase? Ms. Moore. The $44 million, Mr. Chairman, represents approximately $25 million in external indirect cost that the chief financial officer believes necessary to support the agency's transition. It also includes approximately $18 million for the full cost of housing the number of sentenced felons in the system as defined by the agency. I will acknowledge right up front that there is some differing of opinion on this point between the city and the corrections trustee. But I think the important point in this discussion at this point is that we are firmly committed, firmly committed, to moving forwards with the closure of Lorton by the designated closure date of December 31, 2001. Mr. Tiahrt. All right. Thank you very much. Mr. Moran. Mr. Moran. Thank you, Mr. Chairman. There are a number of issues that I want to address. Let me address the most recent one that was brought up. There is a disagreement between Ms. Moore and Mr. Clark in terms of the $44 million requested. In your testimony, Mr. Clark, you say that you do not agree with the conclusion of Dr. Brimmer, the head of the Control Board. Do you want to just summarize that? I do not want to read this whole thing, but you are suggesting that the job cannot be done for $44 million? And that the analysis that went into the estimate was flawed. Is that true? Mr. Clark. Well---- Mr. Moran. Because of the pay raise and the definition of sentenced felons and so on. disagreement with control board Mr. Clark. Yes, there are two fundamental issues over which there's disagreement. Not so much even between Director Moore and myself, but between District officials and the administration. The two issues are, as Director Moore mentioned, in the one case costs which are external to the Department of Corrections. Costs related to the central government of the District. And the second would be the definition of the responsibility between the Federal government and the District government for a particular number of offenders. So most of the $44 million is related to those two issues and let me say a couple of things in regard to our point of view on this. First of all, the $184.8 million that we have requested, I feel, is adequate and fair. It's a 9 percent increase over the current year funding. It was arrived at after consultation with the chief financial officer's office and Director Moore's financial staff. They did not agree with it, but there was a significant degree of consultation. Of course, this all happened, as Mr. Carver mentioned, we had to submit our budgets close upon taking office last fall, but I still stand by it. I think it was a fair and adequate figure. And that it provides for $27,000 or $28,000 per inmate, whereas the national average cost for State systems is around $20,000 or a difference between, on a daily basis, about $77 a day that this request would fund versus about $55 a day as the national average. But the two issues, the two basic, fundamental issues, which really arose and were dealt with prior to my coming into this appointment, are the external costs, which primarily are costs, as I say, that do not relate directly to the Department of Corrections. They are depreciation on other governmental buildings in the District and interest on bonds. I think those two categories relate to about two-thirds of the cost. There are some other costs of running the CFO's office and personnel costs and so on. And the second issue--and again this was an issue, it's my understanding from everyone that I've talked to, including staff on this Committee, that this was an issue that was dealt with in negotiations leading up to the Revitalization Act. These were costs that were not agreed by the Administration would be part of the deal. And the issue has been raised again in the interim and has kind of been put on our plate here to try to deal with. The second issue is in kind of the same category that we thought had been settled through the memorandum of understanding between District officials and the Administration, in which inmates, in the long-run, will be a responsibility of the Federal government versus which will be a local responsibility. memorandum of understanding very clear There's a certain degree of vagueness in the Act because it talks about sentenced felons, but the memorandum of understanding that was entered into last May, I believe, is very clear, a memorandum of understanding signed by city council, the Chair, and the mayor, is very clear that the disputed categories would not be a Federal responsibility. Therefore, in the interim, they would not be a responsibility of the trustees office and the trustees budget. And most of those are cases who have been sentenced, have served terms of confinement as felons, have been out in the community on parole or supervision, have been arrested for new crimes, are being held in local detention awaiting adjudication. And it would be the theory of the consultants of the District that these cases, because they had been serving a sentence when they committed their crime, would be a Federal responsibility. That is not consistent with what was in the memorandum of understanding and so--that relates to several hundred--some hundreds of inmates which equates to, I think, over $10 million. So those are the two issues. I hope I'm making myself clear, but these are issues that we had thought were settled before we came into office and have been raised again. And, quite frankly, have been a matter of some frustration to me and our office in that it has set up a certain degree of conflict between our office and the District and I would like to get beyond this and be able to deal with the transition and the reformation of the Department and the things that are our real mission. So I'm--in that regard--I'm pleased that Dr. Brimmer has raised the issue before both your Committee last week and the Senate several weeks ago. But that's my understanding of the difference between the $44 million. And I, again, bottom line, am comfortable that the $184 million that we have requested is adequate and fair. additional $44 million not likely to be appropriated Mr. Moran. Well, you are not going to get it. You mean the $184 million compared to $44 million? What do you mean? Mr. Clark. No, no, the difference is between $184 million-- this year the amount that was appropriated was $169 million. The amount that we have requested is $184. The amount that Dr. Brimmer has suggested is somewhere around $228 million. Mr. Moran. Oh, I see what you're suggesting. Mr. Clark. So it's the $44 million on top of---- Mr. Moran. I should say Dr. Brimmer is not likely to get the additional amount. But it is not clear to me, I do not know whether it is to you, Mr. Tiahrt, I am not familiar with this conflict that has been going on. But perhaps Migo can fill us in. At some point, we need to understand what we are pulling in here. I do not think you are going to get that extra money if you do not want it. But I do not know that it is even worth taking up the Committee's time to get into it in depth. I have got to understand it better. Does Mr. Taylor understand this fully? Maybe I should not ask you for the record what is it---- [Laughter.] That is it. Okay. Mr. Clark. Your point's well made that we need to perhaps spend some time outside the hearing---- Mr. Moran. Figuring out what to do. Yes, yes. Okay. Ms. Moore. Let me suggest, Congressman Moran, for the record, that Dr. Barnett is here and that we will be happy to meet with you and you, Congressman Tiahrt, to have a further dialogue about this issue. Mr. Moran. Yes, well, apparently a further dialogue is necessary. $44 million--letters from delegate norton and omb director frank raines [CLERK'S NOTE.--The following letter dated March 17, 1998, to Chairman Taylor from Delegate Norton together with a letter dated May 14, 1998 from Franklin D. Raines, Director of the Office of Management and Budget, to Delegate Norton, provide additional information concerning the $44 million requested for District government indirect costs:] [The official Commmittee record contains additional material here.] 30,000 persons under criminal justice supervision Mr. Moran. Let me ask about, Mr. Carver, some of the issues that fall into your bailiwick. First of all, the numbers. We have a, what, an adult male population in the District between the ages of 18 and 40--I should have figured this before asking; you're not going to have this number at the top of your head--but, basically, the people on probation and parole fall within that category, and they're virtually all male, I would assume. Are they? Mr. Carver. All adults. General statistics are that 90 percent of the population is male to 10 percent female. I actually have the number under parole supervision, 7,941. This was as of a few weeks ago. Under probation supervision, 10,773. And under Pretrial Services, pretrial supervision, 12,100. Mr. Moran. There is no double counting in here, one would assume. Mr. Moran. This is the current status. Mr. Carver. Right. question of ``double counting'' Mr. Moran. So they would not be under--they would only be under one status, would they not, at one time? Mr. Carver. There are some individuals that have multiple statuses across the system, that's true. Mr. Tiahrt. So it is not 30,000 people per se. Mr. Carver. Although I think the way this was done, this was based on the unique police identifier so as to avoid the double-counting issue. number of crimes and arrests involving 30,000 parolees Mr. Moran. So you have got roughly 30,000. And you say there is an average of 10 crimes per individual included in this population? And an average of five arrests? Mr. Carver. You can't even measure crimes, but as a surrogate for crime, we look for arrests. And, again, this gives the general outline of the extent of criminality among this population. And I don't mean to portray these figures as representative across the board. We will have that for you within the next month or two but, as I indicated, what this sample represents is a sample of individuals with drug use problems that happen to be in a regimen where we have been able to do some very extensive data collection. So it's really kind of a---- Mr. Moran. This 30,000 is not the total of people on probation, parole, and pretrial detention? Mr. Carver. It is. I'm sorry, Mr. Moran. I thought you were turning to the number of---- Mr. Moran. Oh, okay. Mr. Carver. Mean number of arrests and the mean number of convictions. Mr. Moran. Of that group, you did a sample. Mr. Carver. Correct. Mr. Moran. But you only looked at the people with drug problems. Mr. Carver. In this sample, yes. Mr. Moran. Which represent what? Mr. Carver. Two-thirds of the whole sample. Mr. Moran. Two-thirds. Two-thirds of the sample. Mr. Carver. Right. Mr. Moran. And they had an average of 10 arrests---- Mr. Carver. In probation---- Mr. Moran [continuing]. And---- Mr. Carver. 4.8 convictions for probation. For parole, 9.6 arrests and 4.5 convictions. These sound high. Mr. Moran. Yes. Mr. Carver. Again, if you're in any group of---- Mr. Moran. And the arrests are probably, what? After they did the crimes that they committed. 300-500 crimes per year per offender on drugs Mr. Carver. Well, actually, Mr. Moran, there have been studies that show that--and they've been done in Miami and they've been done in Baltimore--show that among offender populations, individuals that are heavily involved in drugs tend to also be heavily involved in crime to the point of committing 300 to 500 crimes per year. This is somework that's been done by Professor James Inciardi. I'd be happy to supply more detailed information to you. [The information follows:] [The official Commmittee record contains additional material here.] reducing drug use reduces crime Mr. Carver. But the point is, these same studies show that if you can reduce the drug use, that the corresponding level of criminality goes down at the same time. And, finally, that if you really use criminal justice supervision effectively, you can reduce the drug use. If you have a sanctions-based system where you can respond almost immediately any time someone uses drugs and in such a way that you have an immediate, graduated, known response, this works. What we have now is no graduated responses, but the possibility that at some point in the distant future something might happen. That does not work to deter drug use and to deter offending. So the challenge here is to take what we know empirically, put that into practice, and build the kind of infrastructure that will permit us to detect the first sign of trouble, and then to act on it. Mr. Moran. Okay, well, do you not have drug courts in the District? Mr. Carver. Yes, we do. Mr. Moran. Yes. Mr. Carver. And that's why I describe it as nibbling at the problem around the edges. The drug use problem is so much more extensive than that which can be served by the drug court that, in effect, what we have to do is to take proven techniques and apply them across the system. We should not be content with the system that treats a lucky few who happen to end up in one of these programs. We have to, I think, Mr. Moran, stop thinking in terms of programs here that do this or that and reach a tiny fraction of people. Let's refocus our thinking on changing the processes in which the criminal justice system actually uses, in an effective and beneficial way, the power the system already has. Mr. Moran. To incarcerate, you mean. Take them off the streets? Mr. Carver. No. Mr. Moran. What is the power? Mr. Carver. The power is to set conditions of release and enforce those conditions. Mr. Moran. Well, what is detention? It is if you do not comply. Mr. Carver. Right now, we have jail, but jail occurs maybe six months or a year after the behavior that you're trying to change. So what we have to get to is a point where, as we're supervising, as we're monitoring drug use for people already under supervision, you intervene the first time a person uses drugs. And that can be with a short sanction. Mr. Moran. Well, what? What is a sanction? Use some real terms here. Mr. Carver. All right. Mr. Moran. What do you do? Put them in jail. You do not whip them. use of sanctions for drug offenses Mr. Carver. I'll tell you how it works in the drug court. First time a guy uses drugs, he has to spend three days in the jury box watching drug court. The second time he uses drugs, he's got to go to a detox facility. The third time he uses drugs, he has to go to jail for three days. And then every time he uses drugs---- Mr. Moran. You check weekly. Mr. Carver. Twice weekly, at least in that case. Mr. Moran. Twice weekly. Okay. Mr. Carver. And so what you have is a situation where the defendant knows the consequences. It's not like some theoretical consequence in the distant future. Mr. Moran. Good. Now that makes a lot of sense. And that's what you want to do with the $38 million? Mr. Carver. Exactly. That's the model. Mr. Moran. But that's all through the court system, right? Mr. Carver. Not just the court system. Mr. Moran. So these people out in the community would be doing the drug testing too? Mr. Carver. Yes. Mr. Moran. They do not go to the court. They---- Mr. Carver. Well, right now they do have to come to the downtown location just to get drug tested. The vision is that we're going to have these neighborhood community supervision centers where they can report for drug testing. Mr. Moran. You cannot do it in the police stations around the city? Mr. Carver. We're doing a lot of it now. In fact, I have here a picture of a lab we have right now. Mr. Moran. Those are all urine samples, I suppose. Mr. Carver. Yes. That's more urine than I've ever seen in one place. [Laughter.] But it's stacked literally, as you can see from this picture, from floor to ceiling. Mr. Moran. And that's downtown? Mr. Carver. That is downtown. And this, Mr. Moran, serves only folks, or primarily folks, in a Pretrial status. We are not yet to the point where we have a lab with this much urine in it that can serve the public's need to have parolees tested with the same frequency. Virtually every one of the people coming out on parole, and you can see from these statistics, has a history of drug use. Now when they come out, they may be clean. But unless you get them into a regimen and use support and with---- Mr. Moran. Twice weekly. But if you have 30,000 people, you have to monitor the urine sample, right? And then you have to test it. How many people are you talking--you cannot have enough now that can perform that task for 30,000 people. Mr. Carver. That is exactly right. Mr. Moran. And so you would need to hire how many to do that task? It adds up to over a thousand something. second urine lab needed for drug sanctions program Mr. Carver. That's for the full FTE count. What we propose to do is to build a second lab. We have one lab and, as you can see from this picture, it's completely stretched to capacity. We want to build a second lab. The lab itself can be centralized and downtown. We have the capacity now to have a completely automated process for conducting these kinds of tests. People check in. They're identified electronically. A bar-coded label is printed. The analyzing machine reads the bar code label. And right now the result can be done within 20 minutes and available to judges on the bench from a computer screen. That's fine for that segment of people, but we do not have that as an infrastructure. Mr. Moran. And you want to make it available for all 30,000 of the population? Mr. Carver. That segment of the 30,000 with known histories of drug use Mr. Moran. Two-thirds of them. 20,000 people. Mr. Carver. Correct. Mr. Moran. 20,000 people or less. Mr. Carver. And I should say, Mr. Moran---- Mr. Tiahrt. Mr. Carver, may I see the picture? Mr. Carver [continuing]. That this isn't just something that we want to do. This is an administration initiative throughout the country. There's a lot of evidence and, in fact, Congress has had a number of witnesses up here talking about the potential value of setting up exactly this kind of system where you really can intervene almost immediately. Mr. Moran. Well if you really can stop 300 crimes, and that is the conservative figure, in a year times 20,000, then that would have a sea change--that would dramatically change the entire criminal justice system and rate of crime and sense of public safety in the District of Columbia. If you could set that up and could accomplish that overnight. I do not know where you are going to put all these people when they violate it, but I suppose having immediate sanctions and keeping immediate track of whether they are using drugs would deter the likelihood. drug court experience Mr. Carver. Yes, actually we have some information on that, Mr. Moran, from our experience with Chief Judge Hamilton in setting up the drug court. [The information follows:] [The official Commmittee record contains additional material here.] experience with offenders in sanctions program Mr. Carver. We actually looked at the number of people that continued to violate. The first time a sanction had to be applied, it was applied to two-thirds of the people. But at each subsequent stage, the sanctions had to be applied to only half of the people the previous level had been. So what you see is that if you really can set this up, you eventually have a situation where people just get tired of the aggravation. First of all, they know what's going to happen. They get tired of the aggravation of these short disruptive stints in jail. And that sometimes is the first time that they decide, well, I've got to get serious. I've got to really get serious about getting myself together and getting off drugs. People don't want to be drug addicts, Mr. Moran, but sometimes they need the structure the criminal justice system can provide, or families can provide, if they have good families. But they need that structure to help them reach a level of sobriety and function. $38 million amendment available from department of justice Mr. Moran. I got you and I agree with you. You have identified money that all three of us agree will come out of the Commerce and Justice appropriations bill--that will come out of the Department of Justice appropriation. Justice agrees that that should be done. Do we know whether our sister subcommittee wants to do it too? We have no idea. Does it not conflict with the allocation? It does not. We could do that. So we can do it if Justice wants to, if Mr. Roger's subcommittee wants to. So we would need to make a push to do that, or to find the money in this bill. Okay. And you would estimate that that solves or reduces as many as 60,000 crimes? I mean that is a little reductio ad absurdum with your statistics. But, anyway, if it is anywhere near what these statistics indicate it is, it is probably the most important thing we could do in this budget. housing prisoners in virginia I have some questions on housing prisoners in Virginia, but you have answered them. You have to send them to Virginia and they have to be done? I mean, we are going to do that, right? Is that Mr. Clark's issue? Mr. Clark. Well, we're both on this issue. Ms. Moore and I are working collaboratively on this. In fact we were just in negotiations going out within the last few days. There's nothing signed, but we're very confident that everything's going in the right direction. Mr. Moran. All right. Well, the discussion we had with Mr. Davis--Mr. Davis' office--was not particularly productive, but you think things are moving along? Mr. Clark. In the last several weeks. lorton--sewer overflow and toxic problems Mr. Moran. Let me ask you another question here. There are some serious sewer overflow and some toxic problems at the Lorton facility that have to be cleaned up. Are we moving along on that so that that land is going to be usable? Ms. Moore. There is money in the capital budget for Lorton to address sewer system problems as well as some environmental clean up. I believe that all of those issues will be corrected prior to the closure of the---- Mr. Moran. The land is handed over. Okay. Very good. new prison proposed on national park service land I have one other question I wanted to ask Ms. Moore about the prison that would be built privately on the Maryland side of the Potomac there on National Park Service land. Have you weighed in on that at all? Ms. Moore. I know of no definitive plan at this point, Mr. Moran, to build a facility in the District or on the Maryland side. Mr. Moran. Well, it's the CCA. Ms. Moore. Right. I understand that, that Corrections Corporation of America has land in the District. I don't know and in fact I do not believe that the Bureau of Prisons has awarded the contract to any vendor to build a facility anywhere at this point, you know. And John may know more about this than I do. But I am aware of no definitive plan at this point to build a private facility in the District. Mr. Moran. So even if they did get the land from the National Park Service, they're not necessarily assured that a prison is going to be built on it. Ms. Moore. You're--that's correct. They're not assured of that. Mr. Moran. They are investing an awful lot of money and resources and time and energy--and a fair amount of emotion into getting that land. It would be quite a shock if they then finally get the land and we intervene and help them get the land, and then they do not have any prison to build on it. Mr. Clark. Well, if I could speak to that, sir, it is the Bureau of Prisons requirement to do this privatization of 2,000 beds by the end of next year, so it's not anything that directly is involved in our responsibility, either Director Moore's agency or mine, but because of my previous responsibilities with the Bureau of Prisons and our continuing contact with them, I'm very familiar with what's going on. Essentially, they issued a request for proposals early this year. The bids were due in in April. They expect to--and I'm sure that this is a competitive procurement where there are several companies, in the very least, who would be offering proposals. Of course it's very confidential as to who they are or where they may have land. There's a lot of publicity about this one particular site that this one company has. It's not generally known where several of the other companies have their sites. The requirement of the RFP was that it be within 300 miles of the District and I think there was going to be a reward in the evaluation process for proximity to the District. The Bureau of Prisons has said that they intend to make the award by the end of the summer. So, within six or eight weeks, I think it will be known whether this particular parcel of land is the one belonging to the company that's been awarded the contract. But it's certainly very much up in the air at this point. Youngstown, Ohio Facility--Problems and Concerns Mr. Moran. Well, if--CCA wants to build it. I know there has been some adverse publicity about that Youngstown facility too. Did you see the incident at that Youngstown facility as being inconsistent with what happens at Lorton? I mean, two prisoners were killed, right? Does that give you cause for concern? Ms. Moore. Any time, Congressman, a prisoner is killed or staff member or prisoner is seriously injured, it gives me cause for concern. I am not, however, ready to assume that CCA lacks the capacity to manage the District's prison population. D.C. Council Favors New Privately-Operated Facility in D.C. I will say in response to your initial question, though, that I'm aware that the Council of the District of Columbia has voted in favor of the construction of a privately operated facility in the District of Columbia, insomuch as doing so represents some fairly significant economic development opportunities for the city. Mr. Moran. Well, I understand that CCA has a good reputation. I was surprised at that article. And it may not be inconsistent with violence that occurs at Lorton. It seems to me that we ought to try to build a private correctional facility in D.C. that would provide jobs to D.C. residents. Rather than get into any other issues, I will conclude at this point. Thank you. Mr. Tiahrt. Thank you very much. We appreciate your being here and your testimony very much. Bureau of Prisons Testimony on Lorton Closing [CLERK'S NOTE.--The following excerpt from testimony presented March 12, 1998, by Kathleen M. Hawk, Director of the Federal Bureau of Prisons, to the House Subcommittee on Appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies, relates to the closing of the Lorton Prison Complex as mandated by the National Capital Revitalization and Self-Government Improvement Act of 1997 (Public Law 105-33, approved August 5, 1997):] Department of Justice, Statement of Director, Federal Bureau of Prisons--Kathleen M. Hawk, Before the House Subcommittee on Appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Mr. Chairman and Members of the Subcommittee: * * * * * * * The newest challenge facing the BOP is, and will be, the absorption of all District of Columbia (D.C.) sentenced felons into BOP custody by 2001. The 1999 request focuses on adding prison beds to keep pace with projected inmate population growth, and capacity to meet requirements of the National Capital Revitalization and Self-Government Improvement Act of 1997. The Act directs the BOP to assume responsibility for confining or contracting for bed space for all sentenced D.C. felons by October 1, 2001. Budget Request The FY 1999 request for the BOP totals $3.4 billion, including the following program increases: construction of four Federal Correctional Institutions (FCIs), and the resources to activate the 200-bed expansion at the FCI in Loretto, Pennsylvania. The new construction will add the capacity required for the BOP to meet its responsibility for the (D.C.) adult sentenced felons by October 1, 2001. Specifically, for the Salaries and Expenses appropriation, an increase of $2.8 million and 46 positions is requested for the activation of the 200-bed expansion at the FCI located in Loretto, Pennsylvania. The Loretto project is currently out for bid, and a contract is expected to be awarded shortly. For the Buildings and Facilities appropriation, the request includes an increase of $300 million and 28 positions required for new construction. This level of funding will permit construction of three additional FCIs and partial funding for a fourth FCI to provide additional capacity to accommodate the space requirements for the D.C. sentenced felon inmates in accordance with the D.C. Revitalization Act. In FY 1998, $294.9 million was provided to the D.C. Corrections Trustee for reimbursement to the BOP to cover site acquisition and planning of the four facilities and full construction of two more.Further, a provision in the National Capital Revitalization and Self-Improvement Act of 1997 requires BOP to house 2,000 D.C. sentenced felons in private contract facilities by December 31, 1999. A Request for Proposals (RFP) was released on February 13, 1998, with responses due by April 1, 1998. d.c. revitalization act The BOP is actively evaluating potential sites within 500 miles of the District. Environmental Impact Statements (EIS) for numerous locations may be necessary to ensure four acceptable sites since the EIS process is preliminary and does not always result in prison construction. To date, siting efforts have been concentrated in Kentucky, West Virginia, Virginia, Pennsylvania, North Carolina, and South Carolina. In December of 1997, the BOP began the EIS process for a medium security prison in Gilmer County, West Virginia. In addition, the BOP is proceeding with the draft EIS process for sites in Ohio/ Tyler and Preston counties, West Virginia, and obtaining additional technical information to go forward in the EIS process on sites in Kentucky, South Carolina, and Pennsylvania. The BOP plans to finish each EIS related to D.C. capacity this year. Further, the BOP plans to build a medium security facility at its existing Petersburg, Virginia, location, and a high security facility at its Coleman, Florida, location. While the Florida location is outside the 500-mile radius, the BOP can proceed quickly with this project because the EIS process completed for the existing institutions addressed the possibility of adding an additional facility at a later date. The BOP would then be able to transfer BOP inmates to Coleman and subsequently place D.C. sentenced felons in the approximately 30 existing BOP facilities that are within the 500-mile radius. The BOP is currently housing over 600 D.C. sentenced felons for the D.C. Department of Corrections (DOC). Of this number, 116 are D.C. sentenced females recently transferred into BOP custody. The BOP continues to provide administrative/technical expertise to D.C. DOC personnel in critical areas, such as infectious disease control, BOP policy and classification of inmates. UNICOR staff are developing plans to begin transferring relevant industries from the Lorton Complex to BOP, as appropriate. Human Resource Management Divisions staff are working diligently with the Trustee's Office on the Priority Consideration Program for displaced D.C. correctional workers. The National Institute of Corrections (NIC) developed the Management Reform Plan for D.C. DOC which covers transition of D.C. Code felons to BOP and closure of Lorton. The plan will also assist D.C. DOC in redefining its future role with regard to managing pre-trial, detention, and sentenced misdemeanants. Through anticipated reimbursement from the D.C. Corrections Trustee in 1998, the BOP has adequate resources to construct two FCIs at existing BOP sites in order to generate capacity to house D.C. sentenced felons. In addition, 1998 funding from the Trustee will be used for site acquisitions and planning of four FCIs. In 1998, the BOP plans to transfer into BOP custody the majority of female D.C. sentenced felons. To date, 116 female D.C. sentenced felons have been transferred into BOP custody, and procedures have been put in place so that all newly sentenced female D.C. Code violators will be designated directly to BOP custody. The BOP is currently reviewing minimum security male D.C. sentenced felons in preparation for their transfer into BOP custody. The projected movement of D.C. DOC inmates needing mental health, medical/surgical care is targeted for 1999. Absorption of higher security level D.C. inmates is projected for FY 2000 and FY 2001 as additional BOP capacity (construction funded in 1998) is activated. * * * * * * * privatization As part of the 1997 Appropriations Bill, Congress directed the BOP to undertake a five-year privatization demonstration project at the correctional institution in Taft, California. In July of 1997, Wackenhut Corrections Corporation was awarded the contract to operate the Taft facility. The potential contract term is 10 years, encompassing a 3-year base and seven 1-year options. The first inmates began arriving in December of 1997. As of March 5, 1998, there were 1,009 inmates housed at the Taft facility, and it is anticipated that approximately 80 additional inmates will arrive at the facility each week until the institution reaches its full capacity. Taft will house 1,536 low security and 512 minimum security Federal inmates when fully operational. This project will help the BOP evaluate the potential effectiveness of privatizing further BOP facilities. BOP staff prepared and forwarded a technical proposal to evaluate Taft to the National Institute of Justice, and a meeting is scheduled this spring for feedback from other experts in the field. summary Mr. Chairman, the FY 1999 request addresses the major challenges facing the BOP and provides funding for increases necessary to add Federal inmate capacity and meet requirements of the law. The increase requested for 1999 will allow the BOP to activate the expansion at the Loretto, Pennsylvania, prison and enable expeditious closure of the Lorton, Virginia, Complex by adding capacity to absorb sentenced D.C. felons into the Federal Prison System. I would like to thank you, Mr. Chairman, and the Members of the Subcommittee for your continued support. This concludes my prepared remarks, and I would be pleased to answer any questions you or your colleagues may have. conclusion of corrections hearing Mr. Tiahrt. The committee will stand in recess subject to the call of the chair [Recess.] Mr. Taylor [presiding]. The committee will please come to order. I would like to thank Congressman Cunningham for chairing the education panel today and Congressman Tiahrt for chairing the corrections panels. public defender service [The following prepared statement of the Public Defender Service was referred to by Mr. John A. Carver, Offender Trustee, on page 239, this volume. Inserted following the prepared statement of the Public Defender Service are two letters which are self-explanatory concerning the Public Defender Service from the Independent Public Defender Bar Association of the District of Columbia.] [The official Commmittee record contains additional material here.] Wednesday, June 24, 1998. PUBLIC SAFETY AND COURTS WITNESSES CHARLES H. RAMSEY, CHIEF OF POLICE, D.C. METROPOLITAN POLICE DEPARTMENT DONALD EDWARDS, CHIEF, D.C. FIRE AND EMERGENCY MEDICAL SERVICES DEPARTMENT ROBERT E. LANGSTON, CHIEF, U.S. PARK POLICE STEPHEN D. HARLAN, VICE CHAIRMAN, D.C. FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY EUGENE N. HAMILTON, CHIEF JUDGE, SUPERIOR COURT OF THE DISTRICT OF COLUMBIA ANNICE M. WAGNER, CHIEF JUDGE, DISTRICT OF COLUMBIA COURT OF APPEALS, AND CHAIR OF THE JOINT COMMITTEE ON JUDICIAL ADMINISTRATION Mr. Taylor. We will go into our third panel, public safety, and we have with us the Metropolitan Police Chief, Charles Ramsey; Fire Chief Donald Edwards of the D.C. Fire Department; Chief Robert Langston of the U.S. Park Police; and Steve Harlan of D.C. Financial Control Board. Also, Ms. Wagner, the Chief Judge of the D.C. Court of Appeals, is with us. We have your written statements and they will be included in the record without objection. I would suggest we dispense with any reading of your written statements so you will have as much time for personal comments. If it is agreed, we will hold questions until all four witnesses have made their comments. witnesses sworn in We do swear in all witnesses. If you could stand---- [Witnesses sworn.] Metropolitan Police Department Chief Ramsey, your budget request totals $300.4 million, an increase of $29 million above fiscal year 1998. If you would like to go ahead and make your comments, we will go from there. Chief Ramsey. Yes, sir. First of all, thank you very much for giving me this opportunity to appear before you. I ask that the original testimony, which you have a copy of, be included in the record. prepared statement of police chief charles h. ramsey [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Chief Ramsey. I would just like to hit a couple of highlights there. budget increases You are correct, the total budget is $300 million--$277 million of that is appropriated funds; another $23 million is grant funding. That represents an 8 percent increase over fiscal year 1998. That is due to salary increases both sworn and civilian members negotiated with the various unions, increased costs for contracts and things of that nature that are passed along from year-to-year--more or less a cost-of- living type of situation--and so have increased civilianization. 