Carol Schwartz
DC Chamber of Commerce Political Action Committee Questionnaire

RESPONSES TO D.C. PAC ENDORSEMENT QUESTIONNAIRE

Economic Development

1. What is your position on the National Capital Revitalization Act of 1998? Please explain your position.

I voted for that bill, after adding a lot of amendments to make it more palatable, but I still have a number of concerns about it. I am uneasy about the fact that the $50 million promised by the President's people could still be taken out by Congress. So we have a quasi-federal entity with the ability to exercise control over our land, including eminent domain, but with no firm commitment of either federal land or the $50 million from the federal government. If it turns out that the District is contributing all the money and the land, I don't think it would be appropriate for the federal government to have a seat at the table.

2. How do you propose to retain, expand and attract businesses in the District of Columbia, and stem the exodus of business from the city?

The greatest disincentives for a business to locate in D.C are 1. high taxes; 2. high crime; 3. poor schools and the lack of a skilled labor pool; and, 4. business regulations that are too costly and cumbersome. We must attack each and every one of these problems if we are going to succeed in becoming competitive with other regional jurisdictions.

My ideas on how to how to address areas 1, 2, and 4 are discussed elsewhere in this questionnaire, so I will talk a little bit here about combating crime. Crime prevention is the best way to stop crime, and for this reason I would work to ensure a more visible police presence on our streets. I would also work together with the new police chief to successfully implement community policing programs, including foot and bike patrols.

Next, I would make sure we are committed to keeping criminals off the street. I support reform of our justice system, giving our courts the ability to process the arrested fairly, and guaranteeing that there is a cell space for every criminal. Since a large percentage of crime is committed by repeat-offenders, we must break the cycle of returning criminals back to the street.

Equally important, I want to bring our men and women in blue the respect they once had. Our Police Department should represent the moral authority of our government. If it is not beyond reproach, the very foundation of our society is shaken. As Mayor, working with the Police Chief, I will make certain our police force is well-trained, well-equipped, well-paid and visible. I want to see stringent background checks, and training which includes ethics and diversity awareness. I want a police force where members who report wrongdoing and make suggestions for improvements are rewarded, not punished. Because of allegations within the Police Department to the contrary over a year ago, I offered the toughest whistleblower protections act in the country, which is now law. It was testimony I requested on my whistleblower legislation which brought about the Council's in-depth police investigative hearings that should lead to improvements in the Department. I want to stop the exodus of well-trained and experienced of ricers by making sure that salaries are competitive with other jurisdictions. I want to make D.C’s finest mean just that once again.

3. Please summarize your ideas and plans for comprehensive economic development in the District of Columbia and how you would implement these plans.

I want a booming downtown and economic development in our neighborhoods — not just liquor stores, but also clothing stores, shoe stores, and barber shops. I was the first to bring the idea of empowerment zones forward in 1988 and would push to get federal funding to bring it to fruition. I want to explore additional avenues, similar to the tax increment financing legislation that I co-sponsored on the Council, to help stimulate economic development in those parts of the city that are in grave need of it.

I am very concerned about our 9% unemployment rate — triple the national average — and as high as 22% in some areas of our city. Creating jobs will be a high priority for me. In the Council’s Committee on Government Operations, of which I am a member, we examined the Department of Employment Services’ job training programs and I was appalled at what I saw — large sums being paid to contractors who were not providing adequate training and not placing people in jobs. A well-trained workforce is absolutely essential to the long-term health of our economy and I know we can do better job of preparing people to meet the needs of our city's businesses.

4. What plans do you have to stimulate small business development in the District?

We must adopt a more business-friendly attitude. Procedures for opening and maintaining a business should not alienate, but support. The process for obtaining licenses and permits should be simplified and integrity must be restored to the agencies responsible. Fees should be enough to cover costs but should otherwise be reasonable.

Information should be made available on financing possibilities, such as tax increment financing. Again, empowerment zones could be a very useful tool here as well.

Business-to-business mentoring programs should be expanded so that new businesses can benefit from the experience of established businesses. I would also like to take advantage of the federal government’s promise of technical assistance embodied in the President's Plan and put programs — and perhaps money — from agencies like the Small Business Administration to work for our city’s businesses.

