[House Report 105-298]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-298
_______________________________________________________________________


 
             DISTRICT OF COLUMBIA APPROPRIATIONS BILL, 1998

                                _______
                                

October 6, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Taylor of North Carolina, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2607]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the District of Columbia for the fiscal year 
ending September 30, 1998, and for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                               Page

                                                            Bill Report
Summary of estimates and recommendations...................    --     2
Federal Funds..............................................     2     2
District of Columbia Funds.................................    --     3
Comparative Summary of Bills...............................    --     3
General Statement..........................................    --     6
Operating Expenses:
        Taxpayers Relief Fund..............................     5     7
        Deficit Reduction Fund.............................     6    --
        Governmental Direction and Support.................     7    43
        Economic Development and Regulation................     8    50
        Public Safety and Justice..........................     9    54
        Public Education System............................    13    58
        DELTA Council......................................    --    26
        Human Support Services.............................    17    64
        Public Works.......................................    18    68
        Washington Convention Center Transfer Payment......    19    73
        Repayment of Loans and Interest....................    19    73
        Repayment of General Fund Recovery Debt............    20    73
        Interest on Short-Term Borrowing...................    20    74
        Certificate of Participation.......................    20    74
        Human Resources Development........................    20    74
        Management Reform and Productivity Improvement Fund    20    75
        D.C. Financial Responsibility and Management 
            Assistance Authority...........................    21    75
        Reduction for Management Reform Initiatives........    20    --
        Water and Sewer Authority..........................    21    77
        Lottery and Charitable Games Control Board.........    22    77
        Office of Cable Television.........................    23    77
        Public Service Commission..........................    23    77
        Office of People's Counsel.........................    23    78
        Department of Insurance and Securities Regulation..    23    78
        Office of Banking and Financial Institutions.......    23    78
        Sports Commission (Starplex).......................    24    78
        D.C. General Hospital..............................    24    78
        Retirement Board...................................    24    78
        Correctional Industries............................    25    79
        Washington Convention Center.......................    25    79
        Capital Outlay.....................................    26    79
General Provisions.........................................    27    80
Title II Medical Liability Reform..........................   112    84
Title III Education Reform.................................   128    85
Rescissions of Funds.......................................    --    87
Inflationary Impact Statement..............................    --    87
Comparison of Budget Resolution............................    --    88
Constitutional Authority...................................    --    88
Five-year Projection of Outlays............................    --    89
Financial Assistance to State and Local Governments........    --    89
Transfer of Funds..........................................    --    89
Changes in the Application of Existing Law.................    --    90
Compliance with Clause 3--Rule XIII........................    --    97
Comparative table..........................................    --   142
Committee votes............................................    --   139

                SUMMARY OF ESTIMATES AND RECOMMENDATIONS

                             Federal Funds

    Budget estimates for Federal funds were submitted in the 
Budget of the United States for 1998 (House Document No. 105-
103) and totalled $712,070,000. Included in the request was a 
Federal payment of $660,000,000, and $52,070,000 for a Federal 
contribution to the city's three retirement funds. On August 
14, 1997 the President transmitted his recommendations for the 
implementation of the National Capital Revitalization and Self-
Government Improvement Act of 1997, Public (105-33). The 
President's transmittal was printed as House Doc. 105-118, and 
included the following requests: (1) $160,000,000 for a Federal 
contribution towards the costs of the operation of the 
government of the District of Columbia; (2) $169,000,000 for 
payment to the District of Columbia Corrections Trustee; (3) 
$302,000,000 for payment to the District of Columbia 
Corrections Trustee for Correctional Facilities, construction 
and repair; (4) $123,000,000 for operation of the District of 
Columbia Courts; and (5) $23,000,000 for payment to the 
District of Columbia for the Pretrial Services, Defense 
Services, Parole, Adult Probation, and Offender Supervision 
Trustee. The President also deleted the requested $660,000,000 
Federal payment and $52,070,000 for the contribution to the 
Retirement Funds.
    The city requested $841,769,000 consisting of $190,000,000 
for a Federal contribution towards the costs of the operation 
of the government of the District of Columbia; (2) $203,769,000 
for payment to the District of Columbia Corrections Trustee; 
(3) $302,000,000 for payment to the District of Columbia 
Corrections Trustee for Correctional Facilities, construction 
and repair; (4) $123,000,000 for operation of the District of 
Columbia Courts; and (5) $23,000,000 for payment to the 
District of Columbia for the Pretrial Services, Defense 
Services, Parole, Adult Probation, and Offender Supervision 
Trustee.
    The bill includes $827,500,000 in Federal funds for fiscal 
year 1998, including a Federal contribution towards the cost of 
the operation of the government of the District of Columbia of 
$180,000,000, $169,000,000 for payment to the District of 
Columbia Corrections Trustee; $302,000,000 for payment to the 
District of Columbia Corrections Trustee for Correctional 
Facilities, construction and repair, $123,000,000 for operation 
of the District of Columbia Courts, and $23,000,000 for payment 
to the District of Columbia for the Pretrial Services, Defense 
Services, Parole, Adult Probation, and Offender Supervision 
Trustee. In addition the Committee has included $7,000,0000 for 
Parental Choice and Education, $1,000,000 for the District 
Education and Learning Technology Advancement (DELTA) Council, 
$2,000,000 for the Inspector General for investigative efforts, 
$5,400,000 for police pay raise, $2,600,000 for fire fighter 
pay raise and $12,500,000 for the United States Park Police.

                       District of Columbia Funds

    A total of $4,764,023,000 was requested in the amended 
budget from the District of Columbia for fiscal year 1998 which 
was received by the Congress on September 10, 1997. The request 
was a consensus budget agreed to by the District of Columbia 
Financial Responsibility and Management Assistance Authority, 
the Council of the District of Columbia and the Mayor.
    The Committee recommends a total of $4,762,705,000 for 
fiscal year 1998 for all funds consisting of $4,493,375,000 in 
operating expenses and $269,330,000 in capital outlay funds.

                      Comparative Summary of Bill

    The following table summarizes the amounts recommended in 
the bill compared with appropriations enacted for fiscal year 
1997 and budget estimates presented for fiscal year 1998:

                                                                                   COMPARATIVE SUMMARY OF BILL                                                                                  
                                                                                         [In thousands]                                                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                   Committee compared with--                    
                                                                        FY 1998       FY 1998       FY 1998                   ------------------------------------------------------------------
                                           FY 1997        FY 1997      District      authority      amended       Committee                                  FY 1998      FY 1998      FY 1998  
                                        appropriation     revised       request       request       request    recommendation     FY 1997       FY 1997        city      authority     amended  
                                                                                                                               Appropriation    revised      request      request      request  
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             FEDERAL FUNDS                                                                                                                                                                      
                                                                                                                                                                                                
Federal payment to the District of                                                                                                                                                              
 Columbia.............................       660,000       660,000       660,000       660,000             0              0       (660,000)     (660,000)    (660,000)    (660,000)           0 
Federal contributions to retirement                                                                                                                                                             
 funds................................        52,070        52,070        52,070        52,070             0              0        (52,070)      (52,070)     (52,070)     (52,070)           0 
Presidential Inauguration.............         5,702         5,702             0             0             0              0         (5,702)       (5,702)           0)           0            0 
Federal contribution for repair of                                                                                                                                                              
 drinking water system................         1,000         1,000             0             0             0              0         (1,000)       (1,000)           0            0            0 
Federal contribution to the Operations                                                                                                                                                          
 of the Nation's Capital..............             0             0             0             0       160,000        180,000        180,000       180,000      180,000      180,000       20,000 
Federal payment for the Inspector                                                                                                                                                               
 General for investigative efforts....             0             0             0             0             0          2,000          2,000         2,000        2,000        2,000        2,000 
Federal payment for police pay raise..             0             0             0             0             0          5,400          5,400         5,400        5,400        5,400        5,400 
Federal payment for fire fighter pay                                                                                                                                                            
 raise................................             0             0             0             0             0          2,600          2,600         2,600        2,600        2,600        2,600 
Federal contribution to Public Schools             0             0             0             0             0          1,000          1,000         1,000        1,000        1,000        1,000 
Payment to the District of Columbia                                                                                                                                                             
 Corrections Trustee Operations.......             0             0             0             0       169,000        169,000        169,000       169,000      169,000      169,000            0 
Payment to the District of Columbia                                                                                                                                                             
 Corrections Trustee for Correctional                                                                                                                                                           
 Facilities, Construction and Repair..             0             0             0             0       302,000        302,000        302,000       302,000      302,000      302,000            0 
Federal payment to the District of                                                                                                                                                              
 Columbia Criminal Justice System.....             0             0             0             0       146,000        146,000        146,000       146,000      146,000      146,000            0 
Payment to National Park Service, Park                                                                                                                                                          
 Police...............................             0             0             0             0             0         12,500         12,500        12,500       12,500       12,500       12,500 
Federal payment to the District of                                                                                                                                                              
 Columbia Scholarship Fund............             0             0             0             0             0          7,000          7,000         7,000        7,000        7,000        7,000 
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, Federal funds to the                                                                                                                                                               
       District of Columbia...........       718,772       718,772       712,070       712,070       777,000        827,500        108,728       108,728      115,430      115,430       50,500 
                                       =========================================================================================================================================================
      DISTRICT OF COLUMBIA FUNDS                                                                                                                                                                
                                                                                                                                                                                                
Operating Expenses:                                                                                                                                                                             
    General fund......................     4,491,928     4,487,550     4,495,162     4,497,140     3,943,798      3,954,344       (537,584)     (533,206)    (533,206)    (542,796)      10,546 
    Enterprise and Other Funds:                                                                                                                                                                 
        Water and Sewer Authority and                                                                                                                                                           
         Washington Aqueduct..........       225,743       225,743       297,310       297,310       297,310        297,310         71,567        71,567            0            0     (225,743)
        Lottery and Charitable Games..       247,900       247,900       213,500       213,500       213,500        213,500        (34,400)      (34,400)           0            0     (247,900)
        Cable Television..............         2,511         2,467         2,467         2,467         2,467          2,467            (44)            0            0            0       (2,511)
        Public Service Commission.....             0             0         4,547         4,547         4,547          4,547          4,547         4,547            0            0            0 
        Office of People's Counsel....             0             0         2,428         2,428         2,428          2,428          2,428         2,428            0            0            0 
        Office of Banking and                                                                                                                                                                   
         Financial Institutions.......             0             0           600           600           600            600            600           600            0            0            0 
        Department of Insurance and                                                                                                                                                             
         Securities Regulation........             0             0         5,683         5,683         5,683          5,683          5,683         5,683            0            0            0 
        Starplex Fund.................         8,717         8,717         8,936         5,936         5,936          5,936         (2,781)       (2,781)      (3,000)           0       (8,717)
        D.C. General Hospital.........        58,299        78,559        64,099        64,099        64,099         64,099          5,800       (14,460)           0            0      (58,299)
        D.C. Retirement Board.........        16,667        16,667        16,762        16,762        16,762          4,898        (11,769)      (11,769)     (11,864)     (11,864)     (28,531)
        Correctional Industries Fund..         9,152         9,152         9,432         9,432         9,432          9,432            280           280            0            0       (9,152)
        Washington Convention Center..        47,996        47,996        46,400        46,400        46,400         46,400         (1,596)       (1,596)           0            0      (47,996)
        Deficit Reduction and                                                                                                                                                                   
         Revitalization...............             0             0             0             0             0              0              0             0            0            0            0 
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
          Total, Operating Expenses...     5,108,913     5,124,751     5,167,326     5,166,304     4,612,962      4,611,644       (497,269)     (513,107)    (555,682)    (554,660)      (1,318)
Capital Outlay:                                                                                                                                                                                 
    General fund......................        46,923        46,923       128,624       269,330       269,330        269,330        222,407       222,407      140,706            0      (46,923)
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
    Water and Sewer Fund..............             0             0             0             0             0              0              0             0            0            0            0 
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, Capital Outlay...........        46,923        46,923       128,624       269,330       269,300        269,330        222,407       222,407      140,706            0      (46,923)
                                       =========================================================================================================================================================
      Total, Appropriations...........     5,155,836     5,171,674     5,295,950     5,435,634     4,882,292      4,880,974       (274,862)     (290,700)    (414,976)    (554,660)      (1,318)
Less Intra-District funds.............      (134,528)     (143,373)     (129,946)     (129,946)     (118,269)      (118,269)        16,259        25,104       11,677       11,677            0 
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, Revised Appropriations...     5,021,308     5,028,301     5,166,004     5,305,688     4,764,023      4,762,705       (258,603)     (265,596)    (403,299)    (542,983)      (1,318)
Less Savings from the National Capital                                                                                                                                                          
 Revitalization Act of 1997...........      (619,637)      619,637)     (597,069)     (584,536)            0              0        619,637       619,637      597,069      584,536            0 
                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------
      Revised Total...................     4,401,671     4,408,664     4,568,935     4,721,152     4,764,023      4,762,705        361,034       354,041      193,770       41,553       (1,318)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                           GENERAL STATEMENT

                       Revitalization Act of 1997

    The Committee recommends an appropriation's bill for the 
District of Columbia which is consistent with the efforts of 
the 105th Congress to revitalize and restore the District of 
Columbia to its rightful place as a Capital City of which we 
can all be proud. Like the budget recommended by the District 
government, this bill fully funds the District at $3.9 billion 
for General Fund expenditures. The Committee is fully cognizant 
of its constitutional duty to ensure a responsibly run National 
Capital City. The objective of this appropriations bill is to 
stem the exodus of middle class taxpayers and increase the 
volume of business activity transacted in this city daily, 
while at the same time providing for improved police 
protection, better public schools and better delivery of 
services to the public at a reasonable cost. This objective can 
be achieved through a combination of the recently enacted 
``National Capital Revitalization and Self-Government 
Improvement Act of 1997'' and enactment of this appropriations 
bill.

                  Debt Retirement and Taxpayer Relief

    The importance of this appropriations bill is that it 
provides debt and tax relief to District taxpayers by utilizing 
(1) the increased revenue available to the District as a result 
of the Revitalization Act (whereby the Federal government 
assumed many of the state-like functions previously performed 
by the District government amounting to approximately three 
quarters of a billion dollars), (2) the increased local 
revenues resulting from more efficient tax collection and 
compliance procedures, and (3) the savings which should be 
realized from the reform plans to be implemented by new 
management teams consisting of District government department 
heads and consultants appointed by the control board. By 
prioritizing deficit reduction and tax relief as the twin 
priorities of the District, this bill provides the Mayor, City 
Council and the control board with an unmistakable opportunity 
to utilize the increased revenues and savings for the benefit 
of the long suffering and often ignored District taxpayers.
    With the additional available revenue and better management 
teams resulting in reduced program costs, this will be a year 
of tremendous opportunity to resolve many of the financial and 
management problems which have plagued this City for so many 
years. To make the most of this window of opportunity, this 
appropriations bill provides for prudent use of these available 
funds by (1) providing a tax relief fund for reducing taxes to 
promote the stabilization of the present taxpayer base, 
hopefully making the District a more cost-effective place to 
reside and do business in, and (2) retiring some of the 
District government's high outstanding debt to demonstrate to 
future lenders that the District government is serious about 
repaying its debts and that it wants to become financially 
strong and well respected among the community of well managed 
American cities--with the Nation's Capital being chief among 
them all.
    With District taxes being about fifty percent higher than 
those of surrounding jurisdictions, hundreds of thousands of 
former District taxpayers voted with their feet by moving out 
of the Nation's Capital. They, and other productive citizens, 
will return only when the District is safe, has good schools 
and competitive taxes. This appropriations bill's focus is on 
achieving that ultimate goal for the people of the District and 
the Nation.

                        Cost-Saving Initiatives

    The District government provided encouraging news in its 
budget submission for fiscal year 1998 whereby plans were 
presented that estimated upwards of $152,375,000 could be saved 
in fiscal year 1998 by implementing program changes that would 
make the District government ``more efficient and competitive 
as it addresses realistic resource levels and serves the 
citizens of the District.''
    The Committee is encouraged by this cost-saving and 
management improvement initiative and looks forward to at least 
a major portion of these savings and improvements being used to 
reduce the City's cash shortage amassed in its General Fund 
accumulated deficit. This bill includes language that provides 
for at least $100,000,000 to be put into an escrow account (the 
``District of Columbia Deficit Reduction Fund'', discussed 
below) for the retirement of the District's accumulated 
deficit.

                         Taxpayer Relief Funds

    The Committee's recommendation in this bill is to escrow 
$400 million of the District's $4.4 billion of available 
revenue into two separate funds for the reduction of the 
accumulated deficit and for tax relief in the District. The 
revenue for these funds, the ``District of Columbia Deficit 
Reduction Fund'' and the ``District of Columbia Taxpayers 
Relief Fund,'' are to be derived for the following sources:

------------------------------------------------------------------------
          Revenue Source                  Amount             Total      
------------------------------------------------------------------------
Revitalization Act Savings 1......       $205,000,000       $205,000,000
Projected Revenue Growth 2........         25,000,000        230,000,000
Compliance Revenue 3..............         50,000,000        280,000,000
Federal Payment 4.................         20,000,000        300,000,000
Management Savings 5..............        100,000,000        400,000,000
------------------------------------------------------------------------
1 The District's budget reflects a net savings of $235 million dollars  
  from the congressionally enacted Revitalization Act. From that amount,
  $30 million will be used for school and road repairs.                 
2 FY98 local revenue growth over FY97 revenue.                          
3 Net additional local revenue resulting from a $12 million increase in 
  the budget of the District's Office of Tax and Revenue for enhanced   
  taxpayer compliance procedures.                                       
4 Total federal payment of $180 million; a $20 million increase over the
  Administration's request.                                             
5 Cost-saving initiatives resulting from implementation of Mayor Barry's
  transformation plan described in the FY 1998 D.C. budget submission of
  June 1997.                                                            


    The Taxpayer Relief Funds are dedicated to the full 
retirement of the District's $300 million short term portion of 
the accumulated deficit, and providing $100 million in tax 
reductions for District taxpayers. The control board will 
retire the deficit at times and on terms throughout FY 1998 as 
it deems appropriate. The remaining $100 million will be 
released by the control board after the Chief Financial Officer 
certifies that the City Council has enacted local legislation 
to reduce District taxes and fees by a like amount, effective 
June 30, 1998. It will be the determination of locally elected 
officials what District taxes and fees shall be eliminated or 
reduced. The Committee encourages the District to utilize these 
funds to reduce taxes and fees, which will encourage economic 
growth and a vibrant, stable middle class.

                       Future Recurring Benefits

    The establishment of the two funds will not only retire the 
accumulated cash deficit and reduce taxes, but will yield 
massive dividends in the years to come. By maintaining the 
level of management cost-savings, additional revenue, and a 
stable federal payment in future years, the two funds will 
provide the District with around one half billion dollars a 
year in available revenues in the coming years:

                                                                Millions
Recurring Revitalization Act savings..............................  $235
Local revenue increases...........................................    75
Annual debt service relief........................................    40
Management cost-savings...........................................   100
                        -----------------------------------------------------------------
                        ________________________________________________
  Total annual additional revenues................................   450

    The ongoing savings from the two funds can be used by the 
District for a variety of pressing needs, such as to accelerate 
the pay off of the District's $3.3 billion long term debt; 
ongoing tax relief; and/or additional capital improvements to 
the District's schools and public infrastructure. The 
opportunities are numerous.

                          New Management Teams

    It is the expectation of this Congress that the new 
management teams will seek to improve the delivery of services 
in the District at a cost that is comparable to those of other 
local jurisdictions, which should reduce the per capita costs 
of those services significantly. The District government 
remains at the top of the per capita cost charts while at the 
bottom of the quality of service charts. The new management 
teams must make their number one objective the lowering of per 
capita costs while raising the level of service to District 
taxpayers. It is the expectation of the Committee that the new 
management teams will not heap more costs onto the already high 
per capita costs of each program while only making marginal 
improvements in services. The per capita costs of District 
services are already poised to go off the top of the charts and 
outstrip any of the closest cities. This makes it all the more 
difficult to rein in the already run-away spending spiral that 
the District has experienced. If the new management teams are 
not going to reduce the already high per capita cost of 
programs and improve delivery of services, then why pay their 
high consultant salaries and expenses? The new management teams 
must take into consideration that there has been a drastic drop 
in the population of the District and the customer base for the 
City's services. Approximately 100,000 residents left the 
District in the past decade (a 15% decrease) while expenses 
have risen steadily (increasing by 48%). These former residents 
are not likely to return, nor will new residents move into the 
District, until there are better services delivered at a lower 
cost.
    The new management teams need not look far for areas where 
reductions in costs can be made and improvements in services 
realized. There are already numerous reports from the City's 
Auditor, City Administrator, Inspector General, independent 
auditors, and various other government and business groups 
identifying the problems, their dollar magnitude and 
recommendations for improvements. Hundreds of millions of 
dollars in savings are noted in these reports. It is the 
expectation of this Committee that no new reports will be 
prepared by the newly hired consultants identifying what the 
problems are, these are already known. The new management teams 
need to prepare reform plans that only report how and when 
costs will be reduced and services improved, and get busy 
implementing those plans so results can be seen by September 
30, 1998.