3,600 sworn officers--no increase requested I have chosen to hold the line on the budget basically during this fiscal year. We are holding the line at 3,600 sworn members. That actually represents a reduction of 100 in terms of numbers, but in actual strength that we have had over the past couple of years, it is basically holding even at 3,600 police officers. increase of 100 civilians We are asking to increase by 100 civilians--from 722 to 822--so that we can put more officers into the field. That gives us a total force of 4,422 members in the Metropolitan Police Department. chief not asking for more resources--assessing current use Now the reason I have chosen to hold the line, rather than ask for more, is simply because I am not really certain how we are using the resources that we currently have. I am new in the Department. I have been here for 2 months now, but the Department does suffer from some problems. In many ways, mismanagement that has occurred over the years in many areas. We need to know exactly where we are before we can begin asking for more resources. Once we are clear--certain that we have a sufficient number of police officers to provide protection to the citizens of Washington, D.C. and we have the technology we need--all those different aspects of equipment that are needed to efficiently run a police department--then I will have a better sense for what I need in the budget. Future budgets will reflect actual needs. But the first thing I want to do is take a serious look at the Department and eliminate any waste that we might have, and make sure that our resources are being used effectively. I am not confident that is occurring now, that is why I am not asking for more. Some of the things, just very quickly, that I would like to do or I have already begun doing--just to inform you, even though I have only been in position for 2 months, I have already begun some new initiatives. I am still in the process, however, of assessing the needs of the organization. recruitment--serious concerns Recruitment, that is an area of very serious concern for me. Right now, we are barely keeping up with attrition. We lose approximately 20 to 25 officers per month. That is a net loss of about four when we figure in our hiring that occurs monthly. So we are having difficulty maintaining our current level of sworn members. Despite that, however, weare being very aggressive in going out and trying to recruit new members. college requirement for new recruits Effective January 1999, I am raising the education requirements for entry into the Metropolitan Police Department to 2 years of college or 60 semester hours. By year 2002, I would like to raise that once again to a 4-year college degree. Again, I think that it is time that we raised the bar, bringing in a higher quality individual into our ranks; work with those that we currently have and also encourage them to go back to school. That point will also include, by the way, different for promotion, a certain kind of grade, as well as an educational requirement that is going to be necessary to advance within the Metropolitan Police Department. Our job is becoming more and more complex. With the sophisticated technology and so forth, we need to look at different types of individuals to come into policing. I think we can accomplish that and maintain our diversity at the same time. need to put police officers back on street Another issue that is of great concern to me is the visibility of police officers. In Washington, we have the highest per capita ratio of police and citizens anywhere in the country. Yet people constantly complain that they do not see the police. Well we need to do a better job of allocating our resources. Too many of our officers are still in positions that are not street duty, they are administrative positions and so forth. We have got to hire more civilians. We have got to put police officers back in the field where they belong because that is what they were hired to do--not be secretaries--but be police officers out there in the field. So we are looking very, very carefully at our allocation of resources. street roll calls You may have just recently become aware of a new initiative called street roll call. Taking police officers out of stations during that period of time; putting them out in the community, and letting people see them. Also targeting hot spots--areas where we had a lot of criminal activity whether it is gangs, drugs, or whatever it might be--putting our officers in the roughest areas that we have in the city. We are taking the city back block-by-block, if we need to. But police officers are going to be doing that all summer long. bicycle patrols We also have increased the number of bikes that are out there. Again, this gives us another way of getting out to the community, being somewhat mobile. $15 million federal grant--difficulty in spending I know you are concerned about the $15 million that we got a couple of years ago and there were a lot of concerns about our not having spent it. That money is all spent or obligated-- in fact, I just spent the last $277,000 to purchase additional bicycles. So we are going to get a total of 187 bicycles in July with all the equipment that we need, and uniforms to go along with it. So we will be able to put additional bicycle patrols on the streets, in addition to the vehicular patrols that we have out there now. lack of accountability for getting things done There are some concerns that I have still in the Department that we are working on. One of the things that I have noticed since I have come here, is an overall lack of accountability in many areas. Things such as not getting firearms qualifications done on time; not having equipment in districts that people need--from xerox paper to toilet paper--it is alleged that we do not have those kinds of things available. It is been documented in the press. Those are just breakdowns of systems within the organization and there is absolutely no excuse for that. People need to be held accountable for seeing to it that these kinds of things are taken care of. We are taking a look at that and we are correcting those kinds of situations. technology--adequate training required We are taking a look at technology. I recognize that technology is not indicated or a solution to every problem that we have. However, it is necessary because it does reduce the number of man hours we use to take care of many of those kinds of tasks. We need to apply technology wisely. But with that we have to be prepared to provide adequate training to our members so they know how to properly use that technology. education and training neglected That raises another issue around education and training of the Department that has been neglected for a long period of time and we are going to move very aggressively to enhance that, as well. Going back to that recruitment effort of bringing in people with some college background, we will be bringing people into our ranks that are familiar with information systems and technology, and not afraid of computers. That is going to be an asset to us in the future. police performance and physical standards Developing performance standards is another area that we are taking a look at within our new contract with the Fraternal Order of Police--both performance and physical standards. We are working with this now to hammer out exactly what those standards are going to be. But we need to hold people to certain standards and have certain expectations for them. In terms of their performance, right now we are in a situation where the Department lacks any real performance standards. We just simply have to give people something so they know what they are supposed to be doing, and then we can start holding them accountable. outside employment by police officers The issue of secondary employment--I have already taken that on right now. We have police officers working in bars. We have police officers that are allowed to work, in my opinion, in locations that are really inappropriate. Working with the D.C. Council to have legislation put in place that will be stricter for people to work in establishments whose primary source of income is the sale of liquor, or anything with a sexual orientation. There are just certain jobs I do not think it is proper for police officers to be working in--let alone in uniform. Right now, our D.C. Code allows them to do both, and that means change. So we will have a more restrictive policy in place so that our police officers are not involved in those kinds of things. too many officers on administrative leave Then finally, the issue that was also in the paper around administrative leave, not having people available for duty-- well we have not established administrative leave with pay. Those people on administrative leave with pay--with very few exceptions--need to be put back to work somehow. If it is in the 911 center, which was in the paper just yesterday, answering calls; if it is in the records section--I do not care where it is, but if they are drawing a paycheck, they ought to be doing something to get that paycheck. If the conduct is such where we need to separate them, then we need to be aggressive in moving toward separating them from the Department and not having them in that status for too long a period of time. police facilities neglected for years There are numerous other areas and issues. I have brought along with me something that I will leave with you, sir, around the facilities that we have that are in terrible shape. They have been neglected for years. We have raw sewage leaking from pipes in the women's locker rooms in 4D--it is simply appalling. I brought this because at somefuture point and time I would like to come back and try to work with you to come up with creative solutions to try and solve some of those problems over the long term. I know you cannot do it overnight, but if we work together maybe we can come up with something creative to try to really improve conditions there. That is basically all I would like to say in opening. I will answer any questions you might have. Mr. Taylor. Thank you. Fire Department Opening Statement of Fire Chief Donald Edwards Mr. Taylor. Chief Edwards, please proceed. Chief Edwards. Good afternoon, Mr. Taylor. Once again echoing Chief Ramsey's sentiments, it is my pleasure to be here to hopefully answer any questions that you may have about the D.C. Fire Department's proposed budget for fiscal year 1999. BUDGET FOR FIRE DEPARTMENT The recommended local budget for the Fire Department for fiscal year 1999 is $101,577,000 and that includes a total of 1,754 full-time positions. This represents an increase of about $360,000 and one additional full-time position over the fiscal year 1998 budget. The bulk of that increase is for pay raises that were granted as a result of the passing of the 1998 Appropriations Act that was requested contingent of funding of those pay raises into the next fiscal year. Our proposed fiscal year 1999 capital budget includes $2,106,000 for financing capital-related items for these programs. That represents a slight increase over our previous years for budget requests. In an effort to achieve the goals of this agency, which is to have a positive impact on the quality of life for everybody in this community, I think I have established major goals that I would like to achieve with the passing of this budget. That would be the improving of customer service--which is that we are a customer service agency. We provide a direct service to the citizens and businesses and those who choose to do business in the city. This can be done by providing a timely and efficient fire and emergency medical service department. I am seeking optimal response time and all requests for emergency services. This will be achieved through increased use of technology, as well as increase and reinforce employee accountability. COMMUNITY OUTREACH PROGRAM The Department has taken a more proactive role since my appointment as Chief in our interaction with the community. One of the programs that I have instituted, that I feel is extremely successful, is the community outreach or open-house policy that I have established in various fire facilities throughout the area. This program entails our fire stations being open to the community on a monthly basis and we provide such services as CPR instruction, smoke detector information, and give away childhood immunizations. Basically what I want these fire stations to become is a service center for the communities that they serve. Traditionally, the fire service has been a basically closed society. The only time that people would see us was when the doors arose and we came out responding to a call for an emergency. However, I feel that if we take a more proactive role in providing some of the other services that I know we can provide, it will lessen the demand for our reactive responses. It will also lessen the demands for some other services--from police services such as Chief Ramsey provides, public health service, and those entities. We have entered into a cooperative agreement with several of the city agencies to help me facilitate this particular program. It was instituted at the beginning of the fiscal year and it is a very successful program--very well received by the community. INCREASE IN BUILDING INSPECTIONS I also intend and we have increased the number of building inspections by changing our building inspection hours at our fire inspections bureau. This provides increased and added service to people who need those services on a more approachable--or I would say acceptable type timeframe. SPECIAL OPERATIONS DIVISION--TERRORIST INCIDENTS My next goal, in an effort to ensure that we provide the services that we are required to do, is to increase our efficiency in all phases of our operation. We can no longer defer the pursuit of improvement in our specialized areas of population. For instance, this is the Capital of the free world. As we all know, the political climate that exists throughout the world, this city is a target for various extremist groups. Fortunately, it has not occurred. As a first response agency, I feel it is mandatory that my agency prepare itself to respond to any unfortunate incidents of this type. In doing so, I have created a special operations division that is focusing on responding to terrorist incidents with the cooperation of several other city agencies to include the Metropolitan Police Department and the Office of Emergency Preparedness. Any entity within the city that would respond to such an incident must be involved. I think my agency being the initial agency to respond must be the leader in providing the needed service in the event of something of that nature. My workforce must be equipped with the necessary tools to carry out their duties. This budget hopefully will get us to that point. I am increasing training for everyone--special Operations, my fire inspectors. ARSON CASES--CLOSURE RATE I am utilizing the resources available with the National Fire Academy, the Alcohol, Tobacco, and Firearms Division of the Treasury Department. Heretofore, this city has had a horrendous closure rate for arson cases. I have sought and received police power for our arson investigations. This was achieved through full cooperation with the Metropolitan Police Department, the U.S. Attorney's Office, as well as the Alcohol, Tobacco, and Firearms Division of the Treasury Department. All of those individuals who were selected for that program are long-time employees. They have completed or are very close to completing the police department's full training program so that when they complete the program, they will have undergone the exact training that all police officers in the city will have undergone to become sworn police officers. I do believe this will result in a seamless process asfar as dealing with our arson investigation. We definitely need to improve our closure rate and I believe that this is the way to go with this particular program. INFORMATIONAL SYSTEMS TECHNOLOGY PLAN Technology, as we enter the new millennium, and everyone realizes it is going to be a very integral part of the operation of all city agencies. We have developed an informational systems technology plan that hopefully will help us go into the new millennium utilizing all available technical resources to improve our delivery of services. This budget plays a very important role in that endeavor. RESPONSIBLE MANAGEMENT Lastly, meeting our established budget target. Although enormous strides have been made in improving the physical stability of the city, the Department must and will continue to contribute to the financial recovery of the city. Sound and responsible management on my part, or whomever is the chosen leader of this agency, is mandatory for the success of that. CAPITAL BUDGET Our capital funding devoted mainly to apparatus replacement and increasing or enhancing, improving, renovating, replacing of some of our dilapidated facilities. I, too, suffer from the same problem that Chief Ramsey mentioned about our facilities. I have fire stations that need roofs replaced, plumbing replaced, electrical work replaced--all of these problems have been ID'ed. I have in place a work plan to do that, provided that this particular budget is approved by this panel, by the Senate, and the House as part of the new fiscal year 1999 budget. I feel together with the increased accountability that I am demanding of my people, proper funding to maintain the programs that I have ID'ed, and any additional programs that may be ID'ed in the future. I believe we can meet the needs of the citizens of this city. I am prepared to answer any questions that you may have specific to our budget. PREPARED STATEMENT OF FIRE CHIEF DONALD EDWARDS [Fire Chief Edwards' prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Thank you, Chief Edwards. U.S. Park Police Chief Langston. opening statement of chief robert e. langston, u.s. park police Chief Langston. Good morning--excuse me, good afternoon, Mr. Taylor, Mr. Moran. Good to see you. It is good to be here and I appreciate the opportunity again to appear before you. I appreciate the support last year that this Committee gave to the U.S. Park Police. I will be kind with your time. I have a prepared document that has been presented to you and I would appreciate it if there are any questions, I certainly would be more than pleased to help answer. PREPARED STATEMENT OF CHIEF ROBERT E. LANGSTON, U.S. PARK POLICE [Park Police Chief Langston's prepared statement follows:] [The official Commmittee record contains additional material here.] BACKGROUND OF U.S. PARK POLICE Chief Langston. We, the U.S. Park Police, have been around since 1791 and we are integral part of the protection within the District of Columbia. We have concurrent jurisdictions throughout the entire city of the District--as does the Metropolitan Police in the park areas. It flows back and forth very well--extremely well. Approximately 12 percent of all the cases that we make within the city are what we would call on city streets or within the city itself. The rest are in the park areas. Just as a point of interest, just the last couple of years, I think we wrote over 180,000 traffic violation notices and parking violation notices. The revenue from those tickets goes to the District of Columbia, not to the Federal government where revenue goes for tickets we write on the George Washington Memorial Parkway or other places. So there is a uniqueness about our interaction within the District of Columbia. QUALITY-OF-LIFE CRIMES Obviously, what we have been concentrating on the last couple of years are quality-of-life type of crimes. We have a philosophy, that if you take care of the little things, the big things disappear. It really has proven to be so. Commissioner Bratton up in New York City focused on the quality of life crimes, also. You have seen a dramatic impact in the City of New York. We do that by uniform officers, by our contact with the community or plain-clothes officers. ALCOHOL-FREE JULY 4TH An example of what we did last year was at the 4th of July. We made the downtown parks alcohol-free. Prior to that, we were having some serious problems with the Independence Day celebration--with knifings, gang problems, assaults, and drunkenness. Last year we made not one arrest, where normally toward the end of a 4th of July celebration, our officers were really fatigued and they had been dealing with a lot of disorderly conduct. We will continue that again this year. The only problem we had last year, of course, was disposing of all that alcohol. This year we have worked an agreement with Arlington County, Virginia over the disposal of all that confiscated alcohol. We appreciate the Virginia folks. [Laughter.] Mr. Moran. How do you dispose of it? [Laughter.] Chief Langston. It is destroyed. When it is destroyed it is put in a drain that goes into a proper sewer system to be treated. DRUG INTERDICTION We deal with a lot of interdiction within the city of Washington and drug addiction. Just last week as we were getting ready to testify, it was a stop out on the Baltimore- Washington Parkway, where the officers confiscated 225 grams of pure, uncut heroin. The BW Parkway is a supply route into the city. It is a place where even the officers who are not assigned in the city have an impact on what is coming in town and what is going out of the city. Our coordinated efforts with the District of Columbia has always been good. We have worked with all of you, all together. It is not anything that is new. We will continue to do that. ENVIRONMENTAL CRIME This year, we dealt with a lot of environmental crime and those environmental crime issues were dumping of hazardous wastes and medical wastes to things such as that. Not only within the parks, but within the city. As recently as last week, assistance from Metropolitan Police in establishing an environmental crime unit. We have had a training course where not only with the Metropolitan Police but where the city inspectors have trained them on how to deal with environmental crimes. Matter of fact this year, we are instrumental in passing a new bill for the Illegal Dumping Enforcement Amendment Act of 1998 in the District of Columbia. Now it is a felony--it is up to felony--up to 5 years in jail for dumping this type of material within the city. So we concentrate on these things that really impact the city. PERSONNEL shortage We have established--I will speak about personnel a little bit. But because we have been short of personnel basically, the last couple of years we have withdrawn people from the task forces that have always been an important part of the mass transit task force and DEA. Really we need officersjust to cover basic beats. We no longer have the luxury of supporting a lot of the normal task forces that we would normally do. But we did provide a small 10-officer task force that would just cover the hot spots within the city's parks and with what we call the impact area surrounding the city's streets. We have worked well with the Metropolitan Police to find out those problem areas that they have that we could help concentrate our personnel on. drug arrests Just since March 30, which is about 2 and one-half months ago, we have made over 150 arrests in those areas; about 39 cases and have confiscated a lot of illegal drugs and weapons. helicopter aviation unit Our support services to the District of Columbia this past year, obviously we have always supported the Metropolitan Police, with our aviation. But last year, they disbanded the MPD aviation unit, they shut it down. That has shifted some. It has had an impact on us in that we had to pick up 205 missions for the DC Police Department and another 30 from the Fire Department. It is not that costly. It has run us probably--when we look at it--close to $40,000 just to pick up those missions. That obviously puts additional wear and tear on the helicopters. critical needs--personnel I would like to say that some of our critical needs. One is personnel. Personnel is probably at an all-time low for the U.S. Park Police. Nationwide, we are not a large force. We are kind of a lean, mean organization. officer strength--park police Nationwide, we are 793 officers. Of that 569 are assigned in the Washington Metropolitan area. That takes into consideration Virginia, Maryland and the District of Columbia. Of those 569, we only have 450 officers. So we are 119 officers currently right now short in our command in the Washington, D.C. area. That is a significant impact, especially when we are dealing with the major events that we do deal with in the city. 6,000 demonstrations annually I will give you an example of a normal day when the Metropolitan Police and the U.S. Park Police handle many demonstrations. We do it jointly together. It may be a Million Man March, or it may be just an impromptu demonstration that occurs. Start in a park in Dupont Circle, march through the city's streets and end up at the White House, down here at the Capitol. We have probably close to 6,000 demonstrations a year that occur. Then we have special events like Marine Corps marathons and parades--Cherry Blossom parades. All of this we cooperate with fully and support, but in order to get the personnel to do that, you have to be fully staffed it makes it a lot easier. When you have barebones staffing within your stations, it is hard to pull personnel to cover these major events. personnel shortage The staffing I realize that the personnel staffing is not under the purview of this committee. I would only ask your support if you have any influence on the committee. I would certainly appreciate your consideration in trying to increase that--not increase--but staff us up to where we should be to where our vacancy rate is. That will have a big impact on policing within the city. We feel that our staffing now is at an all-time low that should be brought up to what our authorized level is. helicopter aviation unit We do have some considerations we would like to put before this committee and one is on our helicopter unit. We have two helicopters and we have been flying two helicopters for 25 years. We have had a very efficient aviation unit. We received a public safety award for the efficiency of the unit. However, one of those helicopters now is over 15 years old. It is 3,700 hours beyond the replacement time that it should have been replaced. It is been taken up to Canada on two separate occasions to have stress cracks welded in the airframe and I am not comfortable with officers even though that the people say that these are safe aircrafts, I am not comfortable knowing that there are stress cracks in those things. There is a need to replace one helicopter and there is also a need for a second helicopter. We had asked for some consideration in our presentation in the document that you received. equipment shortfalls Equipment shortfalls like the Fire Department and Police Department has been underfunded for so many years, we have had to rob or cannibalize our equipment. We are in much better shape this year than we were last year, thanks to this committee. We certainly appreciate it. It continues. Facilities and equipment is still degraded to a certain extent. In conclusion, I would like to just say that we certainly are concerned for the safety of the citizens in the District of Columbia and the millions of tourists that come here from all over the United States. Certainly we are an integral part of the law enforcement program, the public service program here in the city. We appreciate the opportunity to be here and we appreciate your support. Thank you very much. Mr. Taylor. Thank you, Chief Langsten. Control Board Mr. Taylor. Mr. Harlan. Opening Statement of Stephen D. Harlan, Control Board Mr. Harlan. Thank you, Mr. Chairman, for letting me be here today. The Chief has covered the budget and I would like to take an opportunity to just kind of step back for a second and talk about where we were, where we are, and where I think we are going. As you recall from 1985 to 1996, crime was pretty much out of control in Washington, D.C. Homicides had risen 150 percent, robberies were up 50 percent, car thefts were up 500 percent. Seventeen months ago, we formed then what we called the MOU Group which was made up of the Control Board, the Mayor, the Chair as the Council's Judiciary Committee Chair of the D.C. Council, the Corporation Counsel, the U.S. Attorney and the Chief Judge of the Superior Court. Three weeks ago, we expanded that group and renamed it. We included the new Chief Management Officer and the new D.C. Corrections trustee, along with the Court Services and Offenders Supervision