[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6539031,"mediaKeyId","3773856-f5302aa732db7f943b49f2c23e49aea2","parentId",3773856,"title","APCA presents FY26 budget, details cannabis enforcement and explains a contested placard rescission","audioSeconds",2485,"startMs",4575000,"endMs",7060000,"viewUrl","/Search/View?dp=1&key=3773856-f5302aa732db7f943b49f2c23e49aea2&start=4575&end=7060","thumbnailUrl","https://assets.pipeline.soar.com/3773856-f5302aa732db7f943b49f2c23e49aea2/thumbnail_4575000.jpg","articleUrl","/articles/6539031/APCA-presents-FY26-budget-details-cannabis-enforcement-and-explains-a-contested-placard-rescission","mediaUrl","https://secure.pipeline.soar.com/6539031-572c12d75431d0263cc24474dfbf36c6/orig.mp4?Expires=1770452997&Signature=LUaLwGlfKgf0a2YS0x73BGBuyUbDL2zlw83sv788g1W4oirJ~U56XuisRMZAUx5iLo85iN8ndS7TLJ0YUlJvckHoguycZevfvvbaLAePJXNJxxLiBduEl6xB8zOgj50xN0eydgJfNeGZLMWrLd2gpRiO4lhftB-EdHrmI6MK4iJI04UauO1PG82saJfFACvUXcYRqyHtLuyw-O5RoUaXc1-Es~pVJ3BvV5DyVNdER8ek7oy8liYdn4ejw3O2fQ7FhVYLsMdS0FTdS-MlEcFAvWyWuukpQYp2-gTk06MvPNz7oW9h2NWzMjeBj-2R2zDH-3g-vV74ioQ1ERM-kCzXLw__&Key-Pair-Id=KUT5TJCACFTXG","author","District of Columbia (Business and Economic Development)","date","2025-06-11T00:00:00Z","article","Fred Mesali, Director of the Alcoholic Beverage and Cannabis Administration (APCA), testified to the Committee on Business and Economic Development on June 11 about APCA’s FY26 budget, enforcement priorities for illegal cannabis retailers, and proposed Budget Support Act subtitles affecting alcohol and cannabis regulation.

Why it matters: APCA regulates alcohol and medical cannabis retail activity in the District, enforces against unlicensed cannabis operations and administers programs that affect late‑night public safety and neighborhood impacts. Budget and staffing choices shape the agency’s ability to inspect, investigate and enforce licensing requirements.

Budget and staffing: Mesali told the committee APCA’s proposed FY26 operating budget is $11,654,064 with 77 FTEs (a net decrease of 3 FTEs from FY25). APCA’s budget relies largely on special‑purpose revenue funds and includes $999,875 in capital funding (IT modernization), and the agency plans to keep a $500,000 reimbursable subsidy for off‑duty MPD details that support late‑night on‑premise establishments. APCA said the proposed FY25 supplemental reduces about $350,000 in SPRs by delaying or cancelling purchases (vehicles, laptops and shredding) under the mayoral spending freeze.

Cannabis enforcement and closures: Mesali told the committee that APCA had closed 44 unlicensed retail operations as of April 1 and 57 in total by the date of testimony. He described enforcement following the March 31 conversion deadline for unlicensed retailers as a factor in bringing the legal market online and increasing legal sales in April and May.

Staffing, vacancies and hiring freeze: APCA currently reported roughly 18 vacant positions across the agency; the combined salary/fringe cost for those vacancies was $2,043,880 (FY25), Mesali’s fiscal officer said. APCA is subject to the citywide hiring and spending freeze but stated it can pursue waiver requests; the agency said it planned to file a waiver to hire two cannabis investigators imminently.

NPD reimbursable subsidy and budget mechanics: APCA explained the reimbursable detail program reimburses MPD for off‑duty officers at on‑premise establishments for hours between 11:30 p.m. and 5:00 a.m.; APCA currently reimburses roughly 65% of the cost to licensees and requested $500,000 to support the program in FY26. APCA’s fiscal officer explained the agency relies on license renewal cycles (many alcohol license renewals occur in FY25) to smooth multi‑year revenue variations and said SPR reductions in FY26 reflect lower projected receipts in an ABC licensing fund.

