Testimony of Deputy City Administrator Reed - FY27 Budget Oversight Hearing - April 2026

Good morning, Chairperson Bonds, members, and staff of the Committee on Executive Administration and Labor. I am Jenny Reed and I have the privilege of serving as the Deputy City Administrator and Director of the Office of Budget and Performance Management. I am joined by Christopher Rodriguez, the Assistant City Administrator, and Amber Hewitt, the Director of the Office of Racial Equity. On behalf of City Administrator Kevin Donahue, we are here to discuss the Office of the City Administrator's proposed Fiscal Year 2027 budget.

Mayor Bowser's proposed FY27 Budget, Grow DC, was formulated with three key considerations in mind: how to drive growth in our economy to fund the services and programs residents count on, how to keep families in DC and attract new residents, and how to create a business environment that draws new investment and creates new jobs. We are navigating a pivotal moment that demands a more deliberate approach to growth. The federal dollars that once expanded our programs in unprecedented ways have been exhausted, and federal workforce reductions have introduced new pressures on our economy and commercial corridors. That being said, it's important to be clear: DC is still growing. Revenues have slowed, but the city maintains a strong financial foundation we can build on. By making strategic and targeted decisions, we can allow DC to grow while delivering the high-quality services our residents depend on.

Functions of the Office of the City Administrator
The Office of the City Administrator (OCA) serves as the central hub of District Government operations. We prepare and manage the District's budget, like a household balances its checkbook. We monitor agency budgets throughout the year to try to predict what costs the District will see in the coming years, and evaluate programs' efficiencies. We work closely with agencies to set operational goals and implement the legislative actions and policy decisions of Mayor Bowser and the Council. The OCA is also the hub of coordination for several critical priorities, including reviewing programs to align them with new fiscal realities and analyzing their effectiveness.

OCA Fiscal Year 2027 Budget Proposal
OCA's FY27 proposed budget is $9.09 million, consisting entirely of local funds. This includes $8.8 million for personal services costs, which funds 54 FTEs, an decrease of 8 FTEs from FY26. And it includes $234,000 in non-personal services costs, a decrease of $271,000 from FY26. Overall, OCA's proposed FY27 budget represents a decrease of $805,000 from last year.

Projects and Initiatives
The FY27 budget funds several OCA initiatives with citywide impacts. I will summarize the impacts made by each of the offices within the OCA.

Office of Budget and Performance Management
The Office of Budget and Performance Management (OBPM) leverages data, strategic planning, and innovation to ensure the efficient use of public funds and drive continuous improvements to agency programs and services. The OBPM team is responsible for formulating the District Government's annual operating and capital budgets and administering our annual performance planning process. The team also leads the District's strategic planning and program development.

Last year, OBPM added a Good Government team dedicated to eliminating redundancies and identifying opportunities for greater operational effectiveness within the District Government. The team is working to create a Grants Management Database, allowing agencies to process and monitor grants and OCA to assess their performance and impact. The Good Government team is also leading the effort to right-size the District Government's vehicle fleet and streamline our fleet procurement and maintenance processes. Essentially, we want to limit the types of vehicles agencies can buy so we can take advantage of economies of scale and simplify maintenance needs.

Government Operations
The Government Operations (GovOps) team, led by Assistant City Administrator Chris Rodriguez, plays a central role in strategically coordinating District Government operations through collaboration across internal services and external-facing agencies. The GovOps team works to enhance contracting and procurement processes, optimize the use of space within the District's leased and owned portfolios, and ensure a unified approach to the responsible use of Artificial Intelligence. By fostering seamless cross-cluster cooperation on core operational functions, the GovOps team is driving efficient, effective governance, and advancing District-wide initiatives. Mayor Bowser recently introduced important legislation to modernize and reform the District Government's procurement practices and we are about to launch a leased space project to align in-office work requirements with leased office space usage.

The Lab @ DC
The Lab @ DC uses data, resident input, and rigorous science to help us answer important questions facing our government. The Lab has worked with the Department of Human Services (DHS) since 2017 to launch and evaluate multiple iterations of the DC Flexible Rent Subsidy program. The Mayor and DHS's plans to expand DC Flex to serve 460 new families in FY27 is supported by strong evidence that The Lab generated about the program. The Lab's work showed that DC Flex is an effective and cost-effective tool to reduce residents' need for homelessness services. This is an example of how The Lab helps us evaluate programs so we can use those results to make smart decisions about how to best spend taxpayer dollars.

Office of Racial Equity
The Office of Racial Equity (ORE), led by Amber Hewitt, continues its work to make government policies and processes more inclusive and to eliminate racial disparities in opportunities, well-being, and access to resources within the District. ORE provides leadership, guidance, and technical assistance; promotes strategic alignment and coordination; and strengthens external partnerships. Throughout the year, ORE provides comprehensive training to enhance agencies' understanding of the District's legacy of opportunities and inequities and hones their skills in analyzing policies and practices through an equity lens. In FY25, ORE trained 41.9% of eligible management supervisory service staff and is on track to exceed this number in FY26.

I want to highlight an initiative that spans OCA's Budget, Performance Management, Gov Ops, and Good Government teams. As you know, we have been focused on reducing District Government costs to reflect the new fiscal reality of slower revenue growth. OCA has spearheaded an initiative to achieve immediate cost reductions through a combination of spending freezes and eliminating unnecessary expenses. Among other actions, we have restricted most agencies' overtime spending; limited agencies' non-personal spending; restricted agencies' travel and training requests; reduced agencies' energy costs; cancelled leases on underutilized vehicles in the DC Government fleet; and eliminated underutilized land lines and electronic devices across DC Government offices.

I am proud of the work done by OCA this past year. I am equally proud to work in an administration where so many of our agencies and employees go above and beyond in ensuring our residents are well served. We know the upcoming fiscal year will present many new challenges. I have full confidence that we will meet those challenges and excel in moving our city forward. Although he could not be here today, I want to end by congratulating City Administrator Donahue for having recently attained the distinct milestone of being the District's longest-serving City Administrator.

Thank you for the opportunity to testify today about the role of the Office of the City Administrator and our proposed FY27 budget. We are available to answer any questions.