trustee, Jay Carver. We renamed the group to the Criminal Justice Coordinating Council which has a better name and expanded its responsibility and focus. It has become apparent to us that it is not only the Metropolitan Police Department's challenge to reduce crime. We have a lot of other agencies involved. During that period, we think we have made some progress. We have come quite a way, but we have a long way to go yet. crime rate In 1997, Part I crimes were down 19 percent and progress is continuing this year. From January through the end of May, Part I crimes are now down 22 percent compared to last year. It is, in fact, the lowest level of crime in our city in the last 20 years, so we have made some progress. Statistics are nice and they are impressive, but they do not tell the whole story. We still have a city that is far too sensitive to the fear of crime and the Coordinating Council is committed to eliminating that fear. recruitment of police chief charles ramsey We have done a lot of different things and initiated a lot of programs in the last 17 months. The most important one was the outreach and selection of Chief Charles Ramsey as police chief in our city. We are delighted that he is here. He has great experience--29 years with Chicago and where he rose through the ranks to become one of the top police leaders. The day after the Mayor of Chicago did not pick him to lead Chicago, we contacted him, flew to Chicago, and pleaded with him to apply for this job. We were successful in doing so. So we are delighted he is here. He is bringing a whole team of experienced leaders with him that will make a huge difference in our police department. Some of the programs that were underway when the Chief arrived were continued, and you have heard that he is going to make a lot of additional programs. open-air drug markets For instance, we have gotten very good cooperation through the city on trying to close these open-air drugs markets. Not only the PoliceDepartment, it is the Department of Public Works, it is the courts, it is the departments of Human Services and Consumer and Regulatory Affairs--everybody working together to board up abandoned houses, and tow away abandoned cars. Criminal Justice Pilot Program Another initiative is the criminal justice pilot program led by Jay Carver in PSA-704, Police Service Area 704, which really engages the resources of the community, pre-trial services, defense services, parole and probation to really go after adult offenders and make certain that we are all working together to improve safety and reduce crimes in those areas. Police Presence on Streets and Depoliticizing Department The Chief has talked about increasing police presence on the streets. That is truly one of the highest priorities we have had since we formed our group--that and taking the politics out of the police department. As you recall that was probably the first thing we did. But there are several facets to increasing police presence on the streets. One is just having more police officers. That involves, as the Chief has pointed out, recruiting officers which the Chief is committed to improving the quality of officers as far as the educational aspects go and putting in performance and physical standards. But it also means redeploying from civilian ranks, pulling those uniform officers and putting them on the streets. Then we need to see that the officers stay on the street. We have too many officers on administrative leave and other forms of leave. The Chief has taken the lead in doing that. Police Health Clinic--Privatized I am happy to say that within the last year, we have reported that there was a new police clinic that was implemented that has had a major impact because officers no longer can go to the police clinic and be told to go home and take the day off if they are not feeling well. Now, they have to go through a rigorous physical examination and that is working well. That clinic has been basically privatized with Providence Hospital and Washington Hospital Center taking the lead. Arrests and Booking--Reduction In Time and Paperwork We need to improve arrest and booking procedures. It still takes 4 to 5 hours to book a crime where it should be either a paperless crime or an officer-less crime as we call it where the officer is completing the reports and not having to go to the U.S. Attorney's office for each arrest to take time off from the streets. That effort is underway and I am happy to say that through the good efforts of the U.S. Attorney and the Chief Judge of the Superior Court, the police department and everybody working together, we are going to start a pilot program on July 1, 1998 to move that--primarily on misdemeanor kinds of crimes and simple offenses. U.S. Attorney Use of Police Officers Another area of improvement is that officers spend a lot of time in court. A control program called the investigative CANs program which is really a program to help coordinate officer time with the courts. One of the areas that has become apparent as our U.S. Attorney is like the State's attorney--here they function as the state attorney. In virtually every other jurisdiction the State's attorney had their own investigative staff--here they do not have the investigative staff. That confuses lines of authority and responsibility. Police officers find themselves having to report to more than one boss and that is not necessarily good. Police Officers--Better Training for street Officers The other point to get officers on the street is for the officers to do the right thing on the street, not just be there but do the right thing. That requires a lot of training. For years and years--20 years of training has been eliminated, not initial training but continuous training. We have a very high degree of ``deferred maintenance'' in the training of the police officers in the District. Community Policing One of the reasons that Chief Ramsey was so attractive to us in going through the selection process was that he is unquestionably the leader in the country on community policing. Not only the leadership he has provided in Chicago, but working on the fundamental concepts and models through Harvard and other organizations. He is just a true leader. We are committed to community policing to make ordinary problem-solving to get the crime down, not just make arrests. All of this is coming together very, very well mind you. We have a lot of challenges. Citizen Complaint Process For instance, the citizen complaint process which is being changed. The City Council is working on it, the police are working on an internal model, but we have got to improve the trust and respect on the part of the citizens to the police officers and the police officers to the citizens. The fairness of the citizens complaint process, the impartiality of it, and for the citizens to believe that if they do have a legitimate complaint that it is going to be treated properly and fast. Homicides--Closure Rates Improved To make good progress in the homicide department. A whole new homicide model has begun to be implemented last Fall. Right now homicides are at a 10-year low. The closure rates improved from about 57 percent or less, to about 70 percent. This rate is much better, but it needs to go up. The changes--the implementation of changes in the homicide department are going to continue, which includes a lot of training. Infrastructure Allowed to Deteriorate The Chief alluded to infrastructure and other support requirements. Gentlemen, committee members, staff, I would ask you to come with me just to visit those police districts--it is awful where these ladies and gentlemen of the police department have to work. We are talking about raw sewage; we are talking about plumbing that does not work; we are talking about walking into a police station with wastebaskets on top of desks because of water from the roof is leaking in a rainstorm--I mean, it is not a first-class place. It is not even a fourth-class place-- it is a 10th-class place. It needs attention. It is going to take serious dollars, and we have got to figure out how to do it. Field Communications and Technology The Chief has talked about field communications and technology. We were not even in the 19th century. We have made progress, but we have got a long way to go. We are beginning to put portable computers in cars; there is a long way to go with training and hardware; and communications. Concerning 911, there is a new emergency dispatch center being opened--I believe it will be opened in the year 2000. Some of it is being addressed, but it is a major battle because it has been deferred for 20 years, and now we need to get it brought up to date. We are working together because one thing that is very important is to understand that police are the foundation of the criminal justice system. All of these other agencies have to link and it all has to fit together, particularly from an information technology point. The courts are concerned about this, pre-trial services, all the parole, probation, both adult and juvenile, corporation counsel--everybody has to be able to access the database. To understand it, they have to be able to cross-talk and not only through computers but in communications. Right now, they very frequently have to get on the land-line because the radio systems do not talk to each other. Conclusion of MR. Harlan's Statement So I guess in summary, Mr. Chairman, I believe that sincethe Coordinating Council, formerly the MOU, got involved 17 months ago. MPD has made a lot of progress, but we have got a long way to go. Under the leadership of Chief Ramsey and with the cooperation--and let me say the continued cooperation of all the people that are part of the Coordinating Council has been excellent. That is where it is going to be won or lost is that coordination. We are pleased for this appointment and I would be happy to answer questions when you so choose. Prepared Statement of Stephen D. Harlan, Control Board [Mr. Harlan's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Thank you. District of Columbia Courts Mr. Taylor. Judge Wagner. Opening Statement of Chief Judge Annice M. Wagner Judge Wagner. Good afternoon. I thank you for this opportunity to appear to make this presentation. As you know, I am Chairperson of the Joint Committee on Judicial Administration, the policymaking body for the District of Columbia Courts. By statute, we prepare the budget submissions to Congress for the courts. We have prepared a very detailed, written statement which we will leave with you and with members of your staff for review. There are only a few things that I would like to highlight this afternoon. First of all, the courts, caseloads remain enormous. The Court of Appeals experienced records filings again this year-- over 2,000 cases were filed. The Superior Court also had enormous case filings--over 161,000 cases filed. Nevertheless, both courts are working very hard to keep pace with the workload, and in the Court of Appeals for the first time, our dispositions have exceeded the number of cases that we took on. We have reduced the amount of time on appeal in the Court of Appeals and we are addressing these caseloads. Budget Request for D.C. Courts Now at the same time, this was an unusual year. Our request this year is $133,358,000. That amount is about $25 million over the amount actually approved as an appropriation last year. However, as you view this, we think you have to view it against the backdrop of an aberrant year. It was a transition year. It was the first year that we were under the Revitalization Act, and there were unanticipated costs for implementation of the Act. For part of the year, there were employees who remained with us, and for another part of the year, there were employees who were transitioned to the new offender supervision trustee. We believe that our budget base is somewhat lower than it would have been had it been a normal year for us. The reason for that is that there is inherent in any effort to predict how an organization is going to function with one of its functions removed and how the new organization is going to function once it is transferred the new entity. Therefore, it was difficult to project costs. As a result, we believe that costs were underestimated for the courts in recognition of the transfer of adult criminal probation out of the court system by some $8 million. The magnitude of the increase is much smaller when you consider that the budget was somewhat understated. The Federal government is supporting a large amount of our request, and we are appreciative of that. However, there is a significant amount of our request which is not being supported or not recommended, and we feel that those items are very, very important, and we urge you to consider them. They involve the most critical issues in our system--children, technology, security, janitorial services, and lawyers who represent children and indigent defendants. Those are the items that we urge you to give careful consideration to, in addition to what we have in the written submission. Security System We are in desperate need to revamp our security system and have requested money to do that. We actually do recover contraband coming through the doors of the courts on a daily basis. I do not know how many items of contraband we recovered this year, but I know in previous years we have recovered up to 4,000 items of contraband. It is very important that we keep pace with what is going on for security. In addition, when you have 10,000 people coming and going from your building everyday, you have to have janitorial services. They are there for long periods of time, they are using all of the facilities in the building, and you just have to keep those facilities sanitary. Chief Judge Hamilton will elaborate further, I am sure, on some of these items which do affect the whole court system. Increase in Fees for Attorneys for Indigents Really there is not a great deal more that I have to say except that I do believe that our lawyers--that we are requesting an increase from $50 per hour to $75 per hour is a modest increase to ask. It is well below the rates that lawyers are paid, and they are called upon to represent children who are neglected and abused in our system. They are called upon to represent indigent defendants who are entitled, by the Constitution, to representation. We have to pay them. If we do not pay for these things, we cannot keep our cases moving. General Jurisdiction of Courts As you know, we have no control over the demands on our system. Our courts have general jurisdiction, and handle virtually every kind of case imaginable--probate, tax, civil, and criminal. We have felt the impact of the increased efforts of the police department on our court system with a substantial increase in our misdemeanor cases. Thus, the work of one entity impacts another. Technology and Y2K The only other thing I would say is that everyone is concerned about being ready for the new century and technology. The courts are somewhat behind in technology, largely because of fiscal constraints in prior years. We have to be able to communicate with each other, as Mr. Harlan says. In the Court of Appeals, we also have to be able to communicate with each other and with the court system, and we are very dependent upon computers in order to keep pace with the lawyering that is going on outside of the courthouse. Therefore, we would urge you to support funding that would allow us to be ready to keep our--just allow our courts to keep up with the pace of the new technology. It is really virtually impossible, but we do really need to make an effort to meet the demands for the administration ofjustice. The courts are a part of the safety valve of the community. People look to us to resolve their disputes in an amicable way. The community looks to us for redress of grievances, and to handle criminal cases in the community. We can only do this if we are able to have adequate funding for the courts. Again, our submission will be indexed so that you can look through it and easily grasp those areas that I have highlighted and others that are equally important to your consideration of our budget requests. We thank you for the opportunity to address you on this matter. prepared statement of chief judge annice m. wagner [Chief Judge Wagner's prepared statement follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Thank you. Judge Hamilton. Opening Statement of Chief Judge Eugene Hamilton Judge Hamilton. Right. Thank you, Mr. Chairman, and the members of committee. Let me express my thanks for the opportunity to be here this afternoon to speak on behalf of the superior court of the District of Columbia's budget. As has been pointed out quite clearly, the crime rate in the District of Columbia is substantially down. In my judgment, it is substantially down as a result of a coordinated effort that began, first of all, by the Memorandum of Understanding Partners and their efforts of going forward in a consolidated and collective manner with respect to all criminal justice agencies within the District of Columbia. That momentum, which has been started, of course, should be and is expected to continue. As a result of that collaborative effort, however, the criminal caseload in the Superior Court is up substantially. New case filings in the Superior Court increased in 1997 by 15.6 percent. The disposition of criminal cases in the Superior Court increased by 17.5 percent. Criminal cases pending have increased approximately 12 percent overall, considering a somewhat unusual increase in domestic violence pending cases of 109 percent, which is unusual by virtue of the fact that these cases were not accounted for previously. But overall, an increase of approximately 12 percent of pending criminal cases in the Superior Court. Now those cases resulted from the police work that was done on the street and processing a lot of those cases in the police department. Those cases ended up in the court to be processed over a longer period of time than it takes the police department to dispose of those cases. I have included in my statement, Mr. Chairman, a list of matters that I would very much appreciate the committee considering. I would request that my statement be attached to the record. Mr. Taylor. Without objection. prepared statement of chief judge eugene n. hamilton [Chief Judge Hamilton's prepared statement follows:] [The official Commmittee record contains additional material here.] technology--coordinated case management system Judge Hamilton. I would ask, however, if I could point out two matters that I think are very, very important as far as the Superior Court's budget is concerned--keeping in mind that we are in the trenches, too, you know, we are on the firing line. We are in the first line of defense. That is our computer system. It does not do the police department any good to become high-tech and to be able to move and process their cases expeditiously if they come to the court and they hit a snag. The court has to be able to process its cases as quickly and expeditiously as the police department does. For that reason, we have requested the funds necessary to implement a coordinated case management system which will permit us to expeditiously process all these cases so that we know exactly what we have. For example, we cannot really know now whether or not the same person has two or three cases pending in the court that really might be related to each other. They ought to be married by an automated process. So we need this equipment to be able to do that. juvenile drug court The second item, Mr. Chairman and members of the Committee, that I would really draw your attention to and that is the funds that are necessary to implement and operate our juvenile drug court. Now we just had a national conference on drug courts here in the city a couple of weeks ago. The evidence is in--it is clear. Drug courts do work. As a matter of fact, we have one of the most successful drug courts operating right here in the District of Columbia in the Superior Court for adults. It has substantially impacted the crime rate in the city by substantially reducing the use of illegal controlled substances which, of course, is one of the things that drives criminality beyond any question. Now if we can operate a drug court for adults, I say we just cannot avoid the conclusion that we need to at least do the same for the juveniles. Because I think we can be more successful in operating the drug court for juveniles, better than we can for adults. Sixty-five percent of the juveniles that came into the court last year tested positive for one drug--65 percent. It is my judgment that if we had a state of the art juvenile drug court, we could substantially reduce that number of juveniles coming through the system, thereby reducing truancy and criminality among juveniles in the city. So I draw your attention specifically with emphasis on those two items for your consideration. Thank you very much. recent death of police officer in north carolina Mr. Taylor. Thank you. I would like to say to Chief Langston, not as a question, that you lost a member in my district at the beginning of the week. In fact, we have a representative at his funeral now. vests and equipment for police officers I am also a member of the appropriations subcommittee on Commerce, Justice and State, which funds law enforcement agencies. We are going to ask for an inquiry into the type of vest that is being provided officers. This officer was shot through his vest and was killed at a distance. I know we have $40 million in the CJS appropriations request which will be marked up today. On that end I would like it if you and Chief Ramsey could give us information in that area, so that when we are providing our officers with equipment, we have the very best equipment possible. chairman applauds chief ramsey's commonsense approach Chief Ramsey, I am convinced your approach to assessing the quality of performance before you ask for an increase to your budget could well be imitated in D.C. [Laughter.] I am certainly delighted with that type of approach. I appreciate from all the points you spoke to, especially the area of administrative leave as well as a number of the other items that you talked about. I know the lack of education, especially physical improvements and the condition of police officers are of serious concern. physical fitness standards Would you be able to have your officers in good physical shape measured by some kind of standard--the Air Force physical fitness standards or some other standards? We had that discussion last year. It seems to me that there was going to be objections from the unions and so forth on that sort of thing. I think this might be leading to disability claims that really could be avoided in some cases if the officers were in better physical condition. Chief Ramsey. I agree with you, sir. I think that if we can really work to establish standards throughout the organization and obviously it would vary because we have people with different ages and departments. What you would expect a 22- year-old police officer would be somewhat different than a 55- year-old police officer. But there are standards that take all of these things into account. We have to start at some point and time. We did get the union to agree to sit down with us and work toward establishing physical standards. We will have a dual track, if you will, for the veteran police officer there will be one standard. But we can really have a far more richer standard for a lot of people that are just coming on that do not have to adhere to their entire career. So it is kind of grandfathered in, although there will be some standards for veteran officers. We do not want to lose half the force either trying to get them to run a mile and one-half and keel over. So you have to phase certain types of things in, but we are going to move very aggressively toward establishing some kind of standard as it relates to their physical condition. Mr. Taylor. These are men and women who have to protect the people of the city and it is better to be in shape to run the mile and one-half in pursuit of an objective or your formal duties than it is to try to get into shape when you are confronted with a real-life situation. 1,500 officers on street in 24-hour period How many officers are on the streets in a 24-hour period? Chief Ramsey. When you take a look at days off and the number of people that would be on administrative leave, I would say it would be pretty fair to say that at any given time over a 24-hour period or a given shift. Mr. Taylor. About 24-hours. Chief Ramsey. Over a 24-hour period, you would probably have 3,600 individuals--and this is a ballpark. I think it would be fair to say somewhere in the area of maybe 2,300; then you figure days off; those that are on administrative leave, actually physically available for duty--somewhere in the area of about one-third of what we would normally have which certainly would be under that. Two-thirds, I am sorry, one- third would be unavailable to do. park police helicopter availability Mr. Taylor. Chief Langston, what is the process for calling the Park Police for your helicopter service? I know we worked in this area last year, but are you reimbursed by the District, for instance, when your helicopter is needed by the city police? Chief Langston. No, sir. There is no reimbursement within the city unfortunately. We are reimbursed, however, by the Secret Service when we fly protection for the President. Mr. Taylor. How many times last year do you recall that the Park Police responded to non-Federal clearly local matters. Chief Langston. 205 times for the police and 30 times for the D.C. Fire Department and 2 times for the D.C. Housing Department police. Mr. Taylor. What percentage of arrests are made by the Park Police--versus the city police--on ``Federal land inside the city?'' Chief Langston. I cannot give you a comparison on that. You are asking how many arrests we make per police officer versus a Metropolitan police officer? Mr. Taylor. Yes. Chief Langston. I do not know their statistics. I could not compare that. I do know that we have a very high arrest rate from our officers, but I have not made a comparison. residency requirement for police officers Mr. Taylor. Chief Ramsey, I know that in Chicago you had a residency requirement for police and firefighters, of course. How do you think that worked and how would that requirement work here. We have talked about this for some time, so it will not be something new to the Committee. Chief Ramsey. Well, sir, in Chicago all city employees had to live within the City of Chicago--police, fire, streets and sanitation--it did not matter. That is not the situation here. However, there are pros and cons to residency like everything else. My personal feeling, coming into a situation that I am really not accustomed to, not having a residency requirement but having the 25-mile radius requirement. My feelings are that it is very critical that police officers be close enough to be able to respond quickly in an emergency. We cannot afford to have officers who live an hour away from their place of employment--or two hours away because if we ever needed to assemble people for an emergency, we simply did not get them. If they live within a reasonable distance from the city--and 25 miles that is currently established right now--although I have not been here long enough and we have unfortunately had to recall people to see just how that works. It is my feeling that as long as it is within a reasonable distance, I do not have a particular problem with some people living outside of the city. If that had not been the case, and if we were in a situation where there was already residency, I would be arguing very, very heavily to have people remain in the city. If we do anything around residency, in my opinion, we need to maybe look at future new hires to see if we can impose some kind of residency requirements. But the costs associated with forcing people to move back into the city and so forth, and I really do not know if there is a direct correlation between the level of service provided by individuals and where they actually reside. My personal feeling is that I would like to see more people living in the District of Columbia. I live in the District of Columbia. My new executive assistant lives in the District, but I also think that we need to be a little more flexible since this is something that is been in existence for some time now. take-home cars--law ignored Mr. Taylor. Last year's appropriations bill prohibited take-home cars for officers who did not live in the District, yet the Department ignored that law and high-ranking police officials were found to have accidents in official cars outside the city. In fact, we were getting complaints that disability claims might be filed by the police officers for those accidents. What have you done so far to see that that law is obeyed? Are there any exceptions that you would propose in the law? Chief Ramsey. Well, I mean, the law is the law. I believe it should be adhered to. Let me say that first. I do not care if it is me, if it is one of my assistant chiefs or whomever. If the law says you do not take a vehicle out of the city for personal use, then you just do not take it out of the city for personal use. However, I think we need to revisit that for one reason and that is there are some situations where we have people--and I will give you an example, the emergency response team for example that are special people with specialized skills that have to respond to a hostage-type situation. When they do not have a vehicle available to them what it does is forces them to leave their residence, go to the headquarters, pickup their vehicle and equipment and then go out to the scene. That to me seems like an unnecessary waste of time which can result in the loss of life. So I think that we need to be able to carve out limited exceptions for people--and I do mean limited exceptions. I do not mean just taking the car home for the sake of taking it home. A person who is actually on-call that particular evening who may indeed be called out should have a vehicle at their disposal. So I do think there needs to be some flexibility, but I do not have a problem overall with not taking a car out of the District. I do not really think that we should be paying for the gas and mileage placed on cars for people who choose to live outside the District with the exception of something very narrow as I have just described. additional d.c. police required if park police were not available Mr. Taylor. If you, the Metropolitan Police Department, did not have the Park Police to call on, do you have any idea how many additional officers you might need? I am not talking about patrolling the Federal area, I am talking about the city in general. Chief Ramsey. Well let me just say this. Of all the agencies that we have here in the District of Columbia, we rely on the Park Police more than any others. We have a very, very strong working relationship with the Park Police. I would just be shooting from the hip to give you a ballpark figure about what I think we would need. But I am here to say that if we lost the Park Police, we would be in serious trouble in a lot of ways. Not only is it in the downtown areas that we rely on the Park Police, all the parks throughout the city. We have constant joint operations. We now utilize their helicopters since we no longer have that capability. We rely on the Park Police a lot. But when I talked about doing some other things such as maybe some joint roll calls and some critical areas that are problems for both of us. So we would have to really come to you and ask for a significant increase in the personnel and equipment if we did not have the Park Police. Like I said of all agencies, I think we work with them the most in the District. Mr. Taylor. Mr. Moran? residency requirement--problems created Mr. Moran. Thank you, Mr. Chairman. Let us talk a bit about the residency requirement. First of all, because it was brought up. It would seem that police officers have a special concern with regard to residency requirements. Chicago is a larger city than D.C. obviously. To some extent, D.C. is divided economically West of Rock Creek Park, the homes are considerably more expensive. Chief Ramsey. I have just experienced that. Mr. Moran. I will bet. [Laughter.] I will bet. But on a police officer's pay, there are very few police officers who can afford to live West of Rock Creek Park. Thus the homes available are more likely to be in those neighborhoods that they spend the most time policing, and thus there is an endangerment consideration that exists for police officers which does not exist generally for other municipal employees. The other issue that goes beyond police officers, of course, is quality of the pool from which you must recruit. It would be considerably more narrow if you are putting restrictions on officers that they have to live in the District, and thus have to depend