Placard rescission and investigation of a Ward 2 venue: Committee members raised a placarding dispute where APCA had issued and later rescinded a placard for a proposed venue near Jefferson Place NW (address details discussed in committee). Mesali said licensing specialists used available geographic information systems to review the site before placarding; enforcement then investigated after complaints and identified a nearby certificate of occupancy (C of O) that reflected a change of use to a condominium building with private residential units. APCA said the enforcement memo documented the property’s C of O and concluded the application could not proceed under the new‑dancing/residential‑proximity rule; APCA also noted the local Alcohol Beverage Control Board issued a decision on June 4 and that the administrative process includes reconsideration and subsequent appeal routes.

Medical cannabis social equity and sliding scale: Mesali supported removing a sliding‑scale patient discount that had disproportionately affected medical cannabis dispensaries in Wards 7 and 8 and argued the existing provision discouraged retailers from operating east of the river; the Mayor’s proposed Medical Cannabis Amendment Act of 2025 would eliminate the sliding‑scale requirement. APCA said legal market conversions, enforcement and increased licensure (from about six stores to roughly 60 licensed dispensaries) had driven sharp increases in legal sales in April–May and that the agency would work with the committee to ensure social‑equity programs and workforce supports are developed.

Other program notes: APCA defended its proposed capital IT investment, described a $1.7 million reduction in contractual services (moved to capital), and said the agency supports the mayor’s commercial‑bingo and card‑gaming subtitle proposals in principle but noted rulemaking and interagency coordination would be required.

What happens next: APCA will provide additional follow‑up data requested by the committee, including vacancy timing and the dollar value of vacant positions, and will pursue hiring waivers for investigators if permitted. The committee requested further detail about the placard case and APCA said it will coordinate documents and clarify procedural steps.

Ending note: Mesali told the committee the recent surge in legal cannabis sales and the closures of unlicensed retailers reflect a successful mix of conversion opportunities and enforcement, while the agency continues to operate under fiscal constraints and a hiring freeze.

","mediaType","Video","parentTitle","District of Columbia (Business and Economic Development) - Committee on Business & Economic Development, Budget Oversight Hearing, Kenyan McDuffie, Chairperson - Jun 11, 2025","oneSentenceSummary","Fred Mesali, Director of the Alcoholic Beverage and Cannabis Administration (APCA), testified to the Committee on Business and Economic Development on June 11 about APCA’s FY26 budget, enforcement priorities for illegal cannabis retailers, and proposed Budget Support Act subtitles affecting alcohol and cannabis regulation.","taxTitle","Committee on Business and Economic Development, Committees, Legislative, District of Columbia","taxId",16178,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6539035,"Lottery director outlines central gaming system procurement, warns on offshore ‘sweepstakes’ and describes new games proposals",2498,4678000,7176000,"/Search/View?dp=1&key=3773856-f5302aa732db7f943b49f2c23e49aea2&start=4678&end=7176","https://assets.pipeline.soar.com/3773856-f5302aa732db7f943b49f2c23e49aea2/thumbnail_4678000.jpg","/articles/6539035/Lottery-director-outlines-central-gaming-system-procurement-warns-on-offshore-sweepstakes-and-describes-new-games-proposals","https://secure.pipeline.soar.com/6539035-fd58d113ea1cdf4482a8719d19ef561a/orig.mp4?Expires=1770452997&Signature=dpnT7wBr2QWkCDk~BRzPEq~WdqiPmD4jwpw3CGJ4P7~kw6va08xP4Co5-HA6GLgCrqwc38D-rnXZXj055vSgi9mUoznLOTK-A0mCsSYdO0itES-prmK3tnwgtfbDqGXScFjGOKrYEPbULSVArKdMWHPzTEaB~DGq~zO5e1EtHL8zxZY9qHJkMmtWpLPjjit57cfzYoHyOOM3bztcdVY1U242YtEXnjdKQun01tHFMP9G~E0VRc8~ea1MvIgGeBxiXiegP1DYVFkRBMKlzk6a3rj1p0Asb-eJTrxj5BmoqF0-AaTSFO0Utz40MUvApTv97XsaL6IWAJGBSpYzxFURew__&Key-Pair-Id=KUT5TJCACFTXG","Thomas R. Burnside, the new Executive Director of the Office of Lottery and Gaming, briefed the Committee on Business and Economic Development on the agency’s FY26 budget, the planned replacement of its central gaming system, and regulatory priorities including online sweepstakes and proposed new card‑gaming and commercial bingo authorizations in local Budget Support Act subtitles.

