H.R. 4269House108th Congress (2003-2005)In Committee

District of Columbia Fair Federal Compensation Act of 2004

Introduced May 4, 2004

Legislative Activity

Stay on top of the latest movement without scrolling through every action

2 earlier actions
HouseIntro Referral Latest Action

Referred to the House Committee on Government Reform.

May 4, 2004

View full timeline
HouseIntro Referral

Introduced in House

May 4, 2004

HouseIntro Referral

Sponsor introductory remarks on measure. (CR E733-734)

May 4, 2004

HouseIntro Referral

Referred to the House Committee on Government Reform.

May 4, 2004

Floor Debate

10 members

What members said about H.R. 4269 on the floor

8 Republicans2 Democrats
Rodney P. Frelinghuysen
Rep. Rodney P. FrelinghuysenR-NJ-11 · Jul 20, 2004

Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I am pleased to present the fiscal year 2005 District of Columbia appropriations bill. This bill passed out of full committee on…

Eleanor Holmes Norton
Rep. Eleanor Holmes NortonD-DC · Jul 20, 2004

Mr. Chairman, I thank the gentleman from Pennsylvania (Mr. Fattah) for yielding me this time. We are not going to tarry long this time, and that is itself an extraordinary victory and feat of…

Chaka Fattah
Rep. Chaka FattahD-PA-2 · Jul 20, 2004

Mr. Chairman, I yield myself such time as I may consume. (Mr. FATTAH asked and was given permission to revise and extend his remarks.) Mr. Chairman, I thank the chairman of the subcommittee, who has…

Tom Davis
Rep. Tom DavisR-VA-11 · Jul 20, 2004

Mr. Chairman, I thank my friend for yielding me this time. Over the past decade, the District of Columbia, which previously had faced a fiscal crisis of Shakespearean proportions, has embarked on an…

Randy (Duke) Cunningham
Rep. Randy (Duke) CunninghamR-CA-50 · Jul 20, 2004

Mr. Chairman, I thank the gentleman for yielding me this time, and I would like to thank the ranking member, the gentlewoman from the District of Columbia (Ms. Norton) and the chairman. And sometimes…

Show 5 more
Jim Nussle
Rep. Jim NussleR-IA-1 · Jul 20, 2004

Mr. Chairman, I rise today to speak on H.R. 4850, the District of Columbia Appropriations Act for Fiscal Year 2005. Under authority granted in Article I of the United States Constitution (section 8,…

Christopher Shays
Rep. Christopher ShaysR-CT-4 · Jul 20, 2004

Mr. Chairman, I rise today in support of H.R. 4850, the D.C. Appropriations Bill. I am particularly pleased the legislation included $14 million for school vouchers because I believe too many…

Joel Hefley
Rep. Joel HefleyR-CO-5 · Jul 20, 2004

Mr. Chairman, I offer an amendment. Mr. Chairman, I rise again to offer an amendment to cut the level of funding in this appropriations bill by 1 percent. This equals about $5.6 million. This is not…

Thomas G. Tancredo
Rep. Thomas G. TancredoR-CO-6 · Jul 20, 2004

Mr. Chairman, I move to strike the last word to engage in a colloquy with the gentleman from New Jersey (Mr. Frelinghuysen), the distinguished chairman of the Committee on Appropriations,…

Katherine Harris
Rep. Katherine HarrisR-FL-13 · Jul 20, 2004

Mr. Chairman, on rollcall No. 398, I was unavoidably detained. Had I been present, I would have voted ``no.''

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in HouseIssued May 4, 2004

I

108th CONGRESS

2d Session

H. R. 4269

IN THE HOUSE OF REPRESENTATIVES

May 4, 2004

Ms. Norton (for herself, Mr. Tom Davis of Virginia, Mr. Wolf, Mr. Hoyer, Mr. Moran of Virginia, Mr. Wynn, Mr. Cummings, and Mr. Van Hollen) introduced the following bill; which was referred to the Committee on Government Reform

A BILL

To establish an annual Federal infrastructure support contribution for the District of Columbia, and for other purposes.

1.

Short title

This Act may be cited as the &short-title1;.

2.

Findings; Purpose

(a)

Findings

Congress finds as follows:

(1)

A General Accounting Office (GAO) report of May 2003 found that the District of Columbia has a substantial structural imbalance, ranging from $470,000,000 to $1,100,000,000 annually, and that this imbalance is beyond the direct control of local officials because it is caused by mandates, legislation, and other requirements imposed by the Federal Government.

(2)

The GAO report was preceded by 2 reports by distinguished groups who also concluded that the District had a structural imbalance: A 2002 McKenzie study commissioned by the Federal City Council (an organization of regional and local business leaders), and a 2002 study by the Brookings Institute, led by Alice Rivlin, the former director of the Congressional Budget Office and former chair of the District of Columbia Financial Responsibility and Management Assistance Authority.