                      Control Board Responsibility

    This Committee believes that the control board must perform 
its responsibility to reduce costs and improve services in the 
District. It is the expectation of this Committee that the 
control board, as head of the new management teams, will direct 
the new department heads and consultants to make cost reduction 
and improved services their number one priority, and to deliver 
meaningful and lasting results by the end of fiscal year 1998. 
Between the combination of additional revenues made available 
to the District this year and better management teams, which 
should be able to better manage the vast people and property 
resources of the District government at an efficient and 
effective level of cost comparable to other jurisdictions, 
everyone should see a dramatic improvement in the operation of 
this Capital City by the end of fiscal year 1998.

                       Independence of IG and CFO

    The Committee is extremely concerned about the independence 
and integrity of the Inspector General and the Chief Financial 
Officer and cannot overemphasize that the Office of the 
Inspector General and the Office of the Chief Financial Officer 
were created as separate INDEPENDENT offices TO SERVE the 
District government as well as the public, the control board, 
and the Congress. Intrusions into the independence of either 
the Office of the Inspector General or the Office of the Chief 
Financial Officer by the control board cannot be allowed to 
continue. Such intrusions could lead to a loss of confidence in 
the control board by creating a situation in which the 
appearance of malfeasance or collusion fosters an atmosphere of 
distrust. The enabling legislation did not contemplate or 
intend that others would be making the decisions placed by 
statute with these two independent offices. To usurp that 
decision-making power undermines not only the intent and 
purpose of the legislation but the credibility of the Inspector 
General and the Chief Financial Officer as well as the control 
board. This would be detrimental to the mission of the control 
board as envisioned by the enabling legislation and therefore 
cannot be permitted to occur.
    The enabling legislation, Public Law 104-8, provides a 
mechanism for the removal of the individuals serving in those 
positions if their performance warrants. That mechanism is the 
check on the powers and performance of those individuals. They 
are independent, and Congress must ensure that they remain 
independent.

               Increases for Public Safety and Education

    While this appropriations bill anticipates that the control 
board and new management teams will make better use of the $4.6 
billion total budget (after the Federal takeover of the 
District's prison system, courts, pension plans and Medicaid 
payments) for a city of its size, there will be increases in 
some expenditures in this bill which were not included in the 
budgets submitted by the Mayor and control board. Specifically, 
there is an appropriation of Federal funds to pay for increased 
salaries of police who are actively patrolling the streets and 
fire fighters who are fighting fires daily. Parental school 
choice programs are also appropriated Federal funds to improve 
the opportunities of obtaining a quality education in 
theDistrict of Columbia. These new funds, added to the additional 
monies from the savings due to the Federal takeover of certain services 
and expenses, and the savings from the efforts of the new management 
teams, will make the District of Columbia a better place to live, work, 
and tour the many places of National historic importance.
    An important overall result of the above efforts will be 
the return to Home Rule more quickly than if things are allowed 
to continue on its present course, and what will be in place is 
a local government that is fiscally sound and vibrant with a 
solid base of middle income taxpayers. As revenue levels 
continue to rise, the new management teams will indeed need to 
be vigilant in keeping spending under control. This will insure 
the long term success of the District's new financial and 
management efforts made under this appropriations bill.

                District of Columbia Financial Condition

    Fiscal year 1997 was the second full year that the control 
board oversaw the District of Columbia's budget and operations. 
The District's deficit increased for those two years 
approximately $150 million. The District is required by law to 
submit a balanced budget each year, and the District has met 
that requirement again for fiscal year 1998 as it has for many 
years in the past. The problem is that the District government, 
under the supervision of the control board, has not been able 
to control its spending to achieve a balanced budget. 
Submitting a balanced budget for fiscal year 1998 has little 
significance if at year end there is still another deficit. The 
taxpayers of the District of Columbia will not know whether or 
not the budget for fiscal year 1998 was balanced until February 
1, 1999 when the District's annual financial report is due to 
be published. Even though Congress may approve a level of 
spending higher than projected revenue, the law also provides 
that these amounts are maximums from which reductions can be 
made to match revenue received to achieve a balanced budget. 
That is why it is imperative that every effort be made to 
control spending during fiscal 1998 to achieve a true balanced 
budget.

                  D.C. and Other Cities Control Boards

    The D.C. control board, created by Congress and appointed 
by the President, states in its enabling legislative language 
that its purpose is ``to eliminate budget deficits and cash 
shortages.'' The control board has been unable to achieve that 
objective, despite the powers granted it, powers far greater 
than any other city's control board. Other cities which have 
had control boards have been able to balance their budgets 
within a few years. These cities renegotiated labor contracts 
and made other fiscally responsible decisions which enabled 
them to achieve their objective in a short period of time, and 
they were in worse financial condition than the District was 
when the control board was created in the District of Columbia. 
In its first year, the New York City Financial Control Board 
implemented a workforce reduction of about 40,000 positions or 
13 percent from the previous year's level. The wages of 
remaining city employees were frozen for three consecutive 
years. Philadelphia's control board also tackled difficult 
workforce issues in its first year. It renegotiated labor 
agreements which led to a 33-month wage freeze and extensively 
restructured health benefits, paid holidays and sick leave. 
Philadelphia's Mayor Rendell testified at a Committee hearing 
that the District should not borrow any more money, yet the 
District's control board recommended that District taxpayers 
pay for the recent overspending that resulted in its large 
accumulated deficits by borrowing hundreds of millions of 
dollars, putting the District taxpayers further into debt 
instead of controlling costs to pay off its debts.

                 Borrowing for the Accumulated Deficit

    When the District sought to fund its accumulated deficit of 
$332 million in fiscal year 1991 through the sale of deficit 
recovery bonds, there was testimony at that time from city 
leaders and financial advisors expressing concern over the 
long-term deficit financing. Congress eventually authorized the 
City to issue 12-year bonds for the $332 million needed to 
finance the accumulated deficit. Congress also approved a $100 
million emergency Federal payment to the District and 
immediately raised the regular annual Federal payment by $200 
million. Five years later, after an additional $1.4 billion in 
Federal Funds had been provided to the District, the City ended 
fiscal year 1996 with another accumulated deficit of $497 
million.
    The Committee seeks to avoid repeating history. 
Accordingly, the Committee will not support authorizing the 
District government to obtain any deficit financing. The 
accumulated deficit of the District in the general fund is 
projected to be approximately $527 million by the end of fiscal 
year 1997. Of that amount, it is estimated that approximately 
$300 million is an actual cash deficit (shortage). This 
appropriations bill for fiscal year 1998 provides for the full 
amount of that cash shortage. If the control board can live up 
to Congress's expectations in fiscal year 1998, the District's 
taxpayers can enjoy the benefits which enure to the District by 
virtue of reduced debt service and an enhanced credit standing 
in the financial community (which translates into lower 
interest costs on any future borrowings).

                      Financial Management System

    In the control board's August 15, 1995 Report on the 
District of Columbia Fiscal Year 1996 Budget, it recommended a 
five-phased approach to improve the poor performance of the 
District's financial management system (FMS). (The FMS is an 
automated budget and accounting system into which the annual 
approved appropriation budget authority is entered so that each 
department and agency knows the dollar amount of their budget 
authority for the fiscal year. During the year, the various 
departments and agencies report their actual expenditures made 
against their budget authority to the FMS through an automated 
integration process referred to as ``feeder systems.'') There 
were many reasons identified for the poor performance of the 
FMS by various persons both inside and outside of the District 
government. The net effect of all the varying views was that 
improvement was needed and the control board recommended a 
five-phased approach to bring about that improvement. The 
Congress agreed with the control board and authorizedthe 
expenditure of $2 million for the initial phases recommended by the 
control board. This initial effort was to include a needs analysis of 
the District's specific information requirements and then a 
capabilities assessment of the present system to meet those needs 
specifically defined.
    On December 9, 1996, the control board transmitted to 
Congress a report on the ``Capabilities Assessment of the 
Financial Management System.'' This document was reviewed by 
this Committee, the General Accounting Office (GAO), the D.C. 
Inspector General (IG), and other interested parties, and 
everyone concluded that the capabilities assessment was 
inappropriate and inadequate for the District government to 
proceed with any effort to improve its existing FMS. The 
Inspector General even issued a press release stating that:

          ``. . . the Capabilities Assessment Report (the 
        Report) did not adequately demonstrate that the views 
        and needs of key users, at all levels, were considered 
        nor demonstrate detailed understanding of the 
        requirements needed to develop and implement a new FMS. 
        Security, a critical control for a significant system 
        which will support many users, is not addressed. 
        Further, the Report did not sufficiently address how 
        all weaknesses and processing deficiencies in the 
        existing FMS will be addressed and resolved by the 
        proposed new FMS. Without the functional requirements, 
        significant costs such as those associated with 
        possible system interfaces and data conversion could 
        not reasonably be estimated in economic analysis, which 
        currently excludes some potential significant costs, 
        [and] estimates the cost of the new system to range 
        from $35.7 to $50.3 million . . . [The Inspector 
        General] concluded that decisions to proceed with a 
        Request for Proposal for development and implementation 
        of a new system will be premature if made before system 
        requirements are complete, and would be inconsistent 
        with information technology best practices.''

    The deficiencies in the cost estimates noted by the IG that 
were included in the control board's capabilities assessment 
report were qualified by the very firm that developed the cost 
estimates by stating in their cost report:

          ``we have relied upon unaudited cost data provided by 
        the District to perform the analysis . . . we have used 
        the data as provided without verifying as to accuracy . 
        . . we are unable to estimate a margin of error with 
        respect to the data provided by the District.'' (If 
        history is any indication of the reliability of data 
        supplied by the District government, like FTEs or the 
        number of students enrolled in the public schools, it 
        is not surprising that the preparer could not make an 
        estimate since the margin of error could be extremely 
        large.)
          ``Non-quantifiable costs and all benefits . . . are 
        excluded from this analysis. These items are considered 
        by the federal government to be necessary for a 
        complete analysis, according to OMB Circular A-94 and 
        the Information Technology Management Reform Act of 
        1995.''
          [All costs considered in the report] ``are rough 
        order of magnitude and must be further refined after 
        functional analysis is completed.''
          ``. . . the District will incur interface costs . . . 
        but these cannot be reasonably estimated without 
        further analysis of proposed system specifications.''
          ``All options will require comparable vendor studies, 
        including audits, functional requirements analysis, 
        customization requirements and other management 
        analyses.''
          ``Further analysis of the data integrity within the 
        FMS is required. We are not able to estimate the data 
        conversion costs at this time.''
          ``All options are affected by on-going OCFO 
        restructuring and process re-engineering. The impact of 
        process and management changes within the OCFO . . . 
        cannot be evaluated at this point.''
          ``The apparent economic benefits of Option 3 [the 
        lowest option cost], must be tempered by consideration 
        of the unidentified potential costs of data conversion, 
        testing, and development of interfaces to feeder 
        systems. These costs may be significant. Further 
        analysis beyond the scope of effort presented in this 
        report is required to reasonably estimate these 
        unidentified costs.''

    The Committee was informed by OMB that according to Frank 
Raines, OMB Director, no new federal money will be spent on new 
technology systems until the existing systems are re-
engineered; this is known at OMB as ``Raines Rules.'' The 
Committee agrees with Mr. Raines and would like the control 
board to follow those rules. The Committee was also informed by 
an international computer manufacturing and systems design 
company that the District should re-engineer its present system 
before considering any new system. The benefits of doing this 
could be significant.
    Further, the Request-For-Proposal for a new system stated 
that services will be paid on an ``Indefinite Delivery/
Indefinite Quantity (ID/IQ) basis.'' In the consulting 
industry, this is known as a ``come-and-milk-me'' contract. 
This is when a contract awarded for $1 million turns into a 
$100 million contract, all because of this ID/IQ clause.
    The GAO issued a report on the assessment study that 
included these statements:

          ``Given the criticality of effective financial 
        management to the District, as well as its limited 
        capacity and resources, it is important that the 
        District adopt and follow best practices in information 
        management in order to avoid costly failure . . .''
          [To insure a successful automated information 
        technology improvement acquisition] ``it is especially 
        important to complete three building blocks early in 
        the project: (1) a concept of operations, (2) a 
        requirements definition, and (3) an analysis of 
        alternatives to meet the defined requirements. . . . 
        The District has not yet done a concept of operations, 
        requirements definition, or alternatives analysis. . . 
        . The requirements [in the study] . . . do not yet 
        focus . . . on the District's financial requirements, 
        such as stemming from the need to integrate the core 
        financial system with feeder systems. Nor have end-user 
        requirements been fully identified and assessed. . . . 
        Until a concept of operations and requirements analysis 
        are complete, it will be impossible for the District to 
        determine which alternative will best meet its 
        financial management system needs.''
          ``We believe there is a high risk that the District 
        will be driven by its ambitious acquisition schedule 
        and will not allow itself time to develop the kind of 
        quality analysis that it must have in order to manage 
        this important project, which is so critical to the 
        District's financial recovery.''
          ``Congress needs to be satisfied that the District 
        has laid a solid foundation for this acquisition before 
        going on to the selection of a specific system.''
    In the face of all these objections, identified risks, 
warnings, qualifications, and a directive from this Committee's 
Chairman to the control board not to obligate any money for any 
effort to go forward on this approach, the control board 
disregarded all this and proceeded to select a vendor to 
install a new FMS that is ill-defined and may cost the District 
taxpayer $50 million to $100 million, as well as years of 
wasted time and effort, while mismanagement in the District 
continues due to poor, untimely information produced by a new, 
expensive system that is trying to find its way through the 
arduous task of defining its real management information needs, 
converting contaminated data files, and training personnel who 
may not be qualified for the task.
    Given the magnitude of the District's problems and the ill-
planned nature of the approach to procure a new system, the 
Committee believes that many millions of taxpayer dollars will 
be wasted over several years, years that are critical to the 
successful recovery of the District of Columbia. Accordingly, 
the Committee is dissatisfied with and disturbed by the control 
board's actions in this matter and is disapproving any funding 
for the acquisition of a new FMS, and is initiating an 
investigation into the manner in which the entire FMS approach 
has been handled. The Committee believes that good information 
is a key component of good management of scarce resources, and 
will make every effort that a good FMS is operating in the 
District of Columbia quickly, at a cost that is reasonable and 
affordable to the taxpayers of this District, the Nation's 
Capital. The Committee will not be a part of another 
astronomically expensive information technology disaster, as 
has been the case recently with certain government agencies and 
in industry.
    The Committee has included a provision for the rapid 
improvement of the District's FMS and directs the offices of 
the City Administrator and the Chief Financial Officer to work 
together to take the actions necessary to expedite compliance 
with the language and intent of this appropriations bill upon 
its enactment. There are standards of ``best practices'' 
established in the government and industry that the District 
government ought to be following to insure the success of this 
project at a reasonable cost, and the Committee will make every 
effort to insure that this is done.

                          Washington Navy Yard

    The Committee is pleased with and concurs in the comments 
made May 2, 1997, by officials of the Environmental Regulation 
Administration of the District government's Department of 
Consumer and Regulatory Affairs concerning conditions at the 
Washington Navy Yard. The Committee directs the District 
government, including the Department of Public Works, to take 
all actions within their power and consistent with their 
authority to assure that all activities at or relating to the 
Navy Yard are carried out in such a manner that protects human 
health as well as the environment. The Committee urges District 
officials to take all necessary actions to protect the health 
and safety of all potentially affected individuals from threats 
posed by dangerous contaminants at or emanating from the Navy 
Yard. Individuals at risk include (1) residents of the area of 
the Navy Yard; (2) individuals affected by the condition of the 
Anacostia River; (3) temporary or long-term employees at the 
Navy Yard; (4) construction workers; and (5) visitors to the 
Navy Yard and its environs. Accordingly, the Committee requests 
that prior to allowing construction at the Navy Yard to 
proceed, District officials (1) thoroughly investigate the 
site, and (2) complete the required remediation work in 
compliance with applicable environmental law before allowing 
construction at the Navy Yard.

                14th Street Bridge Corridor Improvements

    The Committee is familiar with the recommendations of the 
``14th Street Bridge Corridor Improvement Study'' and requests 
the District's Department of Public Works to undertake the 
following improvements:
          1. Modify the signal and lane control at the 
        intersection of 14th Street and C Streets, S.W., to 
        improve the flow of traffic traveling north on 14th 
        Street. The Committee believes the traffic signal 
        should be modified to prohibit traffic from turning 
        left onto 14th Street during the morning rush hour.
          2. Modify the signal and lane control at the 
        intersection of 14th Street and Independence Avenue.
          3. Consider the placement of warning signs prior to 
        the C Street exit ramp notifying I-395 east-bound 
        vehicles of the height restriction. The Committee notes 
        that severe traffic delays are periodically caused by 
        large tractor trailer trucks forced to stop, and 
        therefore block traffic, because they exceed the 13 
        foot clearance on the C Street exit ramp underpass.
          4. Install blinking caution lights at the juncture of 
        the freeway and the C Street exit ramp. The sand barrel 
        and the painted caution barrier have resulted in 
        numerous vehicle accidents and repairs to the barrier.
          5. Proceed with preliminary engineering to begin both 
        the short-term and the long-term improvements to the 
        14th Street bridges as outlined in the ``14th Street 
        Bridge Corridor Improvement Study''.
    The Committee requests a report from the Department of 
Public Works by January 15, 1998, on these matters.

                       Redevelopment Land Agency

    The Committee requests a report by November 30, 1997 of the 
per diem rates paid to the individual members of the Board of 
Directors of the District of Columbia Redevelopment Land Agency 
for the previous three fiscal years 1995, 1996 and 1997.

                          gifts and donations

    The Committee requests a report by January 31, 1998 of each 
gift and donation accepted by each entity of the District of 
Columbia government for the previous three fiscal years 1995, 
1996 and 1997, in accordance with the General Provisions of 
each year's Appropriations Act.

