Agency backlog imperils federal funds

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D.C. officials are concerned that the District will lose federal funds because a new agency that settles disputes between residents and other agencies has nursed a huge backlog of cases.

The Office of Administrative Hearings was created in 2002 to be an independent arbiter that would hear appeals and settle disputes between businesses and 10 city agencies.

Those agencies -- some of which administer the federal food stamps and unemployment insurance benefits programs -- previously had hired their own administrative judges to settle disputes, opening the agencies to conflict-of-interest questions.

Designed to streamline, standardize and centralize the appeals process, the Office of Administrative Hearings began hearing cases in March 2004 and inherited from the 10 agencies a backlog of 3,000 cases that the new office has yet to resolve.

"As mayor, I accept the ultimate responsibility, but I do not accept excuses," D.C. Mayor Anthony A. Williams said.

Reducing the backlog has been "long overdue," said Mr. Williams, a Democrat. "The administrative judges enjoy autonomy, but they need to attack the backlog with a greater sense of urgency."

D.C. Council member Phil Mendelson, at-large Democrat and chairman of the Judiciary Committee, said the backlog threatens the budgets of several agencies and jeopardizes funding for federal programs, such as food stamps.

The agencies factor into their budgets anticipated revenue from fines against regulation violators, such as businesses that flout code standards. In addition, Mr. Mendelson said city residents who have been denied federal benefits must wait longer than federal standards allow for their appeals to be heard.

"This is a bad situation," said Mr. Mendelson, who has held three oversight hearings on the matter this year. "If the agency doesn't improve soon, I am going to look for new ways to reform the agency."

Chief Administrative Law Judge Tyrone T. Butler, who heads the Office of Administrative Hearings, said his agency's problems are "only natural" and urged calm.