upon the District school system. I assume that they would have confidence in the District's public safety, but one does not know. residency requirment--use of incentives instead I know the policy that you have to articulate, but I think it is useful to bring out those issues. I look for you to look at incentive programs that might serve as an alternative just in case this legislation does not actually get enacted. I think that is a possibility, and if it is not enacted you may want to come up with a carrot approach that would provide incentives for officers to live in the District. Mr. Taylor touched briefly on something that I want to ask a little more about. too many uniformed officers in desk jobs We had a extensive hearing--this subcommittee did last year. Mr. Harlan was there. Some of the statistics that were brought out that had been done by a good study that I know is accurate is that we have more police officers per 1,000 residents than any other city in the Nation. We have a police budget that is considerably larger per capita than Philadelphia, Baltimore, or Detroit, but they make more arrests than we do in Washington. What the hearing focused on was the fact that of the approximately 3,600 officers that we have, more than two-thirds made fewer than 10 arrests in a year. I know you were very much aware of these statistics, but I think that we want to get an update from you on the record as to how you have addressed some of those statistics. Because they really are damming in terms of getting the maximum use out of your uniformed officers. You have 12 out of the 15 employees in the Human Resources office who are uniformed police officers; 19 uniformed officers were in communications; and 138 uniformed officers in Personnel Development--it just does not seem as though we were maximizing use of uniformed officers and distributing civilian positions in areas where its most appropriate. The other issue was overtime. But let me ask you first, in terms of getting more uniformed officers out on the beat and filling civilian-oriented positions with civilians. Chief Ramsey. Well, that is one of the things that we have been looking at very carefully and really trying to redeploy our resources. As I stated early on that my sense was that the Department is not organized in a way that really maximizes the use of resources. That includes resource allocation. There is no doubt that we have too many police officers performing functions that civilians ought to be performing. That is why I have asked for an increase of 100 civilian positions in this year's budget--in the 1999 budget, rather, so that we can again continue to move toward civilianization. Whether or not there has been an increase in arrest activity. I honestly cannot tell you. I do not know if there has been or not. That is why we have got to establish performance standards so that we have certain expectations of people whatever that might be and then hold them to it. too few police carrying the department But we have too few people that are basically carrying us as a department, not just police officers, but as you move up in the ranks you start to see the same thing. You always have your one or two people who are very, very good. You burn them out because you tend to then find somebody that will do it, so you give them everything and then you wind up burning them out. Rather than having everybody carrying their fair share of the load. We do have dead weight in the Metropolitan Police Department. There is absolutely no doubt about it. We need to weed it out. We need to kick some people in the tail to make sure they do what they are supposed to do. Then hire people that are motivated and committed to public safety. We have got to make this an organization where people clearly understand what is expected of them, hold them accountable for seeing to it that for 8 and one-half hours per day, they give us 100 percent and not 25 percent, not 30 percent, or 50percent--but 100 percent. That is the only thing that is acceptable. Managers have to see that their subordinates do what they are supposed to do. Right now, we really do not have the systems in place to really have performance standards throughout the department. We have pockets of standards where we have very good managers and work very good teams and motivated people. But then you can just as easily go and find people that are not motivated at all and be very, very loyal. I have not solved that yet, sir. I am aware of it and we are working toward it. Mr. Moran. Well, this is obviously what we want to hear. We want to know that you are aware of it. We are not asking for results overnight, but as long as you make it sufficiently high priority. overtime costs of $18 million The overtime, as well, is costing us $18 million per year. I think we are more than aware of the overtime situation. Are you addressing that? Chief Ramsey. But you know something? You're earlier question. Mr. Moran. Yes. Chief Ramsey. That affects overtime. Mr. Moran. Sure. Chief Ramsey. A lot of overtime is because the few people that are willing to work overtime and do things are the ones that again, we continue to have in the court system when we are looking at the conversation with the U.S. Attorney's office-- they need certain follow-up done. Well, they got some detectives that they know that if they give an assignment, they are going to go out and do whatever it takes to do it. They have others that they are reluctant to give things to because they just are not that committed. So you wind up with people that have a lot of overtime booked up. You have others that do not do enough to earn the paycheck they get, let alone overtime. So there is an imbalance. If everybody carried their workload, it would have a direct impact on your overtime because you would not have to use as much overtime in order to get the job accomplished. So you are right it impacts all that. helicopters--costs associated with d.c. work Mr. Moran. I have one last question for the Park Service. In looking at these numbers, the total cost for the use of the helicopter by the Park Service in D.C.--the D.C. amount came to $62,000. I think it is a tough sale---- Chief Langston. Well, let me correct something before you get on that. There is an area there that I would strike out that says manpower cost. Personnel manpower costs consist of officers who would be flying regardless. Why they put that in there, I am really not sure. Mr. Moran. Well, I can figure out why they put it in there, but you are right that is---- Chief Langston. The flight hours of 92.2 figured on the hours of how much it cost us to operate a helicopter for our-- -- Mr. Moran. Well, let me suggest this. I think, Mr. Chairman, that instead of buying a helicopter for the Park Service in this budget, which is far more monitored than the Interior budget, that we ought to keep the Park Service funded in the Interior budget and reimburse the Park Service for the time and resources that are used on supplementing the D.C. Metropolitan Police Department's responsibilities. I am afraid we set a precedent there that would be difficult to sustain and even to justify in this year to take $13 million out of this budget, or some significant portion of that, and put into a Park Service helicopter. I think reimbursing the Park Service will let us deal with the need for another helicopter in the Interior budget. We can discuss that further. Mr. Taylor. We will be talking about that. I would like to recognize that Congresswoman Northup is with us. Thank you for being here. Mrs. Northup, do you have any questions? resistance to change Mrs. Northup. Let me just briefly welcome Chief Ramsey. For the time I have been here, I am very impressed with your focus and the fact that you articulate your vision so well. Everybody will understand. My experience has been that people are afraid of change. They do not like change. They are comfortable with what they have had. I just wondered as you talk about making actual changes and changing the culture and environment of the police department, what is the resistance? Chief Ramsey. Well there is a natural--you are absolutely right, there is a natural resistance to change whether it is a small change, large change--whatever. I think that what is important for us to do is to develop good training and education for people prior to making the actual changes that need to take place. You have to prepare people for change. A lot of the resistance is because people are afraid. They just do not know what their new roles are going to be. They do not know how they fit into the new system. So you need to clearly articulate the new roles and responsibilities that go along with this change. Once you have prepared for change, then once you implement it, it is far less threatening. You are always going to have a percentage of people that are going to argue and complain. But there are people that argue and complain about what they do now. So you are going to have that small group. But the vast majority of people, I think if you prepare them properly and they clearly understand and you answer all their questions and are sensitive to the fact that change is very, very traumatic, I think you could minimize--that was my experience in Chicago. When people began to see the benefits of it and how it could actually help them do their jobs more effectively, then you start to get by in and that is the key to the whole thing. Mayor's security detail Mrs. Northup. One other thing. I may have missed it earlier Have you resolved the problems of the Mayor's security? Chief Ramsey. That has not come up previously. The Mayor's security detail was cut from 30 to 15 and that is where it stands today. We are constantly reviewing to find out what it is that is actually necessary. Mrs. Northup. Is there still conflict between---- Chief Ramsey. Not that I am aware of. It is stabilized at that level. It was cut in half and that is where it has been for the last 3 or 4 months. Mrs. Northup. That is all, Mr. Chairman. Mr. Taylor. Thank you, Mrs. Northup. I want to point out that I have been impressed by Chief Ramsey's remarks. I have just finished penciling you in, ``Chief Ramsey believes that laws should not be ignored in the District of Columbia.'' [Laughter.] You would be surprised how many people would disagree with us in this Committee. fire fighters pay raise I would like to ask Fire Chief Edwards. Does last year's pay raise bring your department up to the regional pay average? I think youspoke to that a moment ago about spreading it over a period of time. Let me ask you, too, about one of the complaints that our office gets is that you send out a fire truck and sometimes a hook and ladder truck to respond to medical emergencies. What is the policy as far as coordinating between EMS and the fire department? Can we provide safety without those extremes? hook and ladder trucks used for medical calls Chief Edwards. Mr. Chairman, due to the large volume of requests for medical assistance in the city, we utilize a first respondent-type response, sir. That first response program allows us to put a trained individual on the scene of a medical request. Through the use of a--I would say a whole triage-type of program and communications division, we try to maintain that presence only on the critical care calls. That would be calls that would be life-threatening in nature. This is done by a series of questions that the call-taker asks of the caller. The determination based upon those answers would tell that individual what type of equipment to dispatch. The first response program is a valid program in this urban setting. We, for whatever reason, have a systemic problem for medical service and delivery to the citizen in most major urban areas. This program allows the patient or the requestor for the service to get the care as rapidly as possible. I think our problem has stemmed from the fact that we have not educated the public, educated the user as to when and what to call for. But I do believe it is a valid program. We have reduced the number of responses that we put out first response to units. First response to units meaning engine companies, ladders companies or heavy rescue squads. They have been reduced somewhat. We are attempting to keep them only on what those types of responses that are classified as critical. But I look at it as--Mr. Chairman, Mr. Miconi and the other distinguished panel member-- you having experienced a medical problem. Mr. Miconi being trained in CPR or some form of medical training, he then is the first response to your call. That is the same way that we look at that. We want you or any patient to get into the system as rapidly as possible because that they will entail a more positive outcome for the patient. So it is really a viable program. This is not the only community that uses it. The use of it has been reduced compared to what it was a year ago or two years ago. Two years ago, we were dispatching first response to every request for ambulance. We are not doing that now. impact of commercial helicopter flights in district Mr. Taylor. I would like all three of the law enforcement members here to address this question. It is my understanding that a private helicopter take off and landing operation has been established about a mile from the Capitol. This site will apparently serve both for tourist flights to fly about the city outside of the restricted zone, and for potential commuter flights to New York. Can you assess what this service is going to be. Will it in any way conflict with the fire, police, or park police doing your jobs and responding to emergency situations? Chief Langston. Mr. Chairman, we think it is going to cause a great deal of hazard in the air, especially around the helicopter corridor which is helicopter corridor number 1 which is the Anacostia River area. That is where all the helicopters that are commercial or public aviation fly up and down to get to--are routed up and down to get to National Airport. Also, the Marine Corps next month, the Park Police, and aviation are right in that corridor and they respond to emergencies very quickly out of that area. Our aviation section is about a mile from here right on the Anacostia River on the other side of the South Capitol Street bridge. We have a concern that increased helicopters are going to cause us problems especially with the military helicopters that come up and down the Potomac River and the Anacostia River. It could create an additional hazard to the folks here. There are restricted areas of B-56 areas that are in and around the Capitol and around the White House that they are prohibited from going into. They simply have to hover over or operate in certain areas. Put those in conjunction with the news helicopters that are up there now, it is going to be an awfully congested area above our city. I have a real concern with that. Mr. Taylor. Well, I have not seen a report as to whether they can operate in different kinds of weather and what type of command station they will have to keep it safe. I do not know. But it is a concern to us. conclusion of public safety hearing Well, I believe that has answered the questions we have. We may be talking with you again as we get closer to a markup. It is our contention to mark-up towards the end of next month. We have talked to Chairman Livingston about that and we will try to have the subcommittee markup, if at all possible by then, so that we will be ready long before we leave for August to send the bill over to Senate. We have other hearings that will start at 3 o'clock and we are a few minutes early, so we will be in recess for about 30 minutes. Thank you, very much. [Recess.] TESTIMONY OF MEMBERS OF CONGRESS AND OTHER INTERESTED INDIVIDUALS AND ORGANIZATIONS ---------- Wednesday, June 24, 1998. D.C. BUDGET FOR FY 1999 WITNESS HON. DAVID A. CATANIA (R) AT-LARGE MEMBER, COUNCIL OF THE DISTRICT OF COLUMBIA Mr. Aderholt. [presiding]. The Committee will come to order. We now move to our final panel with Members of Congress, elected District officials, and the general public. We have a long list of witnesses and I want to put everybody on notice that we intend to close the hearing no later than 5:30 p.m. this afternoon. I want to assure all those who are on the witness list that they will be able to enter their statements into the record, and it will be there for full consideration by the Committee. We have several Members of Congress who have notified us of their intention to testify. If they are not here now, we'll certainly accommodate them when they arrive. Please note that each witness will have a maximum of five minutes. And so I strongly encourage everyone if they could to summarize their testimony in that regard. Our first witness will be David Catania, an at-large member of the D.C. Council. We welcome you to the Committee. Statement of David A. Catania Mr. Catania. Thank you. Members of the Committee, my name is David Catania, and I am one of two Republican members of the D.C. Council. I have come here today to respectfully request that this Committee approve the District's Fiscal Year 1999 budget as submitted. As you are aware, this budget is the product of consensus process involving the Mayor, the Council, and the Control Board. I have participated actively in this process and can honestly say that this budget represents a compromise among the various participants. I firmly believe that every participant in this process can point to several aspects of the budget that they would change if the decision were left entirely to them. However, in the final analysis, this budget--this process produced a budget with a surplus, which is an extraordinary accomplishment given the level of need in this city. Simply put, I support this budget. Now, after several months of negotiations and debate, the District's budget is before Congress for approval. I ask that you honor our work. I am well aware of the power that the Constitution affords this Congress over the District of Columbia. I am not asking for this Congress to ignore its responsibilities to the District. Rather, I am requesting that this Congress exercise respect for the notion of local government and democratic principles. I would like to share a brief passage from Alexis de Toqueville's ``Democracy in America.'' In the chapter entitled ``Why the Americans Raise Such Insignificant Monuments and Others that are Very Grand,'' de Toqueville confirms that ``true monuments to American greatness can be found in its democratic ideas, and not in its granite structures.'' He writes about the decision to build this capital city and warns of what will happen if we lose sight of the ideas that make us great. He explains that ``the Americans have traced out the circuit of an immense city on the site which they intend to make their capital, but which up to the present time is hardly more densely populated than Pointoise, though according to them it will one day contain a million inhabitants. They have already rooted up trees for ten miles, lest they should interfere with the future citizens of this imaginary metropolis. They have erected a magnificent palace for Congress in the center of the city and have given it the pompous name of the Capital.'' De Toqueville continues that ``democracy does not lead men to a vast number of inconsiderable productions, it also leads them to raise some monuments on a larger scale; but between these two extremes, there is a blank. A few scattered specimens of enormous buildings can therefore teach us nothing of the social condition and the institutions of people by whom they were raised. I may add, though, the remark is outside my subject, that they do not make us better acquainted with its greatness, its civilization, and its real prosperity. Whenever a power of any kind is able to make a people cooperate in a single undertaking, that power, with a little knowledge and with a great deal of time, will succeed in obtaining something enormous from efforts so multiplied. But this does not lead to the conclusion that the people are very happy, very enlightened, or very strong.'' He continues that ``the Spaniards found the city of Mexico full of magnificent temples and vast palaces, but that did not prevent Cortes from conquering the Mexican Empire with six hundred foot-soldiers and sixteen horses.'' Over 150 years ago de Toqueville wrote these words, the residents of the District of Columbia are surrounded by monuments to democratic principles that are far removed from the everyday lives of Washingtonians. Let us not confuse the greatness of our strength and wealth with the greatness of our civilization. We are a great nation because we believe in the radical notion that individuals should control their destiny. Yet, in the nation's capital, our residents are still waiting for this dream to be realized. I know that the District has been poorly served by its elected leadership in the past. I am not here to make excuses for prior governments. I can tell you that the Council is maturing and improving with experience. We are becoming ever more rigorous in our oversight and stewardship of the District. But yes, we have a long way to go before we perfect our local government. But this is no reason to deprive our citizens of the right to have their democratic institutions respected. I am requesting that this Congress respect the notion of local government. The residents of the District should be permitted the same dignity afforded every other American, which includes the right to chart our own destiny. To this end, the elected leadership of the District has made commitments to certain issues, including, among others, domestic partnership, adoption for unmarried couples, and needle exchange for intravenous drug-users. I support each of these commitments. I appreciate that members of this Congress may not agree with the District's elected leadership in these areas. I understand that you have the right and authority to impose your will on us. However, legal authority and moral authority are not the same. At long last, the time has come to respect the decisions of elected representatives of the District and resist the temptations of paternalism. As a Republican, I believe in the concept of local government, and, as a Republican, I am opposed to intrusive Federal involvement in matters that areundeniably local in nature. In addition, as a Republican, I firmly believe that individuals, not governments, can best decide for themselves the proper course of their own lives. These are core Republican beliefs, and they should be applied by this Republican Congress in a consistent manner. I would be happy to answer any questions this Committee may have about the process. Perfect timing, by the way. prepared statement of david a. catania [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Aderholt. Perfect timing. That was good. Thank you for your testimony. Mr. Moran, do you have any questions? Mr. Moran. No, I am going to sit down. I am going to hold on to those quotes by de Toqueville. But I appreciate where you're coming from, and I hope that we can get there. But we're not there yet. And until D.C. has a viable tax base to support a reasonable level of municipal services on its own, I do not think that you're going to have all of the democratic authority and powers that you'd like to see. Mr. Catania. Congressman, I appreciate that but fiscal-- there are two very different issues--between fiscal accountability and fiscal healthiness, and the right to have elected leadership. And so, I would submit--tomorrow in the Council we will be having a hearing on the subject of an elected Attorney General for the District of Columbia, which would take the Office of Corporation Counsel out from underneath the Mayor. It would put it under an elected person. It would broaden the prosecutorial authorities. I think that democracy has been hampered in the District by a very poor system of government. Democracy is a theory of government. It is not, in and of itself, a system of government. And the system that we have, where we have no power to enforce our own laws. We have no power to protect the corpus of our government; that we are put in a position of our taking our hat and putting it in our hands, and walking across the street to the U.S. Attorney's office, and asking him or her, at any respective time, to please enforce the law against those who would perpetrate corruption and misconduct against the government. So, until we have a system of government that is truly internally consistent and capable of governing with all the powers that accompany any decent government, we will not be a more accountable form of--a more accountable local government. But I do not see that there is any relationship between our tax base and our ability to have a say over our own destiny. Mr. Moran. Well, then, you look with clouded eyes--probably ideologically clouded eyes. I do not fault you for that. But the reality is that, unless an entity is going to be economically self-sufficient, it is not going to attain statehood; and without statehood, you're not going to have all the democratic powers that you seek. But I do not want to extend the debate. I am just telling you that that is the reality of the situation. If you want statehood, you're going to have to have the kind of economic viability that would enable you to---- Mr. Catania. And, Congressman, I am not suggesting that I am---- Mr. Moran [continuing]. Sustain the economy---- Mr. Catania [continuing]. In favor of statehood. What I am in favor of is a better system of local government, one that permits the enforcement of local laws by locally accountable individuals. And what I am here today--and I strayed a bit from the subject, and I apologize. What I am here today to discuss is the budget and the fact that through a consensus budget process with the local elected leadership with the appointed representatives of Congress and the president, we managed to put together a budget with a surplus. And so, having said that, I would hope that we would have--you would--the Congress would respect the decisions made by the elected and appointed leadership and not attempt to make a petri dish out of the District of Columbia for one form of experimentation or another. Whether I agree or disagree, it is no more morally defensible for members of Congress from, you know, Alabama, Arkansas, Virginia or anywhere to impose their will on the District of Columbia than it would be for us to impose our will on them. Mr. Moran. I have used that term on many an occasion to fight the things that apparently we would agree with. So, I do not take issue with you. And I do think there will be more and more incremental reforms as D.C. gets on its feet, both in reality as well as in perception. Mr. Aderholt. Thank you for your testimony Councilman. ---------- Wednesday, June 24, 1998. D.C. BUDGET FOR FY 1999 WITNESS HON. CAROL SCHWARTZ (R) AT LARGE MEMBER, COUNCIL OF THE DISTRICT OF COLUMBIA Mr. Aderholt. The next witness will be Council Member Carol Schwartz. Ms. Schwartz. Good afternoon. Mr. Moran. Good afternoon, Carol. Statement of Carol Schwartz Ms. Schwartz. Rather than read a statement, I summarized it in bullet form. And I heard the end of my colleague's statement, David Catania, and agree with the consensus budget request and ask that it be approved. First, I want to talk about the budget points. And that is the District's consensus budget was achieved through cooperation, tough decision making, and hard choices. It is the result of countless hours spanning seven months of difficult work, including Council committee hearings, mark ups, and 10 days of budget planning sessions involving the Mayor, the Council, the Authority, the CFO, and the CMO. The consensus fiscal year 1999 budget is a product of the very system established by Congress for the express purpose of restoring fiscal austerity and discipline to District budgets. This budget embraces those qualities. It was built by consensus with your own entities--the Financial Control Board, the Chief Financial Officer, and the Chief Management Officer. Priority was given to critical services such as education, public safety, and public works--important services which will help the District in its efforts toprovide quality services to residents, businesses, and visitors. The fiscal year 1999 budget provides for much needed pay raises for non-union employees, whose wages have, over the years, become sorely out of sync with unionized employees and certainly the salaries of your own creations--the Financial Authority, the CFO, and the CMO, salaries as a matter of fact, which have been found to be excessive in some instances. Also included are pay raises for employees in the public safety sector to bring them more in line with surrounding jurisdictions. The continued loss of employees to those surrounding jurisdictions, including the Federal Government, with better pay and benefits weakens the District's ability to adequately staff and provide essential and vital services like police, fire, and corrections. The fiscal year 1999 budget also provides for $11.3 million in tax relief to city businesses and residents. The Council and Authority desired to do much more tax relief, but the D.C. Public School budget pressures prevented that. I know you share our goal of tax relief on this Committee. This budget also continues the absolutely critical process of eliminating the District's accumulated deficit. In October 1996, it was more than $500 million. By the end of fiscal year 1999, if this budget is adopted, the accumulated deficit will stand at $41 million, a more than 90 percent decrease. A pretty impressive example which the Federal government would do well to follow. This budget includes funds for sorely needed management reforms and technical assistance, which was called for by countless consultant studies authorized by the Financial Authority and paid for with District funds. Is that not what Congress intended? The budget is about fiscal austerity, discipline, and planning. It seeks to provide critical funding for important city services while continuing to cut the fat out of District government and bureaucracy. To reject this consensus budget means to reject the very system put into place by this body. This budget represents but another step in the process towards complete fiscal solvency and growth for the District. Now I want to talk just a moment about form of governance. Above all else, the question of governance for the District of Columbia should remain up to the citizens of the District, and not imposed by congressional mandate. Article 1, Section 8, clause 17 of the U.S. Constitution clearly empowers the U.S. Congress to exercise plenary authority over the District. But because you can does not mean you should. And I hope that you will reject the urge to load this budget with riders. The District of Columbia does not need to be the guinea pig for 535 individual congressional agendas. That is not fair. And speaking of your constitutional authority over the District, such power should not be used contrary to one of the very purposes for which the Constitution was drafted--to secure the blessings of liberty. Are such blessings to be forever denied the residents of the District of Columbia? Well, that completes my prepared statement, and I am available to answer questions that you might have. Mr. Aderholt. I do not have any right now. We will submit your statement for the record. And we appreciate you coming and testifying before the Committee today. Thank you very much. Prepared Statement of Carol Schwartz [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Ms. Schwartz. Well, thank you. And please be kind. Mr. Aderholt. Thank you. ---------- Wednesday, June 24, 1998. FIRE DEPARTMENT BUDGET WITNESS RAYMOND SNEED, PRESIDENT, D.C. FIRE FIGHTERS ASSOCIATION Mr. Aderholt. Our next witness is Ray Sneed, President of the D.C. Fire Fighters Association. Welcome to the committee. We look forward to hearing from you. Statement of Raymond Sneed Mr. Sneed. Thank you very much. Good afternoon, Chairman, and members of the D.C. Subcommittee on Appropriations, and staff. I am Raymond Sneed, President of the D.C. Fire Fighters Association, Local 36, with the International Association of Fire Fighters. And I appreciate the opportunity to appear today to offer comments on the proposed fiscal year 1999 operating budget for the D.C. Fire and Emergency Medical Department. We are pleased to see that the D.C. Fire and the M.S. Department is finally receiving the financial assistance that we so desperately need due to the cuts we sustained from 1989 through 1995. Despite the lack of fire fighting gear, faulty radios, fire trucks that barely functioned, unsanitary fire stations and the prospect of no pay raises, D.C. fire fighters performed their duties. It could never be said of D.C. fire fighters that 10 percent of the workforce performed 90 percent of the work. My members labored together in the attempt to make the best of a bad situation. If it had not been for this Committee and the support of