                            TOTAL RESOURCES

    Based on recommendations in the bill, a total of 
$4,880,974,000 and 33,011 full-time equivalent positions will 
be available to the District government during the next fiscal 
year. Included in this figure are appropriations from local 
funds, Federal grants, and private and other funds and intra-
District funding. The financing of appropriations from District 
funds is from the Federal payment and revenues from various 
local taxes, fees, charges and other collections received by 
the District government.
    A summary of the total resources by appropriation title 
follows:

                                                                  DISTRICT OF COLUMBIA                                                                  
                                    TOTAL ESTIMATED RESOURCES AVAILABLE TO THE DISTRICT OF COLUMBIA, FISCAL YEAR 1998                                   
                                                                 [Amounts in thousands]                                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     Local Funds         Federal Funds    Private and Other        Subtotal         Intra-District     Total Resources  
                                ------------------------------------------------------------------------------------------------------------------------
                                   FTE      Amount      FTE     Amount      FTE     Amount     FTE      Amount      FTE     Amount     FTE      Amount  
--------------------------------------------------------------------------------------------------------------------------------------------------------
Governmental Direction and                                                                                                                              
 Support:                                                                                                                                               
    Council of the District of                                                                                                                          
     Columbia..................      143       8,573       0           0       0          2      143       8,575       0          0      143       8,575
    Office of the D.C. Auditor.       11         919       0           0       0          0       11         919       0          0       11         919
    Advisory Neighborhood                                                                                                                               
     Commissions...............        0         562       0           0       0          0        0         562       0          0        0         562
    Office of the Mayor........       25       1,392       0           0       0          0       25       1,392      14        632       39       2,024
    Office of the Secretary....       18       1,512       0           0       2         79       20       1,591      14        478       34       2,069
    Office of Communications...        0          90       0           0       0          0        0          90       6        238        6         328
    Office of Intergovernmental                                                                                                                         
     Relations.................        7         670       0           0       0          0        7         670      10        555       17       1,225
    Office of the City                                                                                                                                  
     Administrator/Deputy Mayor                                                                                                                         
     for Operations............       16       3,722       0           0       0          0       16       3,722      13        695       29       4,417
    Office of Personnel........      160       8,197       0           0      21        921      181       9,118      24      1,002      205      10,120
    Department of                                                                                                                                       
     Administrative Services...      120       6,284       0           0       0      1,637      120       7,921      87     14,099      207      22,020
    Contract Appeals Board.....        6         634       0           0       0          0        6         634       0          0        6         634
    Tax Revision Commission....        0         500       0           0       0          0        0         500       0          0        0         500
    Board of Elections and                                                                                                                              
     Ethics....................       50       2,947       0           0       0          0       50       2,947       0          0       50       2,947
    Office of Campaign Finance.       15         808       0           0       0          0       15         808       0          0       15         808
    Public Employee Relations                                                                                                                           
     Board.....................        4         413       0           0       0          0        4         413       0          0        4         413
    Office of Employee Appeals.       15       1,139       0           0       0          0       15       1,139       0          0       15       1,139
    Metropolitan Washington                                                                                                                             
     Council of Governments....        0         374       0           0       0          0        0         374       0          0        0         374
    Office of the Inspector                                                                                                                             
     General...................       52       7,731       0           0       0          0       52       7,731       0          0       52       7,731
Office of the Chief Financial                                                                                                                           
 Officer:                                                                                                                                               
    Office of the Chief                                                                                                                                 
     Financial Officer.........       54       4,748       0           0       0          0       54       4,748       3        200       57       4,948
    Office of Budget and                                                                                                                                
     Planning..................       26       2,001       0           0       0          0       26       2,001      21      1,660       47       3,661
    Office of Grants Management                                                                                                                         
     and Development...........        0           0       9      14,013       0          0        9      14,013      20      2,000       29      16,013
    Office of Financial                                                                                                                                 
     Operations and Systems....       99      10,727       0           0      22      1,715      121      12,442      29      1,009      150      13,451
    Office of Treasury and                                                                                                                              
     Finance...................       25       3,914       0           0      25      2,439       50       6,353       4        169       54       6,522
    Office of Tax and Revenue..      554      30,459       0           0       0         55      554      30,514       0         18      554      30,532
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Governmental                                                                                                                               
       Direction and Support...    1,400      98,316       9      14,013      70      6,848    1,479     119,177     245     22,755    1,724     141,932
                                ========================================================================================================================
Economic Development and                                                                                                                                
 Regulation:                                                                                                                                            
    Business Services &                                                                                                                                 
     Economic Development......      419      26,886       4         552      14     18,962      437      46,400     192     12,079      629      58,479
    Office of Zoning...........        7         384       0           0       6        471       13         855       0         72       13         927
    Department of Public and                                                                                                                            
     Assisted Housing..........        0       2,080       0           0       0          0        0       2,080       0          0        0       2,080
    Department of Employment                                                                                                                            
     Services..................       71       6,314     407      32,802     175     17,875      653      56,991       6        328      659      57,319
    Board of Appeals and Review        2         153       0           0       0          0        2         153       0          0        2         153
    Board of Real Property                                                                                                                              
     Assessments and Appeals...        3         286       0           0       0          0        3         286       0          0        3         286
    Department of Consumer and                                                                                                                          
     Regulatory Affairs........       59       4,274     115       8,711       1        322      175      13,307      12      1,220      187      14,527
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Economic                                                                                                                                   
       Development and                                                                                                                                  
       Regulation..............      561      40,377     526      42,065     196     37,630    1,283     120,072     210     13,699    1,493     133,771
                                ========================================================================================================================
Public Safety and Justice:                                                                                                                              
    Metropolitan Police                                                                                                                                 
     Department................    4,537     254,985      61      12,020       0      5,174    4,598     272,179       2      5,604    4,600     277,783
    Fire and Emergency Medical                                                                                                                          
     Services Department.......    1,763     100,797       0           0       0        582    1,763     101,379       0         72    1,763     101,451
    Police and Fire Retirement                                                                                                                          
     System....................        0      47,700       0           0       0          0        0      47,700       0          0        0      47,700
    Office of the Corporation                                                                                                                           
     Counsel...................      186      12,478       0           0       4        138      190      12,616      81      4,802      271      17,418
    Settlement and Judgments...        0      14,800       0           0       0          0        0      14,800       0          0        0      14,800
    Department of Corrections..    3,105      50,398       0           0       0          0    3,105      50,398      36          0    3,141      50,398
    National Guard.............       25         858       0           0       0          0       25         858       0          0       25         858
    Office of Emergency                                                                                                                                 
     Preparedness..............       23       1,338      12       1,499       0          0       35       2,837       0          0       35       2,837
    Commission on Judicial                                                                                                                              
     Disabilities and Tenure...        2         125       0           0       0          0        2         125       0          0        2         125
    Judicial Nomination                                                                                                                                 
     Commission................        1          78       0           0       0          0        1          78       0          0        1          78
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Public Safety and                                                                                                                          
       Justice.................    9,642     483,557      73      13,519       4      5,894    9,719     502,970     119     10,478    9,838     513,448
                                ========================================================================================================================
Public Education System:                                                                                                                                
    Public Schools.............    8,623     456,128   1,251      98,491     105      5,495    9,979     560,114      30      2,970   10,009     563,084
    Public Charter Schools.....        0       5,250       0           0       0          0        0       5,250       0          0        0       5,250
    Education and Learning                                                                                                                              
     Technologies Advancement                                                                                                                           
     (DELTA) Council...........        0       1,000       0           0       0          0        0       1,000       0          0        0       1,000
    Teachers' Retirement System        0       8,900       0           0       0          0        0       8,900       0        800        0       9,700
    University of the District                                                                                                                          
     of Columbia...............      572      37,791     156      12,804     189     23,492      917      74,087     162      7,200    1,079      81,287
    Public Library.............      398      20,424      10       1,158       1        454      409      22,036       0          0      409      22,036
    Commission on the Arts and                                                                                                                          
     Humanities................        2       1,704       7         353       0          0        9       2,057       0          0        9       2,057
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Public Education                                                                                                                           
       System..................    9,595     531,197   1,424     112,806     295     29,441   11,314     673,444     192     10,970   11,506     684,414
                                ========================================================================================================================
Human Support Services:                                                                                                                                 
    Department of Human                                                                                                                                 
     Development...............    2,924     345,005   1,903     254,846       7     34,818    4,834     634,669      17        691    4,851     635,360
    Department of Health.......      255     335,237     526     620,674      36      5,217      817     961,128       3        261      820     961,389
    Department of Recreation                                                                                                                            
     and Parks.................      371      20,722       0          34      19      2,133      390      22,889      93      3,199      483      26,088
    Office on Aging............       14      12,289       9       5,055       0          5       23      17,349       3      1,043       26      18,392
    D.C. Public Benefit                                                                                                                                 
     Corporation...............        0      42,873       0       1,462       0          0        0      44,335       0          0        0      44,335
    Unemployment Compensation                                                                                                                           
     Fund......................        0      10,678       0           0       0          0        0      10,678       0          0        0      10,678
    Disability Compensation                                                                                                                             
     Fund......................        0      21,089       0           0       0          0        0      21,089       0          0        0      21,089
    Human Rights & Minority                                                                                                                             
     Business..................       16         821       0         106       0          0       16         927       0         30       16         957
    Office on Latino Affairs...        3         636       0           0       0          0        3         636       0          0        3         636
    Commission for Women.......        0           0       0           0       0         20        0          20       0          0        0          20
    Energy Office..............        0           0       6       4,525       7        694       13       5,219       0          0       13       5,219
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Human Support                                                                                                                              
       Services................    3,583     789,350   2,444     886,702      69     42,887    6,096   1,718,939     116      5,224    6,212   1,724,163
                                ========================================================================================================================
Public Works:                                                                                                                                           
    Department of Public Works.    1,156      96,935      51       3,350      76     10,030    1,283     110,315     617     39,143    1,900     149,458
    Taxicab Commission.........        6         277       0           0       3        571        9         848       0          0        9         848
    Washington Metropolitan                                                                                                                             
     Area Transit Commission...        0          91       0           0       0          0        0          91       0          0        0          91
    Washington Metropolitan                                                                                                                             
     Area Transit Authority                                                                                                                             
     (Metro)...................        0     127,230       0           0       0          0        0     127,230       0          0        0     127,230
    School Transit Subsidy.....        0       3,450       0           0       0          0        0       3,450       0          0        0       3,450
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Public Works......    1,162     227,983      51       3,350      79     10,601    1,292     241,934     617     39,143    1,909     281,077
                                ========================================================================================================================
Financing and Other:                                                                                                                                    
    Washington Convention                                                                                                                               
     Center Transfer Payment...        0       5,400       0           0       0          0        0       5,400       0          0        0       5,400
    Repayment of Loans and                                                                                                                              
     Interest..................        0     366,976       0           0       0          0        0     366,976       0          0        0     366,976
    Repayment of General Fund                                                                                                                           
     Recovery Debt.............        0      39,020       0           0       0          0        0      39,020       0          0  .......      39,020
    Short-Term Borrowing.......        0      12,000       0           0       0          0        0      12,000       0          0        0      12,000
    Certificate of                                                                                                                                      
     Participation.............        0       7,923       0           0       0          0        0       7,923       0          0        0       7,923
    Human Resources Development        0       6,000       0           0       0          0        0       6,000       0          0        0       6,000
    Management and Productivity                                                                                                                         
     Improvement Fund..........        0       5,000       0           0       0          0        0       5,000       0          0        0       5,000
    Pay-As-You-Go Capital                                                                                                                               
     Outlay....................        0      30,000       0           0       0          0        0      30,000       0          0        0      30,000
    Financial Responsibility                                                                                                                            
     and Management Improvement                                                                                                                         
     Authority.................        0       3,220       0           0       0          0        0       3,220       0          0        0       3,220
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Financing and                                                                                                                              
       Other...................        0     475,539       0           0       0          0        0     475,539       0          0        0     475,539
                                ========================================================================================================================
      Total, General Fund--                                                                                                                             
       Operating Expenses......   25,943   2,646,319   4,527   1,072,455     713    133,301   31,183   3,852,075   1,499    102,269   32,682   3,954,344
                                ========================================================================================================================
Enterprise Funds:                                                                                                                                       
    Water and Sewer Enterprise                                                                                                                          
     Fund:                                                                                                                                              
        Department of Public                                                                                                                            
         Works (Utility                                                                                                                                 
         Administration).......        0           0       0           0       0    263,425        0     263,425       0          0        0     263,425
        Washington Aqueduct....        0           0       0           0       0     33,885        0      33,885       0          0        0      33,885
                                ------------------------------------------------------------------------------------------------------------------------
          Total, Water and                                                                                                                              
           Sewer Enterprise                                                                                                                             
           Fund................        0           0       0           0       0    297,310        0     297,310       0          0        0     297,310
    Lottery and Charitable                                                                                                                              
     Games Enterprise Fund.....        0           0       0           0     100    213,500      100     213,500       0          0      100     213,500
    Office of Cable Television.        8       2,135       0           0       0        332        8       2,467       0          0        8       2,467
    Public Service Commission..        0       4,250       0         117       0        180        0       4,547       0          0        0       4,547
    Office of People's Counsel.        0       2,428       0           0       0          0        0       2,428       0          0        0       2,428
    Insurance and Securities...        0           0       0           0      89      5,683       89       5,683       0          0       89       5,683
    Banking....................        0         100       0           0       0        500        0         600       0          0        0         600
    Sports Commission                                                                                                                                   
     (STARPLEX)................        0           0       0           0       0      5,936        0       5,936       0          0        0       5,936
    D.C. General Hospital......        0           0       0           0       0     59,599        0      59,599       0      4,500        0      64,099
    Retirement Board...........        0           0       0           0       8      4,898        8       4,898       0          0        8       4,898
    Correctional Industries....        0           0       0           0      50      3,332       50       3,332      74      6,100      124       9,432
    Washington Convention                                                                                                                               
     Center....................        0           0       0           0       0     41,000        0      41,000       0      5,400        0      46,400
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Enterprise and                                                                                                                             
       Other Funds.............        8       8,913       0         117     247    632,270      255     641,300      74     16,000      329     657,300
                                ========================================================================================================================
      Total, Operating Expenses   25,951   2,655,232   4,527   1,072,572     960    765,571   31,438   4,493,375   1,573    118,269   33,011   4,611,644
                                ========================================================================================================================
                                                                                                                                                        
Capital Outlay:                                                                                                                                         
    General Fund...............        0     136,585       0     132,745       0          0        0     269,330       0          0        0     269,330
    Water and Sewer............        0           0       0           0       0          0        0           0       0          0        0           0
                                ------------------------------------------------------------------------------------------------------------------------
      Total, Capital Outlay....        0     136,585       0     132,745       0          0        0     269,330       0          0        0     269,330
                                ========================================================================================================================
      Grand Total..............   25,951   2,791,617   4,527   1,205,317     960    765,571   31,438   4,762,705   1,573    118,269   33,011   4,880,974
--------------------------------------------------------------------------------------------------------------------------------------------------------

                             FEDERAL FUNDS

    A total of $2,040,817,000 in Federal funds will be 
available to the District of Columbia government during fiscal 
year 1998. Included in this total are the Federal contribution 
to the operation of the Nation's Capital, payment to the 
District of Columbia Corrections Trustee for Correction 
operations and facilities, District of Columbia courts and 
other related judicial items, District Education and Learning 
Technologies Advancement (DELTA) Council, the Inspector 
General, and a Federal payment for police and fire fighter pay 
raises. Other Federal funds will be received by the District 
from the various Federal grant programs. In addition, Federal 
reimbursements are received from such programs as medicaid and 
medicare.
    The following table summarizes the various Federal funds 
estimated to be available to the District government during 
fiscal year 1998:

                              Federal Funds

        Item
Federal contribution to the operation of the Nation's 
    Capital.............................................    $180,000,000
Payment to the District of Columbia Corrections Trustee 
    for Operations......................................     169,000,000
Payment to the District of Columbia Corrections Trustee 
    for Correctional Facilities, Construction and Repair     302,000,000
District of Columbia Courts.............................     123,000,000
Payment to the Pretrial Services, Defense Services, 
    Parole, Adult Probation, and Offender Supervision 
    Trustee for the District of Columbia................      23,000,000
Federal payment for the Inspector General for 
    investigative efforts...............................       2,000,000
Federal payment for police pay raise....................       5,400,000
Federal payment for fire fighters pay raise.............       2,600,000
District Education and Learning Technologies Advancement 
    (DELTA) Council.....................................       1,000,000
                    --------------------------------------------------------
                    ____________________________________________________
    Subtotal (Federal funds included in this bill)......     808,000,000
Federal grants..........................................   1,205,317,000
Federal reimbursements (estimated)......................      27,500,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total, Federal funds................................   2,040,817,000

                      Federal Payment/Contribution

    The National Capital Revitalization Act of 1997 (Public Law 
105-33) transferred to the Federal government the 
responsibility for several ``state'' functions that were being 
carried out by the District government and eliminated the 
annual Federal payment. The programs and functions transferred 
to the Federal government are estimated to save the District 
government $865,000,000 each fiscal year beginning in fiscal 
year 1998. In exchange, the Federal payment of $660,000,000 was 
eliminated and replaced with a Federal contribution authorized 
at $190,000,000 for fiscal year 1998 and at an indefinite 
amount for future years. As a result, the District government 
is expected to realize a net savings of $235,000,000 annually.
    A summary of the budget savings follows:

Corrections:et Savings \1\                                  ($ millions)
    Adult Felony Prisoners....................................      $169
    Offender Services (Pretrial, Parole, Public Defender).....        23
District Courts (Superior Court, Court of Appeals, Court 
    System)...................................................       123
Pension payments..............................................       250
Increased Federal Medicaid match..............................       140
Special Federal contribution..................................       190
                    --------------------------------------------------------------
                    ____________________________________________________

    Subtotal, Budget Savings..................................       865
Less Federal payment loss.....................................     (660)
                    --------------------------------------------------------------
                    ____________________________________________________

        Net Budget Savings....................................       235

\1\ Budget savings to the District measured as extent to which the 
District operating budget is reduced.

    The Committee recommends a Federal contribution to the 
operations of the Nation's Capital of $180,000,000 for fiscal 
year 1998 which is $10,000,000 below the amount authorized in 
the National Capital Revitalization Act of 1997 and $20,000,000 
above the President's request.
    A table showing the Federal contribution and its 
relationship to general fund local revenue collections for 
fiscal year 1951 through 1998 follows:

              FEDERAL PAYMENT COMPARED TO DISTRICT OF COLUMBIA GENERAL FUND REVENUE LOCAL COLLECTIONS           
                                          [Dollar amounts in thousands]                                         
----------------------------------------------------------------------------------------------------------------
                                                                                                Federal payment 
                                                          Federal payment    General revenue    as a percentage 
                                                            appropriated    local collections   of  general fund
                                                           (general fund)                      local collections
----------------------------------------------------------------------------------------------------------------
1951...................................................             $9,800            $97,866               10.0
1952...................................................             10,400            102,398               10.2
1953...................................................             10,000            104,823                9.5
1954...................................................             11,000            105,456               10.4
1955...................................................             20,000            114,808               17.4
1956...................................................             18,000            122,302               14.7
1957...................................................             20,000            137,280               14.6
1958...................................................             20,000            144,745               13.8
1959...................................................             25,000            149,751               16.7
1960...................................................             25,000            162,888               15.3
1961...................................................             25,000            167,986               14.9
1962...................................................             30,000            181,615               16.5
1963...................................................             30,000            205,298               14.6
1964...................................................             37,500            215,804               17.4
1965...................................................             37,500            230,995               16.2
1966...................................................             44,250            256,398               17.3
1967...................................................             58,000            272,906               21.3
1968...................................................             70,000            301,767               23.2
1969...................................................             89,365            341,033               26.2
1970...................................................        \1\ 116,166            388,523               29.9
1971...................................................        \2\ 131,000            432,010               30.3
1972...................................................            173,654            458,523               37.9
1973...................................................            181,500            505,276               35.9
1974...................................................            187,450            534,253               35.1
1975...................................................            226,200            554,222               40.8
1976...................................................            248,949            628,245               39.6
Transition quarter.....................................             66,138            199,652               33.1
1977...................................................            276,000            754,447               36.6
1978...................................................            276,000            880,699               31.3
1979...................................................        \3\ 250,000            953,697               26.2
1980...................................................            276,500          1,082,209               25.5
1981...................................................            300,000          1,190,596               25.2
1982...................................................            336,600          1,271,727               26.5
1983...................................................        \4\ 361,000          1,402,409               25.7
1984...................................................        \5\ 386,000          1,522,875               25.3
1985...................................................        \6\ 425,000          1,692,804               25.1
1986...................................................            412,388          1,862,043               22.1
1987...................................................            444,500          2,042,444               21.8
1988...................................................            430,500          2,221,290               19.4
1989...................................................            430,500          2,419,603               17.8
1990...................................................        \7\ 430,500          2,502,883               17.2
1991...................................................        \8\ 530,500          2,603,560               20.4
1992...................................................        \9\ 630,500          2,665,101               23.7
1993...................................................       \10\ 624,854          2,808,647               22.2
1994...................................................       \11\ 630,603          2,738,840               23.0
1995...................................................            660,000          2,672,692               24.7
1996...................................................       \12\ 660,000          2,656,115               24.8
1997...................................................       \13\ 660,000          2,655,155               24.9
1998 projected.........................................       \14\ 180,000          2,656,973                6.8
----------------------------------------------------------------------------------------------------------------
\1\ Includes $5,000,000 as provided in Public Law 91-106 for law enforcement activities in fiscal year 1970 only
  and $8,000,000 as provided in Public Law 91-287 for use in defraying the cost of the retroactive pay increase 
  for policemen, firemen, and teachers.                                                                         
\2\ Includes $5,000,000 as provided in Public Law 91-358 for purposes of the D.C. Court Reform and Criminal     
  Procedures Act of 1970.                                                                                       
\3\ Excludes one-time special payment of $9,900,000 for the Federal share of the RFK stadium bond repayment.    
\4\ Excludes one-time payment of $2,342,600 for special crime initiative.                                       
\5\ Excludes one-time special payment of $31,221,600 for crime initiative, Saint Elizabeths Hospital and        
  education.                                                                                                    
\6\ Excludes $20,000,000 one-time special Federal payment for Saint Elizabeths Hospital and $9,873,000 for      
  criminal justice initiative.                                                                                  
\7\ Excludes $15,000,000 special Federal payment for Saint Elizabeths Hospital and $31,772,000 for Drug         
  Emergency.                                                                                                    
\8\ Excludes $10,000,000 special Federal payment for Saint Elizabeths Hospital, $26,708,000 for Drug Emergency, 
  $20,300,000 for new correctional treatment facility, $1,000,000 for Commission on Budget and Financial        
  Priorities, $14,080,000 for Board of Education, $1,141,000 for the Fire Department, $160,000 for the Superior 
  Court, $5,000,000 for D.C. General Hospital, and $3,041,000 for the Department of Human Services.             
\9\ Excludes $75,000 for the Metropolitan Police Department, $3,205,000 for the Board of Education, $9,500,000  
  for D.C. General Hospital, and $500,000 for the Department of Human Services.                                 
\10\ Reflects 24 percent of fiscal year 1991 revenues (two years prior) to budget year. Also, excludes          
  $5,514,000 for inaugural activities and $5,561,600 for a trauma care fund.                                    
\11\ Excludes $17,327,000 for crime and youth initiative.                                                       
\12\ Excludes $15,000,000 authorized in the Department of Justice appropriations for fiscal year 1996, Violent  
  Crime Reduction Programs, State and Local Law Enforcement Assistance.                                         
\13\ Excludes $5,702,000 for Inaugural Expenses.                                                                
\14\ Excludes $169,000,000 payment to the District of Columbia Corrections Trustee for operations, $302,000,000 
  payment to the District of Columbia Corrections Trustee for Correctional Facilities, Construction and Repair, 
  $123,000,000 District of Columbia Courts, $23,000,000 for judicial related agencies, $5,400,000 for police pay
  raise, $2,600,000 for fire fighter pay raises, $2,000,000 for the Inspector General, and $1,000,000 for       
  District Education and Learning Technologies Advancement (DELTA) Council.                                     

