(a)(1) There is established an Expenditure Commission ("Commission") with the purpose of reviewing the District's current budget structure, including expenditures and revenues, and preparing comprehensive recommendations to the Council and the Mayor on future budgets.

(2) The recommendations shall:

(A) Provide the vision for an expenditure regime that could withstand economic downturns without jeopardizing core government services;

(B) Assess sources of fiscal risks facing the District and strengths it may draw from;

(C) Identify the economic growth necessary to support the growing fiscal needs of the District; and

(D) Propose a plan to advance the District's fiscal and economic standing and competitiveness in the region.

(3) The recommendations may not include spending or revenue caps.

(b) Specific functions of the Commission shall include the following:

(1) Analyzing the District's budget expenditures for the current fiscal year and previous 5 fiscal years, including:

(A) Historic sources of growth or decline in spending;

(B) Whether the growth or decline is attributable to policy or external factors;

(C) Sources of risk in the current expenditure regime;

(2) Analyzing the District's revenues for the current fiscal year and previous 5 fiscal years, including:

(A) Changes in tax policy;

(B) Comparison of tax rates with nearby jurisdictions; and

(C) Sources or risk in the current tax structure.

(3) Reviewing General Fund growth trends, including examining the growth in personnel, non-personnel, and subsidies;

(4) Identifying the cost drivers for expenditure increases, including both internal drivers, such as policy changes, and external drivers, such as demographic changes and inflation;

(5) Identifying the drivers of revenue growth, including both internal drivers, such as tax policy changes, and external drivers, such as economic growth, change in federal tax laws, or other sources;

(6) Recommending changes to practices that could result in efficiencies within the District's budget, including simulations with different cost-driver assumptions; and

(7) Recommending benchmarks for measuring the current and future fairness and competitiveness of tax policy changes.

(c)(1) The Commission shall focus on structural changes to operations that could result in efficiencies in spending, rather than specific policy areas.

(2) Information on policy decisions identified as budget cost-drivers pursuant to subsection (b)(4) of this section may be shared with the Mayor and Council for consideration in the annual budget process.

(d) The Commission shall submit its recommendations in the form of a report or reports similar in form and scope as those transmitted by the Tax Revision Commission, established pursuant to § 47-462. The report or reports shall be accompanied by draft legislation or other specific steps for implementing the recommendations.

(e) The Commission shall submit to the Council and the Mayor its final report no later than December 31, 2020.

(Sept. 11, 2019, D.C. Law 23-16, § 7122, 66 DCR 8621.)