Why it matters: OLG runs the District’s lottery, iLottery and oversees gaming regulation. Changes in its systems and regulatory roles affect retail operators, consumer protections, tax transfers to the general fund, and enforcement priorities.

OLG finances and staffing: Burnside said the mayor’s proposed FY26 OLG operating budget is approximately $272.4 million, down about $79.5 million (22.6%) from FY25’s $352 million; the variance largely reflects the consequences of the 2024 sports‑wagering law that moved operations and related revenue streams out of OLG’s enterprise flow and left the agency in a primarily regulatory role. The FY26 request includes funding for 98 FTEs, an increase of four positions to expand regulation and oversight for newly proposed commercial card gaming and bingo responsibilities. During questioning he said OLG had 11 current vacancies and that, because most OLG funds are enterprise rather than local funds, “there is no vacancy savings” line on the agency’s Schedule A.

Central gaming system procurement: Burnside described a planned competitive procurement to replace OLG’s central gaming system (CGS) and iLottery platform. He said the evaluation phase will take roughly six months after the response deadline, with an additional 4–5 months for negotiations and award (including Council approval where required), and that systems and services would be expected to go live no later than nine months from the award effective date. “This process will be intensive and involve everyone at OLG in some way. It will have a positive impact on all of our retailers and customers for years to come,” Burnside said.

Games of skill, card gaming and commercial bingo proposals: OLG officials testified they are prepared to implement policy changes the Council may adopt. The mayor’s proposed subtitles would (a) create a card‑gaming endorsement for hotels and arenas to authorize poker and blackjack tournaments, (b) create a commercial‑bingo endorsement for on‑premises venues (distinct from nonprofit charitable bingo), and (c) authorize expanded games‑of‑skill operations. Counsel Ridgeley Bennett warned of federal limits on some electronic devices: \"The Johnson Act prohibits the interstate transportation of gambling devices,\" he told the committee, explaining that an early DC court opinion (Brazil) construes federal law to bar certain electronic gaming devices in the District and that the District lacks an opt‑out provision present in state statutes.

Age and jurisdictional conflicts: OLG and APCA staff noted potential conflicts in proposed age limits — some draft language would set the minimum player age at 18 while many APCA‑licensed establishments and neighboring jurisdictions set ingress requirements at 21. OLG said this conflict would be addressed in rulemaking and through coordination with APCA.

Online sweepstakes and enforcement: Committee members pressed Burnside and counsel about “online sweepstakes” operations — offshore firms that offer digital slot‑like and table‑game experiences tied to purchases of virtual currency and prize redemption. Burnside and OLG counsel said the agency is monitoring other states’ enforcement actions and would pursue cease‑and‑desist orders and other actions where operators require payment to play and thereby create an unregulated gambling product: \"If you are requiring payment for an opportunity to win a prize that is gambling ... we would issue cease and desist letters and take other actions,\" Ridgeley Bennett said. Burnside said he had not yet coordinated with the Attorney General’s office specifically about recent multi‑state enforcement but welcomed such collaboration.

Sports wagering regulatory transition and CBE/CVE compliance: OLG confirmed the FY26 reduction in non‑personnel services reflects the contract and operations shift for sports wagering. The agency reported that DraftKings, Fanatics and Penn National hold temporary licenses and that work continues with the Department of Small and Local Business Development (DSLBD) on their CBE/CVE plans; OLG said it would follow up and report on permanent licensing and CBE compliance schedules. Committee members requested a check‑in on that process at the next DSLBD meeting.

Licensing and oversight workload: The agency said it has approved a small number of games‑of‑skill permanent applications in FY25 (3 approved to date in FY25, nine approved in 2024, with 24 applications filed in 2024), and asserted it can assume additional licensing responsibilities should the Council transfer authority from APCA. OLG requested four additional FTEs tied to the card‑gaming and commercial‑bingo subtitles (two for each program) but acknowledged revenue estimates for those new commercial activities are not yet available.