                 district of columbia local collections

    The District estimates it will collect a total of 
$2,656,973,000 in local revenues in fiscal year 1998 from 
various taxes, fees, and charges. These collections are 
expected to be $1,818,000 higher than the fiscal year 1997 
revised estimated collections.
    A summary of these revenues comparing fiscal years 1997 and 
1998 by source follows:

                                     DISTRICT OF COLUMBIA LOCAL COLLECTIONS                                     
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                          Fiscal year--                         
                                                                --------------------------------    Increase/   
                                                                  1997 revised        1998           decrease   
----------------------------------------------------------------------------------------------------------------
Revenues:                                                                                                       
  Local sources:                                                                                                
    Property taxes.............................................        $708,900        $717,800          $8,900 
    Sales taxes................................................         533,400         542,900           9,500 
    Income taxes...............................................         684,900         678,000          (6,900)
    Other taxes................................................         456,500         455,200          (1,300)
    Licenses and permits.......................................          49,500          50,100             600 
    Fines and forfeitures......................................          42,100          41,700            (400)
    Service charges............................................          44,300          41,673          (2,627)
    Miscellaneous..............................................          36,400          36,500             100 
                                                                ------------------------------------------------
      Subtotal, local revenues.................................       2,556,000       2,563,873           7,873 
  Other financing sources:                                                                                      
    Sales of surplus property..................................             705               0            (705)
    Other transfers............................................               0               0               0 
    Lottery transfer...........................................          72,600          74,200           1,600 
                                                                ------------------------------------------------
      Total, other financing sources...........................          73,305          74,200             895 
      Total, general fund revenues.............................       2,629,305       2,638,073           8,768 
Additional policies............................................          25,850          18,900          (6,950)
                                                                ------------------------------------------------
      Total, including additional policies.....................       2,655,155       2,656,973           1,818 
----------------------------------------------------------------------------------------------------------------

                       History of Federal Payment

    The Committee is including the usual history of the Federal 
payment and its relationship to the District's appropriated 
budget going back to fiscal year 1921. Figures for fiscal years 
1921 through 1975 reflect general fund appropriations only, 
while appropriations from 1976 through 1980 are for operating 
expenses from all sources which include the general fund as 
well as the water and sewer fund. Appropriations for 1981 
through 1998 estimates include operating expenses from the 
general fund only.
    The history referred to follows:

                            FEDERAL PAYMENT AND ITS RELATIONSHIP TO THE GENERAL FUND                            
----------------------------------------------------------------------------------------------------------------
                                                                                                      U.S. share
                                                  Total           District of                            as a   
                Fiscal year                   appropriations     Columbia share       U.S. share      percent of
                                                                                                        total   
----------------------------------------------------------------------------------------------------------------
1921......................................        $21,474,271        $12,256,178         $9,218,093        42.93
1922......................................         22,977,411         13,784,648          9,192,763        40.01
1923......................................         23,833,043         14,430,265          9,402,778        39.45
1924......................................         23,903,755         14,463,330          9,440,425        39.49
1925......................................         31,175,672         22,030,317          9,145,355        29.33
1926......................................         31,139,730         22,139,638          9,000,092        28.90
1927......................................         33,951,478         24,950,987          9,000,491        26.51
1928......................................         34,894,148         25,892,358          9,001,790        25.80
1929......................................         35,957,970         26,957,753          9,000,217        25.03
1930......................................         40,694,306         31,694,306          9,000,000        22.12
1931......................................         45,625,286         36,125,252          9,500,034        20.82
1932......................................         43,840,022         34,339,911          9,500,111        21.67
1933......................................         39,626,998         31,851,847          7,775,151        19.62
1934......................................         29,700,737         24,000,708          5,700,029        19.19
1935......................................         34,620,004         30,080,709          4,539,295        13.11
1936......................................         38,295,953         32,588,424          5,707,529        14.90
1937......................................         40,182,768         35,177,768          5,005,000        12.46
1938......................................         41,143,818         36,118,792          5,025,026        12.21
1939......................................         40,494,451         35,494,451          5,000,000        12.35
1940......................................         41,777,885         35,777,768          6,000,117        14.36
1941......................................         43,136,909         37,136,909          6,000,000        13.91
1942......................................         47,401,269         41,401,269          6,000,000        12.66
1943......................................         49,422,932         43,422,932          6,000,000        12.14
1944......................................         54,642,247         48,642,247          6,000,000        10.98
1945......................................         62,599,125         56,599,125          6,000,000         9.58
1946......................................         64,728,423         58,728,423          6,000,000         9.27
1947......................................         72,584,314         64,584,314          8,000,000        11.02
1948......................................         81,744,086         70,744,086         11,000,000        13.46
1949......................................         86,017,985         75,017,985         11,000,000        12.79
1950......................................         98,331,275         87,331,275         11,000,000        11.19
1951......................................        103,924,822         94,124,822          9,800,000         9.43
1952......................................        121,265,978        110,865,978         10,400,000         8.58
1953......................................        113,589,327        103,589,327         10,000,000         8.80
1954......................................        129,111,304        118,111,304         11,000,000         8.52
1955......................................        139,578,760        119,578,760         20,000,000        14.33
1956......................................        143,179,303        125,179,303         18,000,000        12.57
1957......................................        155,579,025        135,579,025         20,000,000        12.86
1958......................................        166,096,999        146,096,999         20,000,000        12.04
1959......................................        185,915,914        160,915,914         25,000,000        13.45
1960......................................        199,806,074        174,806,074         25,000,000        12.51
1961......................................    \1\ 199,522,707        174,522,707         25,000,000        12.53
1962......................................        209,571,780        179,571,780         30,000,000        14.31
1963......................................        224,594,494        194,594,494         30,000,000        13.36
1964......................................        240,934,361        203,434,361         37,500,000        15.56
1965......................................        265,062,212        227,562,212         37,500,000        14.15
1966......................................        285,093,147        240,843,147         44,250,000        15.52
1967......................................        318,057,766        260,057,766         58,000,000        18.24
1968......................................        371,269,747        301,269,747         70,000,000        18.85
1969......................................        435,474,907        346,109,907         89,365,000        20.52
1970......................................        528,960,521        412,794,521    \2\ 116,166,000        21.96
1971......................................        591,262,769        460,262,769    \3\ 131,000,000        22.16
1972......................................        641,466,600        467,812,600        173,654,000        27.07
1973......................................        718,091,300        536,591,300        181,500,000        25.28
1974......................................        777,764,647        590,314,647        187,450,000        24.10
1975......................................        845,616,600        619,416,600        226,200,000        26.75
1976......................................      1,042,142,700        793,194,000        248,948,700        23.89
1977......................................      1,130,505,900        854,505,900        276,000,000        24.41
1978......................................      1,260,791,300        984,791,300        276,000,000        21.89
1979......................................      1,335,746,400      1,085,746,400    \4\ 250,000,000        18.72
1980......................................      1,426,093,300      1,149,593,300        276,500,000        19.39
1981......................................      1,457,886,500      1,157,886,500        300,000,000        20.58
1982......................................      1,586,298,000      1,249,698,000        336,600,000        21.22
1983......................................      1,792,104,300      1,431,104,300    \5\ 361,000,000        20.14
1984......................................      1,897,285,000      1,511,285,000    \6\ 386,000,000        20.34
1985......................................      2,076,246,000      1,651,246,000    \7\ 425,000,000        20.47
1986......................................      2,247,906,000      1,835,517,650        412,388,350        18.35
1987......................................      2,461,113,000      2,016,613,000        444,500,000        18.06
1988......................................      2,701,265,000      2,270,765,000        430,500,000        15.94
1989......................................      2,862,130,000      2,431,630,000        430,500,000        15.04
1990......................................      3,107,833,000      2,677,333,000    \8\ 430,500,000        13.85
1991......................................      3,204,698,000      2,674,198,000    \9\ 530,500,000        16.55
1992......................................      3,301,426,000      2,670,926,000   \10\ 630,500,000        19.10
1993......................................      3,286,294,000      2,661,439,600   \11\ 624,854,400        19.01
1994......................................      3,352,102,000      2,721,499,000   \12\ 630,603,000        18.81
1995......................................      3,254,904,000      2,594,904,000        660,000,000        20.28
1996 approved.............................      3,449,037,000      2,789,037,000   \13\ 660,000,000        19.14
1997 approved.............................      3,399,927,000      2,739,927,000   \14\ 660,000,000        19.41
1998 recommended..........................      2,646,319,000      2,466,319,000   \15\ 180,000,000        6.80 
----------------------------------------------------------------------------------------------------------------
\1\ Excludes appropriations for capital outlay beginning with fiscal year 1961.                                 
\2\ Includes $5,000,000 as provided in Public Law 91-106 for law enforcement activities in fiscal year 1970 only
  and $8,000,000 as provided in Public Law 91-287 for use in defraying the cost of the retroactive pay increase 
  for policemen, firemen, and teachers.                                                                         
\3\ Excludes $5,000,000 as provided in Public Law 91-358 for purposes of the D.C. Court Reform and Criminal     
  Procedures Act of 1970.                                                                                       
\4\ Excludes one-time special payment of $9,900,000 for the Federal share of the RFK stadium bond repayment.    
\5\ Excludes one-time payment of $2,342,600 for special crime initiative.                                       
\6\ Excludes one-time special payment of $31,221,600 for crime initiative, Saint Elizabeths Hospital and        
  education.                                                                                                    
\7\ Excludes $20,000,000 one-time special Federal payment for Saint Elizabeths Hospital and $9,873,000 for      
  criminal justice initiative.                                                                                  
\8\ Excludes $15,000,000 special Federal payment for Saint Elizabeths Hospital and $31,772,000 for Drug         
  Emergency.                                                                                                    
\9\ Excludes $10,000,000 special Federal payment for Saint Elizabeths Hospital, $26,708,000 for Drug Emergency, 
  $20,300,000 for new correctional treatment facility, $1,000,000 for Commission on budget and Financial        
  Priorities, $14,080,000 for Board of Education, $1,141,000 for the Fire Department, $160,000 for the Superior 
  Court, $5,000,000 for D.C. General Hospital, and $3,041,000 for the Department of Human Services.             
\10\ Excludes $75,000 for the Metropolitan Police Department, $3,205,000 for the Board of Education, $9,500,000 
  for D.C. General Hospital, and $500,000 for the Department of Human Services.                                 
\11\ Excludes $5,514,000 for inaugural activities and $5,561,600 for a trauma care fund.                        
\12\ Excludes $17,327,000 for crime and youth initiative.                                                       
\13\ Excludes $15,000,000 authorized in the Department of Justice appropriations for fiscal year 1996, Violent  
  Crime Reduction Programs, State and Local Law Enforcement Assistance.                                         
\14\ Excludes $5,702,000 for Inaugural Expenses.                                                                
\15\ Excludes $169,000,000 payment to the District of Columbia Corrections Trustee for operations, $302,000,000 
  payment to the District of Columbia Corrections Trustee for Correctional Facilities, Construction and Repair, 
  $123,000,000 District of Columbia Courts, $23,000,000 for judicial related agencies, $5,400,000 for police pay
  raise, $2,600,000 for fire fighter pay raises, $2,000,000 for the Inspector General, and $1,000,000 for       
  District Education and Learning Technologies Advancement (DELTA) Council.                                     

                 Federal Contribution to Pension Funds

    The National Capital Revitalization Act of 1997 (Public Law 
105-33) transferred to the Federal government responsibility 
for the District's unfunded pension liability for police 
officers, fire fighters, teachers, and judges and repealed 
section 144 of the D.C. Retirement Reform Act of 1979 (Public 
Law 96-122), which authorized the annual Federal contribution 
of $52,070,000 to the retirement funds through fiscal year 
2004. Approximately $3,000,000,000 of the D.C. Retirement 
Board's assets of $4,400,000,000 will be transferred to the 
Secretary of the Treasury to make pension payments to current 
and future retirees. The Board's actuary has estimated that the 
cumulative total of benefit payments that the Federal 
government will make over the next 74 years will be 
$33,500,000,000 with the payments peaking in fiscal year 2025 
at $919,000,000.

                    Office of the Inspector General

    The Committee recommends an additional $2,000,000 in 
Federal funds and 8 full-time equivalent positions for the 
Office of the Inspector General to increase the level of 
activity in the prevention and detection of fraud, waste and 
abuse in District government programs and operations. It is the 
Committee's intention that the Inspector General improve the 
effectiveness of the office's Hot-Line through increased 
advertising and education of all District government employees 
and customers who transact business with the District. All 
permits and application forms printed in the future should 
contain the Hot-Line number and information on its purpose and 
the confidentiality of callers.

                     Metropolitan Police Department

    Federal funds for pay raise.--The Committee recommends a 
special one-time Federal contribution of $5,400,000 for fiscal 
year 1998 for a 5 percent pay increase for sworn officers upon 
the adoption and certification of performance standards 
provided to the Committee in May of 1997. This pay increase is 
limited to sworn officers who are certified as meeting the 
standards and who perform primarily nonadministrative public 
safety services. The pay raise is intended to be distributed 
throughout the fiscal year as the qualification requirements 
are met. The Committee believes that this raise, in addition to 
the 10 percent provided in fiscal year 1997, will bring 
officers on the street to a pay level comparable with law 
enforcement officials in surrounding jurisdictions.
    Citizens Advisory Council.--The Committee commends the work 
of the Metropolitan Police Department and the Memorandum of 
Understanding (MOU) partners in improving law enforcement and 
public safety in the District of Columbia. The Committee is 
pleased with the commitment to community policing and urges 
that the MOU partners include a representative of the Citizen's 
Advisory Council (CAC) in future meetings to closer relations 
with the community. The Committee encourages the MPD to make 
every effort to provide the CAC representative with support and 
assistance in their work with the MOU partners.
    Firearms.--The Committee is concerned about the violent 
crime that plagues the District and the inability of District 
citizens and visitors to protect their families, homes and 
themselves. The District's current laws make it difficult, if 
not impossible, for law abiding citizens to keep a firearm in 
the home, and, by policy, the District refuses to license the 
carrying of a firearm for self-protection. Although it is 
virtually impossible for an honest citizen to own or carry a 
firearm in the District, section 22-3206 of the D.C. Code 
allows the Chief of the Metropolitan Police Department to issue 
permits to carry a firearm to qualified applicants.
    The Committee requests that the Chief of Police provide a 
report by January 31, 1998, on the following: (1) the number of 
permits to carry a firearm issued to citizens of the District; 
(2) the number of permits issued to retired law enforcement 
officers; (3) the number of rifles/shotguns registered with the 
Metropolitan Police Department; (4) the number of handguns 
currently registered pursuant to the 1976 ban on handguns; (5) 
the number of legally-owned firearms reported stolen since 
1990; (6) the number of incidents since 1990 where a legally or 
illegally owned firearm was used for self-protection or to 
prevent a crime; and (7) the number of times individuals were 
charged with the commission of a crime while in possession of a 
firearm.

                            Fire Department

    Federal funds for pay raise.--A special one-time Federal 
contribution of $2,600,000 is recommended to cover the costs of 
a 5 percent pay raise for uniformed fire fighters in an effort 
to bring their compensation to a level comparable to fire 
fighters in surrounding jurisdictions.
    Procurement authority.--The Committee continues to be 
concerned with the age and condition of fire fighting equipment 
and encourages the department and the control board to take all 
necessary steps to improve the condition and maintenance of the 
department's equipment. Accordingly, the Committee recommends 
bill language that will provide the department with the ability 
to engage in procurement on the same basis as the Police 
Department.
    Overtime.--The department is encouraged to act 
expeditiously in processing individuals currently on extended 
leave while awaiting a determination of their disability 
retirement status and in reforming the use of overtime by fire 
fighters. The Committee continues to be concerned about the 
amount of overtime paid to fire fighters and directs the 
department and the control board to work to implement policies 
which will reduce overtime without endangering fire protection.

              Federal Contribution to D.C. Public Schools

    The Committee recommends an appropriation of $1,000,000 in 
Federal funds for the District's public schools for payment to 
the District Education and Learning Technologies Advancement 
(DELTA) Council authorized by section 2604 of the District of 
Columbia School Reform Act of 1995 (Public Law 104-134). The 
objective of the DELTA Council is designed to be the formal 
private sector entity to solicit, organize, and coordinate 
private sector contributions to the public schools and secure 
contributions of technology, equipment, hardware and software, 
and pro bono contributions of time and expertise of private 
sector personnel. These Federal funds will be matched with 
private contributions of $3,000,000 which will provide a total 
of $4,000,000 to be used to coordinate educational technology 
advancement between business and the District's public schools. 
Considerable assistance is expected from the business community 
and nonprofit organizations.

              Federal Payment to the District of Columbia

                     Corrections Trustee Operations

    A Federal payment of $169,000,000 is recommended by the 
Committee for the operations of the District of Columbia 
Corrections Trustee. These funds will be used for the operation 
of the District'scorrectional facilities during the transition 
period while the District is housing adult felons who will eventually 
be transferred to the Federal government.