the Subcommittee and the full Committee, I shudder to think where we would be today in the Fire Department. However, please allow me to respectfully issue a warning to the elected leaders of Washington, D.C. and the members of this Subcommittee who will ultimately improve or hopefullyincrease this budget. Massive Deficiencies Just as it took approximately six years for the Department to get overwhelmed by constant yearly budget reductions, the massive deficiency cannot and won't be corrected overnight. Training Academy Condemned For example, currently the District of Columbia Fire Department cannot train our fire fighters in their chosen profession at our Fire Training Academy. Our training facilities have been condemned since 1988, and its lies in ruin at the Blue Plains location. It is not only embarrassing, Mr. Chair, it is an eyesore also. Currently, our rookies have to go over to Alexandria or Fort Belvoir, Virginia, or Prince George's County to get the training that we need to perform our job. Procurement Problems And procurement? That is still a problem. We have had two brand new hook and ladders at $480,000 each sit in the fire house because the city had not paid for them. And the frustrating thing about it, the money to purchase that apparatus was appropriated in the 1997 budget. So the minute the manufacturer had built that equipment, it should have been paid for at that particular time. But we still had to wait for 30 days after days after delivery before the city paid for them because the manufacturer will allow that much time before those units are paid for. Leaky roofs on Fire Houses Last night, Channel Seven did a piece on the Fire Department, and I was kind of stunned because I thought somehow the reporter had gotten a copy of my testimony because she talked about the deplorable conditions of the Fire Department, the fact that we had leaky roofs and stations that needed repairs. And that was the same thing that I want to identify here today. We have fire stations with leaky roofs. We have station doors that fail to open. Heating plants that need to be replaced. We have malfunctioning air conditioning units that are in modern fire stations that--where the windows will not open because it really wasn't designed that way. And I noticed today in the Fire Chief's testimony he is requesting $2,106,000 for repairs for the fire houses. Now, it might sound like a lot of money, but if you have worked in the D.C. Fire Department, you will note that that is a long way from what we really need in order to come up to par. Clarification of Information What I have done, Mr. Chairman, in the budget that was presented to the Congress, there are several areas in there where they identified instances where it would appear that the D.C. Fire and Ambulance Department is living the good life. And they went back and took a study from other cities and compared us to those. And what I have done--I have identified all of those areas, and I have also made comments on what we thought was appropriate and where we thought this body was actually being misled by those numbers. While our fire fighters certainly were not pleased over the budget reduction of the past, accompanied by an increased workload, with less personnel, they continued to do their job and what not. Pay Parity With Police Officers And that brings me to my final point: There's always pay parity between the D.C. Police and the Fire Fighters, going back as far as when pay raises were given to both bodies by Congress. And our police officers and fire fighters have the same pension system. However, since the inception of the Control Board, pay raises in both police--well, in the Police Department--have been legislated. And we were fortunate enough to come before this body last year and get--and have a pay increase legislated. But my point now is our brothers and sisters in blue have received an additional 10 percent salary increase, and it is supposed to be effective from the 1999 budget. And I think one of those increases goes back to February 1 of 1998; and the second will be effective 10-1-98. So what we did, we went to the District Government. We asked elected officials, especially the Council's Judiciary Committee, which is over the D.C. Fire Department, and they saw the need to maintain pay parity with the police. And there was a five percent--of the monies included in the budget originally--for a five percent pay increase for fire fighters. But once that budget went through the final process, that five percent mysteriously disappeared. So what we're doing now is asking this body to understand the needs of the fire fighters and include that language in the appropriations bill that would give us the 5 percent pay increase. Thank you. I'll try to answer any questions that you might have. Prepared Statement of Raymond Sneed [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Aderholt. I do not have any questions at the present time. Of course, your statement has been submitted for the record. We appreciate your taking time to address the Committee. And we thank you for being here today. Mr. Sneed. Thank you very much. Mr. Aderholt. Thank you. ---------- Wednesday, June 24, 1998. BOYS TOWN USA--HOMELESS YOUTH WITNESS FATHER VAL PETER, EXECUTIVE DIRECTOR, BOYS TOWN USA Mr. Aderholt. Father Peter with Boys Town? Father Peter. Yes. Thank you very much, Congressman, for giving me a chance to talk to you. You know, I have a boring report that is written, but I am not going to talk about that. Mr. Aderholt. Good. Statement of Father Val Peter Father Peter. And I just wanted to come, and I want to thank you for the opportunity. My name is Val Peter. I am the successor of Father Flanagan, and my job here this afternoon is very briefly to let you know what we're doing in the District of Columbia and why we want to do more. We are in 18 States, the District of Columbia, taking care of 31,000 kids, and the reason we come to the District of Columbia--we came five years ago--cause the District's got a lot of problems. And we're very good at the kinds of problems that we work on. We work on kids who are extremely troubled-- kids going to prison, coming out of prison, whatever it might be. We have lots of success. The reason why we have success is not because we're magicians or anything like that. We have done for the last 30 years research on the behavior, aggressive behavior of troubled children. It is called microbehavioral analysis. We're a bunch of science folks who have gotten into the behavioral side of things. Eight-two percent success rate with our kids in the District--and across the--what's does that mean? It means 82 out of 100 kids who come to us with these kinds of problems go away and do not have those problems. Boys Town Facility In D.C. The reason I am here today is because five years ago we came to the District. We have a short-term residential: we're taking care of 300 District kids a year. In addition to that, we have a long-term residential, which is small. We're taking care of about 10 or 20 kids. In addition, we have foster care in the District, and taking care of 50 to 100 kids. The last thing is we do parent training in Anacostia and throughout the District. I do not think there's a day goes by we do not get three, four, five, ten calls where people can you do more. We would like to do more. My purpose here today isn't, you know, to ask for any specific thing. My purpose here is to ask for your support. We have a terrific program. We'd like to double the size of it in the District. And I just want you, Congressman, and the other members of the District to know we're very committed to this. We are very good at what we do. Funding From Private Sources and Long Term Commitment Two other things. Just last things that you ought to know. And the first one is that two-thirds of all our funding comes from private sources. Always has. Always will. So we do not plan to, you know, hook a pipe to the government and ask you to start pumping our way. And we're going to be here for 30, 40, 50 years. We're not a fly by night. Boys Town USA Is Nondenominational The second to last thing you got to know. I am a Catholic priest. Boys Town is not a Roman Catholic organization. Never was. Father Flanagan was very wise. He said, let's make it non- denominational. We do not get involved in anybody's politics except the politics of children. So in the end, what I am asking you--I am just here to make kind of a interim report. Say thank you for what you are doing. Would you please support us as we try to take care of more kids in the District. We work real hard with everybody else here. Story of 9-Year Old Boy One story, and then I'll quit. Here's a boy, 9-years-old, he comes to us in the District. He's been in 16 foster homes. His with us for two years; he's got runaway problems, he's got violence problems, he's got truancy in school; and he's got suicide problems. In two years, this kid is now--the anxieties have diminished and he's ready to get better. Why? Three simple reasons. Number one, we teach you skills. I say to him, Cedric, you want to get your needs met in a way that everybody's going to applaud to that everybody's going to curse, we can show you how. So we teach you skills. We help you build relationships, and we help you take charge of your own life. We say that very simply. We say, Cedric, you want to get better, you got to shut up, you got to lighten up, and you got to grow up. And we can help you do all of those. So I want to thank you very much. You guys are doing terrific work. And that is all I have to say. Mr. Aderholt. thank you for your work through Boys Town and the work that you do for the at-risk boys and girls over there. And we thank for your testimony. We will place your written testimony in the record? Father Peter. Yes, please. Prepared Statement of Father Val Peter [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Aderholt. Thank you. Father Peter. I have tried not to be boring. There's three rules: be clear, be brief, be gone. I was clear. I have been brief, and now I am gone. [Laughter.] Mr. Aderholt. You met all three. Thank you. ---------- Wednesday, June 24, 1998. FUNDING LEVELS AND POLICY DECISIONS WITNESS DAVID J. SCHLEIN, NATIONAL VICE PRESIDENT, DISTRICT 14, AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES Mr. Aderholt. David Schlein? How you doing today? Mr. Schlein. Good. Good afternoon. Mr. Aderholt. You are David Schlein with the American Federation of Government Employees. Mr. Schlein. Yes. Mr. Aderholt. Thank you for being here today. Prepared Statement of David J. Schlein Mr. Schlein. Thank you. Mr. Chairman, I am going to summarize my statement and ask that it be submitted for the record with our attachments. Mr. Aderholt. Certainly. [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Statement of David Schlein Mr. Schlein. My name is David Schlein. I have the honor of serving as National Vice President for the American Federation of Government Employees. We represent approximately 5,000 employees who work for the D.C. Government. These are front- line employees who do the demanding, often dirty, and sometimes dangerous, and almost always thankless work that keeps the city running. Like you, AFGE believes that addressing the urgent and glaring crisis in management is the long-term key to prosperity for the city and to ensuring that the city's residents and visitors to our nation's capital receive excellent service. The cause of the city's twin financial and management crises has never been that rank and file city workers are overpaid or that there are too many people hired to pave the roads, fix the school boilers and roofs, renew licenses, maintain water and sewer lines, clean up the parks, or process the paperwork. Unfortunately, it is the political patronage has come to mean a management job or a lucrative private contract. There were, and still are, too many bosses and not enough front-line workers or equipment or spare parts to get the job done. There were, and still are, questionable contracting policies that result in contracts let without proper regard to the price, the quality, and the experience of the contractor. As hard working, dedicated employees, our D.C. members are extremely frustrated when the city government just doesn't work. Our members are the folks who try to continue to deliver services to District residents and businesses in an efficient, professional, and humane way, despite the obstacles and frustrations caused by layers of redundant management, lack of training, materials and or equipment. They are the folks who arrive to work on time and do their jobs, despite untrained, unprofessional, politically well-connected managers who ignore ideas on how to make government work better. They are the skilled workers who keep plugging away at their work, despite having their salaries cut twice in the past 24 months, their earned benefits reduced or eliminated, and their pay for overtime, hazardous duty, and holiday work being severely reduced. We are proud of our D.C. members. As public employees for D.C. Government, they truly are the unrecognized heroes and heroines toiling under exceptionally difficult, demanding, and often dreary conditions. Let me be clear. Our members have no stake in the status quo of management. As the front-line workers, our members have a keen awareness of the problems with the city's operations. It is because they are closest to the delivery of services that our members and their union representatives can offer a clear perspective on solving these problems. Transforming D.C.'s governmental system into one that inspires public confidence in the city's ability to deliver high quality public service in a cost effective manner is our goal. We understand that our members' futures depend on resolving the city's ongoing financial and management crisis. And we know that it is the front-line employees who do the city's work who must be the center of any effort to fix the city's delivery of services. Grant For Labor-Management Pilot Programs at Public Works Indeed, over two and a half year, AFGE, AFSCME, and the city successfully applied for a grant from the Federal Mediation and Conciliation Service to establish a labor- management pilot program at the Fleet Maintenance Division of the Department of Public Works. The project has already yielded impressive results in improving efficiency and labor-management relations. Furthermore, the grant required that city-wide labor- management partnership committees be established. Both FMCS and the Department of Labor have generously donated resources and expertise to make the project a success. The success achieved in this project, as well as the historical success in the Federal Government in other cities, such as Philadelphia, Cincinnati, Indianapolis, Fort Lauderdale, give us reason to hope. In the rest of my testimony, I talk about some of the highlights that we believe are necessary in management reform. And we have provided you a copy of project that we did that responded to the consultants that were hired by the city, which, of course, came out of last year's appropriations, with what some of our members thought of their reports. And this has been shared, of course, with the city leaders, the City Council, the Authority. And we're working hard to try to implement some of these changes. Let me just close by also stating that AFGE also supports the District's budget request, and we hope that it will be passed expeditiously. Thank you very much. Mr. Aderholt. Thank you for being here today, and testifying. Mr. Schlein. Thank you. ---------- Wednesday, June 24, 1998. PUBLIC SCHOOLS BUDGET WITNESS MARY LEVY, PARENTS UNITED FOR THE D.C. PUBLIC SCHOOLS Mr. Aderholt. Our next witness is Mary Levy with Parents United for D.C. Public Schools. Thank you for being here today. Statement of Mary Levy Ms. Levy. Thank you for having me. I am Mary Levy and I have studied the school system's budget, staffing, and reform efforts for the last 18 years. I am going to speak about three things today. PER PUPIL SPENDING The first is per pupil spending in the D.C. Public Schools. Essentially it is a lot less than what one hears. It is, this year, Federal and local funds included, the school system is spending a little under $7,600 a pupil. The reason it is so much more in earlier reports is explained in the notebook attached to my testimony. What the school system is spending this year is less than in the surrounding suburbs, except for Prince George's County. And it is a lot less than either Arlington or Alexandria. This is for a population with a much higher rate of disadvantaged children. It is also less than we spent four years ago. In most school systems spending goes up year by year. Ours has gone down year by year until this year. And I lay all that out in these papers, in the details. NEED TO FILE COURT SUIT TO GET FINANCIAL INFORMATION Second topic is where the money goes. We haven't got a good account as to where the dollars go exactly because I have not yet succeeded in wresting that from the school system's administration or from the Chief Financial Officer, but I am working on it. And eventually we'll sue them and get the information. We do, however, do extensive monitoring of staff in the school system, and because of the way we do it, it is better than anything the school system publishes. And what I have laid in the testimony here shows where they have come in the last three years and where they are today in terms of their staffing. About six percent of their staff is in central offices. That is for a rather long list of functions, including people like payroll clerks and people who do the personnel processing, communications, management, curriculum, teacher certification. There's a very long list of central office functions. And like I said, they have got six percent of their workers on that. That number is down quite a bit in recent years. And right now, there's really, with the cuts they have just announced, no more to go. Non-instructional services have also been cut, not as much as it looks like, because some of those services have been contracted out, which means the money moves over from staff to non-staff. After they get done cutting the custodians that they say they are cutting, there probably will not be enough of them to keep the schools clean. But we will see. About 78 percent of their local staff is in schools, in school instructional programs. I am not talking about the cafeteria workers or the---- Mr. Aderholt. Excuse me. Go right ahead. Ms. Levy. When I say school-based, I am not including the custodians or cafeteria workers. That is 78 percent of the locally funded staff. Over the last four years, the school system has cut almost one-quarter of its locally funded employees. Central offices and non-instructional services are down substantially, but they have also cut the classroom. We now have 1,100 fewer teachers and aides than we used to have. They come close to matching their current criteria for staffing, except in one area, and that is special education, where they are very much short on staff. BUDGET FOR FY 1999 Third topic is next year's appropriation of $545 million. With the central office and the custodial cuts that they have announced, that amount of money will suffice to keep services in the schools about the same as they are now, although middle school and high school class sizes will go up a little. They will have to increase special education substantially in order to keep up with newly identified students. There will be, I think, more testimony about that from someone else later. That leaves them somewhere between $10 million and $20 million to raise teacher salaries, which are 8 to 14 percent behind those in the suburbs, and do any reforms and improvements that they ought to be doing such as extensive staff development. That is the summary of my testimony. Mr. Aderholt. Thank you for being here today. Of course, Chairman Taylor has come in now, and I am going to turn it over to him. Mr. Taylor [presiding]. We appreciate your coming in and your entire statement will be included in the record. Thank you for doing that. PREPARED STATEMENT OF MARY LEVY [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Wednesday, June 24, 1998. SPECIAL EDUCATION WITNESS TAMMY SELTZER, CO-CHAIR, D.C. SPECIAL EDUCATION COALITION Mr. Taylor. Let's see. Okay. Tammy Seltzer. Ms. Seltzer. Just like Alka Seltzer. Mr. Taylor. Oh, good. Okay. You have been a relief many times, so maybe I'd like to have you be a relief here today. Ms. Seltzer. I hope so. I just wish I were a stockholder in the Alka Seltzer company, but the name doesn't bring all of those benefits, unfortunately. BACKGROUND OF SPECIAL EDUCATION COALITION Good afternoon. I am Tammy Seltzer. I am a staff attorney at the Bazelon Center for Mental Health Law. And I am speaking here today on behalf of the D.C. Special Education Coalition, which is a diverse group of parents and advocates who are committed to ensuring that children with disabilities in the District receive the special education services which they are entitled under Federal law. I have prepared a written statement, which I would like to ask be entered into the record. Mr. Taylor. Without objection. PREPARED STATEMENT OF TAMMY SELTZER [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Statement of Tammy Seltzer Ms. Seltzer. And I will just summarize my statements today. The Coalition has been a very active participant in recent efforts to rectify some of the long-standing, systemic problems with D.C. Public Schools' special education services. And to everyone's surprise, although we normally criticize D.C. Public Schools, today I am here to support their fiscal year 1999 budget request for special education services. Denying the request the Coalition feels would jeopardize the very reforms that are necessary to extricate the school system from the morass of expensive private school placements and unnecessary litigation. Superintendent Arlene Ackerman, as you all know, has inherited a school system that just doesn't have the adequate infrastructure to provide special education services to all the children who need them. And the lack of educational services has led to two particularly worrisome results. One I know that the Chairman's been interested in, and that is the over- reliance on expensive private school placements. But there's also another result, which you may not be aware of, which is that there's been an incentive to under-identify children with disabilities who qualify for special education services. D.C. Public Schools currently places students in private school placements at twice the national average, which, as we know, is definitely draining their budget. They also are currently identifying students as needing special education services about nine percent of the time. They are saying nine percent of the population. And what we know is that the national incidence of disability is pretty steady across the country. It is not something that varies that much. And across the country, the average range is from 12 to 15 percent. In urban areas, with the similar socio-economic situation that we have here, the numbers are even higher. Baltimore City, for example, has an 18 percent identification rate, so D.C. at 9 percent is far below that. They have just been not identifying students that need services. So the disparity that we end up with is that a minority of the student population is receiving a disproportionate share of the special ed budget, while thousands of children are receiving no services whatsoever, which is a big concern. And regardless of testimony to the contrary, D.C. Public Schools is really the entity that created the problem. There are years and years of U.S. Department of Education reports showing non-compliance from as back as when they started monitoring. And we're talking about non-compliance in the area of 90 to 100 percent in some areas. So for many years, D.C. Public Schools has wasted their funds, building this bureaucratic stone wall rather than building a school system that the children deserve. And Ms. Ackerman, to her credit, realizes that building a service capacity of the public schools is the only way to address the crisis that they find themselves in. Some D.C. government officials have suggested that she doesn't need additional funds to rectify this problem; that all she needs to do is bring back some of these private school kids. Then she can take that money and build services for the kids that need them. And based on the information that I have about the law and the way the system works, I can tell you that that is just impossible for her to do. And I'll explain why. The D.C. Public School students are in those private schools' placements precisely because there are no services here for them. Until D.C. creates the services, they cannot legally bring those children back. But until they create the services, they are going to keep having additional children that need to go into the private school system. The bottom line is that Ms. Ackerman does need to make an investment into the infrastructure, just like you would make an investment into bridges and roads, before she's going to be able to have a school system that is efficient and doesn't put an extraordinary amount of money into these private school placements. Given the District's fiscal history, I know that you probably have a lot of concerns that we not throw good money after bad. And I think it is a legitimate concern. But our interactions with Ms. Ackerman have given us reason to be optimistic in this regard. For one thing, she seems to be very well informed about the system's problems and also seems to have a very clear idea of what needs to happen to fix things. She has signed a historic three-year agreement with the Department of Education outlining the specific steps that they are going to take to fix some of these problems. And it is an agreement, which I brought with me--pretty hefty--that had months of community input as well. And although it was executed just three months ago, I think it is significant to point out that Ms. Ackerman has made progress toward some of the goals in that agreement. One of the things that she has been able to do is to assess several hundred students who were waiting for assessments over the last months, and last Saturday, D.C. had a Child Find screening for disabilities which is the first time in anyone's memory that that has ever happened even though it is required under the law. So, I would request on behalf of the coalition that you support the budget request that has been made by D.C. public schools. Mr. Taylor. Thank you, Ms. Seltzer. We appreciate your remarks. Thank you. Ms. Seltzer. Thank you. ---------- Wednesday, June 24, 1998. CONTROL BOARD STAFF SALARIES AND LEGISLATIVE RIDERS WITNESS HON. CONSTANCE A. MORELLA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MARYLAND Mr. Taylor. I would like to recognize Congresswoman Constance Morella, my fellow worker in the halls upstairs, for her statement. Glad to have you with us. Statement of Congresswoman Constance A. Morella Mrs. Morella. Thank you very much, Mr. Chairman and Congressman Aderholt. I am delighted to be here before you, and I thank you for the courtesy of allowing me to testify on what I consider to be some important priorities in the District of Columbia appropriations. As Vice Chair of the Government Reform Subcommittee on the District of Columbia and as a representative of the district that borders the District of Columbia, I have a great concern and a great interest in making the District a safe and thriving place that is a source of pride for the Nation. control board exceeded its authority Having said that, I want to start off by commending you, Mr. Chairman, for requesting a GAO study examining the pay raises provided to certain staff in the city by the D.C. Financial Control Board. The GAO report confirms that the Control Board exceeded its authority by granting excessive pay raises to Executive Director John W. Hill, Jr. and to General Counsel Dan Resneck and by paying Chief Management Officer Camille Barnett a salary of $155,000. While I believe that we must pay the CMO what she deserves and honor her contract, the raises given to the top executives in the D.C. government are excessive and should be returned, and I support you, Mr. Chairman and appreciate your good efforts in looking into the matter. residency requirement for employment Let me turn to another matter, Mr. Chairman, over which we may have some differences of opinion, and I am referring to the residency requirement. As you know, last March, the D.C. City Council overwhelmingly passed a bill requiring new city workers to live in the District. On May 19th, this act was officially transmitted by the Council to Congress, and unless rejected by Congress, the act will go into effect shortly. I believe that the D.C. appropriations bill would be an appropriate place in which to repeal the Residency Requirement Reinstatement Act. I urge you to do so. Requiring new workers to live in the District would make non-residents second-class citizens and could endanger public safety and education. When I first came to Congress in the late eighties, the District government was already showing signs of the deficiencies that marked the beginning of a spiraling, economic crisis. Services in the District were deteriorating; businesses were relocating; middle-class residents were moving to the suburbs in search of lower taxes, safer streets, and better schools. From 1990 to 1995, the District lost more than 22,000 households, most of them middle-class taxpayers. As Congressman Moran has pointed out, many of the people who move to the suburbs have homes. If this residency requirement is implemented, these people will be looking for alternatives to working for the District, and we may lose many competent employees. Mr. Moran also has pointed out that this proposal will not pass, and it diverts attention from the more important issues that affect the District. If we work hard to make the streets safer and improve the schools, those former residents will want to move back to the District closer to their jobs. I know that property values already have gone up from my work on the Cafritz Advisory Board. Just look at the old Woodward & Lothrop building that was bought by Ms. Casey for about $13 million. It is now going to sell for about $33 million, and the Washington Opera that was going to be housed there will now be the Kennedy Center clients. So this is an indication of a lot of the goods things that are happening in the District of Columbia. Many of the workers who do live in the District are underserved and undereducated at this point, and I think we need to work hard together to make sure that we have good training programs for District residents so that they will meet the need of the changing work force. So, I urge you to include language to repeal the residency requirement in the D.C. appropriations bill. other legislative restrictions I also understand that this subcommittee may be considering the inclusion of language prohibiting unmarried couples in the District from adopting children, preventing the District from using its own local revenues to fund the city's Needle Exchange Program to prevent new HIV infections in injection drug users and their partners, and continuing the prohibition on funding for the D.C. Domestic Partnership Program. I think that trying to micro-manage D.C. would be counterproductive for the Congress and would encroach on the legitimate roles of the City Council and the Control Board. As Republicans, we have worked to give back local control to our communities, and these provisions will run counter to that objective. prohibiting adoptions by certain unmarried couples Most Americans agree that the Federal government should stay out of the family law decisions. In fact, Americans, categorically, reject the notion that the Government should take a greater role in deciding who can and cannot adopt children. By a margin of nearly 4 to 1, 74 to 19 percent, the public believes that we should keep the system we currently have rather than allow the Federal government to take a greater role. Congress has traditionally stayed out of family law, recognizing that State and local governments are better suited to address those issues. The best interest of the child should be the deciding factor in setting adoption policy at the local level. That is best determined by local, trained professionals. Parenting skills, not marital status or sexual orientation, should be considered. The American Psychological Association reports that studies comparing groups of children raised by gay and non-gay parents find no developmental differences between the two groups of children in their intelligence, social and psychological adjustment, popularity with friends, development of sex role identity or development of sexual orientation. In fact, in 48 States and the District of Columbia, lesbian and gay people are permitted to adopt when a judge finds that the