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FY2010 Appropriations: District of Columbia (CRS Report for Congress)

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Release Date Revised Jan. 20, 2010
Report Number R40743
Report Type Report
Authors Eugene Boyd, Analyst in Federalism and Economic Development Policy
Source Agency Congressional Research Service
Older Revisions
  • Premium   July 31, 2009 (15 pages, $24.95) add
Summary:

On May 7, 2009, the Obama Administration released its detailed budget requests for FY2010, which included $739.1 million in special federal payments to the District of Columbia. Approximately three-quarters—$544.1 million—of the President's proposed budget request for the District would be used to support the courts and criminal justice system. The President also requested $109.5 million in support of college tuition assistance and elementary and secondary education initiatives. On May 12, 2009, the District of Columbia Council passed the city's FY2010 operating budget. The bill, which was not signed by the mayor, proposed an operating fund budget of $8,917.8 million, and included $1,433.1 million in enterprise funds. However, on July 17, 2009, the mayor submitted a revised budget to address a growing budget shortfall currently projected at $150 million for FY2010. This delay in the submission of a budget for congressional review is due in large part to declining revenue projections related to the current economic recession. According to the mayor and the city's chief financial officer, the city faces the task of closing a $603 million budget gap, including a $453 million shortfall in its current FY2009 budget and a $150 million projected shortfall for FY2010. In the absence of a formal submission of the city's budget, Congress has begun consideration of special federal payments and general provision components of the District appropriations act. On July 8, 2009, the Senate Appropriations Committee reported its version of the Financial Services and General Government Appropriations Act for FY2010, S. 1432 with an accompanying report (S.Rept. 111-43). As reported, the bill recommends $727.4 million in special federal payments to the District. This is $40 million less than recommended by the House, and $12 million less than requested by the Administration. On July 16, 2009, the House approved the Financial Services and General Government Appropriations Act for FY2010, H.R. 3170, by a vote of 219 to 208 (Roll no. 571). The bill included $768.3 million in special federal payments to the District. This was $29.2 million more than requested by the Administration and $25.9 million more than appropriated for FY2009. On October 1, 2009, President Obama signed, P.L. 111-68, Continuing Appropriations Resolution for FY2010. The act included a provision (Division B, Sec. 126) allowing the District of Columbia government to spend locally generated funds at a rate set forth in the budget approved by the District of Columbia on August 26, 2009. On December 16, 2009, President Obama signed into law the Consolidated Appropriations Act for FY2010, P.L. 111-117, which included $752.2 billion in special federal payments to the District of Columbia. The act included significant changes in a number of controversial provisions related to medical marijuana, needle exchange, and abortion services. P.L. 111-117 lifts the prohibition on the use of District funds to: provide abortion services, regulate and decriminalize the medical use of marijuana, and support a needle exchange program to stop the spread of AIDS and HIV infections. Removal of these so called social riders had been long sought by District officials who viewed them as antithetical to the concept of home rule.