              Federal Payment to the District of Columbia

                        Corrections Trustee for

            Correctional Facilities, Construction and Repair

    The Committee recommends $302,000,000 for payment to the 
D.C. Corrections Trustee, the full amount requested, for 
construction and repair of correctional facilities. As 
authorized in section 11202(c) of the National Capital 
Revitalization and Self-Government Improvement Act of 1997, 
$294,900,000 is provided to the Bureau of Prisons for 
construction of facilities to accommodate the transfer of D.C. 
adult sentenced felons to the Federal Prison System. In 
addition, the Committee has earmarked $7,100,000 in Federal 
funds to be spent on immediate security improvements and 
repairs at the Lorton Correctional Complex. Lorton's state of 
disrepair has been documented in recent studies conducted by 
the National Council on Crime and Delinquency and the National 
Institute of Justice. Although the Lorton facility is scheduled 
to be closed in 2001, immediate steps should be taken to ensure 
the safety of the neighboring communities and the inmates until 
the facility is closed. The Committee directs the Trustee to 
develop a schedule for the completion of security improvements 
and repairs at the Lorton Correctional Complex and report back 
to Congress by January 15, 1998.
    The Committee understands that funding provided to the 
Bureau of Prisons will support the full construction costs of 
two U.S. Penitentiaries as well as site selection and planning 
for four Federal Correctional Institutions. The Committee 
expects the Bureau of Prisons to evaluate appropriate sites for 
construction of new facilities or expansion of planned or 
existing facilities, including sites in the District of 
Columbia, West Virginia, Pennsylvania, North Carolina and 
Kentucky, and provide a report to the Committee on site 
proposals by February 1, 1998. The Committee also expects the 
Bureau to report to the Committee by February 1, 1998, on how 
it will meet the privatization requirements contained in the 
National Capital Revitalization and Self-Government Improvement 
Act of 1997. The report should include, but not be limited to: 
(1) the number and timing of prisoners to be housed in private 
facilities; and (2) the functions for which the Bureau intends 
to use private contractors to fulfill these requirements.

                   Executive Office of the President

              Federal Payment to the District of Columbia

                        Criminal Justice System

                     (Including Transfer of Funds)

    The Committee recommends an appropriation of $146,000,000 
for fiscal year 1998 to the Office of Management and Budget 
(OMB) for transfer to the District of Columbia Court System to 
implement those provisions of the National Capital 
Revitalization and Self-Government Improvement Act of 1997 
associated with the District of Columbia Criminal Justice 
System. The $146,000,000 is appropriated to OMB; however, the 
funds shall be transferred to implement the Act as follows: 
$121,000,000 for the operations of the District of Columbia 
Courts; $2,000,000 for the District of Columbia Truth in 
Sentencing Commission; $22,200,000 for expenses relating to 
pretrial services, defense services, parole, adult probation 
and offender supervision in the District of Columbia, and for 
operating expenses of the Pretrial Services, Defense Services, 
Parole, Adult Probation, and Offender Supervision Trustee who 
will administer these programs; and $800,000 to the United 
States Parole Commission.
    In appropriating the funds to the Office of Management and 
Budget in lieu of the State Justice Institute (SJI) as was 
authorized in the Act, the Committee believes that the SJI does 
not have sufficient staffing and expertise to exercise the 
required financial management and oversight of these funds. The 
Committee also understands that SJI does not have a direct 
account with the Treasury and that the General Services 
Administration currently services financial transactions 
between the Treasury and SJI. The Committee believes that 
appropriating these funds to SJI would further complicate the 
administration of the D.C. Court System. Other alternatives 
considered by the Committee were the Department of Justice and 
the Administrative Office of the U.S. Courts; however, because 
of potential conflicts of interest and separation of powers 
issues, the Committee believes it would be inappropriate for 
funds associated with a local court system to be appropriated 
to either of these entities.
    The Committee believes that the Office of Management and 
Budget, on the other hand, is uniquely qualified to be the 
Federal entity responsible for implementing the D.C. criminal 
justice system provisions of the National Capital 
Revitalization and Self-Government Improvement Act of 1997, for 
the following reasons:
    1. Under the Act, budget estimates of expenditures and 
appropriations needed for the D.C. Criminal Justice System will 
be prepared by the Courts and the Trustee and submitted to the 
Mayor, the D.C. Council and OMB. The President is to include 
these estimates ``with revision''. The Act makes these 
estimates subject to the President's recommendations. Any such 
recommendations will be prepared by OMB following its close 
review of the budget submission. Unique among all Federal 
entities, OMB will be intimately familiar with this budget and 
will be in the best position to administer these funds to the 
D.C. Criminal Justice System.
    2. OMB currently is responsible for government-wide 
financial management and could assume similar financial 
management responsibilities for the D.C. Court System.
    3. OMB currently is responsible for developing government-
wide policies governing administrative, operational and 
personnel management. These services could be utilized by the 
D.C. Court System.
    4. The D.C. Court System could also make valuable use of 
OMB's acknowledged expertise in the area of promoting economy, 
efficiency and effectiveness in the procurement of supplies, 
equipment and services.
    5. Since OMB has no criminal justice responsibilities, its 
involvement with the D.C. Court System's budget will raise no 
conflict of interest issues.

                       United States Park Police

    The Committee recommends $12,500,000 in Federal funds to 
reimburse the United States Park Police for policing services 
performed within the District of Columbia. The United States 
Park Police have jurisdiction over the entire District of 
Columbia and serve as an integral part of the District's public 
safety force while writing over $5,000,000 in citations 
annually for the city and making a substantial portion of the 
total arrests recorded by District public safety officials. In 
addition, the United States Park Police operate the only 
aviation unit in the District. The aviation unit provides 
considerable assistance to the Metropolitan Police Department. 
The Committee has determined that the District would have to 
spend $12,500,000 annually to provide the public safety 
functions currently provided by the United States Park Police.

                    Educational Choice Scholarships

    The Committee recommends $7,000,000 in Federal funds to 
provide scholarships that will enable children of low-income 
families to have an educational choice which at the present 
time is only available to those of greater financial means.
    Under this program, a non-profit corporation is established 
to administer tuition, tutoring and transportation scholarships 
for District residents. For students whose family income is 
below the poverty level, tuition scholarships will cover the 
cost of tuition up to $3,200. For students whose family's 
income is between 100 percent and 185 percent of the poverty 
level, the scholarships will pay three-quarters of the tuition 
up to $2,400. Tuition scholarships may be used at private 
schools in the District and in public or private schools in 
surrounding jurisdictions. Tutoring and transportation 
assistance scholarships will cover the full cost of such 
activities, up to $500, for students whose family incomes are 
no more than 185 percent of the poverty level. Scholarships are 
awarded randomly to student applicants who are District of 
Columbia residents, enrolled in school, and within the income 
limits. This scholarship program operates in a manner similar 
to the G.I. Bill and Federal day care assistance where the 
choice of where the funds are expended is made by the 
scholarship recipient rather than the government. Language in 
the bill protects students' civil rights, and the rights of 
students with disabilities.
    The nonprofit corporation established to administer the 
program is overseen by a seven-member Board of Directors, six 
appointed by the President from nominations submitted by the 
Speaker of the House and the President of the Senate, and one 
appointed by the Mayor of the District of Columbia. The 
corporation is not an agency or entity of the U.S. or the 
District of Columbia governments.

                             Federal Grants

    The District of Columbia participates as a State, county 
and city in the various Federal grant programs. At the time the 
fiscal year 1998 budget was submitted the city estimated that 
it would receive a total of $1,205,317,000 in Federal grants 
during the coming fiscal year.
    The following table shows the amount of Federal grants the 
city expects to receive and the office of agency that expects 
to receive them:

     Summary of Federal grant assistance to the District of Columbia

        Agency                                             1998 estimate
Governmental Direction and Support:
    Office of Grants Management and Development.........      14,013,000
                    ========================================================
                    ____________________________________________________
Economic Development and Regulation:
    Business Services and Economic Development..........         552,000
    Department of Employment Services...................      32,802,000
    Department of Consumer and Regulatory Affairs.......       8,711,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total, Economic Development and Regulation......      42,065,000
                    ========================================================
                    ____________________________________________________
Public Safety and Justice:
    Metorpolitan Police Department......................      12,020,000
    Office of Emergency Preparedness....................       1,499,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total, Public Safety and Justice................      13,519,000
                    ========================================================
                    ____________________________________________________
Public Education System:
    Public Schools......................................      98,491,000
    University of the District of Columbia..............      12,804,000
    Public Library......................................       1,158,000
    Commission on the Arts and Humanities...............         353,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total, Public Education System..................     112,806,000
                    ========================================================
                    ____________________________________________________
Human Support Services:
    Department of Human Development.....................     254,846,000
    Department of Health................................     620,674,000
    Department of Recreation and Parks..................          34,000
    Office on Aging.....................................       5,055,000
    Public Benefit Corporation..........................       1,462,000
    Department of Human Rights..........................         106,000
    Energy Office.......................................       4,525,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total, Human Support Services...................     886,702,000
                    ========================================================
                    ____________________________________________________
Public Works:
    Department of Public Works..........................       3,350,000
                    ========================================================
                    ____________________________________________________
Public Service Commission...............................         117,000
                    ========================================================
                    ____________________________________________________
        Total, Federal grants--operating expenses.......   1,072,572,000
Capital outlay-grants...................................     132,745,000
                    --------------------------------------------------------
                    ____________________________________________________
        Grand Total, federal grants.....................   1,205,317,000

                      Balanced Budget Recommended

    The Committee is recommending a balanced budget in 
accordance with the District government's request. It is 
estimated that sufficient resources will be available from 
current revenue authority and pending authority to finance the 
operating expense. A financial plan for each of the six 
categories of operating expenses--(1) general fund, (2) 
University of the District of Columbia and D.C. School of Law, 
(3) water and sewer fund, (4) Lottery and Charitable Games 
fund, (5) Cable Television fund, and (6) D.C. Sports Commission 
(STARPLEX FUND), (7) D.C. General Hospital fund, and (8) 
Washington Convention Center follows:

                    FISCAL YEAR 1998 FINANCIAL PLANS                    
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                               Grants and               
            Revenue              Local funds      other      Gross funds
                                                 revenue                
------------------------------------------------------------------------
Local sources, current                                                  
 authority:                                                             
    Property taxes............       717,800             0       717,800
    Sales taxes...............       542,900             0       542,900
    Income taxes..............       835,400             0       835,400
    Other taxes...............       297,800             0       297,800
    Licenses, permits.........        50,100             0        50,100
    Fines, forfeitures........        41,700             0        41,700
    Service charges...........        41,673             0        41,673
    Miscellaneous.............        36,500       133,301       169,801
    Unallocated tax reduction.         (\1\)             0         (\1\)
                               -----------------------------------------
      Subtotal, local revenues     2,563,873       133,301     2,497,174
                               =========================================
Federal sources:                                                        
    Federal contribution......       180,000             0       180,000
    Federal payment Inspector                                           
     General..................         2,000             0         2,000
    Federal payment for police                                          
     pay raise................         5,400             0         5,400
    Federal payment for fire                                            
     pay raise................         2,600             0         2,600
    Federal payment for DELTA                                           
     Council..................         1,000             0         1,000
    Grants....................             0     1,072,455     1,072,455
                               -----------------------------------------
      Subtotal, Federal                                                 
       sources................       191,000     1,072,455     1,263,455
                               =========================================
Other financing sources:                                                
    Sale of surplus property..             0             0             0
    Lottery transfer..........        74,200             0        74,200
                               -----------------------------------------
      Subtotal, other                                                   
       financing sources......        74,200             0        74,200
                               =========================================
FY 1997 Additional Policies                                             
 Executed.....................        12,900             0        12,900
FY 1998 Additional Policies                                             
 Executed.....................         6,000             0         6,000
                               -----------------------------------------
      Total, general fund                                               
       revenues...............     2,847,973     1,205,756     4,053,729
                               =========================================
Expenditures:                                                           
    Current operating:                                                  
        Governmental direction                                          
         and support..........        98,316        20,861       119,177
        Economic development                                            
         and regulation.......        40,377        79,695       120,072
        Public safety and                                               
         justice..............       483,557        19,413       502,970
        Public education                                                
         system...............       493,406       105,951       599,357
        Human support services       746,477       928,127     1,674,604
        Public works..........       227,983        13,951       241,934
        Other.................        61,056             0        61,056
        Cost-saving                                                     
         initiatives..........         (\2\)             0         (\2\)
                               -----------------------------------------
          Subtotal, current                                             
           operating..........     2,151,172     1,167,998     3,319,170
                               =========================================
Other financing uses:                                                   
    Debt service--principal                                             
     and interest.............       417,996             0       417,996
    D.C. General..............        42,873         1,462        44,335
    University of the District                                          
     of Columbia..............        37,791        36,296        74,087
    Convention Center.........         5,400             0         5,400
                               -----------------------------------------
      Subtotal, other                                                   
       financing uses.........       504,060        37,758       541,818
                               =========================================
      Total, general fund                                               
       expenditures...........     2,655,232     1,205,756     3,860,988
                               =========================================
      Revenue versus                                                    
       expenditures...........       192,741             0       192,741
------------------------------------------------------------------------
\1\ Indefinite amount up to $100,000,000 consisting of revenues in      
  excess of revenues projected in the FY 1998 budget.                   
\2\ Indefinite amount up to $100,000,000 resulting from implementation  
  of cost-saving initiatives described in the FY 1998 D.C. budget       
  submission of June 1997.                                              


------------------------------------------------------------------------
                                                 Grants and             
       Enterprise Fund Data        Local funds     other     Gross funds
                                                  revenue               
------------------------------------------------------------------------
Enterprise fund expenditures:                                           
  Water and sewer administration.  ...........      263,425      263,425
  Washington aqueduct............  ...........       33,885       33,885
  DC Lottery and charitable games  ...........      213,500      213,500
  Cable television...............  ...........          332          332
  Retirement Board...............  ...........        4,898        4,898
  DC General Hospital............  ...........       59,599       59,599
  Correctional Industries........  ...........        3,332        3,332
  DC Sports Commission...........  ...........        5,936        5,936
  Washington Convention Center...  ...........       41,000       41,000
  Public Service Commission......  ...........          297          297
  Office of the People's Counsel.  ...........  ...........  ...........
  Insurance and Securities.......  ...........        5,683        5,683
  Banking........................  ...........          500          500
                                  --------------------------------------
      Total, enterprise fund                                            
       revenues..................  ...........      632,387      632,387
                                  ======================================
Enterprise fund revenues:                                               
  Water and sewer administration.  ...........      263,425      263,425
  Washington aqueduct............  ...........       33,885       33,885
  DC Lottery and charitable games  ...........      213,500      213,500
  Cable television...............  ...........          332          332
  Retirement Board...............  ...........        4,898        4,898
  DC General Hospital............  ...........       59,599       59,599
  Correctional Industries........  ...........        3,332        3,332
  DC Sports Commission...........  ...........        5,936        5,936
  Washington Convention Center...  ...........       41,000       41,000
  Public Service Commission......  ...........          297          297
  Office of the People's Counsel.  ...........  ...........  ...........
  Insurance and Securities.......  ...........        5,683        5,683
  Banking........................  ...........          500          500
                                  --------------------------------------
      Total, enterprise fund                                            
       expenditures..............  ...........      632,387      632,387
                                  ======================================
      Revenue versus expenditures  ...........  ...........  ...........
                                  ======================================
      Total operating revenue....    2,847,973    1,838,143    4,686,116
                                  ======================================
      Total operating                                                   
       expenditures..............    2,655,232    1,838,143    4,493,375
                                  ======================================
      Revenue versus expenditures      192,741  ...........      192,741
                                  ======================================
------------------------------------------------------------------------


          UNIVERSITY OF THE DISTRICT OF COLUMBIA FINANCIAL PLAN         
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                        Fiscal      Fiscal      Fiscal  
                                       year 1996   year 1997   year 1998
------------------------------------------------------------------------
Revenue:                                                                
  Tuition...........................     12,294      11,400      13,458 
  Intra-District charges............      7,542       6,716       7,200 
  Federal grants and contracts......      8,775       8,381      12,804 
  Private grants and contracts......      1,200         675       3,943 
  Land-grant endowment income.......        607         503         470 
  Auxiliary enterprises.............        354         534         400 
  Investment income.................        447         400         160 
  Miscellaneous income..............      3,172       3,295       5,061 
                                     -----------------------------------
      Total revenue.................     34,391      31,904      43,496 
                                     ===================================
Expenses:                                                               
  Personal services.................     57,496      50,218      52,883 
  Contractual services..............      5,809       5,156       9,204 
  Supplies..........................        611         363         736 
  Occupancy costs...................      5,942       6,200       5,839 
  Depreciation......................      6,752       6,976       6,800 
  Miscellaneous.....................      6,981       7,805      12,625 
                                     -----------------------------------
      Total expenses................     83,591      76,718      88,087 
                                     ===================================
Income (loss) before operating                                          
 transfer...........................    (49,200)    (44,814)    (44,591)
Operating transfer-in (out) General                                     
 fund...............................     42,924      37,797      37,791 
                                     -----------------------------------
  Net income (loss).................     (6,276)     (7,017)     (6,800)
  Depreciation closed in contributed                                    
   capital..........................      6,752       6,976       6,800 
                                     -----------------------------------
  Increase/decrease.................        476         (41)  ..........
Retained earnings (deficit) at                                          
 beginning of year..................      9,116       9,592       9,551 
                                     -----------------------------------
Retained earnings (deficit) at end                                      
 of year............................      9,592       9,551       9,551 
------------------------------------------------------------------------


                     D.C. WATER AND SEWER AUTHORITY                     
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                 Fiscal year                            
          Operations             1996 Actual   Fiscal year   Fiscal year
                                   budget     1997 revised   1996 budget
------------------------------------------------------------------------
Cash Provided:                                                          
  Retail......................      135,932       148,838       187,119 
  Wholesale...................       43,749        46,991        60,719 
  Other.......................        6,129         7,032        15,587 
                               -----------------------------------------
      Total Cash Provided.....      185,810       202,861       263,425 
Cash Used:                                                              
  Salaries and Wages..........       59,175        58,446        67,064 
  Supplies....................       14,344        14,782        26,418 
  Energy, Fuel Communications,                                          
   Space Rental...............       15,490        16,468        16,021 
  Contracts...................       45,341        45,172        59,899 
  Equipment...................          871         2,561        15,784 
                               -----------------------------------------
      Total Operating Cash                                              
       Used...................      135,221       137,429       185,186 
Other Cash Used:                                                        
  Debt Service................       39,190        41,907        41,423 
  Capital Transfer............       (5,741)       (3,454)            0 
  Payment-in-lieu-of-Tax......            0        19,500        19,500 
  Refund to Jurisdictions.....            0         4,274             0 
  Water purchases--O&M........       13,950        16,481        17,316 
  Water purchases--Treasury                                             
   Debt Service...............            0             0         1,384 
                               -----------------------------------------
      Total Other Cash Used...       47,399        78,708        79,623 
                               -----------------------------------------
      Total Cash Used.........      182,620       216,137       264,809 
Net Cash Provided (Used) by                                             
 Operating Activities.........        3,190       (13,276)       (1,384)
  Operating Cash Reserves,                                              
   October 1, 1996............            0             0           249 
  Cash reserves recovered from                                          
   the District...............       95,280        18,200        18,200 
  Transfer to escrow for water                                          
   purchases..................            0        (4,675)            0 
                               -----------------------------------------
  Operating Cash Reserves,                                              
   September 30, 1997.........       98,470           249        17,065 
Capital Improvement Program:                                            
Cash Provided:                                                          
  EPA Grants..................        3,753         1,314         7,178 
  Bond Proceeds...............            0             0        52,996 
  Interim Financing...........            0        12,000             0 
  IMA 1985 Equity Payment.....            0         7,783             0 
  IMA Capital Payments........       11,696        19,766        27,838 
  Treasury Notes (Washington                                            
   Aqueduct)..................            0         4,666        22,418 
                               -----------------------------------------
      Total Cash Provided.....       15,449        45,529       110,430 
Use of Cash:                                                            
  Capital Program.............       34,824        37,665        88,012 
  Washington Aqueduct Capital                                           
   Program....................        2,576         4,666        22,418 
  Washington Aqueduct Capital                                           
   Advance....................       11,024             0             0 
                               -----------------------------------------
      Total Cash Used.........       48,424        42,331       110,430 
Net Cash Provided (Used)......      (32,975)        3,198             0 
  Beginning Balance...........       17,741             0         3,198 
                               -----------------------------------------
  Ending Balance..............      (15,234)        3,198         3,198 
Escrow Funds..................            0         4,675         4,675 
  Beginning Balance, All Funds      113,021             0         3,447 
  Ending Balance, All Funds...       83,236         8,122        24,938 
------------------------------------------------------------------------


