District scofflaws be warned: The D.C. Council is considering a bill that would centralize debt collection in one office to make sure the city gets what it’s owed. Ward 3 Councilwoman Mary Cheh introduced the Delinquent Debt Recovery Bill on Tuesday. It would create a unit inside the City Administrator’s Office tasked with collecting debt owed to various city agencies. It’s part of an ongoing effort by District officials to collect what the city is owed in order to help fill a budget gap that’s already grown to nearly $500 million for the next fiscal year. Cheh said the bill will allow agencies that hand out fines and tickets to focus on their main functions, rather than worrying about money they’re owed.
“I hope this bill will foretell a shift in thinking about accounts receivable for the District,” she said. “Agencies should be focused on their core competencies — ensuring compliance and providing public services.”
On Tuesday, The Washington Examiner reported that the city is owed more than $300 million in unpaid parking and traffic tickets. The Department of Motor Vehicles is considering an amnesty that officials estimate could bring in about 6 million of those dollars. And the DMV isn’t the only agency with problems collecting. The Department of Consumer and Regulatory Affairs collected about $940,000, or about 25 percent of the $3.6 million in fines it handed out in fiscal 2009, the last year for which data were available. The department issues fines for zoning violations, improper construction and operating a business without a license.
The centralized debt collection unit would handle all of those delinquent accounts, and the bill empowers the unit to eventually file lawsuits if scofflaws don’t pay up. The unit would not have jurisdiction over unpaid taxes, child support and court costs. If debtors don’t fork over the cash, the unit would be authorized to collect the original fine and a fee of up to 20 percent.
Cheh said collecting debt on a regular basis could help the city generate more steady revenue rather than relying on amnesties in times of need.
“We have left millions of dollars on the table,” she said. “While debt-amnesty programs may address our current budget woes, they do not address the larger structural problem.”