(3)

The components of the structural deficit are all Federal in origin and consist of the following: Locally provided services to the Federal Government; a Federal statute which exempts from taxation 66 percent of the income earned in the District; the exemption from taxation of 42 percent of the real property owned by the Federal Government; and the requirement to provide State services, such as special education and mental health, although the District is not a State.

(4)

The District’s tax burden is among the highest in the Nation because of the Federal requirements documented in the 2003 GAO report. However, the funding provided by these taxes is still insufficient to meet the obligations of the District, especially the long-term obligations to carry out critical capital projects to maintain and improve the District’s infrastructure, projects that are not only typically funded by a State but that the District must carry out because of its mandate to support the infrastructure needs of the Federal Government and the entire Washington region. As a result, the District must obtain the funds needed to meet these obligations through a continuous series of borrowings, incurring more and more debt service payments each year, and causing the District’s per capita rate of general obligation debt to be the highest in the Nation.

(5)

The GAO concluded that greater management efficiency by the District government is necessary, but that management improvement will not offset the underlying structural imbalance because it is caused by factors beyond the direct control of District officials.

(6)

The GAO recommended against the only 2 alternatives available to the District. Raising taxes would worsen D.C.’s competitive advantage in attracting new businesses and residents and cutting services for residents and visitors would have undesirable consequences for the District’s economy.

(7)

According to the GAO, the options are to change Federal procedures to expand the District’s tax base or provide additional financial support and a greater role by the Federal Government to help the District maintain fiscal balance.

(8)

The District of Columbia, through prudent budgeting and improved management, has had a balanced budget with surpluses for 7 years; however, the District’s Chief Financial Officer (whose position was created by a Federal statute) has found that severe fiscal problems are inevitable as the District works to close spending pressures and find remedies to its inherent structural imbalance.

(9)

Maintaining financial stability in the District, just as in other cities, requires a stable, predictable source of revenue that increases modestly but regularly over time.

(b)

Purpose

It is the purpose of this Act to provide an efficient mechanism and formula for the transfer of revenue from the Federal Government to the District government, and to dedicate this revenue for the sole purpose of rectifying an annual structural imbalance which is due to—

(1)

Federal requirements and limitations on the ability of the District of Columbia to generate revenue;

(2)

the use of District of Columbia real property by the Federal Government for Federal facilities and other Federal purposes; and

(3)

the District's status as a Federal city which is not part of a State but incurs many of the same expenses as a State that would otherwise be responsible for these expenses.

I

Direct Federal Contribution for Infrastructure Costs

101.

Establishment of Direct Federal Contribution to District of Columbia

(a)

Entitlement of District to Contribution

For each fiscal year beginning with fiscal year 2005, the District of Columbia shall be entitled to receive an annual infrastructure support contribution to support the infrastructure used by the District of Columbia and in part by the region in accordance with this title.

(b)

Obligation of United States

Subsection (a) constitutes budget authority in advance of appropriations acts and represents the obligation of the Federal Government to make annual infrastructure support contributions in accordance with this title.

102.

Determination of Amount of Contribution

(a)

In General

The amount of the annual infrastructure support contribution required by this title is equal to—

(1)

in the case of fiscal year 2005, $800,000,000; and

(2)

in the case of each succeeding fiscal year, the amount required for the previous fiscal year, increased by the applicable index described in subsection (b).

(b)

Applicable Index

In subsection (a), the applicable index with respect to a fiscal year is the greater of—

(1)

the percentage by which the Consumer Price Index (all Urban Consumers, United States City Average) for the 12-month period ending on June 30 preceding the beginning of the fiscal year exceeds such Consumer Price Index for the preceding 12-month period; or

(2)

4 percent.

II

Dedicated Infrastructure Account

201.

Establishment of Account

There is established in the general fund of the District of Columbia an account to be known as the Dedicated Infrastructure Account (hereafter in this title referred to as the Account), which shall consist of the following amounts:

(1)

Amounts deposited pursuant to section 202.

(2)

Such other amounts as may be deposited pursuant to District of Columbia law.

(3)

Interest earned on amounts in the account.

202.

Deposit of Annual Infrastructure Support Contribution

Each annual infrastructure support contribution made to the District of Columbia under title I for a fiscal year shall be deposited into the Account.

203.

Use of Amounts in Account

(a)

In General

Amounts in the Account may be used only for the following purposes:

(1)

Transportation activities, including the payment of the local share of participation in public transportation activities and road construction and improvement projects.

(2)

Information technology improvements for the District government.

(3)

Debt service payments on bonds, notes, and other obligations of the District government.

(4)

Building and facility maintenance, construction, and capital improvement projects for District of Columbia public schools and public charter schools.

(b)

Availability of funds

Funds appropriated or otherwise made available from the Account shall remain available until expended.