                                           D.C. LOTTERY FINANCIAL PLAN                                          
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                 Fiscal year--                  
                                                             ---------------------------------------------------
                                                                                            1997                
                                                                  1996         1997       Revised        1998   
----------------------------------------------------------------------------------------------------------------
Operating revenue:                                                                                              
    Sales:                                                                                                      
        Instant lottery.....................................      27,480       28,500       24,000       25,000 
        Lucky numbers.......................................      81,087       92,500       81,000       83,000 
        DC four.............................................      54,280       58,000       56,000       55,000 
        Powerball...........................................       8,895        9,278        7,500        8,500 
        Quick cash..........................................      38,878       38,000       31,000       35,000 
        Daily millions......................................  ...........       2,000        5,500        5,000 
    Fees:                                                                                                       
        Charitable games....................................  ...........  ...........  ...........  ...........
                                                             ---------------------------------------------------
          Total operating revenue...........................     210,620      228,278      205,000      211,500 
                                                             ===================================================
Operating expenses:                                                                                             
    Administration..........................................       7,140        7,850        7,350        7,850 
    Prize...................................................     103,596      116,191       99,800       99,848 
    Contractual services....................................      12,539       15,323       13,272       15,094 
    Agent commissions.......................................      11,141       12,564       11,178       11,858 
    Advertising.............................................       3,101        5,350        4,900        7,850 
                                                             ---------------------------------------------------
      Total operating expenses..............................     137,517      157,278      136,500      142,500 
                                                             ===================================================
Operating income (loss).....................................      73,103       71,000       68,500       69,000 
Nonoperating revenue (expenses): Interest...................       2,408        1,500        1,500        2,000 
                                                             ---------------------------------------------------
Income loss before operating transfers......................      75,511       72,500       70,000       71,000 
Operating transfers in (out)................................     (75,250)     (72,500)     (70,000)     (71,000)
                                                             ===================================================
Net income..................................................         261   ...........  ...........  ...........
Fund equity (deficit) at beginning of year..................       2,655        2,916        2,916        2,916 
Fund equity (deficit) at end of year........................       2,916        2,916        2,916        2,916 
----------------------------------------------------------------------------------------------------------------


                     CABLE TELEVISION FINANCIAL PLAN                    
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                               Fiscal year--            
                                  --------------------------------------
                                                                 1998   
                                   1996 actual  1997 budget   requested 
------------------------------------------------------------------------
Operating revenue:                                                      
    Franchise fees...............       2,385        2,473        2,590 
    Other revenue................         187          332          332 
                                  --------------------------------------
      Total operating revenue....       2,572        2,805        2,922 
                                  ======================================
Operating expenses:                                                     
    Personal services............         324          394          394 
    Supplies.....................           6            6            6 
    Energy.......................           1            6            6 
    Communication................          63           72           72 
    Rent.........................         667          732          732 
    Contracting services.........         308          880          900 
    Subsidies and transfers......          43   ...........  ...........
    Depreciation.................  ...........  ...........  ...........
    Equipment....................          27           94           94 
                                  --------------------------------------
      Total operating revenue....       1,439        2,184        2,204 
                                  ======================================
Income (loss) before operating                                          
 transfer........................       1,133          621          718 
Operating transfer in (out)......        (227)        (283)        (283)
Net income (loss)................         906          338          435 
Fund equity (deficit) beginning                                         
 of year.........................         731        1,637        1,975 
Fund equity (deficit) end of year       1,637        1,975        2,410 
------------------------------------------------------------------------


          D.C. SPORTS COMMISSION (STARPLEX FUND) FINANCIAL PLAN         
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                               Fiscal year--            
                                  --------------------------------------
                                                                 1998   
                                   1996 actual  1997 budget   requested 
------------------------------------------------------------------------
Revenues:                                                               
    Rental.......................        3,093        2,327        1,185
    Work order...................        1,470        1,274        1,069
    Event parking................        1,855        1,580          540
    Food and beverage concessions        3,029        1,875          955
                                  --------------------------------------
      Subtotal operating revenue.        9,447        7,056        3,749
                                  ======================================
Other Revenues:                                                         
    Redemption of Investments....  ...........  ...........        1,400
    Commuter parking.............          199          210          210
    Investment income............          516          400          200
    Other revenue/advertising....        5,514        1,174          385
                                  --------------------------------------
      Subtotal other revenue.....        6,229        1,784        2,195
                                  ======================================
      Total revenue..............       15,676        8,840        5,944
                                  ======================================
Expenditures:                                                           
    Continuing full time.........        1,921        1,368        1,354
    Temporary full time..........          812        1,625        1,145
    Overtime/holiday.............          445          275          175
    Health/retirement............          445          393          384
    Office supplies and services/                                       
     Professional services.......          146          199           96
    Utilities/telephone..........          429          480          325
    Administration cost..........          863        1,211          494
    Miscellaneous expenses.......        4,612        1,845          690
    Depreciation/capital.........        1,120        1,125        1,127
    Equipment....................  ...........          195          145
                                  --------------------------------------
      Total expenditures.........       10,793        8,716        5,935
                                  ======================================
Projected surplus................        4,883          124            9
------------------------------------------------------------------------


   D.C. GENERAL HOSPITAL ENTERPRISE FUND FINANCIAL PLAN PUBLIC BENEFIT  
                               CORPORATION                              
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                              Fiscal year--             
                               -----------------------------------------
                                                  1997           1998   
                                1996 actual  projection \1\   requested 
------------------------------------------------------------------------
Revenue:                                                                
    Patient care..............      80,455         72,616        78,094 
    Additional patient care...  ...........  ..............  ...........
    Grants....................  ...........         3,600    ...........
    Other.....................       6,215         24,204        20,900 
                               -----------------------------------------
      Total revenue...........      86,670        100,420        98,994 
                               =========================================
Operating expenses:                                                     
    Personal services.........      71,430         87,906        66,886 
    Contractual services......      17,484         18,844        18,616 
    Materials and supplies....      12,776         15,537        14,613 
    Energy, communications,                                             
     and other................       5,060          6,098         8,319 
                               -----------------------------------------
      Subtotal operating                                                
       expenses...............     106,750        128,385       108,434 
                               =========================================
Nonoperating expenses:                                                  
    Depreciation..............       7,264          9,600        10,995 
    Bad debt..................      12,350          9,077         9,500 
                               -----------------------------------------
      Subtotal nonoperating                                             
       expenses...............      19,614         18,677        20,495 
                               =========================================
      Total expenses..........     126,364        147,062       128,929 
                               =========================================
Income (loss) before operating                                          
 fund.........................     (39,694)       (46,642)      (29,935)
Operating transfers in (out)                                            
 general fund.................      47,155         32,135        29,935 
                               -----------------------------------------
Nonoperating revenue:                                                   
    Drawn from the general                                              
     fund.....................       7,461        (14,507)   ...........
    Repayment of general fund                                           
     deficit..................  ...........  ..............  ...........
    General fund equity                                                 
     (deficit) beginning of                                             
     year.....................    (143,167)      (135,706)     (150,213)
                               -----------------------------------------
    General fund equity                                                 
     (deficit) end of year....    (135,706)      (150,213)     (150,213)
------------------------------------------------------------------------
\1\ The hospital is presently projecting a shortfall of $14.5 million.  
  However, the hospital also has Medicaid claims pending and a partial  
  settlement could reduce or eliminate the deficit.                     


                                      CONVENTION CENTER FUND FINANCIAL PLAN                                     
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                  Fiscal year--                 
                                                               -------------------------------------------------
                                                                  1996 actual     1997 budget     1998 requested
----------------------------------------------------------------------------------------------------------------
Revenue:                                                                                                        
    Dedicated tax.............................................          35,353          34,600           35,000 
    Interest-dedicated taxes..................................           1,753           3,200            5,250 
                                                               -------------------------------------------------
      Subtotal................................................          37,106          37,800           40,250 
                                                               =================================================
    Building rental...........................................           3,515           3,401            2,700 
    Exhibition services.......................................           2,347           2,483            2,000 
    Communications............................................           1,046             745              600 
    Concessions...............................................             799             667              400 
    Miscellaneous.............................................             470             273              300 
                                                               -------------------------------------------------
      Subtotal................................................           8,177           7,569            6,000 
                                                               =================================================
      Total revenue...........................................          45,283          45,369           46,250 
                                                               =================================================
Expenses:                                                                                                       
    Personal services.........................................           9,489           9,500           10,795 
    Contractual services......................................           2,251           3,400            1,500 
    Supplies..................................................             399             500              500 
    Occupancy costs...........................................           1,350           1,800            1,800 
    Depreciation..............................................           2,488           2,800            3,182 
    Miscellaneous.............................................             193             200              200 
                                                               -------------------------------------------------
      Total WCC program expenses..............................          16,170          18,200           17,977 
                                                               =================================================
      Expansion related expenses..............................             625          27,319           28,423 
                                                               -------------------------------------------------
      Total, expenses WCC authority...........................          16,795          45,519           46,400 
                                                               =================================================
Income (loss) before operating transfer in....................          28,488            (150)            (150)
                                                               =================================================
General fund transfers in:                                                                                      
    Hotel occupancy tax.......................................           5,400           5,400            5,400 
    General fund..............................................  ..............  ...............  ...............
                                                               -------------------------------------------------
      Total transfers in......................................           5,400           5,400            5,400 
                                                               =================================================
Promotional/transfers out:                                                                                      
    Washington Convention and Visitors Association............           2,700           2,700            2,700 
    D.C. Committee to Promote Washington......................           2,025           2,025            2,025 
    D.C. Chamber of Commerce..................................             525             525              525 
                                                               -------------------------------------------------
      Total promotional/Total transfers out...................           5,250           5,250            5,250 
                                                               =================================================
Net transfers to WCC Authority................................             150             150              150 
                                                               =================================================
Net income (loss).............................................          28,638  ...............  ...............
Retained earnings (deficit) at the beginning of year..........          25,976          54,614           54,614 
                                                               =================================================
Retained earnings (deficit) at end of year....................          54,614          54,614           54,614 
----------------------------------------------------------------------------------------------------------------

                               Personnel

    The Committee recommends a total of 33,011 continuing full-
time equivalent positions to be financed from District of 
Columbia funds, Federal grants, private and other, and intra-
District funds during fiscal year 1998 consisting of 32,682 
positions under the general operating expenses and 329 from the 
enterprise and other funds.

              Increase in (FTE) Positions by Control Board

    The District government requested 27,406 FTE positions in 
its June, 1997 budget submission for fiscal year 1998. The 
subsequent amended consensus budget submission made in August, 
1997 did not contain a level of FTEs requested. The amended 
budget was to reflect the effect of implementing the state-like 
functions assumed by the Federal government as legislated in 
the National Capital Revitalization and Self-Government 
Improvement Act of 1997. The control board has decided for the 
City not to disclose the number of FTE positions in the amended 
budget submission. This decision will make it very difficult 
for the Congress and other analysts of District government 
matters to understand the level of effort required to operate 
the City. Other local governments disclose this information, 
but the control board has decided to withhold this information 
from the public and the Congress, even though the Congress is 
charged with oversight responsibility for the District.
    The Congress was able to obtain limited FTE information 
from the control board but only for locally-funded operations, 
not the number of FTEs for Federal grant operations or intra-
District operations. The information was obtained from a table 
attached to a control board memo dated September 16, 1997. The 
control board table included FTE positions for locally funded 
operations. The number of FTE positions for fiscal year 1997 
reported in the table is 27,259 and for FY 1998 it is 25,772, 
for a net decrease of 1,487. However, the FY 1997 number of 
27,259 does not reflect the reduction of 1,624 FTE positions 
that are being transferred with the state-like functions to the 
Federal government. Therefore the FY 1997 FTE number is 
overstated by 1,624 FTE positions. There is actually an 
increase of 137 FTE positions (1,624-1,487 in the consensus 
budget for FY 1998, not a decrease of 1,487 FTE positions as 
reported on the control board's table.
    The following table summarizes by agency the positions 
authorized, requested and recommended for fiscal year 1998:

                                         FULL-TIME EQUIVALENT POSITIONS                                         
----------------------------------------------------------------------------------------------------------------
                                                                                Fiscal year--                   
                                                           -----------------------------------------------------
                                                                                                         1998   
                                                                1997          1997          1998      committee 
                                                              approved       revised      request      recomm.  
----------------------------------------------------------------------------------------------------------------
Governmental Direction and Support:                                                                             
    Council of the District of Columbia...................          143           137           143          143
    District of Columbia Auditor..........................           12            11            11           11
    Office of the Mayor...................................           29            29            39           39
    Office of the Executive Secretary.....................           34            34            34           34
    Office of Communications..............................            6             6             6            6
    Office of Intergovernmental Relations.................           18            18            17           17
    Office of the Deputy Mayor/City Administrator.........           29            29            29           29
    Office of Personnel...................................          192           191           205          205
    Department of Administrative Services.................          217           208           207          207
    Contract Appeals Board................................            5             5             6            6
    Board of Elections and Ethics.........................           51            50            50           50
    Office of Campaign Finance............................           15            15            15           15
    Public Employee Relations Board.......................            3             3             4            4
    Office of Employee Appeals............................           15            15            15           15
    Independent Agencies:                                                                                       
        Office of Inspector General.......................           40            40            44           52
        Office of the Chief Financial Officer:                                                                  
            Office of the Chief Financial Officer.........           13            51            57           57
            Office of Budget and Planning.................           49            49            47           47
            Office of Grants Management and Development...           14            29            29           29
            Office of Financial Operations and Systems....          252           171           150          150
            Office of Treasury and Finance................            0            71            54           54
            Office of Tax and Revenue.....................          470           387           383          554
                                                           -----------------------------------------------------
              Total, Governmental Direction and Support...        1,607         1,549         1,545        1,724
                                                           =====================================================
Economic Development and Regulation:                                                                            
    Business Services and Economic Development............          685           678           629          629
    Office of Zoning......................................           13            13            13           13
    Department of Public and Assist Housing...............            5             5             0            0
    Department of Employment Services.....................          737           732           659          659
    Board of Appeals and Review...........................            2             2             2            2
    Board of Real Property Assessment and Appeals.........            3             3             3            3
    Department of Consumer and Regulatory Affairs.........          177           172           187          187
    Public Service Commission.............................           54            54             0            0
    Office of People's Counsel............................           24            24             0            0
                                                           -----------------------------------------------------
      Total, Economic Development and Regulation..........        1,700         1,683         1,493        1,493
                                                           =====================================================
Public Safety and Justice:                                                                                      
    Metropolitan Police Department........................        4,739         4,602         4,600        4,600
    Fire and Emergency Medical Services Department........        1,790         1,765         1,763        1,763
    Courts of Appeals.....................................           93            93             0            0
    Superior Court........................................        1,251         1,251             0            0
    D.C. Court System.....................................          117           117             0            0
    Office of the Corporation Counsel.....................          289           259           271          271
    Pretrial Services Agency..............................          118           118             0            0
    Department of Corrections.............................        3,408         3,119         3,141        3,141
    Board of Parole.......................................          124           120             0            0
    National Guard........................................           26            25            25           25
    Office of Emergency Preparedness......................           35            35            35           35
    Commission on Judicial Disabilities and Tenure........            2             2             2            2
    Judicial Nomination Commission........................            1             1             1            1
                                                           -----------------------------------------------------
      Total, Public Safety and Justice....................       11,993        11,507         9,838        9,838
                                                           =====================================================
Public Education System:                                                                                        
    Board of Education (Public Schools)...................        9,978         9,978        10,009       10,009
    University of the District of Columbia................        1,079         1,079         1,079        1,079
    Public Library........................................          415           405           409          409
    Commission on the Arts and Humanities.................            9             9             9            9
                                                           -----------------------------------------------------
      Total, Public Education System......................       11,481        11,471        11,506       11,506
                                                           =====================================================
Human Support Services:                                                                                         
    Department of Human Services..........................        5,887         5,623             0            0
    Department of Human Development.......................            0             0         4,851        4,851
    Department of Public Health...........................            0             0           820          820
    Department of Recreation and Parks....................          515           483           483          483
    Office of Aging.......................................           26            26            26           26
    Department of Human Rights............................           13            13            16           16
    Office on Latino Affairs..............................            3             3             3            3
    D.C. Energy Office....................................           13            13            13           13
                                                           -----------------------------------------------------
      Total, Human Support Services.......................        6,457         6,161         6,212        6,212
                                                           =====================================================
Public Works:                                                                                                   
    Department of Public Works............................        1,899         1,841         1,900        1,900
    D.C. Taxicab Commission...............................            9             9             9            9
                                                           -----------------------------------------------------
      Total, Public Works.................................        1,908         1,850         1,909        1,909
                                                           =====================================================
Enterprise Funds:                                                                                               
    Water and Sewer.......................................            0             0             0            0
    Lottery and Charitable Games..........................          100           100           100          100
    Cable Television......................................            8             8             8            8
    Department of Insurance and Securities Regulations....            0             0            89           89
    D.C. Retirement Board.................................           13            13            13            8
    Correctional Industries...............................          124           124           124          124
                                                           -----------------------------------------------------
      Total, Enterprise Funds.............................          245           245           334          329
                                                           =====================================================
Workforce Initiatives.....................................       (2,411)          (16)            0            0
                                                           =====================================================
      Total, FTEs.........................................       32,980        34,450        32,837       33,011
----------------------------------------------------------------------------------------------------------------

                           OPERATING EXPENSES

                   Governmental Direction and Support

    The Committee recommends a total of $119,177,000 and 1,479 
full-time equivalent positions for the various departments, 
agencies and activities funded through this appropriation.
    The allowance recommended by activity follows:

                                                                               GOVERNMENTAL DIRECTION AND SUPPORT                                                                               
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          Bill compared with--                  
                                                                                      FY 1998      FY 1998      FY 1998                ---------------------------------------------------------
                     Agency/Activity                        FY 1997      FY 1997      District    authority     amended     Recomended                            FY 1998    FY 1998    FY 1998 
                                                            approved     revised      request      request      request      in bill      FY 1997     FY 1997    District   authority   amended 
                                                                                                                                         approved     revised     request    request    request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Council of the District of Columbia.....................       8,878        8,658        8,575        8,575        8,575        8,575        (303)        (83)          0           0          0
Office of the District of Columbia Auditor..............         982          962          919          919          919          919         (63)        (43)          0           0          0
Advisory Neighborhood Commissions.......................         572          562          562          562          562          562         (10)          0           0           0          0
Office of the Mayor.....................................       2,109        2,057        2,024        2,024        2,024        2,024         (85)        (33)          0           0          0
Office of the Secretary.................................       2,208        2,168        2,069        2,069        2,069        2,069        (139)        (99)          0           0          0
Office of Communications................................         350          348          328          328          328          328         (22)        (20)          0           0          0
Offie of Intergovernmental Relations....................       1,239        1,226        1,225        1,225        1,225        1,225         (14)         (1)          0           0          0
Office of City Administrator/Deputy Mayor for Operations       4,637        4,520        4,417        4,417        4,417        4,417        (220)       (103)          0           0          0
Office of Personnel.....................................      10,568       10,358       10,245       10,120       10,120       10,120        (448)       (238)       (125)          0          0
Department of Administrative Services...................      29,819       27,186       23,550       22,020       22,020       22,020      (7,799)     (5,166)     (1,530)          0          0
Contract Appeals Board..................................         563          550          634          634          634          634          71          84           0           0          0
Tax Revision Commission.................................           0            0          500          500          500          500         500         500           0           0          0
Board of Elections and Ethics...........................       2,777        2,707        2,947        2,947        2,947        2,947         170         240           0           0          0
Office of Campaign Finance..............................         804          785          808          808          808          808           4          23           0           0          0
Public Employee Relations Board.........................         325          315          413          413          413          413          88          98           0           0          0
Office of Employee Appeals..............................       1,113        1,087        1,139        1,139        1,139        1,139          26          52           0           0          0
Metropolitan Washington Council of Governments..........         396          396          374          374          374          374         (22)        (22)          0           0          0
Independent Agencies:                                                                                                                                                                           
    Office of Inspector General.........................       7,200        7,070        5,731        5,731        5,731        7,731         531         661       2,000       2,000      2,000
    Office of the Chief Financial Officer:                                                                                                                                                      
        Office of the Chief Financial Officer...........       1,459        4,396        4,948        4,948        4,948        4,948       3,489         552           0           0          0
        Office of Budget and Planning...................       4,251        4,117        3,661        3,661        3,661        3,661        (590)       (456)          0           0          0
        Office of Grants Management and Development.....      12,922       13,004       15,163       15,163       16,013       16,013       3,091       3,009         850         850          0
        Office of Finance and Treasury..................           0        6,821        6,522        6,522        6,522        6,522       6,522        (299)          0           0          0
        Office of Financial Operations and Systems......      23,764       14,423       13,451       13,451       13,451       13,451     (10,313)       (972)          0           0          0
        Office of Tax and Revenue.......................      22,357       20,536       19,532       18,532       18,532       30,532       8,175       9,996      11,000      12,000     12,000
        Unallocated.....................................         100            0            0            0            0            0           0           0           0           0          0
                                                         ---------------------------------------------------------------------------------------------------------------------------------------
          Total, Govrnmental Direction and Support......     139,393      134,252      129,737      127,082      127,932      141,932       2,539       7,680      12,195      14,850     14,000
        Less Intra-District Funds.......................     (23,730)     (23,730)     (22,755)     (22,755)     (22,755)     (22,755)        975         975           0           0          0
                                                         ---------------------------------------------------------------------------------------------------------------------------------------
          Revised, Governmental Direction and Support...     115,663      110,522      106,982      104,327      105,177      119,177       3,514       8,655      12,195      14,850     14,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                  council of the district of columbia

    The Committee recommends a total of $8,575,000 and 143 
full-time equivalent positions (including $8,573,000 from local 
funds and $2,000 from other funds) for fiscal year 1998 for the 
operation of the legislative branch of government for the 
District.
    The Council of the District is the elected legislative 
branch of the District government. Its mission is to enact 
laws, adopt the annual operating budget, and establish and 
oversee the programs and operations of District government 
agencies. The Council is composed of 13 members--five of whom 
including the Chairman, are elected at-large, and eight who are 
elected from wards.

               office of the district of columbia auditor

    The Committee recommends $919,000 and 11 full-time 
equivalent positions from local funds for fiscal year 1998 for 
the operation of this office.
    The Office of the District of Columbia Auditor assist the 
Council of the District of Columbia in performing its oversight 
responsibilities, conducts statutory audits of various 
accounts, operations and programs of the District of Columbia 
government, and reviews revenue estimates in support of annual 
budgets and municipal bonds.

                   advisory neighborhood commissions

    The bill includes an appropriation of $562,000 from local 
funds for fiscal year 1998 for the 37 chartered advisory 
neighborhood commissions which were established by the District 
of Columbia Home Rule Act to advise the District government on 
matters of public policy in areas such as planning, 
transportation, social service programs, health, safety and 
sanitation.

