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Administration urges fiscal analysis, proposes enterprise grants tracking and task force
Summary
Administration witnesses told the committee a 15% minimum indirect cost rate would create new budget obligations and said the city needs an enterprise grants-tracking system, a fiscal impact analysis from the CFO, and consideration of waivers or phased implementation for small nonprofits.
Mayor's budget and performance management staff and the city's procurement office told the committee that while the administration supports the intent of the bill, raising the de minimis rate to 15% would create new recurring fiscal obligations that are not currently budgeted. The administration reported it has surveyed agencies and is working on requirements for an enterprise grants-management solution but asked the council to delay implementation until the CFO completes a fiscal impact statement.
"In practice, this would create a new budgetary obligation for the district," the administration's representative said in testimony. Officials proposed forming a fiscal task force to assemble necessary data, suggested flexibility or waiver mechanisms for very small nonprofits, and said more standardized NOFA/contract language and training for agency staff are prerequisites for consistent implementation. Committee members pressed for a realistic timeline and for the administration to bring forward the data needed for budget planning.
