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District of Columbia: The Federal Payment Formula

  Premium   Download PDF Now (12 pages)
Report Type Reports and Testimonies
Report Date March 31, 1993
Report No. T-AFMD-93-3
Subject
Summary:

This testimony on the yearly federal payment to the District of Columbia provides background on applicable laws, discusses GAO's role in the process, and summarizes major events affecting this issue over the last year. The District's appropriation request for the federal payment for fiscal year 1994 will be $671,566,000. The calculations used to arrive at this figure, however, are inconsistent with recent instructions from Congress. If applied as directed, the formula would have resulted in a federal payment of $632,685,000--a shortfall for the District of more than $38 million. The major difference between the base for local revenues used by the District and the one required by Congress is that the District's base includes all revenues--general, enterprise, and trust funds--attributable to local sources and the required base includes only general fund and lottery transfers to the General Fund, adjusted for certain charges for services and miscellaneous revenue.

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