                          office of the mayor

    The Committee has approved the appropriation of $1,392,000 
and 25 full-time equivalent positions from local funds for 
fiscal year 1998 for the Office of the Mayor.
    The Mayor, as the chief executive officer of the District 
of Columbia government, has overall responsibility for the 
implementation of programs and the administration of executive 
agencies.

                        office of the secretary

    The bill includes $1,591,000 and 20 full-time equivalent 
positions (including $1,512,000 and 18 full-time equivalent 
positions from local funds and $79,000 and 2 full-time 
equivalent positions from other funds,) for fiscal year 1998 
for the Office of the Secretary.
    The Office of the Secretary assists the Mayor and the 
executive agencies with their operations by providing 
ministerial and logistical support services, managing the 
District's records storage program and archives, and reviewing, 
publishing, and distributing all District government rules and 
regulations and administrative orders.

                        office of communications

    The Committee recommends $90,000 from local funds for the 
Office of Communications for fiscal year 1998.
    The Office of Communications assists the Mayor and the City 
Administrator in increasing public awareness and understanding 
of the services and operations of the District government by 
improving the quality of communications between the public and 
the District government.

                 office of intergovernmental relations

    The bill includes $670,000 and 7 full-time equivalent 
positions from local funds for the Office of Intergovernmental 
Relations for fiscal year 1998.
    The Office of Intergovernmental Relations is responsible 
for assisting the Mayor by providing liaison with other 
branches and levels of the District, Federal, and regional 
governments.

      office of the city administrator/deputy mayor for operations

    A total of $3,722,000 and 16 full-time equivalent positions 
from local funds are included in the bill for the operation of 
the Office of the City Administrator/Deputy Mayor for 
Operations in fiscal year 1998.
    The Office of the City Administrator/Deputy Mayor for 
Operations is responsible for assisting the Mayor in 
formulating and implementing District goals and priorities and 
to ensure the efficient and effective delivery of city services 
by overseeing the operations of the District and managing 
sensitive and new initiatives.

                          office of personnel

    The Committee recommends $9,118,000 and 181 full-time 
equivalent positions (including $8,197,000 and 160 full-time 
equivalent positions from local funds and $921,000 and 21 full-
time equivalent positions from other funds) for the Office of 
Personnel for the fiscal year 1998.
     The Office of Personnel provides an effective human 
resource management program for the District of Columbia 
government through the recruitment, development and retention 
of a qualified work force.

                 department of administrative services

    The bill includes $7,921,000 and 120 full-time equivalent 
positions (including $6,284,000 and 120 full-time equivalent 
positions from local funds and $1,637,000 from other funds) for 
fiscal year 1998 for the Department of Administrative Services.
    The Department of Administrative Services is the central 
provider of core services to District agencies that supports 
their operations and public service missions.

                         contract appeals board

    The Committee recommends $634,000 and six full-time 
equivalent positions from local funds for the Contract Appeals 
Board for fiscal year 1998.
    The Contract Appeals Board provides a quasi-judicial forum 
to assure that the contracting practices of District agencies 
are responsive, impartial, and expeditious.

                        tax revision commission

    The Committee recommends $500,000 from local funds for the 
Tax Revision Commission for fiscal year 1998.
    The Tax Revision Commission's mission is to prepare 
comprehensive recommendations to the Council and the Mayor 
which: (1) mitigate the current tax budget on taxpayers; (2) 
broaden the tax base; and (3) make the District's tax policy 
more competitive with surrounding jurisdictions.

                     board of elections and ethics

    The Committee recommends a total of $2,947,000 and 50 full-
time equivalent positions from local funds for fiscal year 1998 
for the Board of Elections and Ethics.
    The Board of Elections and Ethics is responsible for the 
administration and enforcement of the election laws of the 
District of Columbia.

                       office of campaign finance

    The Committee recommends $808,000 and 15 full-time 
equivalent positions from local funds for the Office of 
Campaign Finance for fiscal year 1998.
    The Office of Campaign is responsible for the preservation 
of the confidence of the public in the integrity of the 
District government and to ensure trust by enforcing District 
of Columbia laws pertaining to campaign finance, lobbying, 
conflict of interest, and ethical conduct of public officials.

                    public employee relations board

    The Committee recommends the total request of $413,000 and 
four full-time equivalent positions from local funds for fiscal 
year 1998 for the Public Employee Relations Board.
    The Board is responsible for solving labor-management 
disputes in the District government.

                       office of employee appeals

    The total budget request of $1,139,000 and 15 full-time 
equivalent positions from local funds is included in the bill 
for the Office of Employee Appeals for fiscal year 1998.
    The Office of Employee Appeals is an administrative hearing 
agency that adjudicates appeals filed by District employees 
concerning adverse actions, performance ratings, 
classifications, privacy and records management, erroneous 
employee payments, reductions-in-force, and grievances.

             metropolitan washington council of governments

    The total budget request of $374,000 from local funds is 
included in the bill as the District's share of the Council of 
Government's budget for fiscal year 1998.
    The Metropolitan Washington Council of Governments is the 
cooperative association of the 16 major cities and counties in 
the metropolitan area. It was organized in 1957 and is the 
official planning agency for metropolitan Washington by 
designation of various Federal agencies. The Council provides 
the mechanism for interlocal and interstate cooperation in 
metropolitan Washington.

                      office of inspector general

    The appropriation of $7,731,000 and 52 full-time equivalent 
positions from local funds is recommended for fiscal year 1998 
for the Office of Inspector General.
    The Committee recommends an additional $2,000,000 and 8 
full-time equivalent positions for the Office of the Inspector 
General to increase the level of activity in the prevention and 
detection of fraud, waste and abuse in District government 
programs and operations. It is the Committee's intention that 
the Inspector General improve the effectiveness of the office's 
Hot-Line through increased advertising and education of all 
District government employees and customers who transact 
business with the District. All permits and application forms 
printed in the future should contain the Hot-Line number and 
information on its purpose and the confidentiality of callers.
    The Office of Inspector General provides oversight of the 
District government's activities to prevent and detect fraud, 
abuse, and waste in the programs and operations.

                 office of the chief financial officer

    The Committee recommends $4,748,000 and 54 full-time 
equivalent positions from local funds for the Office of the 
Chief Financial Officer for fiscal year 1998.
    The mission of the Office of the Chief Financial Officer is 
to assist the Mayor in the performance of the financial 
management functions of the District of Columbia government.

                   office of the budget and planning

    A total of $16,014,000 and 35 full-time equivalent 
positions (including $2,001,000 and 26 full-time equivalent 
positions from local funds and $14,013,000 and 9 full-time 
equivalent positions from federal funds) for fiscal year 1998 
are included in the bill for the Office of the Budget and 
Planning.
    The Office of the Budget develops, monitors, analyzes, and 
executes the District's budget, including operating, capital, 
enterprise funds, and a multi-year financial plan. The Office 
of Grants Management and Development assists the District 
government in obtaining and administering the maximum amount of 
grant resources in support of its policies and programs that 
will enhance the government's immediate and long-term financial 
condition.

                     office of finance and treasury

    The Committee recommends $6,353,000 and 50 full-time 
equivalent positions (including $3,914,000 and 25 full-time 
equivalent positions from local funds and $2,439,000 and 25 
full-time equivalent positions from other funds) for the Office 
of Finance and Treasury for the fiscal year 1998.
    The Office of Finance and Treasury manages the cash and 
other liquid assets of the District of Columbia, coordinates 
payments to vendors and service providers, accepts payments for 
service and taxes, manages District borrowings and debt 
repayment, maintains relationships with the investment 
community, and maximizes other District assets in coordination 
with the Mayor.

               office of financial operations and systems

    The Committee recommends a total of $12,442,000 and 121 
full-time equivalent positions (including $10,727,000 and 99 
full-time equivalent positions from local funds and $1,715,000 
and 22 full-time equivalent positions from other funds) for 
fiscal year 1998 for the operations of the Office of Financial 
Operations and Systems.
    The Office of Financial Operations and Systems maintains 
financial data and provides a stable and disciplined processing 
environment to generate accurate and consistent information to 
the stakeholders of the District of Columbia.

                       office of tax and revenue

    The bill includes $30,514,000 and 554 full-time equivalent 
positions (including $30,459,000 and 554 full-time equivalent 
positions from local funds and $55,000 from other funds) for 
fiscal year 1998 for the Office of Tax and Revenue.
    The Committee's recommended appropriation for the Office of 
Tax and Revenue for fiscal year 1998 is $12,000,000 greater 
than the amended request because of the expectation that new 
systems and procedures within the department from the 
additional expenditures will yield the District government 
significant additional revenues which will contribute to a 
reduction in the District's accumulated deficit.
    The Office of Tax and Revenue ensures the equitable, 
effective, and efficient administration and enforcement of the 
District of Columbia's business, income, excise, and real 
property tax laws.

                  Economic Development and Regulation

    The Committee recommends a total of $120,072,000 and 1,283 
full-time equivalent positions for fiscal year 1998 for the 
department and agencies funded through this appropriation.

                                                                               ECONOMIC DEVELOPMENT AND REGULATION                                                                              
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         Bill compared with--                   
                                                                                       FY 1998     FY 1998   Amended FY              -----------------------------------------------------------
                      Agency/Activity                          FY 1997     FY 1997    District    Authority     1997     Recommended                            FY 1998     FY 1998     FY 1998 
                                                              Approved     Revised     Request     Request     Request     in bill      FY 1997     FY 1997    District    Authority    Amended 
                                                                                                                                       Approved     Revised     Request     Request     Request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Business Services and Economic Development.................    $51,967     $51,370     $60,198     $58,479     $58,479      $58,479      $6,512      $7,109     ($1,719)          $0          $0
Office of Zoning...........................................        870         858         927         927         927          927          57          69           0            0           0
Department of Public and Assisted Housing..................      8,330       8,163       4,650       2,080       2,080        2,080      (6,250)     (6,083)     (2,570)           0           0
Department of Employment Services..........................     66,012      62,577      57,591      57,319      57,319       57,319      (8,693)     (5,258)       (272)           0           0
Board of Appeals and Review................................        157         153         153         153         153          153          (4)          0           0            0           0
Board of Real Property Assessments and Appeals.............        351         343         286         286         286          286         (65)        (57)          0            0           0
Department of Consumer and Regulatory Affairs..............     14,102      13,885      15,233      14,527      14,527       14,527         425         642        (706)           0           0
Public Service Commission..................................      4,570       4,517           0           0           0            0      (4,570)     (4,517)          0            0           0
Office of the People's Counsel.............................      2,437       2,428           0           0           0            0      (2,437)     (2,428)          0            0           0
                                                            ------------------------------------------------------------------------------------------------------------------------------------
  Total, Economic Development and Regulation...............    148,796     144,294     139,038     133,771     133,771      133,771     (15,025)    (10,523)     (5,267)           0           0
Less Intra-District funds..................................    (13,092)    (13,092)    (13,699)    (13,699)    (13,699)     (13,699)       (607)       (607)          0            0           0
                                                            ------------------------------------------------------------------------------------------------------------------------------------
  Revised, Economic Development and Regulation.............    135,704     131,202     125,339     120,072     120,072      120,072     (15,632)    (11,130)     (5,267)           0           0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

        Department of Business Services and Economic Development

    The Committee recommends $46,400,000 and 437 full-time 
equivalent positions (including $26,886,000 and 419 full-time 
equivalent positions from local funds, $552,000 and four full-
time equivalent positions from Federal funds and $18,962,000 
and 14 full-time equivalent positions from other funds) for the 
Department of Business Services and Economic Development in 
fiscal year 1998.
    Downtown Business Improvement District.--The Committee 
intends that funds in this appropriation be available for the 
District's Downtown Business Improvement District (BID) to 
acquire services through the General Services Administration 
supply schedules and contracting offices.
    The Committee is encouraged by the progress of the 
Metropolitan Police Department and the District of Columbia 
Public School system in procurement reform. The use of the 
services of the General Services Administration (GSA) has been 
instrumental in the improvements, assuring the District of 
Columbia the best prices for commercial services and products. 
Although the Committee does not expect GSA to meet all the 
needs of the District of Columbia, GSA should be looked to as a 
source of contracting support. The Committee in providing funds 
for the operations of District of Columbia agencies, 
instrumentalities, corporations and business improvement 
districts, directs the organizations receiving these 
appropriations to give first consideration to the services of 
GSA for management support. The Committee expects GSA services 
to be provided through private contractors.

                         D.C. Housing Authority

    The Committee notes with concern the proposed expenditure 
by the District of Columbia Housing Authority of some $65,000 
per unit at the Kentucky Courts Family Units for the removal of 
pigeon droppings and cosmetic renovations. The Committee 
directs that no funds be spent by DCHA on the rehabilitation or 
redevelopment of the Kentucky Courts Family Units under the 
Occupied Unit Rehabilitation Program or any other program 
except for securing the site until such time as DCHA develops 
an acceptable plan for non-conventional housing consistent with 
community stability, public safety and fiscal responsibility 
with the Ward Six City Council Member and the community 
Kentucky Courts Neighborhood Task Force. Further, the Committee 
directs DCHA to report to the Congress with a timetable for 
such a plan no later than June 30, 1998.
    The Department of Business Services and Economic 
Development mission is to facilitate the creation and growth of 
wealth in the District of Columbia and expansion of its revenue 
base through: (1) the development and implementation of 
programs and policies for the retention, expansion and 
attraction of commerce and trade, including local, small and 
disadvantaged businesses; (2) efficiently, effectively and 
fairly regulate business activities and land and building use 
in the District of Columbia; and (3) develop and maintain 
stable, and diverse attractive neighborhoods throughout the 
District of Columbia.

                            Office of Zoning

    The Committee recommends $855,000 and 13 full-time 
equivalent positions (including $384,000 and seven full-time 
equivalent positions from local funds and $471,000 and six 
full-time equivalent positions from other funds) for the Office 
of Zoning for fiscal year 1998.
    The Office of Zoning provides administrative, professional, 
and technical assistance to the Zoning Commission and the Board 
of Zoning Adjustment in the maintenance and regulation of 
zoning and the zoning process in the District of Columbia.

               Department of Public and Assisted Housing

    The bill includes $2,080,000 from local funds for the 
Department of Public and Assisted Housing for the Tenant 
Assistance Program (TAP) for fiscal year 1998.

                   Department of Employment Services

    The Committee recommends a total of $56,991,000 and 653 
full-time equivalent positions (including $6,314,000 and 71 
full-time equivalent positions from local funds, $32,802,000 
and 407 full-time equivalent positions from Federal funds, and 
$17,875,000 and 175 full-time equivalent positions from other 
funds) for fiscal year 1998 for the Department of Employment 
Services.
    The Department of Employment Services provides meaningful 
employment and training opportunities; ensures timely payment 
of benefits for unemployed and injured workers, and promotes 
safe, healthy, and productive work places for employees and 
employers.

                      Board of Appeals and Review

    The Committee recommends $153,000 and two full-time 
equivalent positions from local funds for the Board of Appeals 
and Review in fiscal year 1998.
    The Board of Appeals and Review is the administrative 
agency commissioned to review agency decisions disputed by 
citizens and medical facilities.

             Board of Real Property Assessments and Appeals

    The Committee recommends $286,000 and three full-time 
equivalent positions from local funds for the Board of Real 
Property Assessment and Appeals for fiscal year 1998.
    The mission of the Board of Real Property Assessments and 
Appeals is to ensure that real property, which comes before the 
Board for review, is assessed at 100 percent of its market 
value and is in equalization with similar properties.

             Department of Consumer and Regulatory Affairs

    The Committee recommends a total of $13,307,000 and 175 
full-time equivalent positions (including $4,274,000 and 59 
full-time equivalent positions from local funds, $8,711,000 and 
115 full-time equivalent positions from Federal funds, and 
$322,000 and one full-time equivalent position from other 
funds) for fiscal year 1998 for the Department of Consumer and 
Regulatory Affairs.
    The Department of Consumer and Regulatory Affairs protects 
the health, safety, and welfare of District of Columbia 
residents by regulating business activities, land and building 
use, occupational and professional conduct, rental housing and 
condominiums, health and social service care facilities, and 
the physical environment.