It was actually with small businesses in mind that I introduced my Parking Meter Fee Moratorium Amendment Act, which is due to go into effect July 23rd. A copy of that Act is attached, for your information. Its intent is to encourage more people to patronize our city’s shops, theaters and restaurants by enabling them to park here for free on evenings and weekends. Now people who shop downtown or on Georgia Avenue, on H Street NE, on Capitol Hill and on Martin Luther King Jr. Avenue do not have to worry about feeding the meters. They now have three hours of free parking. And hopefully, more will join them with this fee moratorium.

5. How do you envision the role of the DC Chamber of Commerce and other business organizations in the rebuilding of the city's economic base?

The DC Chamber of Commerce has taken on an increasingly activist role in recent years, which is most welcome. I would certainly want to tap into the Chamber’s collective expertise in matters related to economic development and would solicit its ideas and suggestions regarding the streamlining of government processes as they relate to business. I would especially want to seek out the Chambers input as I moved forward with the reform of the Department of Consumer and Regulatory Affairs.

The formation of working groups consisting of representatives from business and government could be a useful vehicle for targeting specific issues. I would want these to be short-term, however, because it would limit their utility to have them studying things for years. I want action - we've had enough talk and studies and recommendations.

6. Do you support the construction of the new D.C. Convention Center at the Mount Vernon site? What is the basis for your answer?

As a Councilmember, I voted in support of the Mt. Vernon Square site for the new D.C. Convention Center. My vote was based upon concerns about the costs of mitigating environmental damage at the Union Station site and other potentially unknown negative factors associated with that site. I found the delay for necessary exploration of such factors to be imprudent; I feared that such a delay could cause the District to lose the Convention Center to the nearby suburbs, just as we lost the Redskins. Attached is a copy of the statement I gave at the time of my vote, which elaborates further on my reasons for ultimately supporting the Mt. Vernon Square site.

7. Do you support the construction of the new baseball stadium in the downtown section of D.C.? Why?

I would first like to look at beefing up RFK Stadium. As I recall, it was first built to be a baseball stadium and perhaps it could be renovated. If that proved unworkable, however, then yes, I would support the construction of a new stadium downtown. I am a huge baseball fan. I used to go to most of the Senators games and have felt a great void since they left. If we are not able to get a Major League team, I would definitely want to try for a AAA League team.

8. Do you support a regional bid for the Olympics in 2012? Why?

I am delighted that Washington, D.C. and Baltimore have agreed to cooperate in putting together a regional bid for the 2012 Olympics. I believe this joint bid will substantially strengthen our chances of hosting the Olympic Games, which I do not need to tell you would be a substantial boon to the economies — and civic pride — of both cities. I will do everything in my power to help further the cooperation that will be needed to ensure the ultimate success of the bid.

9. What do you think the Mayor, D.C. Council and Control Board can do to promote tourism?

I have a keen appreciation of the critical role tourism plays in our economy — along with government, our #1 industry. Tourism brings jobs; services to our citizens; revenue for our businesses; and vibrancy to our city's streets. I commend the work being done by the D.C. Committee to Promote Washington, such as its successful Winterfest campaign to attract more tourists in the off-season. My administration will work hard to make our city the top tourist destination in the world.

We must do more to combat lingering, negative perceptions, both nationally and internationally, that the District is a dangerous, crime-ridden place saddled with a corrupt and inefficient government. My election would bring a new hope to this city, would foster a sense of optimism in its citizens, and would demonstrate to the world that fundamental change is underway in Washington, D.C.

I have repeatedly advocated the lowering of sales taxes to encourage more people to stay and shop in our city, not just tourists but also those who live and/or work here. I nearly succeeded in implementing cuts in both sales and personal property taxes during the most recent (FY99) budget process, until the discovery of a $70 million deficit in the school system forced us to scale back these plans. As our financial situation improves, I have every intention of reintroducing these tax cuts.

10. Given that one of the critical elements in business retention and attraction is the quality of the educational system, what would you do to develop the relationship between the education and business communities?

With some exceptions, our schools are not now doing an adequate job of preparing students to meet the needs of those who would employ them. This has got to change and I believe I could help by enhancing the mechanisms by which our business community can communicate its needs to those who are responsible for developing curricula, to those who teach, and ultimately, to the students themselves.