adoption is in the child's best interest. As of June 22nd of this year, there were 3,600 children in the D.C. foster care system waiting to be adopted. It is hard enough to find good homes for children; it would be a travesty to make children languish in institutions at great cost to taxpayers when they can have caring, loving homes. needle exchange drug program Mr. Chairman, the District of Columbia has one of the highest incidences of HIV infection in the country. Intravenous drug use is the District's second highest mode of transmission, accounting for over 25 percent of all new AIDS cases. For women, where the rate of infection is growing faster than among men, it is the highest mode of transmission. Scientific evidence supports the fact that needle exchange programs reduce HIV infection and do not contribute to illegal drug use. Despite that, on April 29, 1998, the House voted to prohibit the expenditure of Federal funds for needle exchange programs. D.C. has had a local Needle Exchange Program in place since last year, an important tool in the City's fight against the spread of HIV and an important bridge to drug treatment services. Now, some members want to tell D.C. that it cannot spend its own funds to prevent new HIV infections. This is simply wrong. Local jurisdictions should be able to decide for themselves how best to fight the HIV epidemic in their own communities. In my State of Maryland, Baltimore has a great program, and they are allowed to fund it with their own money; it has resulted in a significant decrease in the HIV infection rate. conclusion of congresswoman morella's statement Mr. Chairman, with so few days on the legislative calendar, Congress cannot afford to hold up the appropriations process by politicizing family and public health decisions. I urge you and the subcommittee to reject such efforts and allow the District of Columbia to make its own decisions on these local matters. You have been very patient and kind to give me the extra time so I could go through those issues of importance to me, and I do hope that you will consider them. If you have any questions, I would be happy to try to answer them. residency language--authorizing committee inaction Mr. Taylor. Thank you very much for your presentation. As a member of the authorizing committee, do you know whether or not the authorizing committee is going to act on the residency requirement? Mrs. Morella. I do know that if we were to act on it, we would be against it, I believe. Mr. Taylor. As I understand it, the D.C. government has passed it, and the House, either from your committee or ours, has to reject it and the Senate has to do the same and the President has to sign the bill with the rejection language. Mrs. Morella. With the limited period of time, the onus probably falls more on you, but if I could defer and ask Mr. Dennis who is a councilman. Mr. Taylor. It is clearly an authorizing question, and I do not know that we are going to be involved. Mrs. Morella. Is the subcommittee planning to do anything on that that you know of? I would be happy to talk to him right now. Mr. Taylor. Well, heaven forbid that an appropriations committee legislate in an appropriations bill. Mrs. Morella. Oh, I know, we never do that, Mr. Chairman, do we. Mr. Taylor. That's right. Mrs. Morella. Never. Mr. Taylor. Well, thank you so much for your presentation. Mr. Aderholt. Mr. Aderholt. Thank you for being here. Mr. Taylor. Thank you. Mrs. Morella. I will check with the authorizing committee, but I think it would be an excellent opportunity for it to be put into the D.C. appropriations bill anyway. Mr. Taylor. Thank you. prepared statement of congresswoman constance a. morella [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Wednesday, June 24, 1998. DOMESTIC PARTNERSHIP; NEEDLE EXCHANGE; AND PROHIBITION ON UNMARRIED COUPLES ADOPTING CHILDREN WITNESS CARL E. SCHMID, CAPITAL AREA LOG CABIN CLUB Mr. Taylor. Is Mary Filardo here? Mr. Schmid, we are glad to have you with us. statement of carl schmid Mr. Schmid. Good afternoon. My name is Carl Schmid, and I am appearing today on behalf of Capital Area Log Cabin an organization of gay Republicans and the Human Rights Campaign, the Nation's largest gay and lesbian political organization. We come before you again to express our concern about the inclusion of certain provisions in the D.C. bill which would adversely impact our community. Our message to you as it was last year is to please, leave us alone. Specifically, I would like to focus on three issues: one, a prohibition on implementation of our domestic partnership law; two attempts to prevent unmarried couples from adopting, and, three, a prohibition on the use of D.C. funds to carry out our AIDS Prevention Needle Exchange Program. While we, like you, are concerned about how our government is being run and managed, we must ask how involved should Congress be in dictating social policies for District citizens. Now that there is no longer a Federal payment, Congress' role should be decreasing not increasing. I thought we, as Republicans, believe in less government and individual rights. So, why do we have to fight each year over these issues? Aren't there more broader financial management issues to consider than to delve into such local policy issues? It appears that certain Members of Congress are trying to dictate their own personal views to the District all just for their own political gain. Our Domestic Partnership Program which has never been allowed to be implemented by the Congress, allows District employees to purchase health insurance at their own cost for their domestic partner. The only benefits the partner receives are visitation rights at nursing homes and hospitals and, depending on the employer, other rights such as sick, parental, and bereavement leave. As you can see, it is very limited. Private employers around the country such as IBM and Mobile are establishing these programs; so are numerous cities like New York, Los Angeles, and Chicago. Why then does Congress prevent the District from implementing its program while other cities are allowed to implement theirs? Another area where the Congress has tried to interfere with local social issues, as Congresswoman Morella mentioned, is in adoption. Congress has traditionally stayed away from these family laws issues, because they are best handled at the State and local level, but the past three years, one Member has tried to prohibit unmarried couples from adopting. Fortunately, fairer minds have prevailed, and these attempts have failed, but it appears that they have not given up. Adoptions do not happen overnight, but only after careful planning and a lengthy report is conducted that includes a home study, a financial and criminal record check are all done to determine if the prospective parents are fit to adopt. The final decision rests with the court after they conclude the adoption would be in the best interest of the child. These are not issues of Federal legislative concern but decisions best left to local family court to decide on a case-by-case basis. Finally, needle exchange. As Congresswoman Morella mentioned, the District, sad to say, has one of the highest incidences of HIV in the country. This not only costs precious lives but precious dollars. IV drug use is the District's second highest mode of transmission accounting for over 25 percent of all the new AIDS cases. For women, it is the highest mode of transmission. Unfortunately, the trends do not look good especially for the black community where 97 percent of transmission through IV drug use occurs. Last year, the rate of infection for black women who contract the virus through IV drug use rose by 23 percent while for black men it rose by 12 percent. These increases are occurring while the transmission via other modes and other populations are decreasing because of education and prevention programs. While I am firmly against illegal drug use, I am also against the spread of HIV. The District through its locally funded Needle Exchange Program is seeking to prevent both the spread of drug use and of AIDS, and by blocking it, you would justbe doing the opposite. There is no promotion of drug use just the exchange of one used needle which is already out there on the street and which is most likely already infected with the AIDS virus with one uninfected sterile one. To participate in the program clients must be registered and are given information on drug treatment. Without this program, the spread of AIDS would increase, and these IV drug users would remain on the street without any contact with a health care provider. The introduction of these issues year after year has significantly delayed passage of the D.C. bill. First, Congress has blocked our domestic partnership law, and then they tried to legislate who can and who cannot die, and now they are thinking about going after our local AIDS Prevention Program. When will all of this local meddling stop? As you consider the bill this year, we urge you to resist adding these extraneous riders. Thank you for the opportunity this year to present our views, and I will be glad to answer any questions you may have. Mr. Taylor. Thank you very much for your presentation. Congress, from the Constitution forward, was determined to have a District of Columbia, and they were going to govern it, and I see no change in that contrary to what you were saying. It is sort of an anomaly in the fact that government is best that governs least, but there is definitely a responsibility in Congress to govern the District of Columbia, but I appreciate your presentation. Mr. Schmid. And I agree that the Congress does have a role, and I guess my point is how deeply should the Congress be involved in local affairs? There are such larger financial management issues to look at, and I clearly recognize the constitutional role. Mr. Taylor. We will be marking up toward the end of this coming month, so I appreciate your presentation, and we will be happy to talk with you briefly. Mr. Schmid. I appreciate it. Thank you very much. prepared statement of carl schmid [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Wednesday, June 24, 1998. BOY SCOUTS LEARNING FOR LIFE PROGRAM WITNESSES PATRICIA McCRIMMON, PRINCIPAL, NEVAL THOMAS ELEMENTARY SCHOOL SHIRLEY JONES, TEACHER, KENILWORTH ELEMENTARY SCHOOL Mr. Taylor. We have two witnesses and I would like them to come forward and both sit here at the table: Doctor Patricia McCrimmon who is the principal of the Neval Thomas Elementary School--glad to have you--and Shirley Jones who is a teacher at Kenilworth Elementary School. What we will try to do is let you make your presentation first, Dr. McCrimmon, and then we will go on to Ms. Jones. I am going to go vote while you are presenting your statements, because we have a series of votes, and we sort of have to trade off being chairman here from time to time so we can make all the votes and not hold you up. We would be glad to have you make your statement. Statement of Dr. Patricia McCrimmon Dr. McCrimmon. I am Patricia McCrimmon, principal of Neval Thomas Elementary School in the District of Columbia. I would like to begin by thanking the committee for the opportunity to testify. On behalf of all teachers and administrators in District schools, I wish to thank and commend Mr. Taylor. Mr. Chairman, this is particularly meaningful, because we teach our students that actions speak louder than words. When you came to meet with D.C. teachers, you said that you cared about what we had to say. Then, you told us that we would be invited to appear before Congress, and here we are. You have shown your commitment to teachers and to administrators by keeping your word to us, and we are grateful for your leadership, sir. The Learning for Life Program provided by the National Capital Area Council of the Boy Scouts of America has filled a void of current curriculum. This program allows students to deal with issues that are relevant to their everyday lives. Cooperative learning techniques are utilized throughout the program. Lessons can be incorporated to involve parents, and its open-ended approach to problem solving gives all children an opportunity to actively participate and achieve success. The program format is flexible in that it can be used as an individual activity or as a unit. Although the content is varied at each grade level, there is continuity in its themes. The activities are engaging, exciting, and child-centered on every level. The wall chart motivates students to complete activities in order to earn recognition stickers. The friendly competition fosters positive relation among the students. The teacher's guide is helpful; it is informative. It can easily be used by a seasoned teacher or by a novice. In general, it is a program valued by teachers and students at Neval Thomas School. We have used the Learning for Life Program for the past three years, and it has proved to be an excellent supplement to our curriculum. We look forward to using the program once again in our daily curriculum planning. Although academic achievement is our major goal, our major focus, the Learning for Life Program enhances all phases of our school program. The program is value-centered, and it deals directly with some basic needs of urban youth. Our children need assistance in character building, personal values, self- confidence, and decision making. The Learning for Life Program is designed to provide us with this assistance. It will help us reduce delinquency and strengthen classroom education. Congressman Taylor, we applaud your efforts on behalf of the schools, and we are hopeful that the program will be expanded to serve all the children of our city. Mr. Chairman, it has taken political courage to intervene in the District's schools. While it would be easier to remain on the sidelines, you choose the more difficult role of true leadership. For that, you deserve our praise and our heartfelt thanks. Mr. Aderholt [presiding]. Thank you very much. You are one of the first groups, I think, of independent teachers to come before this Committee, and I especially applaud you for your presentation. Mrs. Jones, would you make your presentation also? Statement of Mrs. Shirley Jones Mrs. Jones. Mr. Chairman, I am Shirley Jones, a teacher at Kenilworth Elementary School in the District of Columbia. I wish to echo my thanks to my colleagues and congratulate you for what you are doing to help youth in our Nation's Capital. I speak for many when I say that we thank you for coming to meet with those of us who serve on the front lines of education. We are very proud of what we do, and it means everything to us when the chairman reaches out to ask us what teachers believe is needed in the schools. The mission statement of the District of Columbia Public Schools summatively says, ``prepare students for their world tomorrow.'' The Learning for Life Program for education provided by the National Capital Area Council of the Boy Scouts of America is in an alignment posture with that statement. Its statement includes the words ``prepare throughout their lives''--referencing the students. If we are to make students ready for life, then the basic foundation of knowledge and character must be built. If there is positive character and ownership of knowledge, students feel good about themselves. Feelings of self-worth and accomplishment generate goal-setting in a positive direction. Therefore, the deduction is student- centered education that builds strong character can translate into greater academic achievement and reduce delinquency. Paradigm shifts abound. The profession of education, specifically the District of Columbia Public Schools, is experiencing change like never before. The paradigm shifts are noted in societal transition, family structures, the delivery of information technology, and the impersonalization of life. We still, however, must equip our children for life. We are called upon to develop the whole child. The social and emotional part of each child must have healthy character development, then this informs our choices. Teachers are called upon to satisfy many people with many needs. This requires us to make sound, well informed, focused decision about the delivery of instruction. All of this must be done with our client's best interest at the core of all we do. Our children are and must remain first. How is this then accomplished? Programs and materials that are well researched, well written, and curriculum friendly are sought as a match for the school's mission. The Boy Scouts of America's Learning for Life Program can help meet the need. It draws from the best practices in education. Chief among these practices is research based approaches. It provides attention to constructivism, cooperative learning, integrations, multiple intelligences, and facilitative instruction. It provides connection, authentic situational lessons that involve problem solving and higher order thinking. It is theme based. It compliments rather than competes with the existing curriculum. It presents new learning in chunks and then provides for its processing. It has a reward system that is immediate as well as long range. It puts life to practice in equipping students to make ethical decisions. We are charged with teaching children what they must know. They must know how to be productive citizens, so we must teach them how. We must do it in a way that makes it palatable for them. The truest test of any program then becomes, do your children enjoy it? Do children grow by it? Are visible results generated by it? The answer is yes, yes, yes through the Learning for Life Program which assists us in realizing all three. Please help us to expand this program to all our children. I have today, then, told my students that the United States Congress has shown trust and confidence in our teachers. Mr. Chairman, the work of your committee represents the future of our youth and the destiny of our Nation's capital. Do not let anyone stop your efforts to strengthen what we are trying to do. If they try, just call on us, and the teachers will be here to support you. Mr. Aderholt. Thank you, Ms. Jones, for your testimony, and we will certainly insert your prepared statement in the record, and, Dr. McCrimmon, we will also place your statement in the record. Prepared Statements of Patricia McCrimmon and Shirley Jones [The prepared statements referred to follow:] [The official Commmittee record contains additional material here.] Mr. Aderholt. We appreciate your attendance here today, and we look forward to working with you in the future on these issues. Dr. McCrimmon. My pleasure, thank you. Mr. Taylor [presiding]. I would like to ask a question if I may since I had to go vote, and it is going to be a little time longer before the next vote. Number of Students and Schools In Program I wanted to know how many students have been affected by this program? Do you have a testament? Dr. McCrimmon. Yes, sir, 12,500 in 38 schools in the District of Columbia. Mr. Taylor. And you are interested in our increasing it based on the success so far. What would be your thoughts on that? Is there any idea of how much it should be increased as far as the number of schools? You may want to consult? Dr. McCrimmon. We want to incorporate the program within the entire District of Columbia Public School system, all 162 schools. Mr. Taylor. All right. Well, I was impressed with the success you have garnered so far. I think that you and certainly the dedication of the teachers are a factor in it working. Thank you very much. Dr. McCrimmon. Thank you for your time. Mrs. Jones. Thank you. Mr. Taylor. We would like to have you--we are voting on the agriculture bill and would love to have you go upstairs in the gallery and watch it in a moment if you would like. Dr. McCrimmon. We will do that. Mrs. Jones. Thank you, Congressman. ---------- Wednesday, June 24, 1998. COMMUNITY-BASED HOUSING FOR MENTALLY ILL RESIDENTS WITNESS LISA HAWKINS, CORNERSTONE, INC. Mr. Taylor. Is Dr. Edward Eyring here? Lisa Hawkins? Ms. Hawkins. I am here. Mr. Taylor. All right. Please come forward. Go right ahead ma'am. Ms. Hawkins. Hi. Mr. Taylor. We appreciate your being here. Ms. Hawkins. No, I appreciate you having me. My name is Lisa Hawkins, and I have to be completely honest and say that the President and the chair of the Board of Directors of my client, Cornerstone, were supposed to come, but I think they are not here, so I am just going to jump in and give you some brief information and ask that our testimony be submitted for the record. Mr. Taylor. Without objection. Prepared Statement of Cornerstone, Inc. [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Statement of Lisa Hawkins, Cornerstone, Inc. Ms. Hawkins. Great, thank you. Cornerstone is a non-profit organization that started in 1991. I do not know if you remember when HHS transferred all of the mental health facilities in the District over to the District, and when they did so they provided funding, of course, for St. Elizabeths and related projects but also directed that $5 million be used through the Commission on Mental Health Services to provide housing outside of St. Elizabeths. Right now, you have a situation where you have a lot of people who are in St. Elizabeths who are suffering from chronic mental illnesses that could live outside if they had the support, but they do not, so they remain at St. Elizabeths at a substantial cost to the taxpayers, and I am sure their quality of life suffers as well. So, what Cornerstone is, is a financing, housing intermediary. We work with direct providers, and I think we have those listed here, a lot that I am sure you are familiar with like House of Ruth and Green Door, Community Connection, and we work with them to provide financing for them to build housing for these chronically, mentally ill individuals. To give you a sense of our costs, it costs the taxpayers $100,000 a year to house someone in a mental health facility, specifically, St. Elizabeths. Our costs, Cornerstone, is approximately $10,000 a year, and if you see the last paragraph of our executive summary, $22 million could be saved every year with this sort of program, with this sort of private-public partnership, and, again, would allow individuals who are currently in St. Elizabeths to live in the community. I just want to give you a few highlights of what we have done in the last four years, and, again, the testimony will be in the record, so I do not want to take up too much time. Since 1995, we have funded the construction of 330 units of quality housing throughout the District, so not only are these individuals now able to live among the community and not be a burden to the taxpayers, but the housing itself has been renovated. Of course, the surrounding communities benefit from that as the housing that was once tear down or substandard is now up to par. In addition, Cornerstone has a knack for leveraging private funds. So, with that $4 million grant that we received, we have leveraged another $12 million, and we hope to continue to do that working with organizations like Sallie Mae, and we have also worked with DHCD in the District, and we have worked with the--if you give me one second I can tell you--Enterprise and Public Welfare Foundations and the D.C. Housing Finance Agency. I think that about sums it up. Essentially, what we are here to ask is funding to continue our operations. We were funded five years ago. If we are not refunded, our funding will run out, and we will not be able to continue our operations. So, we are asking the Committee for a sizable grant of $10 million over the next five years to continue, keeping in mind, of course, that such an allocation would save the taxpayers of the District a substantial amount of money and allow currently chronically mentally ill individuals in St. Elizabeths, homeless individuals, and individuals who are currently living in substandard housing to now be housed in the community with support from the direct providers. May I answer any questions for you? Mr. Taylor. The $10 million, that is your request for this year? Ms. Hawkins. For the next five years. Mr. Taylor. Okay. Thank you. Mr. Aderholt? Mr. Aderholt. I do not have any questions. Thank you for being here today. Ms. Hawkins. Thank you for having me. ---------- Wednesday, June 24, 1998. TENANT ASSISTANCE PROGRAM (TAP) WITNESS JOHN L. ROBINSON, JR., D.C. RESIDENT Mr. Taylor. Monica Beckham? John Robinson? Christine--okay, please come up. Mr. Robinson, please have a seat at the table. Excuse me, and I will come right back. Mr. Aderholt [presiding]. How are you doing today? Mr. Robinson. Good afternoon, sir. Mr. Aderholt. Thank you for being here. Statement of John L. Robinson, Jr. Mr. Robinson. Thank you for letting me come. I would like to take this time to address the House of D.C. Appropriations Subcommittee on the D.C. Tenant Assistance Program. I am a single parent with two children ages 6 and 11. I have had to accept employment with minimal wages and low hours--minimal hours and low wages in which I had to resign due to difficulty obtaining adequate child care. I had to apply and reapply for public assistance so I could care for my children. Without TAP and public assistance, I would not have been able to care for my children. Currently, I am still on public assistance which I really do not want to be on. I have completed job training programs; I have been actively seeking employment on a continuous basis before and after welfare reform. Without the help from TAP I would not have provided a home for my children. If this program ends and I do not have decent employment, I, myself, and people like me would not have anywhere to go and would end up in homeless shelters which currently are overcrowded, and families already are on the waiting list for public housing. Right now, there are 800 TAP services that help house over 200 children and families, the elderly, disabled persons, and other individuals. So, I am pleading for me and my family and on behalf of many other children, to help adults and elderly in the same situation that the TAP not be touched and be extended at least over the year 2000 so we can continue to make better lives for ourselves. Thank you for the opportunity to speak to you today. Mr. Taylor [presiding]. Thank you. Did your statement state how much was it that you are looking for? Mr. Robinson. Well, I have been keeping up with the news here lately, and I do not know if you all read the paper today. Currently, we are at about $2 million for this fiscal year which I was told--I am a current TAP certificate holder right now which ends December 1st--and we are looking for approximately $6 million to maybe carry us on so we can continue to do what we have to so we can get off the program. Right now, I am looking to be employed with the Department of Interior which is good, right now, for me, but other people might not have the opportunity to work at this time, so they would still need this help also. Currently, I would not be able to get off of it right now, but I intend to get off of it as soon as I become able to take care of myself. Mr. Taylor. Thank you, Mr. Robinson. Mr. Robinson. Thank you for listening to me. Mr. Taylor. We appreciate your presentation. PREPARED STATEMENT OF JOHN L. ROBINSON, JR. [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Wednesday, June 24, 1998. D.C. BLACK CHURCH INITIATIVE WITNESS REVEREND ANTHONY EVANS, CHRIST LIVING MINISTRY Mr. Taylor. Christine Warnke, Commission for Women? Reverend Evans, Anthony Evans? Reverend Evans. Yes. Mr. Taylor. You are with the Christ Living Ministry. Reverend Evans. How are you doing, Mr. Chairman? Mr. Taylor. Good to see you. Statement of Rev. Anthony Evans Reverend Evans. Very good. Thank you, Mr. Chairman, for meeting with us today to share some thought concerning the D.C. Black Church initiative. The D.C. Black Church initiative, sir, is a coalition of 800 black and white churches in the District who have decided to come together to provide some social justice ministries, because we feel very strongly that the District government is broken. We wanted to have an opportunity to comment on the local consensus budget that you are now considering before your committee. The budget recently submitted to the Congress by the District government is not a consensus budget in any sense of the word, because our voices of 800 churches are not on that budget. We have tried to talk with the mayor, the City Council, the Control Board only to be ignored. Within my written testimony is a letter to Sandy Allen and to Control Board member Stephen Harlan, many believe that this is an--and, so we tried to meet with them, and we never had a chance to sit down to discuss the particulars of a DCBCI plan. Many believe that our request of $30 million over the next 6 years is unreasonable, but it is not given the fact of what we are presently doing in this city, and what we wanted to do is expand the existing services that we are doing and to be able to make sure that the poor in this city truly have a safety net. Mr. Chairman, yourself, you have recognized that this consensus budget proposed is fully padded. As a matter of fact, you blankly said, sir, that it is like throwing money down in a rat hole. So, simply put, Mr. Chairman, we are asking you to only take $30 million out of that rat hole and give it to the D.C. Black Church initiative so that we will be able to deliver the goods and services. Your mailing, sir, pointed out the fact of management reform, and management reform means nothing to the three children in the District that goes to bed hungry every night. This budget does not answer the question, but BCI promised that this job would be done. We are now coordinating over 250 churches to deliver food to the poor. The District government cannot do that, neither can they promise that they can do that either. The Washington Post is filled with horror stories as to the District Government in terms of waste. We estimate conservatively that there is at least $100 million that can be attributed to waste, fraud, and abuse, and we are only asking for $30 million of that budget. We will ensure that this money is spent strategically, because we have spent over the past 2 years surveying the 800 churches as to the needs of their congregations, and we have a plan that will eradicate a lot of concerns in the District. For instance, under this plan right here, we plan to create 30,000 volunteers. No other city in American can boast the fact that they have 30,000 volunteers who are willing to roll up their sleeves and provide services to their cities. Out of that 30,000 volunteers there are over 5,000 people who will provide volunteer service with the D.C. Public School systems. In terms of one hand, it is about providing security in terms of kids not being shot by going to school and on the other hand by staffing what we hope to do is 450 after-school programs, and these after-school programs have three purposes: one, that they will act as a safe house, because we strongly believe that they still will not enter into the church to shoot anybody but also to enhance the academic performance. You recently read in the paper about the test scores from the DCPS in terms of saying that 46 percent of the students in 11th grade scored below basics in reading, and 83 percent of those students in the 10th grade scored below the basic in mathematics. With our 450 after-school programs to enhance those academic lackings, then what we propose is the fact that we will be able to uplift those test scores. So, we propose averting by lifting up 30,000 volunteer, 8 family crisis centers, 450 after-school programs and also motivate at least 150 churches to offer free day care for the poor, and this is in reference to the year 2000. As we all know, the 2000 is fast approaching, and those who have not attained employment from the welfare rolls will be eliminated, and, then, therefore, where will they go? They will come directly to us. And this is in reference to the Year 2000. And as we all know that the Year 2000 is fastly approaching, and that those who have not attained employment for the welfare rolls will be eliminated. And then, therefore, where will they go? They will come directly to us. And we do not have the money, not the management, not the structure in place to be able to accommodate that large population that will be coming to the road. And given the fact that the District Government system is broken, and they cannot efficiently deliver the goods and services, we are caught in the middle. And so we propose this plan, and this plan we hope to save the District $180 million in savings. And in doing so, $50 million of direct savings in terms of the volunteer hours we put in, the use of the church vans, the use of the church space, the church facilities. And also, what we are currently doing now in direct contribution to anybody who walks through our doors, to take care their rent or light bill. What we are saying, Mr. Chairman, is that times are getting extremely tough for the church to do