A SERIES OF PROGRAMS TO ENCOURAGE BUSINESSES TO STAY IN THE DISTRICT AND

EXPAND HERE HAS BEEN INITIATED. A NEW HOTLINE SERVICE IS IN OPERATION TO
HELP BUSINESSES, AND A ONE-STOP BUSINESS SERVICE CENTER WILL OPEN SHORTLY.
A NEW MOTION PICTURE DEVELOPMENT UNIT IS BRINGING REVENUE AND EXPANDED JOB

OPPORTUNITIES TO THE DISTRICT.

A COMPREHENSIVE PLAN HAS DEVELOPED 30 NEW OR GREATLY EXPANDED RECREATION PROGRAMS, AS WELL AS MANAGEMENT IMPROVEMENTS.

REPAVING OF MANY CITY PLAY

GROUNDS HAS BEEN COMPLETED; THE WILSON POOL IS OPEN; AND THE SHAPIRO TRACT

IS FINALLY BEING TURNED INTO A PARK.

SUMMARY OF FY 1981 BUDGET

I WILL NOW OUTLINE BROADLY THE FY 1981 BUDGET. ENTITLEMENT PROGRAM EXPENDITURES SUCH AS PENSIONS, UNEMPLOYMENT COMPENSATION, PUBLIC ASSISTANCE, DISABILITY COMPENSATION, MEDICAID, FOSTER CARE AND THE LIKE ACCOUNT FOR

$350.1 MILLION.

REPAYMENT OF LOANS AND INTEREST AMOUNTS TO $133.9 MILLION,

AND STATUTORY PAT RAISES ACCOUNT FOR $40.2 MILLION. THEREFORE, $524.0 MILLION OUT OF OUR $1.5 BILLION BUDGET ARE EXPENDITURES REQUIRED BY VARIOUS STATUTES.

OUR BUDGET IS EVEN MORE INFLEXIBLE WHEN WE VIEW THE $117.8 MILLION NET INCREASE IN FY 1981 OVER FY 1980. OF THAT AMOUNT $99.9 MILLION (OR 85 PERCENT) RESULTS FROM STATUTORY PROGRAMS, INFLATION, WITHIN GRADES, AND ANNUALIZATION. ONLY $17.9 MILLION (OR 15 PERCENT) OF THE INCREASE REPRESENTS WORKLOAD

REQUIREMENTS AND NEW AND EXPANDED SERVICES.

MR. CHAIRMAN, I WOULD LIKE TO HIGHLIGHT SOME OF THE SPECIFIC INCREASES INCLUDED IN THE FISCAL YEAR 1981 BUDGET.

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GOVERNMENTAL DIRECTION AND SUPPORT

IN THE CATEGORY OF GOVERNMENTAL DIRECTION AND SUPPORT THE SIGNIFICANT

CHANGES ARE:

о AN INCREASE OF 20 POSITIONS AND $426,000 FOR THE OFFICE OF THE

CORPORATION COUNSEL TO IMPROVE THE DISTRICT'S ABILITY TO PROVIDE

ADEQUATE DEFENSE OF SUITS.

O 12 POSITIONS AND $507,700 TO STAFF THE NEW OFFICE OF EMPLOYEE

APPEALS MANDATED BY THE D.C. MERIT PERSONNEL ACT OF 1979.

O 18 POSITIONS AND $715,400 TO FUND THE OFFICE OF BUSINESS AND

ECONOMIC DEVELOPMENT. THIS LEVEL OF FUNDING IS NECESSARY BECAUSE OF

SEVERE REDUCTIONS IN COMMUNITY DEVELOPMENT BLOCK GRANTS

THE FY 1980

SOURCE OF FUNDS FOR OUR OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT.

DESPITE ALL THE OBSTACLES WE FACE AS A CITY, THERE ARE MANY ENCOURAGING SIGNS. IN THE DOWNTOWN AREA ALONE, THERE IS OVER $1.4 BILLION IN DEVELOPMENT THIS WILL PRODUCE 8.5 MILLION SQUARE FEET OF ADDITIONAL

UNDER CONSTRUCTION.

PUBLIC AND PRIVATE OFFICE SPACE, 6.0 MILLION SQUARE FEET OF INSTITUTIONAL SPACE, AND ANOTHER 1.4 MILLION SQUARE FEET OF RETAIL SPACE. THIS NEW DEVELOPMENT MEANS 50,000 PERMANENT NEW JOBS.