Curricula must constantly be updated and adapted to meet the changing needs of the workplace. I fear that many teachers have become so caught up in the demands of their day-to-day jobs that they could be losing sight of the bigger picture of what they are trying to do. Too many students fail to take full advantage of the educational opportunities presented to them because they do not perceive the connection between their performance in school and their future economic wellbeing. Improved communication could go a long way toward alleviating these problems and I think this is where my government could play a constructive role. I would like to start by convening regular meetings between school officials and business representatives, sponsoring symposia for teachers and expanding individual mentoring and internship opportunities for students.

Businesses have already done a lot for our schools, such as providing computers and adopting individual schools - I want to see that expanded. I am also very excited about the educational programs being implemented with the participation of businesses, such as the hospitality industry program at Roosevelt High School and the culinary arts program at M. M. Washington, Eastern High School and Anacostia High School. This is precisely the type of cooperative effort needed to enhance the skills of our future workforce.

Comprehensive Regulatory Reform

11. Do you support the elimination of the twelve most anti-business regulations in the District of Columbia — commonly referred to as the "Dirty Dozen"?

WORKER’S COMPENSATION — Reduces overall cost to D.C. employers by 21% and will bring the costs paid by District businesses in line with the lower costs paid by businesses in the surrounding jurisdictions of Maryland and Virginia. Bill 12192 is currently before the Council's Committee on Government Operations.

I co-sponsored Bill 12-192 at the Council. We must explore every opportunity to make our business costs competitive with those of neighboring jurisdictions.

ENVIRONMENTAL REGULATION — The Act appears to duplicate existing regulations and add unnecessary regulatory review and costly delays to development projects, especially in neighborhoods. Repeal the Policy Act and Reduction Act.

I am not convinced that these laws are currently causing real hardship to developers because from what I’ve been able to see, they are not being enforced. I would certainly want to examine ways to improve upon these laws and would welcome input from the business community in that process.

FIRE CODE MARSHALL — The District imposes sprinkler and related regulations on existing buildings. Consider removing fire department from the plan/review permit process and expedite inspections process.

I am concerned about safety and would therefore be wary of completely removing the fire department from the plan/review permit process. Otherwise, I would welcome all opportunities to expedite the inspections process.

RENT CONTROL — Both Acts regulate the relationship between landlord and tenant rather than the physical condition of the premises. Propose “vacancy decontrol” and phase out rent control except for senior citizens and other special circumstances.

I supported the vacancy decontrol measures that were introduced while I was on the D.C. Council in the 1980s. I believe that current law is sufficient to allow for additional rental housing.

The law exempts from rent control requirements new buildings, and newly-renovated buildings back on the market that have been continuously vacant since 1985. Because of my concern that rental developers have so little trust in the reliability of the D.C. government, I added an amendment in the 1980s that was designed to reassure developers that they wouldn’t be left hanging by any subsequent reversal in the city’s rent control policy. Following any such reversal, my amendment required the government to pay the building owner the difference in the value of the building with rent control and without rent control. This should encourage increased rental housing. Because there appears to be limited awareness of these provisions in our rent control laws, I would work to heighten that awareness.

BUILDING PERMITS AND CERTIFICATIONS — Obtaining building permits and certificates suffer due to inadequate resources and quality controls. Consolidate, centralize and automate the reviewing and tracking of permits.

There should absolutely be “one-stop-shopping” for licenses and permits. We have got to make the system simpler and more user-friendly.

GENERAL BUSINESS LICENSE PROCEDURE — Provide a single identification number to businesses for use in all agencies and reduce the categories of licenses.

This is a no-brainer. It seems to me that a single identification number would make the process easier not only for the business applying for the license or permit but would also facilitate coordination between agencies. Reducing the categories of licenses is another potentially win-win proposition.

VENDOR LICENSING -- Consider a moratorium on new vendor licensing and assign spaces by name and location with improved design standards for carts and tables.

My mind is still open on issues pertaining to many aspects of vendor licensing, and I am eager to study the recommendations of the group that has been set up to examine these issues. I would be reluctant to implement measures that had the effect of limiting competition between and among the vendors themselves, but otherwise I am receptive to constructive suggestions about ways to improve upon existing regulations.

BOARDS AND COMMISSIONS — Reduce the number of boards and commissions and establish sunrise and sunset legislation.

I do believe that we must take a careful look at the purpose and effectiveness of each board and commission. I am favorably disposed to sunset provisions in general because they force the government to periodically revisit and reexamine the laws in effect.

PROFESSIONAL LICENSE TAX — Repeal $250 non-regulatory professional fees.