that. And we believe that the church, and especially the Black church has proven itself that we can deliver these services, faster, more efficient, cost efficient, than any other group there is, and proven. And we have also just demonstrated our will in Jasper, Texas, where we had that terrible racial incident. It was the Black church, sir, who kept the lid on everything there. And it will be the black and white church here in the District who will keep the lid here on this city right here. And so, we are giving this city enormous services. And what we ask for bold and direct leadership coming from you, Mr. Chairman, as you have demonstrated in the past, you and Senator Faircloth. And by moving so--you even said, Mr. Chairman, that at least $500 million in the current D.C. Consensus Budget is wasteful. We only want $30 million of that $500 million budget that you cited in The Post. We only want $30 million. And the savings that we are going to bring to this district is just phenomenal. And we have spent the past 2 years putting together this coalition of 800 black and white churches. And also, sir, and the last thing as a byproduct of this whole coalition, is that this city will have better race relations than any city in America. Mr. Taylor. Well, I appreciate your presentation. What type of structure do you have for the D.C. Black Church Initiative, the 800--are you incorporated? Do you have petitions from them? Or how would you go about certifying to the Congress that you have 800 black and white churches in this initiative? Reverend Evans. I will have--which we have shared with you through your personal staff, Mr. Rogers there. We have letters from every head of the churches, pledging their support to this coalition. In addition to that, we are a 501(c) status organization. And also that money will be accounted for in essence, simply because one of the big six accounting firms promised us that they would do volunteer work with us by auditing our books. So we are assured of the credibility incident in terms of the management of that money. We have the churches that we have been recruiting for the past 2 years. And every head of the church--a matter of fact, we just got a strong letter from the head of the American Lutheran Church to join this coalition as well. So all of the churches are on board, and they have been on board for quite a long time. What we are asking is that, we have a systematic plan to deliver the goods and services to the poor and the needy of this city. This city does not have such a plan. And in addition to that, raising 30,000 volunteers who are able to assist our local law enforcement agency. Right now, Mr. Chairman, we have somebody loose in our community, who has ran a red light and killed a child. He jumped out of a stolen vehicle, and he is in our community loose. With those 30,000 volunteers, if they were in place today, we could have assisted the law enforcement in identifying that individual who did that. Presently right now there are such terrible relationships between our D.C. Police Department and the citizenry, and we have been working to improve that. We are the only entity that has the power to do that. And we are the only entity that has the numbers. Because we can take 30,000 right out of our congregations. We do not have to go searching for these people. These people sit in our church services every single Sunday. In addition to that, Mr. Chairman, if I can make one last comment. We did not come up to this Committee asking for something that we were not willing to make some hard choices for. We have identified for the Committee offsets in thecurrent budget that will total $30 million. Mr. Taylor. That is in your statement. Reverend Evans. That is in my statement and is in the back of my statement right there. And we give the committee five different ways of funding this particular initiative. Mr. Taylor. Well, thank you, that is most thoughtful. Your written statement will become part of the record, and we will be looking over all of this. Prepared Statement of Rev. Anthony Evans [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Thank you very much for your presentation. Reverend Evans. I certainly appreciate the time. Thank you so much, sir. And congratulations on the leadership that you have shown for the District. We are behind you. ---------- Wednesday, June 24, 1998. HOMELESS WITNESS DR. EDWARD J. EYRING, GOSPEL RESCUE MINISTRIES Mr. Taylor. Dr. Edward Eyring. Dr. Eyring, we are glad to have you here. Statement of Dr. Edward J. Eyring Dr. Eyring. Well, thank you, sir. I appreciate the opportunity of returning after a year. The first thing I want to do is thank you for the kindness of last year, particularly the assistance of your capable staff in helping us. I am always stunned when people are talking $30 million, and we are talking about $200,000. I am really still very grateful for the help that we get. I was invited to talk about good news. So I wanted to tell you some of the good things that are happening in Gospel Rescue Ministries here in the District, and I have divided my comments into three areas. One is program, one is facilities, and one is our operating paradigm. In terms of the program, our particular emphasis has been on our school. We have one of the largest adult education facilities in the District. We are particularly interested in one in computer literacy. And the second is in a work strategy called Work Net. This is a strategy basically based on the giftings and desires of an individual, with the intent of putting them into an entry level job and a career track that they choose, what they want to do. In other words, it is not just survival jobs, and it is not just go out there and get a job, and then learn how to read later. We have some rather significant concerns about the present strategy on what they call Work First, as a method. And I can tell you, I have lots of degrees, and I have done a lot of studying, and I cannot get through an audited course, and I cannot get through a night course. You know, I am just not one of those people who can handle an education on the side. I really do believe that it is important that these people be educated before they are sent to work. And I think it is probably a strategic issue that the Congress ought to consider this whole idea of work force, and shoving people off the welfare rolls, just to sort of get them off the rolls, rather than really caring about the individuals. So we are more into that mode. And I think this Work Net strategy is an excellent one. We are applying it to all the people that come either to our school or that come through our ministries. In the area of facilities we are hard at work on the women's facility that you know about, and helped us get funding partially for. We do not have it underway yet. We are still going through the permitting and a variety of other bureaucratic problems, but I think there should be a break in that soon, and we are encouraged that we will be able to do that. We have also opened up a facility called Barnabus House, which is a transitional living facility for people that graduated from our other ministries. We have a vision for taking over the city, one block at a time, or one house at a time. Obviously, I will not live to be the million years old that I have to be to get that accomplished. But that is what we would really like to do. And we have managed to get the crack house next door closed, and we have managed to get the abandoned house boarded up. We have already made a significant change in the District by working with the police, we get along very well with, to reduce crime in the neighborhood, and then also move these men to a facility. It is interesting. Many people get out of a facility like ours. They do not have credit. They have not established that they can work. So we offer them a place to work, and live, and pay rent, and be able to say, hey, we are credible--we are creditworthy citizens, and then maybe they can get loans for homes, that type of thing, when they get through. So it is a self-sustaining approach, where the people live there, and they take care of themselves. They support the facility. So I thought you would be interested in that. In terms of paradigm shifts, there is an idea that I want to suggest that might be applicable to the Congress. We have changed our purpose statement from, providing rescue services to the poor and the needy of the Washington area in the name of Jesus, to transforming lives of people without hope, by modeling the character of Jesus. And the idea is not service delivery, but transforming lives. The second idea is that there are plenty of folks without hope that are not necessarily poor and needy. And poor and needy is sort of a demeaning kind of a concept, sort of like us and them. We are looking at people. Lots of people do not have hope. And then the third part is modeling the character of Jesus. We feel we have adopted some core values. The first is integrity, which means basically doing what we say we are going to do. Community, which is family, bringing people together. Compassion, which is love for one another. And fun. The reason we introduced fun is that we think that Jesus had a good time. I cannot imagine more fun than standing up in front of the storm and saying, stop. And the challenges, the excitement--I think that is probably why a lot of people come to Congress. It is fun. Even though I know you are tired, and I know this is a hard job. You still are in the middle of a lot of exciting stuff. It is not boring, if nothing else. So, I just thought you would be interested in some of the good news, and some of the stuff that we are doing. And naturally, we would like to talk over some of these different ideas with you and your staff at any time. Mr. Taylor. Certainly. I have never thought of Congress as being fun. I know you are probably right. I have only been here 8 years, so I suspect I will find it eventually. Thank you very much. I would like to see how you are doing with your women's project, and see what is going on. Dr. Eyring. All right. Well, we will talk to Roger, and see about that. Mr. Taylor. Good. Well, thank you very much, Doctor, for making your presentation. Prepared Statement of Dr. Edward J. Eyring [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Wednesday, June 24, 1998. MUNICIPAL FISH WHARF WITNESS T. RODNEY OPPMANN, ATTORNEY AT LAW Mr. Taylor. Our next witness is T. Rodney Oppmann. Yes. Please come forward, if you do not mind. Mr. Oppmann. Good afternoon, Mr. Chairman. Mr. Taylor. Glad to have you, sir. Mr. Oppmann. Thank you. I am here on behalf of some of the lessees at the Fish Wharf, which is federal property. I did not know that I would be appearing until yesterday, and I wonder if it would be possible to submit a brief statement for the record within a few days? Mr. Taylor. Certainly. Mr. Oppmann. Thank you. Mr. Taylor. Without objection, that will be fine. Mr. Oppmann. Thank you. Prepared Statement of T. Rodney Oppmann [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Statement of T. Rodney Oppmann Mr. Oppmann. I just have a few comments that I would like to make, Mr. Chairman, that relate to some of the previous testimony that I gave before this subcommittee in the years 1987 through 1992, regarding the fish wharf problems that we were having at that time. Some of them have been solved, but I would say the situation overall at the property at the Fish Wharf has deteriorated in my opinion. The current lease is now month-to-month. The lessees would like to make improvements. They have made some improvements. As a matter of fact, the previous chairman, Mr. Dixon, lives in southwest. He complained about the smell. With 2 years left on their lease, the lessees spent $60,000 to put in a refrigeration unit to abate the smell from their dumpster unit. And they have been trying to make long-term improvements, but on a month-to-month lease it is difficult to do. One of the problems that exists at the Fish Wharf is they are really not certain where it is. In 1992 the House asked-- and I have a copy of the report language--for certain information regarding the Fish Wharf, and that has not been provided to date by the District of Columbia. This is the report language. By the way, a needs and balance survey, and other information, was due January 1, 1993. In February of this year, the lessees used the Baltimore engineering firm, RTKL, to determine how much the square footage of the Fish Wharf was. They are being short-changed by 29.8 percent on what they are paying every month. This is indicative of the type of problem they have there. This is Federal property. It is being managed by the District, but I do not think the District is doing a very good job. Furthermore, since I last testified, the lessees have had to spend over $341,000 to obtain a second injunction against the District for violating its own lease. They tried to put new people onto the property in violation of their lease. We went to court. I did not receive this legal fee, a trial law firm here in town did. But that is how much it cost them. The District never should have done this. This was the second injunction in the course of their lease, which expired 2 years ago. Mr. Taylor. What was the cost? Mr. Oppmann. $341,000. Another thing that is very disturbing is that the D.C. government is refusing to recognize legally formed corporations, which are lessees at the Fish Wharf. Why they are doing this, I do not know. They pay their taxes. We have copies of checks which they have recorded, and so forth. Why this is happening, I do not know. I have tried to discuss this with the Corporation Counsel. I have not gotten very far. Lastly, a recent study of the Southwest Waterfront, which cost taxpayers $70,000, omitted the lessees of the Fish Wharf and the lessees of the Washington Marina Corporation, which is the next witness and he will speak to those points. We are disturbed by the fact that so much Federal money went into this study, and yet the Federal property on the premises was not included, in terms of a chance to participate in this study. I am almost done, Mr. Chairman. A few more points. There are six leases on the waterfront. There are six leases with 99-year terms, where the Fish Wharf is there month- to-month. And the next witness, Mr. Stickell, from the Washington Marina Corporation, will talk about his situation. He is also month-to-month. I do not represent Mr. Stickell, but I have shared information with him. Several of the individuals at the Fish Wharf are covered by the same law, that is Public Law 86-736, which created the long-term leases elsewhere, everywhere else along the waterfront. We are not sure why the District has this inconsistent long-term lease policy. Some people get long-term leases, others are month-to-month. I think that that is unfair, and it is something thatshould be looked into. The main reason these problems exist in my opinion, Mr. Chairman, is that there is no Federal oversight jurisdiction. No agency of the United States Government has been assigned responsibility for looking at the Fish Wharf. Otherwise, I would not be here taking your valuable time today. I have had to do this repeatedly because there is no agency that has been willing to take on the Fish Wharf. And the same thing with the Washington Marina Corporation. If that could be worked out so that somebody could be assigned to take over some sort of responsibility, it would be helpful. In conclusion, I think the actions of the D.C. officials are driving small businesses out of the District, or they are driving them out of business completely. A number of the clients that I represented when I was last here are now bankrupt or out of business, I am sorry to report. The Fish Wharf is the last remnant of Washington's historic waterfront. It dates back to the days when they came up the river under sail, and then under diesel. Now they are doing it with airplanes. They are bringing some of the stuff in. It is cheaper, it is faster, and so forth. It should be encouraged and preserved. It is very popular with the public. We serve a lot of people who are on food stamps. We are competitively priced. We have the best seafood prices in town, I think. And I think that the failure of the D.C. Government to grant long-term leases is hurting the District and its populace, in that the long-term improvements cannot be made on a month-to-month lease, and tax revenues that would be generated with more business are denied the D.C. Treasury. I would be glad to provide any information you or your staff would like in the future. Mr. Taylor. Thank you. We will do that. Wednesday, June 24, 1998. MUNICIPAL FISH WHARF WITNESS ROBERT L. STICKELL, PRESIDENT, THE WASHINGTON MARINA COMPANY Mr. Taylor. Why don't we have Mr. Stickell come forward now and make his statement together with you. Mr. Stickell, we are glad to have you here. Statement of Robert L. Stickell Mr. Stickell. Thank you for your time. I am Rob Stickell, and I am the president of Washington Marina Company. We are a small, family-owned, third generation boating business. We have leased property from the District since 1951. In the early 1960's, 6 of the 8 lessees on the southwest Washington waterfront received long-term leases. The Municipal Fish Wharf, our neighbors, and ourselves, received month-to- month leases. In our company's 47-year history we have had two written leases in 5 years. Obviously, we are not able to make any long-term capital improvements in our facility as well. We met with District officials last summer to discuss the District's responsibility under the terms of its current lease with us, which expired in 1996, the District government has the responsibility for maintenance and repairs of the facilities, the Marina facilities, which were built back in the 1930's. The District said at that time that they did not have any money to do that, and offered to give us a long-term lease if we would redevelop those properties and facilities ourselves. We have since provided them with three proposals to do this at our expense. We have incurred in excess of $86,000 of real costs to come up with the proposal, the architectural, the legal, and the other things necessary to bring this project forward. We received a letter recently from the director of the District's Department of DHCD, Department of Housing and Community Development, which basically thanked us for submitting a proposal, but said that they were going to take and push this off until some undeterminant date. So we feel that not only is the city in breach of its lease with us, but we feel that they are acting in bad faith. And we are asking for reparative leasing that other folks were given. We need to make a substantial long-term capital investment in that facility, but we cannot do it without a long-term lease. And I thank you for your time. prepared statement of robert l. stickell [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Thank you. I can sympathize with what you are saying. We must go into it a little more in detail, and we will. Thank you very much for making your presentation. ---------- Wednesday, June 24, 1998. THE HISTORICAL SOCIETY OF WASHINGTON, D.C. WITNESSES MONICA SCOTT BECKHAM, VICE PRESIDENT, BOARD OF TRUSTEES, THE HISTORICAL SOCIETY OF WASHINGTON, D.C. KATHY SMITH, PAST PRESIDENT, BOARD OF TRUSTEES Mr. Taylor. Our next witness is Monica Scott Beckham, Vice President of the Board of Trustees of the Historical Society of Washington, D.C. Statement of Monica Scott Beckham Ms. Beckham. Good afternoon, Mr. Chairman. My name is Monica Scott Beckham, and I am the vice president of the Historical Society of Washington, D.C., member of the Board of Trustees. And accompanying me is Ms. Kathy Smith, past president of our Board. First, I would like to thank you, and we appreciate the invitation to speak to your subcommittee today on a major goal of the Historical Society. That goal, as you know from the testimony that we have already submitted, is to the creation of a city museum, devoted to the history of the Nation's Capital. The timing could not be more appropriate. In one and a half years we will mark the 200th anniversary of the city as a Federal capital. We believe the positive story of this great city; a place where local, national, and international history is intertwined, deserves a place in our revitalizing downtown. We are in fact about the only world capital among the group of eight that does to have such a city museum. Major cities across the Nation have just invested in city museums. The society in these cities recognize that they are not just about history, but about defining the unique identity that makes a city a healthy and interesting place to live and do business. There is a dynamic link between industry and economic development, and that is the development that the Society wishes to participate in, along with a partnership with the Federal government, and private dollars in the city, to raise money for the city museum. We are talking about the potential of millions of new private dollars for the District of Columbia. The travel industry worldwide has discovered that what increasingly sophisticated travelers want is to experience unique places. As you know, Washington, D.C., is a very unique city. The city museum will be a gateway to a Washington that visitors seldom see, and will provide appealing incentives to leave their dollars behind in our local restaurants, shops, and cultural attractions. We have 22 million visitors a year in this city, and most of them never venture beyond the Mall. Surely everyone will go to see the museums; the Smithsonian, the Air and Space Museum. However, after two or three visits people want to know where do the people live in Washington. What else is there to see in Washington, D.C. And this city museum will provide that location for them to go, to discover the great history that we have here in this city. And so, on the second visit, if a person stays another day, it has been determined that if 22 million visitors just stay, and have one more meal, that would mean $100 million injected into the local economy. And studies have shown that each million dollars generates about 39 new jobs. For example, the Los Angeles Convention and Visitors Bureau, with $9 million, which is comparable to the city here, figures that convincing travelers to stay one more day, visiting their local cultural sites, can mean as much as $3 billion a year. The new city museum will be a destination for all who want to explore the city. At this time the Society is working vigorously with the D.C. Heritage Tourism Coalition, and we are developing new tours at this moment in this city. In fact, we have provided a tour at the new MCI Center. So when people come down, and they want to have an adventure with basketball, ice hockey, or any other programs that are going on, they can also get a tour of that particular community, and find out about the history around the MCI location. The Society is also working with the Anthony Bowen Y, which is the oldest black YMCA in the capital. The site that we are interested in is the Carnegie Library, which is a perfect and beautiful Beaux Arts building, located on---- Mr. Taylor. Where is--okay. Ms. Beckham. And this is our gateway. As you know, the Convention Center will be developed down here at Mt. Vernon Square. So people will see the City of Washington. And then they can enter into the Convention Center, go into the Convention Center, come out, and still see the City of Washington, D.C. After careful study, this site is looked at as the perfect site by the Society. Right now this site is occupied by UDC. We have had discussions with their president, as well as the members of their board, and they wholeheartedly support us in this. We are looking at them as a partner to continue. They use the building right now for architectural studies. We have discussed with them sharing this space for classrooms, for internships, for exhibits. But we also know that this space, which only has 35,000 square feet of usable space, it is small. It is not large in comparison to other sites that other cities use, that are well over 100,000 square feet. However, the Society is working with other community-based organizations to have cultural heritage centers. So this center will serve for storage space, for much needed exhibit space, as well as a core exhibit that will be housed at this particular site. Congress was a partner with Carnegie in creating this library, appropriating funds for that purpose exactly 100 years ago in 1898. This library became the meeting place for all people in the city. Of course it was one of the very few places in the city that was never racially segregated. It is the perfect place, both practically and symbolically, to link the past, present, and the future of our renewed city. We are here to ask Congress 100 years later to become a partner with the city once again in honor of the city's 200th birthday as the seat of the Federal government. The Historical Society has never asked for money from Congress, or any other public source in its 100 year history. Unlike almost all other local history museums in historical societies, we have no city, county, or state support. We believe, however, that given this historic moment in the city's history this project is an appropriate public-private partnership. A congressional appropriation would be a springboard for a major capital campaign for private, corporate, and foundation funds. The recent feasibility study tells us that we have the capacity to raise $6 million. Revenues from operating the museum would come from museum shop sales, admission fees, the tours, event rentals, and an endowment. Congress' $1 million would pay for the architectural and engineering plans for modifications needed to make the library suitable for museum use, and for the research and development of a powerful core exhibit. We have also had conversations with the Washington Convention Center Authority. They are interested in using the building in the near term for architectural andengineering offices during the construction of the new Convention Center, perfectly consistent with the creation of the city museum which is timed to open the same time as the Convention Center. We are here today to ask for your endorsement, your support, and your partnership in the creation of this state-of- the-art museum for the Nation's Capital. Thank you for your consideration of our request, and if you have any questions I will be glad to answer them. Mr. Taylor. Would you review the money that you are talking about here, what is going to be spent by Congress and other sources. You just mentioned it a few minutes ago. Ms. Smith. I think you mentioned $1 million from Congress. We need to raise an additional $6 million to match that for the capital campaign as well as we will be actively seeking $4 million for an endowment. Mr. Taylor. Okay. Well, thank you very much for saying it. I do not know what our ability would be. I would certainly share your history in what you have done so far as an organization. And if that could be converted into a historical site and a tour area, then that certainly makes sense. But I do not know where we are money-wise, but we certainly will give your request full consideration. Ms. Beckham. Well, thank you. Ms. Smith. Thank you, Mr. Chairman. Mr. Taylor. Thank you for coming. Prepared Statement of Monica Scott Beckham [The prepared statement referred to follows:] [The official Commmittee record contains additional material here.] Mr. Taylor. Are there any other witnesses in the room? If not, this concludes oral presentation of testimony by public witnesses. Prepared Statements The Committee has received prepared statements from Christine Warnke; Mary Filardo; and George Brown and Linda Bollinger that will be placed in the record at this point. [The prepared statements referred to follow:] [The official Commmittee record contains additional material here.] Conclusion of Hearings Mr. Taylor. That concludes our committee hearings. We will adjourn subject to the call of the chair. [The official Commmittee record contains additional material here.] W I T N E S S E S __________ Page Ackerman, Arlene................................................. 97 Baker, J. C...................................................... 97 Barry, Hon. Marion, Jr........................................... 1 Beckham, M. S.................................................... 711 Bolliger, L. K................................................... 732 Brimmer, A. F.................................................... 1 Brown, G. W...................................................... 732 Carver, J. A..................................................... 215 Catania, D. A.................................................... 493 Clark, J. L...................................................... 215 Cooper, M. R..................................................... 97 Cropp, L. W...................................................... 1 Edwards, Donald.................................................. 313 Evans, Reverend Anthony.......................................... 679 Eyring, Dr. E. J................................................. 691 Filardo, Mary.................................................... 727 Hamilton, E. N................................................... 313 Harlan, S. D..................................................... 313 Harvey, Wilma.................................................... 97 Hawkins, Lisa.................................................... 648 Jarman, G. L..................................................... 97 Jones, Shirley................................................... 641 Langston, R. E................................................... 313 Levy, Mary....................................................... 603 McCrimmon, Patricia.............................................. 641 Moore, M. A...................................................... 215 Morella, Hon. C. A............................................... 620 Oppmann, T. R.................................................... 698 Peter, Father Val................................................ 517 Ramsey, C. H..................................................... 313 Robinson, J. L., Jr.............................................. 675 Schlein, D. J.................................................... 523 Schmid, C. E..................................................... 635 Schwartz, Carol.................................................. 500 Seltzer, Tammy................................................... 612 Smith, Kathy..................................................... 711 Sneed, Raymond................................................... 506 Stickell, R. L................................................... 707 Wagner, A. M..................................................... 313 Warnke, Christine................................................ 723 I N D E X C A T E G O R I E S ---------- District of Columbia Appropriations for Fiscal Year 1999 1. BUDGET FOR FY 1999........................................... iv 2. CONTROL BOARD................................................ vi 3. GENERAL ACCOUNTING OFFICE.................................... vi 4. PUBLIC SCHOOLS (INCLUDING PUBLIC CHARTER SCHOOLS)............ vi 5. SPECIAL EDUCATION............................................ viii 6. CORRECTIONS AND RELATED FUNCTIONS............................ viii 7. PUBLIC SAFETY AND COURTS..................................... ix 8. PUBLIC WITNESSES............................................. xi 9. APPENDIX..................................................... xii I N D E X ---------- FY 1999 DC HEARINGS--PART 1 BUDGET, FISCAL YEAR 1999......................................... 1 Accumulated Deficit.......................................... 2 Attorney Fees for Special Education Cases.................... 89 Budget Development........................................... 6 Chief Financial Officer, Earl C. Cabbell..................... 5 Chief Management Officer, Need for........................... 77 Cities, Reasons People Move from............................. 89 Classrooms Act, Upgrading Computers, 21st Century............ 90 Clerk's Note on FY 1997 Surplus.............................. 10 Clerk's Note regarding statements of Mayor Barry............. 8 Excerpts from hearings: Mayor Sharon Pratt Dixon on May 21, 1991............. 8 Mayor Sharon Pratt Dixon on May 27, 1992............. 8 Council Chairman John Wilson......................... 9 Mayor Sharon Pratt Kelly on May 11, 1994............. 9 Clerk's Note, Regarding Mayor Barry's remarks on deficit..... 9 Commuter Tax................................................. 3 Commuters, Use of Roads and Highways......................... 28 Consensus Budget, FY 1999....................................10, 11 Contracting Out Costs........................................ 93 Control Board, Overpayment of Top Officials.................. 64 Compensation for Executive Director and General Counsel.. 