When Chief Financial Officer Natwar Gandhi conspired with then-D.C. Council Chairman Vincent Gray and at-large Councilman Michael Brown to bring Internet gambling to the District, they claimed it was to close a budget gap. But the cumulative projected financial return of $13.1 million from 2011 to 2014 amounts to peanuts, especially for a government with a $10 billion annual budget. The culture of the nation’s capital is being threatened for what amounts to about $3.3 million per year. Surely the trio’s judgment was impaired. Their ability to assess the best interest of the city probably was hampered by the din of gaming industry lobbyists and personal ambition.
But, make no mistake, there are far better ways to improve the city’s fiscal health than putting the government in bed with the gambling industry and setting up betting parlors near the White House and Capitol.
For example, Gandhi could decide to implement the Tax Clarity Act of 2000 as written. That law mandates the CFO collect taxes on refinanced commercial real estate loans. But he has never done that, possibly denying the city more than $100 million over the past decade. The longer the council and others allow Gandhi to ignore that law, the more money slips through the city’s hands.
The CFO also could push the council, with congressional muscle, to suspend tax abatements. Each year, the city forgoes millions of dollars by giving so-called incentives to developers, many of whom have already received financial support from the government for their projects. In 2009, the CFO reported the city didn’t collect $384 million, according to government documents.
And don’t forget the fines and fees that aren’t collected by the CFO’s operation. The Washington Examiner’s Freeman Klopott reported earlier this year that the city hasn’t collected $300 million in outstanding parking fines.
Fortunately, Ward 3 Councilwoman Mary Cheh has introduced legislation to establish an aggressive debt collection process. The Delinquent Debt Recovery Act of 2011 would authorize the mayor to set up payment plans, assess penalties and collect fees, among other things.
“Collecting money that the District is owed is critical in these tough financial times. Some of this money has remained unpaid for years or even decades; collecting it is both responsible and fiscally appropriate,” Cheh said. “We have millions of dollars on the table in the District, and this is not the time to leave it there.”
Too bad that kind of tough talk hasn’t been coming from the CFO. Instead Gandhi has preferred to play politics while wasting the city’s resources on risky games of chance that promise to do little for the District’s bottom line, its residents or its reputation.
UPDATE: In a recent column I discussed Veterans Services Corp.’s role in a District online gambling contract. An attorney for the Patrick Henry law firm told The Examiner that it is “aware of no evidence (written or otherwise) that VSC has ever hired [Lorraine Green] or has ever been affiliated with Ms. Green.”
Jonetta Rose Barras’ column appears on Monday and Wednesday. She can be reached at [email protected].