I have in the past, and will continue in the future, to push for the reduction of business taxes, to the extent this can be done in a fiscally responsible manner. I would like to see administrative costs covered, but beyond that I think there is room to reduce and/or eliminate unnecessary and punitive fees.

PARKING REGULATION — Liberalize or eliminate parking regulations during off peak hours and Saturdays.

My bill introducing free parking on evenings and Saturdays (The Parking Meter Fee Moratorium Amendment Act mentioned above) succeeded in passing the Council and is scheduled to go into effect July 23rd. I have been wanting to implement such a measure for years and it is the first bill I introduced after being sworn in to my At-Large Council seat in January of 1997.

UNEMPLOYMENT INSURANCE COMPENSATION — Achieve comparability of costs to employers with surrounding jurisdictions.

I supported the Council’s move in the budget support act to cut the benefit level of unemployment insurance. Again, bringing business costs in the District closer to the levels of neighboring jurisdictions is important to me.

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS — Complete reform of DCRA.

Absolutely. The bureaucratic confusion, lack of coordination, unresponsiveness and duplication of effort that I have observed in this Department cannot be allowed to continue.

Comprehensive Tax Reform

12. Please discuss your review of comprehensive tax reform in the District of Columbia. a) Do you support a value-added tax? Why? b) Do you support a gross receipts tax? Why? c) Of the existing tax proposals under consideration from the Office of Tax and Revenue and the Tax Revenue Commission, which proposal would be best for the District of Columbia?

I am still studying these issues. I am disinclined toward instituting value added or gross receipts taxes because of my longstanding desire to reduce taxes, but I would like to examine more closely the impact such taxes have had in other jurisdictions.

I really do think we need to lower our business taxes if we wish to stem the exodus of businesses from our city. We lost 955 businesses between 1990 and 1995 — that translated to a net loss of 23,690 jobs, which is just not acceptable.

I have always been committed to tax reduction and during my previous term on the Council in the 1980s, I succeeded in getting income taxes reduced from the 11% that it used to be to the still-too-high 9.5% that it is today. I also introduced legislation back then that reduced estate taxes, making them comparable to estate taxes in much of the rest of the country. I also proposed sales tax reductions in the 1980s, and during this current (FY 99) budget process, I nearly got this approved along with a reduction in personal property taxes until a $70 million deficit was discovered in the school system that made it unfeasible. We did, however, succeed in including $1 1.5 million worth of tax reductions in the FY 99 budget, which I supported.

13. Would you support proposals to lower the District's corporate franchise tax to a rate comparable to surrounding jurisdictions? How would you finance this reduction?

Again, D.C. business taxes must be comparable or lower than in neighboring jurisdictions in order to encourage business to stay in the city or to relocate here. A higher corporate franchise tax in D.C. is not compatible with the goal of an expanded business community.

These and other tax reductions could be facilitated by more vigorous pursuit of federal grants. I have long been critical of this city's failure to take full advantage of the federal money available to it and as Chair of the Committee on Local, Regional and Federal Affairs, I have convened two oversight hearings on that subject in conjunction with the Committee on Finance and Revenue.

D.C. Governance

14. How do you evaluate the performance of the Mayor, D.C. Council and the Control Board over the last three (3) years in addressing the District's fiscal crises? In hindsight, what could have been done differently?

As a member of the Council for about half of that time, I had an opportunity to participate directly in the budget process and will share with you some of my observations. I am certainly not happy about the fact that our city got itself into such a severe financial crisis that Congress saw fit to impose a Control Board, and this is part of what prompted me to run for Council in l 996. Nevertheless, the existence of a Control Board has probably been useful in the role of a “hammer over the head” of the Mayor and Council. The Control Board could probably have fulfilled that role without being quite so autocratic in the past, but I believe that is about to change.

During last year’s (FY 98) highly-politicized budget process, the Mayor submitted three successive budgets, each of which was rejected by the Council and/or Control Board. Although this might have been fun for the members of the press who covered it, it was not constructive in achieving the goal of presenting a united front to Congress. Despite subsequent negotiations with the Control Board, they decided to send their own budget to Congress, which was separate from the Council’s. This was highly regrettable, and probably unnecessary as the two budgets were not that different from each other.

