D.C.’s poor got short end of city budgets, study finds

The D.C. government has not spent enough on the city’s poorest residents even as spending on management rose sharply since 1990, according to a study conducted by area financial analysts.

The D.C. Fiscal Policy Institute, which analyzed city budgets from 1990 through 2004, said in a report released last week that city leaders have done a good job keeping overall spending in check.

The portion of the D.C. budget supported by local tax dollars rose 3 percent since 1990 after adjusting for inflation, the study found.

However, local taxpayer dollars are not getting to residents who need those funds most, while several city management agencies, such as the Office of the Chief Financial Officer, saw sharp spending increases during the 14-year period, the study found.

“District officials have done a pretty good job in reducing spending,” said Ed Lazere, executive director of the institute. “However, programs for the neediest residents were cut severely.”

The report came as D.C. officials are trying to cover a looming budget deficit.

D.C. Council Chairwoman Linda Cropp, a Democrat, disputed the study’s findings that city leaders have failed to deliver funding to much-needed social service programs.

“Over the past two years, we have put more money into affordable housing than the city has done in its history,” she said.

She also said city officials must get a handle on costs, especially in education and public safety. “That’s where we’ve had significant increases,” she said.

Mr. Lazere said the group’s study did not look specifically into the recent increase in high-paying salaries to D.C. government executives. But he noted that the trend contributed to rising management costs in city government.

“We haven’t done detailed analysis of the number of [highly paid] employees and why they’re there,” Mr. Lazere said. “There was an effort to attract high-quality personnel in the District. That need to attract high-quality managers was very real.

“If you look at the chief financial officer, the management of that office has improved dramatically and that in turn has helped the District dramatically. But it has also come with substantial costs.”

Overall, 11 agencies lost at least 10 percent of their budgets over the past 14 years, with the biggest cuts to affordable housing and employment-training programs, the study found.

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