78 GAO Opinion.............................................. 64 Ignored Law, Not First Time Control Board...............78, 967 Locality Pay for Executive Director and General Counsel.. 77 Outside Counsel Opinion Requested After Decision Made.... 79 Status of Efforts to Correct.............................77, 94 Control Board Error in Projection............................ 1 Corporation Counsel, Increase in Employees................... 93 Corrections Budget, Department of............................ 59 Council's Four Basic Priorities.............................. 24 D.C. Employees Live, Where................................... 62 Davis-Bacon: Steals from Children..................................... 90 Waiving for School Repairs............................... 4 Deficit: Accumulated.............................................. 2 Eliminate Accumulated.................................... 10 $335 Million in FY 1994.................................. 8 $62 million in Public Schools............................ 26 Drug and Smoke-Free Zones in Schools......................... 91 Economic Initiatives, New.................................... 27 Employees, 1,330 Increase in Number of in FY 1999............ 92 Employees Who Live in District............................... 87 Error, Control Board Projection.............................. 1 Expenditure Profile.......................................... 58 Financial Management System.................................. 79 On ``Very Close Schedule''............................... 84 Report on................................................ 81 Financial management, Dismal Record.......................... 7 Health System, Federal Take Over of.......................... 6 Infrastructure Needs......................................... 11 Infrastructure Fund, $254 Million Request for................58, 60 Infrastructure Fund, Request for $254 Million................ 27 Management Hearings, Performance............................. 25 Management Improvement, Poor Returns......................... 79 Management Reform for Computers.............................. 84 MCI Center, New.............................................. 10 Medical Malpractice Issues..................................95, 898 Mismanagement, Per Capita Expenditure.......................88, 743 Personnel, Alleged Reduction of 9,000 or 27 Percent.......... 9 Personnel, Reduction in...................................... 59 Philadelphia Residency Requirement........................... 88 Police Department............................................ 7 Residency of New Chief................................... 64 Police Officers Per Capita..............................92, 743 Prepared Statements: Chairman Andrew F. Brimmer............................... 40 Council Chairman Linda Cropp............................. 29 Mayor Marion Barry....................................... 12 Problems Confronting the District............................ 6 Public Works Projects........................................ 25 Residency Requirement for Employment...................3, 5, 62, 63 Chairman's Position on................................... 64 For Future Hires......................................... 27 Of Current D.C. Employees................................ 62 Of Police Chief.......................................... 64 Of School Superintendent................................. 64 Requirement in Philadelphia.............................. 88 Requirement for Employees............................85, 86, 87 Requirements in Other Cities............................. 63 Revenues, Growth in.......................................... 58 Revitalization Act (Public Law 105-33), Impact of............ 25 Revitalization Act Impact $1 Billion......................... 2 Roads and Bridges............................................ 62 Salaries of Non-Residents, Average........................... 63 Salary Received by Non-Resident Employees.................... 62 School Superintendent, Residency of.......................... 64 School Population and Employees, Disproportionate Increase in92, 93 Schools, $62 Million Deficit, Public......................... 26 Schools, Public.............................................. 7 Schools, Offer to Visit...................................... 90 Services, Municipal.......................................... 8 Special Education............................................ 10 Attorney Fees............................................ 89 Expenditures............................................. 59 Plan..................................................... 89 Rip-Off of 50-Day Rule................................... 94 Transportation Costs..................................... 11 State Assistance to Cities................................... 87 Statements: Congressman Aderholt..................................... 4 Congressman Cunningham................................... 3 Congressman Moran........................................ 2 Congressman Tiahrt....................................... 4 Council Chairwoman Linda Cropp........................... 24 Control Board Chairman Andrew F. Brimmer................. 58 Mayor Marion Barry....................................... 5 Street Repairs, Deferral of Local Match...................... 11 Surplus for Management Improvement and Deficit Reduction..... 79 Surplus of $186 Million on FY 1997........................... 10 Tax and Regulatory Changes................................... 95 Tax Base Constrained......................................... 7 Tax System, Revamping........................................ 26 Tax Revision Commission...................................... 26 Tax Issues................................................... 29 Tax Revenue ``Common''....................................... 63 Tax Reform and Business Regulatory Relief.................... 3 Tax Relief Reflected in Budget............................... 26 Taxes, Restructuring of...................................... 29 Taxing Non-Resident D.C. Employees........................... 63 Training for Employees....................................... 85 Transportation Problems, Regional............................ 28 Transportation Tax........................................... 88 Water and Sewer Authority Infrastructure..................... 12 Waterfront Issues............................................ 4 Y2K Problem, Funding for..................................... 84 Y2K Projects................................................. 25 CONTROL BOARD...................................................39, 378 Administrative Costs of $44 Million for Corrections........277, 279 Disagreement with Corrections Trustee.................... 278 Memorandum of Understanding Very Clear................... 279 Control Board Error in Projection............................ 1 GAO Review of Control Board's Financial Statements........... 983 Independent Auditor's Report--Problems With Control Board-- Withholding of Documents for Bank Reconciliation........... 1009 Letter to Alice M. Rivlin, Chair, D.C. Control Board, from Hon. Charles Taylor, concerning GAO's Findings Regarding Control Board's Financial Statements and Nonresponsiveness in Providing Certain Information........................... 981 GAO Review of Control Board's Financial Statements....... 983 Opening Statements: Chairman Andrew F. Brimmer...............................39, 58 Stephen D. Harlan, Control Board.......................378, 382 Overpayment of Top Officials of Control Board................ 64 Compensation for Executive Director and General Counsel.. 78 GAO Opinion.............................................. 64 Ignored Law, Not First Time Control Board...............78, 967 Locality Pay for Executive Director and General Counsel.. 77 Outside Counsel Opinion Requested After Decision Made.... 79 Status of Efforts to Correct Overpayment.................77, 94 Testimony of Congresswoman Constance A. Morella........621, 624 Control Board Exceeded it Authority on Pay........... 621 Violation by Control Board of Congressional Intent: Documents Reflecting Commitments and Directives Relating to use of Revitalization Act (PL 105-33) Benefits to Reduce District's Accumulated Deficit.................. 967 GENERAL ACCOUNTING OFFICE: Opinion on Overpayments to Control Board Staff............... 64 Review of Control Board's Financial Statements............... 983 Prepared Statement of Gloria L. Jarmon, GAO.................. 188 Roof Replacements, $84 Million Available for School...... 188 SCHOOLS, D.C. PUBLIC (INCLUDING PUBLIC CHARTER SCHOOLS).......... 97 Accountability of Charter Schools............................ 185 Adult Basic Education........................................ 208 Anti-Deficiency Execution Action Plan for FY 1998............ 159 Assessments, Special Education, 120 Days Needed for.......... 149 Attorney Fees, Special Education and.........................98, 99 Attorneys, Special Education, Concern Over Advocate.......... 200 Auto Mechanics Program, Charter Schools...................... 209 Bell Multi-Cultural High School.............................. 209 Board Supports Superintendent Ackerman, Elected.............. 201 Board President's Statement, Continuation of................. 171 Boards, Tension Between...................................... 200 Budget Increases, Other...................................... 149 Budget Categories and Comparisons............................ 150 Budget Increases for Public Schools.......................... 141 Budgetary Process in Disarray at Local Level................. 145 Bureaucracy, Bloated Central................................. 150 Charter Board: Application Review Process............................... 179 Budget Increase.......................................... 178 Process for New Schools.................................. 202 Relationship with Charter Schools........................ 204 Charter Schools: Accountability........................................... 202 Number of................................................ 178 Legislation, Suggested Changes in........................ 179 Inadequate Funding....................................... 202 Relationship and Problems................................ 140 FY 1999 Budget for....................................... 178 Budget Not Fair.......................................... 99 Hospitality High School.................................. 210 Need Greater Fiscal Accountability....................... 141 Impact When Charter Revoked.............................. 204 Elected Board's Process.................................. 203 Comparison with Public Schools........................... 203 Community Support............................................ 210 Community College System in District Inadequate.............. 207 Conclusion of Superintendent's Statement..................... 150 Davis-Bacon Waiver Would Save 35 Percent in Costs............ 99 Duke Ellington School, Excess Teachers....................... 198 Special Education: 120 Days for assessment and Placement.................... 200 $48,000 Average Cost Per Student......................... 148 Restrictive 50-Day Limit................................. 197 Electrical Power Deregulation................................ 99 Electricity Pilot Program D.C. Schools....................... 100 Enrollment Count, Credibility Problem........................ 148 Facilities, Lease/Purchase Arrangements, New School.......... 205 Gavel made by students at Scripps Elementary................. 214 Increases: $85 Million for Public Schools..........................97, 148 Increase of $17 Million for Reforms...................... 149 Job Applicants Lack Reading and Writing Skills............... 211 Opening Statements: Congressman Cunningham................................... 97 Remarks of Congressman Moran............................. 205 Superintendent Arlene Ackerman........................... 146 Josephine C. Baker, Public Charter Board................. 178 Maudine Cooper, Chair of Emergency Transitional Education Board of Trustees...................................... 139 Wilma Harvey, Board of Education......................... 145 Budgetary Process in Disarray at Local Level......... 145 Gloria L. Jarmon, GAO.................................... 188 Roof Replacements, $84 Million Available, School..... 188 Partnerships, Public/Private................................. 98 Prepared Statements: Superintendent Arlene Ackerman........................... 150 Josephine C. Baker, Charter School Board................. 180 Accountability of Charter Schools.................... 185 Maudine Cooper, Chair, Transitional Board of Education... 141 Wilma Harvey, School Board President..................... 171 Gloria L. Jarmon, GAO.................................... 188 Principals, Testing of....................................... 202 Procurement Now Centralized.................................. 212 Professional Development and Staffing, Increases for......... 147 Progress During 10-Month Tenure.............................. 146 Promotion Guidelines......................................... 147 Reforms, Increase of $17 Million for......................... 149 Roof Replacement: Contract with Corps of Engineers......................... 212 Completion in Time for School Openings................... 210 $84 Million Available for Public Schools................. 188 Scholarship Act Favored by D.C. Residents, President Vetoed.. 99 Security Officer in Schools.................................. 213 Special Education: Need 120 Days for Assessments..........................140, 149 Attorney Fees............................................98, 99 Attorneys, Concern Over Advocate......................... 200 Student-Teacher Ratio......................................199, 204 Summer School, Impact on Crime Reduction..................... 206 Summer School Program for 20,000 Students.................... 147 Teachers Should Not Be Fired, Competent Qualified............ 199 Test Score Improvements...................................... 98 Test Results, Gains in....................................... 147 Transitional Board of Education: Accomplishments of....................................... 139 Charters Will Continue to Be Awarded..................... 203 Union Resistance............................................. 213 Vocational Education: Programs for Women....................................... 211 Teachers................................................. 212 Improvements Needed...............................206, 207, 208 SPECIAL EDUCATION................................................ 10 $48,000 Average Cost Per Student............................. 148 Attorneys: Concern Over Advocate.................................... 200 Fees.................................................89, 98, 99 Expenditures................................................. 59 Need 120 Days for Assessment and Placement............140, 149, 200 Plan......................................................... 89 Restrictive 50-Day Limit..................................... 197 Rip-Off of 50-Day Rule....................................... 94 Transportation Costs......................................... 11 CORRECTIONS AND RELATED FUNCTIONS................................ 215 Administrative Costs of $44 Million, Indirect..............277, 279 Control Board, Disagreement with......................... 278 Letters from Delegate Norton and OMB Director Raines on $44 Million Requested by District...................... 280 Memorandum of Understanding Very Clear................... 279 Applicants for Hiring, Availability of Qualified............. 276 Audits and Control, Internal................................. 217 Budget: Amendment for $38 Million..........241, 257, 274, 275, 276, 297 Not Officially Transmitted............................... 274 Offender Trustee's Budget................................ 239 Bureau of Prisons Testimony on Lorton Closing................ 299 Capital Repairs of Lorton Complex............................ 217 Career Transition Center at Lorton........................... 217 Caseload Ratios, $38 Million Budget Amendment to Reduce...... 274 Community Based Organizations, Use of........................ 276 Contract with Virginia and Closure of Occoquan Facility...... 216 Contract Monitoring Program.................................. 218 Control Board, Disagreement with............................. 278 Memorandum of Understanding Very Clear................... 279 Controls, Inadequate Internal................................ 227 Correctional Workforce, Stabilizing.......................... 217 Corrections Employees, Impact on 3,000....................... 226 Corrections Trustee, Responsibilities of..................... 226 Corrections Department, Joint Efforts with................... 227 Crimes and Arrests Involving 30,000 Parolees, Number of...... 284 Crimes Per Year Per Offender on Drugs, 300-500............... 285 Criminal Justice Supervision, 30,000 Individuals Under.....240, 284 Double Counting, Question of................................. 284 Drug Court............................................257, 275, 291 Drug Control and the Courts, Report.......................... 286 Drug Use Reduces Crime, Reducing............................. 289 Drug Offenses, Use of Sanctions for.......................... 289 Drug Sanctions Program, Second Urine Lab Needed For.......... 290 Health Care Delivery System.................................. 217 Information Technology Infrastructure........................ 274 Justice, Amendment Redirects Funding from Department o257, 275, 297 Letters from Delegate Norton and OMB Director Raines on $44 Million Requested by District.............................. 280 Letter to Hon. Charles Taylor from Colin M. Dunham, General Counsel, The Independent Public Defender Bar Association of D.C........................................................ 307 Letter to Mr. Migo Miconi from Colin M. Dunham, General Counsel, The Independent Public Defender Bar Association of D.C........................................................ 310 Lorton Complex: Bureau of Prisons Testimony on Lorton Closing............ 299 Capital Repairs at Lorton Complex........................ 217 Career Transition Center at Lorton....................... 217 Progress in Closing...................................... 216 Schedule Adjustments in Closing.......................... 218 Sewer Overflow and Toxic Problems........................ 297 Memorandum of Understanding Very Clear....................... 279 New Prison on National Park Service Land..................... 298 Offender Trustee, Budget Request for......................... 239 Opening Statements: John A. Carver, Trustee.................................. 239 John L. Clark, Corrections Trustee....................... 226 Margaret A. Moore........................................ 215 Parolees: Number of Convictions Per................................ 240 Arrest Record for........................................ 240 Inadequate Supervision and Lack of Sanctions............. 241 Prepared Statements: John A. Carver, Trustee.................................. 257 John L. Clark, Corrections Trustee....................... 227 Kathleen M. Hawk, Director, Federal Bureau of Prisons.... 299 Jo-Ann Wallace, Director of Public Defender Service...... 301 Margaret A. Moore, Director.............................. 218 Prisoners: Reduction in Number of................................... 226 Housing in Virginia...................................... 297 Private Sector Beds, 2,000 Prisoners to...................... 216 Privately-Operated Facility in D.C., Council Favors New...... 299 Safety, Opportunity to ``Enhance'', Public................... 257 Sanctions Center............................................. 274 Sanctions Program, Experience with Offenders in.............. 297 Strategic Plan Development................................... 218 Study: Drug Control and the Courts........................... 286 Valparaiso University Law Review, A Theory of Prevention..... 294 Youngstown, Ohio Facility, Problems and Concerns............. 299 PUBLIC SAFETY AND COURTS......................................... 313 Accountability for Getting Things Done, Lack of.............. 334 Administrative Leave, Too Many Officers on................... 335 Agreement of the Criminal Justice Coordinating Council....... 402 Alcohol-Free July 4th........................................ 375 Arrests and Booking, Reduction in Time and Paperwork......... 380 Arson Cases, Closure Rate.................................... 355 Attorneys for Indigents, Increase in Fees.................... 408 Bicycle Patrols.............................................. 333 Budget: Capital Budget........................................... 356 D.C. Courts.............................................. 407 Fire Department.......................................... 354 FY 1999.................................................. 471 Increases................................................ 332 Building Inspections, Increase In............................ 355 Capital Budget............................................... 356 Cars Take Home, Law Ignored.................................. 484 Change, Resistance to........................................ 488 Citizen Complaint Process.................................... 380 Civilians, Increase of 100................................... 332 College Requirement for New Recruits......................... 333 Commonsense Approach......................................... 482 Community Outreach Program................................... 354 Community Policing........................................... 380 Control Board................................................ 378 Courts, District of Columbia................................. 407 Courts, General Jurisdiction................................. 408 Crime Rate................................................... 378 Crimes, Quality-of-Life...................................... 375 Criminal Justice Pilot Program............................... 379 Demonstrations Annually, 6,000............................... 377 Department, Too Few Police Carrying the...................... 486 Desk Jobs, Too Many Uniformed Officers in.................... 486 Drug Interdiction............................................ 375 Drug Arrests................................................. 376 Drug Markets, Open-air....................................... 379 Drug Court, Juvenile......................................... 481 Education and Training Neglected............................. 334 Environmental Crime.......................................... 376 Equipment Shortfalls......................................... 378 Federal Grant, Difficulty Spending, $15 Million.............. 333 Field Communications and Technology.......................... 381 Fire Department.............................................. 354 Fire Fighters Pay Raise...................................... 489 Helicopter Aviation Unit, Park Police......................376, 377 Availability for D.C. Police............................. 483 Costs Associated with D.C. Work.......................... 487 Flights in District, Impact of Commercial................ 490 Homicides, Closure Rates Improved............................ 381 Informational Systems Technology Plan........................ 356 Infrastructure Allowed to Deteriorate........................ 381 Management Responsible....................................... 356 Mayor's Security Detail...................................... 489 Medical Calls, Hook and Ladder Trucks Used for............... 489 Officer Strength, Park Police................................ 377 Officers on Street, Number of................................ 483 Opening Statements: Chief Robert E. Langston, U.S. Park Police............... 363 Stephen D. Harlan, Control Board......................... 378 Chief Judge Annice M. Wagner............................. 407 Chief Judge Eugene Hamilton.............................. 462 Overtime Costs of $18 Million................................ 487 Park Police.................................................. 363 Park Police, Background of................................... 375 Personnel, Critical Needs.................................... 376 Personnel..................................................376, 377 Physical Fitness Standards................................... 482 Police Department............................................ 313 Budget Request for Metropolitan Police Department............ 313 Police Officers Back on Street, Need to Put.................. 333 Police Performance and Physical Standards.................... 334 Police Facilities Neglected for Years........................ 335 Police Officers, Outside Employment by....................... 335 Police Presence on Streets and Depoliticizing Department..... 379 Police Health Clinic, Privatized............................. 379 Police Officers, Better Training to Get Officers............. 380 Police Officer in North Carolina, Recent Death of............ 481 Prepared Statements: Police Chief Charles H. Ramsey........................... 313 Fire Chief Donald Edwards................................ 356 Stephen D. Harlan, Control Board......................... 382 Chief Judge Eugene Hamilton.............................. 462 Chief Judge Annice M. Wagner............................. 409 Superior Court Overview.............................. 426 Court System Overview................................ 443 Items in the D.C. Courts' FY 99 Budget Request That Were Not Supported by the President................ 454 Recruitment, Serious Concerns................................ 332 Recruitment of Police Chief Charles Ramsey................... 379 Residency Requirement for Police Officers..................483, 485 Security System.............................................. 408 Street Roll Calls............................................ 333 Sworn Officers, No Increase Request 3,600.................... 332 Technology, Adequate Training Required....................... 334 Technology and Y2K........................................... 408 Technology, Coordinated Case Management System............... 481 Terrorist Incidents, Special Operations Division............. 355 U.S. Attorney, Use of Police Officers........................ 380 Vest and Equipment for Police Officers....................... 482 PUBLIC WITNESSES................................................. 493 Boy Scouts Learning for Life Program......................... 641 Statements: Dr. Patricia McCrimmon, Principal, Neval Thomas Elementary School.................................. 641 Shirley Jones, Teacher, Kenilworth Elementary School. 641 Prepared Statement: Dr. Patricia McCrimmon, Principal, Neval Thomas Elementary School.................................. 644 Shirley Jones, Teacher, Kenilworth Elementary School. 646 Boys Town USA-Homeless Youth (Father Val Peter).............. 517 Boys Town Facility in D.C................................ 517 Boys Town USA is Nondenominational....................... 518 Statement of Father Val Peter..........................517, 518 Story of 9-Year Old Boy.................................. 518 Budget for FY 1999 (Council Member David A. Catania)......... 493 Prepared Statement of David A. Catania................... 495 Budget for FY 1999 (Council Member Carol Schwartz)........... 500 Prepared Statement of Carol Schwartz..................... 501 Commission for Women (Christine Warnke)...................... 723 Community-Based Housing for Mentally Ill Residents........... 648 Prepared Statement of Cornerstone, Inc................... 648 Statement of Lisa Hawkins, Cornerstone, Inc.............. 674 Control Board Staff Salaries and Legislative Riders (Congresswoman Constance A. Morella........................ 620 Adoptions Pay Certain Unmarried Couples, Prohibiting..... 622 Control Board Exceeded it Authority on Pay............... 621 Legislative Restrictions, Other.......................... 622 Needle Exchange Program.................................. 623 Prepared Statement of Congresswoman Constance A. Morella. 624 Residency Requirement for Employment...................621, 623 Statement of Congresswoman Constance A. Morella.......... 621 D.C. Black Church Initiative................................. 679 Prepared Statement of Rev. Anthony Evans, Christ Living Ministry............................................... 682 Statement of Rev. Anthony Evans, Christ Living Ministry.. 679 Domestic Partnership; Needle Exchange; and Prohibition on Unmarried Couples Adopting Children (Carl E. Schmid)....... 635 Prepared Statement of Carl E. Schmid..................... 637 Statement of Carl E. Schmid, Capital Area Log Cabin Club. 635 Fire Department (Raymond Sneed).............................. 506 Clarification of Information............................. 507 Deficiencies, Massive.................................... 506 Fire House, Leaky Roofs on............................... 507 Pay Parity with Police Officers.......................... 507 Procurement Problems..................................... 507 Statement of Raymond Sneed............................... 508 Training Academy Condemned............................... 506 The Historical Society of Washington, D.C.................... 711 Statement of Monica Scott Beckham, Vice President, Board of Trustees of The Historical Society of Washington, D.C.................................................... 711 Prepared Statement of Monica Scott Beckham, Vice President, Board of Trustees of The Historical Society of Washington, D.C..................................... 713 Homeless..................................................... 691 Prepared Statement of Dr. Edward J. Eyring............... 693 Statement of Dr. Edward J. Eyring........................ 691 Municipal Fish Wharf......................................... 698 Prepared Statements: T. Rodney Oppmann.................................... 698 Robert L. Stickell, President, The Washington Marina Company............................................ 707 Statements: T. Rodney Oppmann.................................... 705 Robert L. Stickell, President, The Washington Marina Company............................................ 707 Policy Decisions and Funding Levels (David J. Schlein)....... 523 Statement of David J. Schlein............................ 523 Vision for the District of Columbia.................. 533 Consultants Assessments: FGE Response to.................................. 548 City Departments' Response to.................... 555 Consumer and Regulatory Affairs.................. 566 Emergency Medical Services....................... 555 Employment Services.............................. 559 Health........................................... 578 Housing and Community Development................ 583 Personnel Management Function.................... 589 Public Works..................................... 570 Prepared Statements 722 George W. Brown--Small Business Incubator Program........ 732 Mary Filardo, Director of the 21st Century School fund... 727 Christine Warnke, Chairperson, D.C. Commission for Women. 723 Public Schools Budget (Mary Levy)............................ 603 Budget for FY 1999....................................... 604 Court suit to Get Financial Information, Need to File.... 604 Prepared Statement of Mary Levy.......................... 605 Statement of Mary Levy................................... 603 Public School Facilities (Mary Filardo)...................... 727 Small Business Incubator Program (George W. Brown)........... 732 Special Education (Tammy Seltzer)............................ 612 Background of Special Education Coalition................ 612 Prepared Statement of Tammy Seltzer...................... 613 Statement of Tammy Seltzer............................... 619 Tenant Assistance Program (TAP).............................. 675 Prepared Statement of John L. Robinson, Jr............... 676 Statement of John L. Robinson, Jr........................ 675 APPENDIX......................................................... 742 Report by the Greater Washington Research Center entitled ``The Necessity and Costs of District of Columbia Services'' (per capita costs).............................. 743 Report by the D.C. Financial Responsibility and Management Assistance Authority entitled ``1999 Report to Congress-- Medical Malpractice........................................ 898 Violation by Control Board of Congressional Intent: Documents Reflecting Commitments and Directives Relating to use of Revitalization Act (PL 105-33) Benefits to Reduce District's Accumulated Deficit.................. 967 Letter to Alice M. Rivlin, Chair, D.C. Control Board, from Hon. Charles Taylor, concerning GAO's Findings Regarding Control Board's Financial Statements and Nonresponsiveness in Providing Certain Information........................... 981 GAO Review of Control Board's Financial Statements....... 983 Independent Auditor's Report--Problems With Control Board-- Withholding of Documents for Bank Reconciliation........... 1009