	Most Recent Developments

On December 21, 2001, President Bush signed into law the District of ColumbiaAppropriations Act for FY2002, P.L. 107-96 (formerly H.R. The House onDecember 6, 2001 and the Senate on December 7, 2001 approved the conference reportaccompanying H.R. 2944 , after resolving significant differences in the generalprovisions of their respective versions of the act. 107-96 appropriates $408 million in specialfederal payments and approves the District's $7.1 billion total budget, including $5.3 billion ingeneral operating funds. The act includes $12.6 million in special federal payments for securityplanning, in the wake of the terrorist attacks on the Pentagon and World Trade Center on September11, 2001. On June 19, 2001, the city council held a public hearing on the Independence of the Chief Financial Officer Establishment Act of 2001, B14-0254. Public Benefits Corporation

During the past year, city leaders and Congress have attempted to address problems and controversies surrounding the Public Benefits Corporation (PBC), D.C.General Hospital, and the restructuring of the city's health care delivery system foruninsured residents of the city. Congress has held hearings to explore the future role of the CFO and the Authorityfollowing the end of the control period. The act requires the mayor to report to Congress, within 45 days of the passage of the act, on the specific authority necessary to carry out certain responsibilitiestransferred to the CFO in a non-control year and certain responsibilities relating tothe transition of responsibilities under the District of Columbia FinancialResponsibility and Management Assistance Act of 1995. FY2002: District's Budget Request

On May 25, 2001, District officials transmitted the city's $5.3 billion budget for FY2002 to Congress for review and approval. The city's budget included a $150million reserve fund mandated by the District of Columbia Appropriations Act of1999, P.L. In addition, the House bill included $16 million for emergency planning.The House Appropriations Committee originally recommended that the funds beused for costs associated with security for a World Bank and International MonetaryFund meeting that was scheduled for the end of September 2001, but was postponedbecause of the September 11, 2001 terrorist attacks on the Pentagon and World TradeCenter. The act allocates approximately 85% of the $408 million in specialfederal payments for court, prisons, and offender supervision-related activities,including $24 million for a new Family Court Division. The prohibition on the use of federal and District funds for a needle exchange program was first approved by Congress as Section 170 of the District of ColumbiaAppropriations Act for FY1999, P.L. The prohibition on the use of District and federal funds is included in the House, Senate, and conference versions of the District of Columbia Appropriations Act forFY2002, P.L. 107-96 includes a provision lifting the congressional prohibition on the use of District funds to implement the Helath Care Benefits Expansion Act.
On December 21, 2001, President Bush signed into law the District of Columbia Appropriations Act for FY2002, P.L. 107-96 (formerly H.R. 2944 ). Two weeks earlier, the House onDecember 6, 2001, and the Senate on December 7, 2001, approved the conference reportaccompanying H.R. 2944 , after resolving significant differences in the generalprovisions of their respective versions of the act. The act, which appropriates $408 million in specialfederal payments, includes $16 million for reimbursement to the District for the cost of providingsecurity for a cancelled World Bank and International Monetary Fund meeting, and for securityplanning in the wake of the attacks on the Pentagon and World Trade Center on September 11, 2001. In addition, the act approves the city's $5.3 billion operating budget for the current fiscal year. Theact lifts the ban on the use of District funds for a domestic partners health insurance act approvedby the city council and signed by the mayor in 1992. Congress has maintained the prohibition onthe use of federal and District funds for needle exchange programs, rejecting a Senate provision thatwould have lifted the prohibition on the use of District funds for such activities. The act lifts therestriction on the location of such activities near public and charter schools. The act, as passed byCongress, requires the District of Columbia public schools to submit to Congress a report thatidentifies all judgments against the DC public schools under the Individuals with DisabilitiesEducation Act.
The District's FY2002 budget request was submitted to Congress on May 25, 2001. The city budget request included $199 million in federal payments to the District of Columbia. The city'sbudget proposal included $5.3 billion in general operating fund expenditures, and $611 million inenterprise funds. The budget also included $78 million in funding for the newly created Health CareSafety Net Administration, which replaced the city's discredited Public Benefits Corporation.
Earlier in 2001, House and Senate District of Columbia Appropriations Subcommittees held hearings that focused on child and family services, and proposed reforms of the family division ofthe District of Columbia Superior Court. P.L. 107-96 includes $24 million for a new Family CourtDivision of the District's Superior Court, including $500,000 for the Child and Family ServicesAgency. The committees also held hearings on the courts, corrections, the fiscal condition of thecity, and the future role of the Chief Financial Officer.
On April 30, 2001, the control board, which was created by Congress to address the city's fiscal and governance problems, approved a resolution that abolished the Public Benefits Corporation andtransferred responsibility for the administration of health care services to the Health Care Safety NetAdministration. The Authority also awarded a contract for health care services to Greater SoutheastCommunity Hospital and the Health Care Alliance.
Key Policy Staff
Division abbreviations: G&F = Government and Finance Division; DSP = Domestic Social Policy Division