1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 _____________________________________ Councilmember Vincent B. Orange, Sr. A PROPOSED RESOLUTION _______________________ IN THE COUNCIL OF THE DISTRICT OF COLUMBIA __________________________________ To declare the existence of an emergency with respect to the Council’s support in requesting the Executive make it a top priority of this government for District agencies to strive to meet their SBE expenditure goals through the fourth quarter of Fiscal Year 2014. RESOLVED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, that this resolution may be cited as the “Sense of the Council in Support of District Agencies Compliance with SBE Expenditure Goals Emergency Declaration Resolution of 2014”. Sec. 2. (a) The Small, Local, and Disadvantaged Business Enterprise Development and 27 Assistance Act of 2005 mandates that District agencies must “procure 50 percent of their 28 expendable budget for goods and services from SBEs each fiscal year”. (b) The Department of Small and Local Business Development (“DSLBD”) is 29 30 tasked with enforcing compliance with Small Business Enterprise (SBE) contracting and 31 procurement goals. (c) The Office of the District of Columbia Auditor (“ODCA”) published on 32 33 September 3, 2014 the “District of Columbia Agencies’ Compliance with Fiscal Year 2014 34 Small Business Enterprise Expenditure Goals through the 3rd Quarter of Fiscal Year 2014” 35 report. 1 36 37 (d) The results found in the report were discouraging, and reveal the District government that has not been following the requirements under the law. (d) According to DSLBD’s QuickBase database as of August 14, 2014, the 82 38 39 District agencies had a total Fiscal Year (FY) 2014 reported appropriated budget of 40 $10,409,072,337 and a total reported expendable budget for goods and services of 41 $990,204,474. 42 43 (d) Based on the expendable budget of $990,204,474, the FY 2014 SBE expenditure goal for the 82 agencies was $495,102,237. (e) The 82 agencies as a whole spent only $83,884,615 with SBEs through the 3rd 44 45 quarter of FY 2014, only 17% towards the $495,102,237 total FY 2014 SBE expenditures goal 46 for all of the 82 agencies. 47 48 (f) The FY 2014 exhibits a decline in SBE expenditure compliance for District agencies and demonstrates a regressive financial state for the small business community. 49 (g) In 2002, $300 million was spent with the small business community; in 2003, 50 $410 million was spent with the small business community; in 2004, $424 million was spent 51 with the small business community; in 2005, $481 million was spent with the small business 52 community. 53 54 55 (h) Nearly a decade later, despite the District’s immense economic growth, less money is being circulated within the small business community. (i) District agencies have chronically fallen short of meeting their expenditure 56 goals for three consecutive years, dating back to FY 2010, resulting in the District’s SBEs 57 having been shortchanged close to $800 million dollars. 2 58 (j) It is important for the Council to stay on top of this issue and pass this 59 resolution on an emergency basis to make clear to the Executive that it is a top priority of this 60 government for District agencies to strive to meet their SBE expenditure goals through the 61 fourth quarter of FY 2014. 62 Sec. 3. The Council of the District of Columbia determines that the 63 circumstances enumerated in section 2 constitute emergency circumstances making it necessary 64 that the Sense of the Council in Support of District Agencies Compliance with SBE Expenditure 65 Goals Resolution of 2014 be adopted on an emergency basis. 66 Sec. 4. This resolution shall take effect immediately. 3