[Congressional Record Volume 148, Number 48 (Thursday, April 25, 2002)]
[Senate]
[Page S3439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU:
  S. 2316. A bill to make technical and conforming changes to provide 
for the enactment of the Independence of the Chief Financial Officer 
Establishment Act of 2001, to establish a reporting event notification 
system to assist Congress and the District of Columbia in maintaining 
the financial stability of the District government and avoiding the 
initiation of a control period, to provide the District of Columbia 
with autonomy over its budgets, and for other purposes; to the 
Committee on Governmental Affairs.
 Ms. LANDRIEU. Mr. President, today I am introducing 
legislation to help continue the District of Columbia's fiscal 
resurgence. The District of Columbia Fiscal Integrity Act will give the 
District's Chief Financial Officer, CFO, authority to manage personnel, 
procurement practices, and to maintain independent control over the 
budget of the Office of the Chief Financial Officer. This bill was 
introduced in the House by Congresswoman Eleanor Holmes Norton and 
Congresswoman Connie Morella. I appreciate their leadership on this 
issue and I am pleased to join with them in introducing this 
legislation here in the Senate.
  As my colleagues know, from 1995 to 2000, a Control Board oversaw 
management of the District of Columbia in an attempt to reform the 
city's finances and administration. One of the key features of that 
reform was the establishment of a strong Chief Financial Officer for 
the District with wide-ranging authority over the fiscal management of 
the city. That model worked. The city balanced its budget, restored its 
investment bond rating, and improved many city services. As a result, 
the District met the requirements set forth by the Control Board Act 
and today the elected representatives of the District of Columbia are 
in charge and doing a great job. They do not want the Control Board to 
come back on their watch and neither do I.
  It is critical that the Senate work its will by marking up and 
passing this legislation as quickly as possible. When the Control Board 
went out of business, some of the Chief Financial Officer's authorities 
lapsed, but his responsibility for the District's financial management 
was not put on hold. The Congress provided temporary authority for the 
CFO in the FY 2002 District of Columbia Appropriations Act to continue 
the smooth operation of the City, but this temporary authority will 
expire at the end of June this year. Congress must fulfill its 
responsibility to the District of Columbia by ensuring that local 
leaders have the authority and resources to maintain and promote the 
city's growth. I encourage the Government Affairs Committee to begin 
their work right away.
  In addition to restoring some of the authorities the CFO previously 
exercised during the Control Board era, this bill establishes an early 
warning system, implemented by the CFO, to examine the city's financial 
management and the surrounding economic environment and determine 
whether the city's fiscal integrity is at risk. Should the CFO 
determine that trouble is on the horizon, the Mayor must develop an 
action plan to respond to the problem. This unique fiscal management 
tool will ensure accountability in how the District manages its 
finances.
  Mr. President, in the past the congressional schedule has often 
interfered with the smooth operations of the District. Like the Federal 
Government, the District Government's fiscal year begins on October 1. 
We, the Congress, have the authority to approve the District's budget--
a budget derived from locally-generated tax dollars. We rarely do that 
before the start of the fiscal year, in fact one or two months often go 
by before we pass the District's budget. This delay creates a great 
deal of uncertainty for District officials in their programming and 
financial planning.
  To remedy this situation, this legislation establishes budget 
autonomy for the District of Columbia beginning with fiscal year 2004. 
The local budget would become effective once it has been approved by 
the City Council and signed by the Mayor. The Congress will retain the 
authority to approve the Federal funding now contained in the D.C. 
Appropriations bill and will continue its general oversight of the 
District. We can still pass general provisions governing city 
operations and we can still hold hearings, but this bill will ensure 
that Congress' schedule will not hamstring the smooth operation of the 
District.
  Mr. President, the Mayor and the City Council have worked very hard 
to restore fiscal integrity to the District Government, as well as the 
people's faith in that government. The District is enjoying a 
renaissance. Once a fiscal and management nightmare, the city has 
turned its economic ship around. When once the city was ruled by the 
Control Board, today the accountable authority is vested in officials 
elected by the District's citizens. A rampant crime rate chased 
citizens from District neighborhoods into the suburbs, now people are 
coming back. Property values are rising, new businesses are opening, 
and the city is working to beautify the Anacostia waterfront. This 
legislation will continue this transformation by maintaining the strong 
independence of the Chief Financial Officer and will demonstrate 
Congress's confidence in he District's elected leadership and its 
citizens by giving them greater control over their local budget. I urge 
my colleagues to support this legislation. The Congress has a 
Constitutional responsibility to the District of Columbia, now is the 
time to support the city and ensure that locally-elected leaders have 
the necessary tools for success.
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