THE PENNSYLVANIA AVENUE DEVELOPMENT CORPORATION IS STIMULATING ONE BILLION

DOLLARS IN NEW DEVELOPMENT.

THE NEW CONVENTION CENTER WILL STIMULATE DEVELOPMENT EAST OF 15TH STREET

IN PARTICULAR. WE WILL HAVE A "LIVING DOWNTOWN" EAST OF 15TH STREET, WITH APARTMENTS, HOTELS, SHOPS, RESTAURANTS, MUSIC AND SO ON, WITH AROUND-THECLOCK SAFE AND ENJOYABLE ACTIVITIES. THE CONVENTION CENTER WILL BRING

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IN A PROJECTED $45.4 MILLION IN SPIN-OFF TAX REVENUES BY 1984, THEREBY
EASILY COVERING THE $7.1 MILLION IN DEBT PAYMENT AND OPERATING COSTS. THE
CENTER WILL ADD 4,000 NEW JOBS. THE FY 1981 CAPITAL BUDGET PROVIDES

$26.7 MILLION FOR THIS JOBS CREATION PROJECT.

METRO IS EXPECTED TO PRODUCE $5 BILLION IN DEVELOPMENT AROUND METRO STOPS. OVER $50 MILLION PER YEAR IN NEW TAX REVENUES WILL BE PRODUCED BY METRO BY

1985.

I BELIEVE THAT THE BUILDING BOOM IS OCCURRING BECAUSE OF OUR CITY'S STRONG SUPPORT FOR ECONOMIC DEVELOPMENT.

THERE IS AN URBAN RESURGENCE IN PROGESS,

AND PRUDENT FIRMS WILL NOT WANT TO BE ON THE OUTSIDE. AS ENERGY SHORTAGES
INEVITABLY BECOME INCREASINGLY SERIOUS, CITIES SUCH AS WASHINGTON WILL BE
EVER GREATER IN DEMAND AS THE CENTERS OF COMMERCE.

ECONOMIC DEVELOPMENT AND REGULATION

IN THE FY 1981 BUDGET, WE HAVE ESTABLISHED A $2 MILLION FIRST RIGHT TO PURCHASE PROGRAM TO HELP TENANT GROUPS PURCHASE UNITS. FURTHER, A

$2 MILLION REVOLVING FUND IS BEING INITIATED TO REDUCE RENTS OF HOMEOWNERSHIP COSTS TO RESIDENTS OF MULTI-FAMILY BUILDINGS. WE ARE GOING AFTER 2,000 PRIVATELY-OWNED, BOARDED-UP BUILDINGS WITH THE AID, INITIALLY, OF A $1 MILLION

PROPERTY ACQUISITION PROGRAM.

THE $7.7 MILLION PROPOSED INCREASE IS NOT NEARLY ENOUGH RELATIVE TO OUR NEEDS. YET THIS IS A MAJOR COMMITMENT IN OUR NEW DIRECTIONS EFFORT TO DISTRIBUTE FUNDS ACCORDING TO URBAN PRIORITIES.

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ALSO PLANNED IN THE AREA OF ECONOMIC DEVELOPMENT AND REGULATION IS:

O AN INCREASE OF $200,000 FOR THE WASHINGTON AREA CONVENTION

AND VISITORS ASSOCIATION.

о AN INCREASE OF 11 POSITIONS AND $173,000 FOR THE D.C. OFFICE OF CONSUMER

PROTECTION, AN AREA OF HIGH PRIORITY FOR BOTH THE EXECUTIVE AND LEGISLATIVE
BRANCHES. THIS FUNDING INCREASE WILL ENABLE US TO MEET OUR LEGISLATIVE
MANDATES IN THE AREAS OF HEARING AID DEALER REGULATION, CREDIT REGULATION,
AUTOMOTIVE AND ELECTRONIC REPAIR DEALER LICENSING, DRUG PRICE INFORMATION,
HEALTH SPA REGULATION, AND OTHERS.