What happens next: OLG will provide additional written details at the committee’s request — specifically, vacancy savings amounts in enterprise funds, detail on sports‑wagering contract transitions, and further updates on online sweepstakes monitoring and multistate enforcement coordination.

Ending note: The testimony framed FY26 as a transition year in which OLG will shrink in revenue and operations due to statutory changes while expanding regulatory responsibilities and undertaking a major systems procurement intended to modernize lottery retail and digital services.

","Thomas R. Burnside, the new Executive Director of the Office of Lottery and Gaming, briefed the Committee on Business and Economic Development on the agency’s FY26 budget, the planned replacement of its central gaming system, and regulatory priorities including online sweepstakes and proposed new card‑gaming and commercial bingo authorizations in local Budget Support Act subtitles.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6539040,"DC CFO outlines FY26 spending cuts, IT and tax initiatives as reserves are drawn down",3553,672000,4225000,"/Search/View?dp=1&key=3773856-f5302aa732db7f943b49f2c23e49aea2&start=672&end=4225","https://assets.pipeline.soar.com/3773856-f5302aa732db7f943b49f2c23e49aea2/thumbnail_672000.jpg","/articles/6539040/DC-CFO-outlines-FY26-spending-cuts-IT-and-tax-initiatives-as-reserves-are-drawn-down","https://secure.pipeline.soar.com/6539040-104f2d12a456073e8d0987b9d8456edd/orig.mp4?Expires=1770452997&Signature=m7IPM4GA~Lu6zJ0vN4M4bnR79YbNnkbXJtlzoxggqTaGjYeSBxIzb4QhjxNGivLq898uZIQ3IRiv7Qm1I0U3rOKtk14P87Y-Ejw~u5TZvvASYZAH6gWb9lSdQxfCW7gqVV0a2bGrmMOivtlUZ0~yDzNr~o4Jh-MqNW6~sWRbi5-KNfpT7ouPEkcLqUn10oRnrcKKcPZlDkBHkfe8N18dW3HyG6pigjsvpjbCExCxWqERGErtcx5OfUzAw54D9ZXyXHTw4hCqxXXia3qngjVMzUYTbgDMUZqVG5c0dlcKU4yUYwAzS3KdaxHIwHt3iP-~damMwbkmfZABg4w2CWOvMg__&Key-Pair-Id=KUT5TJCACFTXG","The Committee on Business and Economic Development heard from Lehi Lee, Chief Financial Officer for the Government of the District of Columbia, on June 11 during the committee’s FY26 budget oversight hearing. Lee said the OCFO’s proposed FY26 operating budget is about $213.7 million — a 7.8% reduction from FY25 — and said the agency is shifting final implementation costs for a major finance system from capital into the operating budget while maintaining reserves to handle cash‑flow timing.

Why it matters: The OCFO manages tax administration, central collections and the District’s treasury and accounting systems. Changes it makes to staffing, IT and estimates for collections affect the District’s ability to pay bills across the fiscal year and the accuracy of revenue forecasts that underpin other agencies’ budgets.

Lee said the OCFO budget is “people and systems,” and that about two‑thirds of the office’s costs are personnel. He told the committee the proposed budget includes roughly $177.6 million in local funds and $34.4 million in special‑purpose revenue, and that the office is budgeted for 1,079 full‑time equivalents — an increase of 22 FTEs over FY25 driven largely by moving capital‑funded positions into operating status to maintain a recently stabilized main financial system (known internally as “DIFS”).

The OCFO director described several FY26 changes: a roughly $4.5 million ongoing operating cost to finish system stabilization, a one‑time $140,000 cost to program the property tax system for a new Class V tax rate, and a $19.6 million reduction in special‑purpose appropriations tied to expected lower vendor‑share payments in central collections. Lee said the latter change removes what he called “hollow budget authority” that had been included to accommodate historically high collection vendor payments but is unlikely to be needed at the same level going forward.

On tax policy issues the committee raised, Lee said the office has not yet prepared a full implementation plan for the business activity tax that some public witnesses advocated. He described the major steps needed before a new business tax could be executed — rulemaking to define taxable activity, system development, taxpayer education and audit and collection capacity — and said the OCFO would need pro forma or information returns, voluntary surveys or other outreach to collect the data necessary to design and administer a new tax. \"We would need to receive that, right. Some sort of information. Lots of input,\" he told the committee.

