93-198 , 87 Stat. City leaders have consistently expressed concern that Congress has repeatedly delayed passage of the appropriations act for the District (in which Congress approves the city's budgets) well beyond the start of its fiscal year. The city's elected leaders contend that delay in Congress's approval of its budget hinders their ability to manage the District's financial affairs and negatively impacts the delivery of public services. 733 , 110 th Congress, introduced on January 20, 2007, by Congresswoman Eleanor Holmes Norton, is the latest in a series of bills dating back to 1981 that would provide budget autonomy for the District of Columbia. When the District of Columbia Government Reorganization and Self-Government Improvement Act (Home Rule Act, P.L. 774) was enacted in 1973, granting the city limited self-governing authority, it retained congressional authority to review and approve the District's annual budget as part of the congressional appropriations process. The Home Rule Act includes several prescriptive provisions governing budget submission, financial management, and borrowing authority. 733 would allow the District to forego congressional review and approval of its operating and capital budgets financed with local revenues. The bill would also remove several budget submission and financial management reporting requirements and restrictions on the city's borrowing authority. Proponents of increased budget autonomy can point to the Bush Administration's budget for FY2004, which included a statement in support of budget autonomy for the District of Columbia, and the fact that the District has produced 10 consecutive balanced budgets (six of them without the supervision of the Financial Control Board). Specifically, the bill would strike provisions that:
limit the city's ability to increase spending based on an increase in revenues after Congress has approved a fiscal year appropriation; require the mayor to submit a complete financial report to the council by February 1 of each year; require the city to maintain an emergency reserve fund equal to 2% of operating expenditures as identified in the Comprehensive Annual Financial Report (CAFR) submitted by the CFO and dictate the uses of such fund; and require the city to maintain a contingency reserve fund of not less than 4% of operating expenditures as identified in the CAFR submitted by the CFO and dictate the use of such fund; establish the position of the District of Columbia Auditor; require the mayor annually to develop and submit to the House and Senate oversight and appropriations committees, and the Government Accountability Office (GAO), a performance accountability plan for all departments, agencies, and programs of the government of the District of Columbia for the next fiscal year; require the mayor to develop and submit to the House and Senate oversight and appropriations committees, and the Government Accountability Office (GAO), a performance accountability report for all departments, agencies, and programs of the government of the District of Columbia for the previous fiscal year; require the CFO to develop and submit to the House and Senate oversight and appropriations committees, and the Government Accountability Office (GAO), not later than March 1 of each year, a five-year financial plan for the government of the District of Columbia that contains a description of the steps the government will take to eliminate any differences between expenditures from, and revenues attributable to, each fund of the District of Columbia during the five years beginning after the submission of the plan. Summary
District of Columbia Budget Autonomy Act of 2007, H.R. The budget autonomy bill, H.R.
The District of Columbia Budget Autonomy Act of 2007, H.R. 733, 110th Congress, introduced on January 20, 2007, by Congresswoman Eleanor Holmes Norton, is the latest in a series of legislative proposals dating back to 1981 and the 97th Congress that have sought to provide budget autonomy for the District of Columbia. When Congress passed the District of Columbia Government Reorganization and Self-Government Improvement Act (the Home Rule Act, P.L. 93-198, 87 Stat. 774), in 1973, granting the city limited home rule authority, it included provisions retaining its constitutional authority to exercise exclusive legislative control over the District's affairs, including the budget process. The Home Rule Act requires congressional approval of the District's annual budget as part of the congressional appropriations process, and includes prescriptive provisions governing budget submission, financial management, and borrowing authority.
H.R. 733 would allow the District to forego congressional review and approval of that portion of its operating and capital budgets financed with local revenues. The bill would also lift several budget content and financial management reporting requirements and restrictions on the city's borrowing authority. City leaders have consistently contended that Congress has repeatedly delayed passage of the appropriations act for the District (in which Congress approves the city's budgets) well beyond the October 1 start of its fiscal year. The city's elected leaders contend that the delay in Congress's approval of the city's budget hinders their ability to manage the District's financial affairs and negatively affects the delivery of public services. Proponents of increased budget autonomy can point to the Bush Administration's budget for FY2004, which included a statement in support of budget autonomy for the District of Columbia, and the fact that the District has produced 10 consecutive balanced budgets, six of them without the supervision of the Financial Control Board.
An argument against granting the city budget autonomy is that it could be viewed as an abdication of Congress's constitutional responsibility to exercise legislative control over and oversight of the Nation's capital, "the seat of the Government." Such a lack of oversight of the city's financial affairs could result in the city slipping back into a fiscal crisis of the magnitude that led Congress to create the Financial Control Board in 1995. This report will be updated as events warrant.