PUBLIC SAFETY AND JUSTICE

THERE IS A POPULAR PERCEPTION THAT THE DISTRICT IS MORE CRIME-RIDDEN THAN

OTHER MAJOR CITIES IN THE UNITED STATES. THE FACT OF THE MATTER, MR. CHAIRMAN, IS THAT THE DISTRICT'S CRIME RATE RANKS IN THE BOTTOM THIRD WHEN COMPARED TO THAT OF THE LARGEST 25 MAJOR URBAN AREAS IN THE UNITED STATES. THIS HAS BEEN

CONSISTENTLY TRUE SINCE THE EARLY 1970's.

WE HAVE NOW FULLY IMPLEMENTED OUR COMPUTER-AIDED DISPATCH SYSTEM. THIS

MEANS THAT WE WILL BE ABLE TO RESPOND TO EMERGENCY CALLS MORE QUICKLY. IT

ALSO MEANS THAT WE WILL BE ABLE TO MONITOR THE ALLOCATION OF POLICE RESOURCES

ON A SHIFT, DAILY OR WEEKLY BASIS. FOR THE FIRST TIME IN THE HISTORY OF THIS GOVERNMENT WE WILL BE ABLE TO EFFECTIVELY TRACK WHERE INTENSIVE MANPOWER IS

NEEDED AND EXPEDITIOUSLY REASSIGN OFFICERS ON A PRIORITY BASIS.

TECHNOLOGY HAS ADVANCED TO THE STATE THAT WE CAN NOW MAINTAIN AND EVEN IMPROVE THE LEVEL OF POLICE SERVICE WITH DECREASED RESOURCES. THE FISCAL

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YEAR 1981 BUDGET REFLECTS A DECREASE OF 245 POSITIONS IN THE POLICE DEPART

MENT. THIRTY POSITIONS WILL BE TRANSFERRED TO THE NEW CENTRALIZED PERSONNEL OFFICE AND AN ESTIMATED 216 UNIFORMED OFFICERS WILL LEAVE THE DEPARTMENT

THROUGH NORMAL ATTRITION AND NOT BE REPLACED.

WITH THE SUPPORT AND ASSISTANCE OF CHIEF JEFFERSON, OVER 300 JOBS NOW PERFORMED BY SWORN OFFICERS WHICH COULD BE DONE BY CIVILIANS HAVE BEEN IDENTIFIED THE CHIEF HAS ALREADY BEGUN TO IMPLEMENT CHANGES WHICH WILL RESULT IN MORE OFFICERS IN FRONT LINE DUTY AND LESS CARRYING OUT ADMINIS

TRATIVE FUNCTIONS.

THE AVERAGE UNIFORM LEVEL IN FY 1981 WILL BE 3,880 OFFICERS AND 594

CIVILIANS.

ONLY ABOUT 10 PERCENT OF ALL CALLS RECEIVED BY THE POLICE DEPART

MENT INVOLVE CRIMINAL COMPLAINTS. IT IS TIME THAT THE MYTH REGARDING THE
DISTRICT'S CRIME RATE BE PUT INTO PERSPECTIVE AND BE PUT TO REST. THE
DISTRICT IS SAFER THAN THE MAJORITY OF OTHER MAJOR URBAN AREAS. THERE IS
NO ADDED THREAT TO THE PUBLIC'S SAFETY. MORE OFFICERS WILL BE DEPLOYED TO
THE STREETS AND BY INCREASING THE NUMBER OF ONE PERSON PATROL CARS AND ADDING
PATROL SCOOTERS, WE WILL BE ABLE TO MAINTAIN THE LEVEL OF POLICE PROTECTION
NEEDED TO FOSTER AND PRESERVE A SAFE LIVING ENVIRONMENT.

THE FUNDS EARMARKED FOR POLICE AND FIRE PENSIONS ARE IDENTIFIED SEPARATELY FOR THE FIRST TIME. THE COMBINED AMOUNTS WILL TOTAL ABOUT $74 MILLION IN FY 1981. OF THAT AMOUNT, $2,537,600 REPRESENTS INCREASES FOR POLICE,

AND $1,173,800 REPRESENTS INCREASES FOR FIRE.

TWO ADDITIONS TO THE NEW DETENTION FACILITY ENABLES US TO CLOSE THE OLD

D.C. JAIL AND ACHIEVE A SAVINGS OF $1 MILLION PER YEAR IN THE D.C. DEPARTMENT