Lee also addressed questions about the Qualified High Technology Company (QHTC) incentives, saying OCFO’s 2018 evaluation found $184 million in forgone franchise tax revenue and recommended tighter targeting and clawback provisions; he was not aware whether prior OCFO recommendations had been incorporated into the draft FY26 subtitle that would restore or amend the incentive and said the OCFO would follow up in writing.

The committee pressed the OCFO on reserves and cash‑flow risk. Lee explained the District has two locally mandated reserves (cash flow and fiscal stabilization) and two federally mandated reserves; the local reserves are being used intra‑year as intended and are projected to be around the same combined level at fiscal year‑end as the prior year (roughly $1.07 billion), although the office expects to draw on those reserves to meet timing shortfalls in FY26 and FY27. He said the FY26–29 financial plan relies on spending accumulated surpluses in the 2010s and early pandemic recovery (about $2.3 billion of planned use across several years) and that those surplus cushions have largely been spent, increasing reliance on reserves and tighter cash management techniques.

On debt and capital, Lee confirmed the six‑year capital plan keeps the debt‑service ratio well below the legislated 12 percent cap: about 10.4% in FY26 and roughly 11.7% in FY27–29 under current assumptions. He also told the committee events outside the District’s control — including a recent Moody’s downgrade and volatile national markets — can affect borrowing costs, though a recent bond sale was “very strong” and within budget parameters.

Committee members pushed for more follow‑up on several items Lee promised to research and return in writing: whether the combined reporting (Finnegan) corporate tax change generated additional revenue after implementation; which OCFO prior recommendations informed any proposed QHTC restoration; and more detail on the mechanics and cash‑flow implications of defeasing stadium or Wharf bonds early.

Lee closed by reiterating the office’s priorities: protect core financial operations, stabilize and maintain modern IT systems, and prepare the District to collect and account for tax changes in a way that avoids surprises. \"Our budget is people and systems,\" Lee said during his presentation.

What happens next: The committee recorded the OCFO testimony for follow‑up. Council staff will receive requested written clarifications from OCFO on tax implementation options, prior QHTC recommendations and bond defeasance mechanics.

Ending note: The OCFO presentation framed FY26 as a year of managing system conversions, tighter operating authority and heavier reliance on financial‑plan assumptions and reserves to bridge timing gaps while the District continues to contend with constrained revenue growth.

","The Committee on Business and Economic Development heard from Lehi Lee, Chief Financial Officer for the Government of the District of Columbia, on June 11 during the committee’s FY26 budget oversight hearing. Lee said the OCFO’s proposed FY26 operating budget is about $213.7 million — a 7.8% reduction from FY25 — and said the agency is shifting final implementation costs for a major finance system from capital into the operating budget while maintaining reserves to handle cash‑flow timing.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6539027,"Destination DC warns shifting tourism surtax will pull funding from marketing that drove post‑pandemic recovery",1984,7312000,9296000,"/Search/View?dp=1&key=3773856-f5302aa732db7f943b49f2c23e49aea2&start=7312&end=9296","https://assets.pipeline.soar.com/3773856-f5302aa732db7f943b49f2c23e49aea2/thumbnail_7312000.jpg","/articles/6539027/Destination-DC-warns-shifting-tourism-surtax-will-pull-funding-from-marketing-that-drove-postpandemic-recovery","https://secure.pipeline.soar.com/6539027-75585315978790b3189ae1b8e229b08d/orig.mp4?Expires=1770452997&Signature=JDI0rW0-KRMyXlhz7QjmF55XrLGbJaSsWg8OGXCYOeHv1ZVqfHGYoyi7C5a6tQG0mYKbRWrJdkSa9ZbQ28oP6vfKin9tyAfzE1zMu5p3z76S66TcY64RfvCfj3BmC98Y12To8gRXwVpoI-3j9Xj7pLg0zNcTZRGQe0Jy4j9zTz7BlwtEjdHGaW0wnAnbsFUGXgzqFD4tiHPbJDy9vZ5TSbOr4O6vgqaK90~ZSC-F24f3b5fSHwpVHAQicj3ClYWrKs4H-vM95UblcyMtHwxJb7zhZdLHxrHxRsnfEaIMTcXws2a8tUmFrmCTsfakkOkFlp5CQwzjJtMgkCYg9MQdSg__&Key-Pair-Id=KUT5TJCACFTXG","Destination DC President and CEO Elliot Ferguson and board chair Mead Atkinson testified June 11 that the mayor’s FY26 Budget Support Act proposal to redirect the 1% Tourism Recovery District (TRD) surtax away from Destination DC to the Deputy Mayor for Planning and Economic Development would undermine recent gains in visitor numbers, hotel occupancy and tax receipts and weaken Washington’s ability to compete for international visitors and conventions.