This year (FY 99), we managed to succeed in presenting a single, consensus budget to Congress, which I think was a great improvement. It was the result of countless hours, spanning seven months of difficult work, including Council Committee hearings, markups and ten days of budget planning sessions. In both the FY 98 and FY 99 budget processes, I attended each and every budget meeting, where I urged my colleagues to act in a fiscally responsible manner, and, in the end, we did. So certainly in the last year, the performance of all three entities, the Mayor, the Council and the Control Board, relating to the FY 99 budget process was good.

I believe that with two balanced budgets behind us now, we have turned the corner toward a more financially sound future in which the Control Board can and should go out of existence as is provided for in current law. We have had to make some difficult decisions in order to get here, so it has not been without pain, but I think the worst is behind us.

15 What is your vision for the District of Columbia going into the next century regarding (1) fiscal accountability, (2) management, and (3) restoration of home rule?

I think history has shown us that fiscal accountability is vitally important if we want to manage our own affairs and fend off attempts by Congress to rescind aspects of home rule. During my last stint as an At- Large member of the Council in the 1980s, I was frequently the lone voice calling for financial restraint when all those around me kept voting for increased spending. (Attached is a copy of an op-ed piece I wrote for the Washington Post during that time, which reflected my thinking on the bloated budgets that had become common.) Had I prevailed back then, we might not have gotten where we are today. In the future, as then, and as now, I can be counted on to bring fiscal accountability to our budget process.

As I indicated before, I attended each and every budget meeting in the past two fiscal years. I did so because I wanted to ensure not only that we achieved balanced budgets, but also that we worked toward the goal of real deficit reduction, which we did.

As for management issues, I have put a great deal of thought into this. The office of Mayor, which I am seeking, is unfortunately only a shadow today of the same office I sought in 1986 and 1994. Some are calling for further changes to our structure of governance that would reject the strong mayor model in favor of a city manager model. I believe there is nothing wrong with the strong mayor form of government put in place a quarter of a century ago, when home rule was enacted. The form has not been the problem, the substance has been. As in any governmental structure, conscientious, competent and fiscally- responsible leadership is the answer.

Since the enactment of home rule, there exists the position of city administrator. That is the opportunity I would use to get a top-notch, experienced “city manager” type to run the day-to-day operations of the city. But that person would report to me as Mayor and be accountable to me and to the citizens who elected me. Similarly, I would hire first-rate managers to other top positions in government; people who are capable, competent and who want to serve this city; people who will work hard to ensure that we utilize all federal funds available to us and who will take public service to mean just what it states — serving the public.

I firmly believe that any decision related to the form of government we should have after the Control Board ceases to exist should be made by the citizens of D.C. I am firmly committed to home rule and believe I could succeed in regaining some of the ground we have lost in recent years. My election as Mayor would make a great difference in improving relations with Congress. I am a Republican and my party affiliation should help on the Hill. I have already met with some members of Congress in my capacity as Chair of the Committee on Local, Regional and Federal Affairs and have communicated to them my strong convictions regarding home rule. I truly believe that Congress would show greater respect for home rule and support us more fully if I were the Mayor of this city.

16. What unique policies would you implement as Mayor of the District of Columbia?

It is sad to think of good management as unique, but in our city, it is. The Mayor and her top people set an example for the whole rest of the government, and ultimately determine the tenor of life in the city as a whole.

First and foremost, I want to restore the morale of our city. I believe my sense of urgency and hands-on approach to problems, as well as my optimism, will help. I want to see our city made clean again. I want to re-plant trees, clean streets, parks and alleys, fix our potholes.

I want to see a healthy city. We are #1 in too many categories — highest infant mortality, highest AIDS rate, highest prostate cancer. I want to turn that around by strengthening our health infrastructure and educating our populace on health issues.

Drug treatment will be a big part of that too. I am depressed about the high rate of alcohol and drug abuse I see and I itch to do something about it.

Our youth and their future concern me — too many teenage pregnancies and too much violence. I want educational, recreational and job opportunities for youth and will provide them.

I want to bring people together. I have seen first-hand that familiarity breeds tolerance and even warmth. I want to see a city that works and will give more than full time to see that it happens.

I want to see the return of the over 200,000 residents that we have lost. I am pleased with the $5,000 tax credit now in place for first-time homebuyers and want to explore other policies like that. Population growth will spur the need for more businesses and put us back on track toward a growing economy.

And with my leadership and the changes I will make, will come the return of pride — pride that we are fortunate to be in the greatest and most beautiful city in the world.