Why it matters: Destination DC is the city’s official destination marketing organization. It says marketing and sales investments funded by the TRD produced measurable increases in visitation and tax receipts that support city services. Reducing or diverting a dedicated revenue stream would shrink the city’s tourism promotion budget and, according to Destination DC, reduce return on investment for hotel and retail tax receipts that flow into the general fund.

What Destination DC said: Ferguson summarized recent performance metrics: 27.2 million visitors in 2024 (up 5%), $11.4 billion in visitor spending (up 12%), about 111,000 jobs supported (up 8%) and $2.3 billion in visitor‑related tax revenue (up 11%). He said the TRD — a temporary 1% hotel surcharge proposed in 2022 and scheduled to sunset in 2027 — added approximately $20–$26 million annually to Destination DC’s budget and enabled expanded international offices (Brazil, Mexico, Canada, Japan), larger, year‑round domestic advertising and increased convention sales. \"If we spend $1 on promoting Washington as a destination, there's over a $2 return on investment,\" Ferguson said.

The board’s perspective: Mead Atkinson, General Manager of the Royal Sonesta, said hospitality stakeholders strongly support continued dedicated funding. He emphasized that international visitors stay longer and spend more and that public perception — amplified by negative national news cycles — can depress travel; Destination DC’s work counters that perception in targeted markets.

Use of TRD dollars and community investment: Ferguson told the committee TRD funds increased Destination DC’s budget to roughly $52 million in FY25 and enabled more CBE contracting and community programs. He said Destination DC’s CBE spending rose to more than $4 million in FY24 (after TRD funds were available across a full year) and that the organization uses a return‑on‑investment framework developed with the OCFO to demonstrate economic impact. Destination DC also supports workforce development and youth programs through the American Experience Foundation; the organization received a two‑year, competitively awarded grant from the Deputy Mayor’s office that must be spent in FY24–25.

Consequences of the proposed change: Ferguson and Atkinson warned that redirecting the surtax to an economic development account at the Deputy Mayor would reduce Destination DC’s ability to market Washington overseas and recruit large international conventions — a sector that drives high per‑visitor spending. They urged preserving the TRD allocation through the 2027 sunset and said the council should consider a long‑term dedicated funding arrangement to avoid losing the momentum achieved since the pandemic.

What happens next: Destination DC said it would continue to provide data and analysis on return on investment and explore compromise approaches that could preserve some dedicated marketing capacity while addressing the administration’s priorities. The committee said it would weigh the mayor’s proposal against Destination DC’s quantified returns as the budget process continues.

Ending note: Destination DC framed tourism promotion as an economic development tool that yields measurable tax revenue and jobs; its leadership asked the council to protect marketing funding through the near‑term sunset period and work toward a durable funding model.

","Destination DC executives told the Council the Tourism Recovery District (TRD) surtax — roughly $20–$26 million annually — funded expanded international offices, advertising and conventions work that helped bring visitation to record levels in 2024; they urged retaining the dedicated funding through 2027 and pursuing a long‑term solution rather","actionData","errors"]

Article not found

APCA presents FY26 budget, details cannabis enforcement and explains a contested placard rescission

Lottery director outlines central gaming system procurement, warns on offshore ‘sweepstakes’ and describes new games proposals

DC CFO outlines FY26 spending cuts, IT and tax initiatives as reserves are drawn down

Destination DC warns shifting tourism surtax will pull funding from marketing that drove post‑pandemic recovery