                       Public Safety and Justice

    The Committee recommends a total of $502,970,000 for fiscal 
year 1998 for the public safety activities funded through this 
appropriation.
    The allocation of funds by department and agency is shown 
in the following tabulation:

                                                                                    PUBLIC SAFETY AND JUSTICE                                                                                   
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                       Bill compared with--                     
                                                                               FY 1998       FY 1998     Amended FY              ---------------------------------------------------------------
                Agency/Activity                    FY 1997       FY 1997      District      authority       1998     Recommended                              FY 1998      FY 1998      FY 1998 
                                                  approved       revised       request       request      request      in bill      FY 1997      FY 1997      District    authority     amended 
                                                                                                                                    approved     revised      request      request      request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Metropolitan Police Department................      264,637       271,045       277,383       272,383      272,383      277,783       13,146        6,738          400        5,400        5,400
Fire and Emergency Medical Services Department      106,720       104,395       101,977        98,851       98,851      101,451       (5,269)      (2,944)        (526)       2,600        2,600
Police and Fire Retirement System.............      226,700       226,700       211,000       211,000       47,700       47,700     (179,000)    (179,000)    (163,300)    (163,300)           0
Judges' Retirement System.....................        5,500         5,500         3,100         3,100            0            0       (5,500)      (5,500)      (3,100)      (3,100)           0
Court of Appeals..............................        6,167         6,023         6,000         6,000            0            0       (6,167)      (6,023)      (6,000)      (6,000)           0
Superior Court................................       78,754        76,736        74,046        76,645            0            0      (78,754)     (76,736)     (74,046)     (76,645)           0
Court System..................................       36,291        35,459        35,152        35,152            0            0      (36,291)     (35,459)     (35,152)     (35,152)           0
Office of the Corporation Counsel.............       17,334        16,992        17,418        17,418       17,418       17,418           84          426            0            0            0
Settlements and Judgments.....................       14,800        14,800        14,800        14,800       14,800       14,800            0            0            0            0            0
Public Defender Service.......................        7,797         7,797         7,753         7,753            0            0       (7,797)      (7,797)      (7,753)      (7,753)           0
Pretrial Services Agency......................        6,063         5,909         5,086         5,086            0            0       (6,063)      (5,909)      (5,086)      (5,086)           0
Department of Corrections.....................      272,302       268,541       249,480       259,486       50,398       50,398     (221,904)    (218,143)    (199,082)    (209,088)           0
Board of Parole...............................        8,277         8,131         7,617         7,545            0            0       (8,277)      (8,131)      (7,617)      (7,545)           0
National Guard................................          902           876           858           858          858          858          (44)         (18)           0            0            0
Office of Emergency Preparedness..............        2,887         2,844         2,837         2,837        2,837        2,837          (50)          (7)           0            0            0
Commission on Judicial Disabilities and Tenure          128           125           125           125          125          125           (3)           0            0            0            0
Judicial Nomination Commission................           80            78            78            78           78           78           (2)           0            0            0            0
                                               -------------------------------------------------------------------------------------------------------------------------------------------------
    Total, Public Safety and Justice..........    1,055,339     1,051,951     1,014,710     1,019,117      505,448      513,448     (541,891)    (538,503)    (501,262)    (505,669)       8,000
Less Intra-District funds.....................      (14,058)      (14,058)      (15,240)      (15,240)     (10,478)     (10,478)       3,580        3,580        4,762        4,762            0
                                               -------------------------------------------------------------------------------------------------------------------------------------------------
    Revised, Public Safety and Justice........    1,041,281     1,037,893       999,470     1,003,877      494,970      502,970     (538,311)    (534,923)    (496,500)    (500,907)       8,000
Less savings from the National Capital                                                                                                                                                          
 Revitalization Act of 1977...................     (537,737)     (539,737)     (513,469)     (500,936)           0            0      539,737      539,737      513,469      500,936            0
                                               -------------------------------------------------------------------------------------------------------------------------------------------------
      Revised Total...........................      503,544       498,156       486,001       502,941      494,970      502,970        1,426        4,814       16,696           29        8,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                     Metropolitan Police Department

    The Committee has approved a total of $272,179,000 and 
4,598 full-time equivalent positions (including $254,985,000 
and 4,537 full-time equivalent positions from local funds, 
$12,020,000 and 61 full-time equivalent positions from Federal 
funds, and $5,174,000 from other funds) for fiscal year 1998 
for the Metropolitan Police Department.
    Boys and Girls Clubs.--The Committee is aware of the 
positive impact that the Boys and Girls Clubs have on District 
of Columbia youth. It is also aware of efforts underway to 
construct a new Boys and Girls Club facility on property owned 
by the District's Department of Recreation located on New York 
Avenue and First Street, Northwest. This facility, known as the 
Jabbo Kenner-Nordy Hoffman Clubhouse, would consist of a 
regulation basketball court (which could be used for a variety 
of purposes by deploying portable dividers), fitness training 
room, computer training lab, meeting rooms, dance studio, arts 
and crafts studio, snack bar, laundry facilities and staff 
offices. While the Boys and Girls Club is sponsored by the DC 
Metropolitan Police, this facility would be constructed and 
operated without any public funds. Instead, all funds for the 
construction and operation of the Clubhouse would be raised 
through private sources by a non-profit organization that has 
already been established and raised a significant portion of 
the construction costs.
    The Committee is concerned that despite a pledge over one 
year ago from the District government to convey this property 
to the Boys and Girls Clubs, little progress has been made in 
this area. Additional delay will hamper private fundraising 
efforts for this worthwhile project, and further postpone the 
start of construction. As a result, the Committee directs the 
District government to report to the Committee within 30 days 
of enactment of this legislation its plans to convey the 
property at New York Avenue and First Street, Northwest to the 
Boys and Girls Clubs.
    The Committee requests a report by November 30, 1997 of the 
inventory of all police vehicles, including, but not limited 
to, date purchased, purchase cost, present mileage, statement 
of its general condition, and expected disposal date of each 
vehicle.
    Civilianization.--The Metropolitan Police Department is 
directed to take action to place civilians in administrative 
positions, to the extent possible, that are currently filled by 
uniformed officers, and to provide a report to the Committee by 
January 31, 1998 as to the status of its planned actions.
    The mission of the Metropolitan Police Department is to 
provide law enforcement and other police services to people 
living, working and visiting the District of Columbia and to 
improve the quality of life in the city.

             Fire and Emergency Medical Services Department

    A total of $101,379,000 and 1,763 full-time equivalent 
positions (including $100,797,000 and 1,763 full-time 
equivalent positions from local funds and $582,000 from other 
funds) is recommended for fiscal year 1998 for the Fire and 
Emergency Medical Services Department.
    The mission of the Fire and Emergency Medical Services 
Department is to improve the quality of life to those who 
choose to live, work, visit and do business in the District of 
Columbia by preventing fires before they occur; extinguishing 
those fires that do occur; and providing emergency medical and 
ambulance service.

                   Police and Fire Retirement System

    A total of $47,700,000 from local funds is recommended for 
fiscal year 1998 for the City's contribution to the police and 
fire retirement system.
    The Police and Fire Retirement System provides annuity 
payments and other retirement and disability benefits for 
Metropolitan Police and Fire Department retirees and survivors.

                   Office of the Corporation Counsel

    The Committee has approved $12,616,000 and 190 full-time 
equivalent positions (including $12,478,000 and 188 full-time 
equivalent positions from local funds and $138,000 and four 
full-time equivalent positions from other funds) for fiscal 
year 1998 for the Office of the Corporation Counsel.
    The mission of the Office of the Corporation Counsel is to 
conduct all legal business for the District of Columbia 
including all suits instituted by and against the government 
thereof.

                       Settlements and Judgments

    The Committee recommends $14,800,000 from local funds for 
fiscal year 1998 for this special account to settle claims and 
lawsuits and pay judgments in all types of tort cases entered 
against the District government.

                       Department of Corrections

    The bill includes the total request of $50,398,000 and 
3,105 full-time equivalent positions from local funds for 
fiscal year 1998 for the Department of Corrections.
    The mission of the Department of Corrections is to ensure 
public safety and uphold the public trust by providing for the 
safety and secure confinement of pre-trial detainees and 
sentenced prisoners and to do so fairly, without undue 
suffering and as efficiently as possible.

                             National Guard

    The Committee recommends $858,000 and 25 full-time 
equivalent positions from local funds for the District's 
support of the National Guard during fiscal year 1998.
    The mission of the District of Columbia National Guard is 
to serve as an integral component of the nation's military 
forces when activated and is trained to respond during civil 
emergencies or disturbances to protect life, property, and the 
interest of the District of Columbia.

                    Office of Emergency Preparedness

    A total of $2,837,000 and 35 full-time equivalent positions 
(including $1,338,000 and 23 full-time equivalent positions 
from localfunds and $1,499,000 and 12 full-time equivalent 
positions from Federal funds) are recommended for the fiscal year 1998 
for the Office of Emergency Preparedness.
    The mission of the Office of Emergency Preparedness is 
providing 24-hour emergency assistance by mobilizing and 
deploying personnel and resources, updating emergency 
operations plans and strategies, training emergency personnel, 
managing special events, warning and informing the public of 
emergencies and disasters in order to save lives and to protect 
property in the District of Columbia.

             Commission on Judicial Disabilities and Tenure

    The Committee recommends $125,000 and two full-time 
equivalent positions from local funds for the Commission on 
Judicial Disabilities and Tenure for fiscal year 1998.
    The mission of the Commission on Judicial Disabilities and 
Tenure is to provide for the preservation of an independent and 
fair judiciary by making determinations regarding the 
discipline, involuntary retirement, and reappointment of judges 
of the District of Columbia courts.

                     Judicial Nomination Commission

    The budget request of $78,000 and one full-time equivalent 
position from local funds is recommended for fiscal year 1998 
for the Judicial Nomination Commission.
    The mission of the Judicial Nomination Commission is to 
select and recommend to the President of the United States 
nominees to fill judicial vacancies in the District of Columbia 
Court of Appeals and the Superior Court.

                        Public Education System

    A total of $672,444,000 and 11,314 full-time equivalent 
positions is recommended for the operation of the activities 
included within this appropriation title.
    A summary of the allocations to the agencies and offices 
under this heading compared with the budget estimates follows:

                                                                                     PUBLIC EDUCATION SYSTEM                                                                                    
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                       Bill compared with--                     
                                                                               FY 1998      FY 1998      FY 1998                ----------------------------------------------------------------
                 Agency/Activity                     FY 1997      FY 1997      District    authority     amended    Recommended                              FY 1998      FY 1998      FY 1998  
                                                     approved     revised      request      request      request       in bill     FY 1997      FY 1997      District    authority     amended  
                                                                                                                                   approved     revised      request      request      request  
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Board of Education (Public Schools)..............    $575,987     $568,626     $566,304      567,099      567,099      563,084      (12,903)      (5,542)      (3,220)      (4,015)      (4,015)
Public Charter Schools...........................       2,835        2,835        1,235        1,235        1,235        5,250        2,415        2,415        4,015        4,015        4,015 
Teachers' Retirement System......................      88,900       88,900       93,300       93,300        9,700        9,700      (79,200)     (79,200)     (83,600)     (83,600)           0 
District Education and Learning Technologies                                                                                                                                                    
 Advancement (DELTA) Council.....................           0            0            0            0            0        1,000        1,000        1,000        1,000        1,000        1,000 
University of the District of Columbia...........      76,287       75,605       81,139       81,287       81,287       81,287        5,000        5,682          148            0            0 
Public Library...................................      22,432       21,770       22,041       22,036       22,036       22,036         (396)         266           (5)           0            0 
Commission on the Arts and Humanities............       2,220        2,187        2,057        2,057        2,057        2,057         (163)        (130)           0            0            0 
                                                  ----------------------------------------------------------------------------------------------------------------------------------------------
      Total, Public Education System.............     768,661      759,923      766,076      767,014      683,414      683,414      (84,247)     (75,509)     (81,662)     (82,600)       1,000 
Less Intra-District funds........................      (9,846)      (9,846)     (10,970)     (10,970)     (10,970)     (10,970)      (1,124)      (1,124)           0            0            0 
                                                  ----------------------------------------------------------------------------------------------------------------------------------------------
    Revised, Public Education System.............     758,815      750,077      755,106      756,044      672,444      673,444      (85,371)     (76,633)     (81,662)     (82,600)       1,000 
Less savings from the National Capital                                                                                                                                                          
 Revitalization Act of 1997......................     (79,900)     (79,900)      83,600)      83,600)           0            0       79,900       79,900       83,600       83,600            0 
                                                  ----------------------------------------------------------------------------------------------------------------------------------------------
      Revised Total..............................     678,915      670,177      671,506      672,444      672,444      673,444       (5,471)       3,267        1,938        1,000        1,000 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                   Board of Education--Public Schools

    An appropriation of $560,114,000 and 9,979 full-time 
equivalent positions (including $456,128,000 and 8,623 full-
time equivalent positions from local funds, $98,491,000 and 
1,251 full-time equivalent positions from Federal funds, and 
$5,495,000 and 105 full-time equivalent positions from other 
funds) for the public school system are approved for fiscal 
year 1998.
    The mission of the District of Columbia Public Schools is 
to a viable and comprehensive system of publicly supported 
education for students from pre-kindergarten through grade 
twelve. The District of Columbia Public Schools, under the 
direction of the Board of Education and the management of the 
Superintendent, provides services including comprehensive 
programs at the elementary, junior and senior high school 
levels. Additionally, special educational services for the 
handicapped students and career training opportunities for 
adults at career development centers are provided.

                Total Funds Available for Public Schools

    The total funds available to the public school system in 
fiscal year 1998 follows:

                            Total resources

                                                                        
                        Agency                          Fiscal year 1998
                                                                        
Operating Expenses:                                                     
    Appropriation recommended in bill.................      $456,128,000
    Federal grants....................................        98,491,000
    Private and other funds...........................         5,495,000
    Intra-District funds..............................         2,970,000
                                                       -----------------
        Total, operating expenses.....................       563,084,000
                                                                        

                            Pupil Membership

    For the 1997-1998 school year, the number of students in 
the District's public school system is expected to remain the 
same at 78,648. The following table shows annual pupil 
membership statistics from 1969-1970 to the 1997-1998 
estimates:

                PUPIL MEMBERSHIP, 1969-70 THROUGH 1996-97               
------------------------------------------------------------------------
                 School year                    Enrollment     Change   
------------------------------------------------------------------------
October:                                                                
    1969.....................................      145,584            0 
    1970.....................................      142,857       (2,727)
    1971.....................................      139,650       (3,207)
    1972.....................................      136,783       (2,867)
    1973.....................................      132,438       (4,345)
    1974.....................................      128,389       (4,049)
    1975.....................................      126,568       (1,821)
    1976.....................................      122,586       (3,982)
    1977.....................................      116,595       (5,991)
    1978.....................................      113,858       (2,737)
    1979.....................................      106,156       (7,702)
    1980.....................................       99,225       (6,931)
    1981.....................................       94,425       (4,800)
    1982.....................................       91,105       (3,320)
    1983.....................................       88,843       (2,262)
    1984.....................................       87,397       (1,446)
    1985.....................................       87,092         (305)
    1986.....................................       86,405         (687)
    1987.....................................       87,539        1,134 
    1988.....................................       85,306       (2,233)
    1989.....................................       81,301       (4,005)
    1990.....................................       80,694         (607)
    1991.....................................       80,618          (76)
    1992.....................................       80,937          319 
    1993.....................................       80,678         (259)
    1994.....................................       80,450         (228)
    1995.....................................       79,802         (648)
    1996.....................................   \1\ 78,648       (1,154)
    1997.....................................   \1\ 78,648            0 
------------------------------------------------------------------------
\1\ The Committee was informed September 19, 1997, by District officials
  that the actual enrollment for SY 1996-97 and the updated enrollment  
  projection for SY 1997-98 were not available.                         

    With the amount recommended in the bill, per pupil 
expenditures for the 1996-1997 school year from all sources 
will total $7,160 of which $5,800 will be from District funds 
and $1,360 will be from Federal and other funds.

                         Public Charter Schools

    The Committee recommends $5,250,000 for public charter 
schools from local funds for the fiscal year 1998.

             revised district of columbia retirement system

    As the District of Columbia develops a new pension system, 
the Committee recommends that every consideration for equity 
and access be extended to the employees of Chartered Schools, 
including teachers who transfer to Charter School from the 
DCPS. Such equity and access should permit participation in the 
system at no cost to the system.

                      Teachers' Retirement System

    The Committee recommends the sum of $8,900,000 from local 
funds for Teachers' Retirement and Annuity Payments in fiscal 
year 1998.
    The Teachers' Retirement System provides annuity payments 
and other retirement and disability benefits for retired 
District teachers and their survivors.

                 University of the District of Columbia

    The Committee recommends the sum of $74,087,000 and 917 
full-time equivalent positions (including $37,791,000 and 572 
full-time equivalent positions from local funds, $12,804,000 
and 156 full-time equivalent positions from Federal funds, and 
$23,492,000 and 189 full-time equivalent positions from other 
funds) for the University in fiscal year 1998.
    The University of the District of Columbia is the nation's 
only urban land grant institution. Its mission is to improve 
the quality of life by meeting higher education needs and 
aspirations of the residents of the District of Columbia at the 
lowest possible cost.

                           UDC School of Law

    The Committee continues to be concerned about the financial 
condition of the District of Columbia government and the 
reluctance of District officials to eliminate programs that 
although worthy and commendable, are beyond the financial 
capabilities of the District.
    The Committee is also deeply concerned that the District 
government is continuing to operate a law school. This concern 
was first noted in the conference report (H. Rept. 100-195) 
that accompanied the FY 1987 Supplemental Appropriations Act 
Conference Report. The following statement appears on page 116 
of that report:
    ``The conferees are concerned about the possible long-term 
costs to the District of the operation of a public law 
school.''
    Senate Report 103-313 (page 38) on the FY 1995 D.C. 
Appropriations Act, recommended no appropriation for the D.C. 
School of Law and included the following:
    ``The law school has not attracted a student body that 
would allow it to become self-sufficient and has been an 
increasing drain on the District treasury.
    ``In November 1990 the Commission on Budget and Financial 
Priorities (the Rivlin Commission) recommended that the law 
school be closed. The Commission report stated `the District is 
facing a severe financial crisis and priorities must be 
established. The Commission strongly supports education but 
believes that limited public funds should first be invested in 
early, primary, secondary, and baccalaureate programs * * *. 
Only when excess or surplus funds exist will the funding of 
professional, postgraduate education be reasonable.''
    The Conference report (House Rept. 103-671, pp. 5, 6) on 
the FY 1995 D.C. Appropriations Act included the following 
statements:
    ``Closing of the law school has been proposed by mayors in 
the past, but the conferees do not believe that it has been 
seriously and objectively considered by the council.''
          * * * * * * *
    ``Perhaps the case is made best by the law school's own 
representation as presented in the D.C. Council's Committee on 
Education and Libraries report dated March 11, 1994 to members 
of the Council: `The Law School stated in written response to 
Committee questions that: ``In order for the Law School to 
acquire full accreditation, it must; (1) add basic materials to 
the law library collection which will cost $750,000; (2) 
maintain the then-updated collection by purchasing updates and 
new materials on an annual basis; (3) increase faculty salaries 
by at least 25 percent; (4) increase the number of staff 
supporting administrative, student services, and library 
functions, and (5) acquire and operate out of a permanent 
facility of at least 125,000 square feet'.''
    ``The Council Committee's report later states: `According 
to the Law school, a lease-purchase approach to acquiring a 
permanent facility would `add approximately $1.25 million 
annually to the Law School's current operating budget for (the 
next thirty years.' A `modest balloon payment at the end of the 
thirty year period' would also have to be made.'' That means a 
commitment of approximately $40 million over the next 30 years 
in operating costs in addition to the subsidy).
    ``The Council Committee's report also states that ``ABA 
standards require a minimal expenditure of $1.0 million on the 
law library.'' Given just these two items--annual law library 
expenditures of $1 million and annual lease-purchase costs of 
$1.25 million--the D.C. government could provide full tuition 
at an average school of law in the District for 155 D.C.-
resident students, slightly more than the estimated number of 
District residents enrolled at the D.C. School of Law as 
reflected in the fiscal year 1995 budget.
    ``In addition, the conferees are aware of current D.C. law 
that authorizes grants to clinical law school programs at law 
schools in the District of Columbia (D.C. Code, Title 31, 
Chapter 19, Section 1901 et. seq.) and are informed that the 
city has awarded a total of $60,000 to the program in fiscal 
year 1994 for the various law schools located in the District.
          * * * * * * *
    ``The conferees believe that the best way to ensure that a 
legal education is available to all D.C. citizens who are so 
inclined is not to sponsor a public school of law but to ensure 
that every youngster attends elementary and secondary schools 
and receives an education that qualifies them academically for 
any undergraduate or graduate school in the Nation. It is to 
that principle that the conferees, and indeed probably every 
U.S. citizen, is committed. The argument that the City of 
Washington, D.C. must train public service lawyers or there 
will be a serious void in the legal profession is demonstrably 
wrong.''
    The D.C. Law School was created by the D.C. Council 1986 as 
an independent institution and was merged with the University 
of the District of Columbia in 1995. The law school received 
provisional accreditation in 1991, but had to reapply after it 
merged with UDC. Recent press reports indicate that 
accreditation by the American Bar Association is doubtful. An 
article in the May 12, 1997 Legal Times states that at an April 
1997 `` * * * an American Bar Association panel refused to 
change its earlier decision to recommend removing the law 
school from the list of accredited schools.'' The article 
further states that students at UDC Law School had a 16 percent 
passage rate in Maryland compared with a 29 percent passage 
rate for students from Howard University School of Law and 67 
percent for students from American University's Washington 
College of Law. These numbers were reported by the schools to 
the American Bar Association.
    As stated by the Rivlin Commission, ``priorities must be 
established'' Accordingly, the Committee will not approve any 
funding for the D.C. Law School in Fiscal year 1998. Further, 
it strongly suggested that District officials begin making 
arrangements immediately so the students currently enrolled 
will be assisted in transferring to other law schools.
    The Committee on Appropriations further recommends an 
appropriation of $2.3 million to be apportioned on a quarterly 
basis. If the District of Columbia Law School is not fully, and 
unconditionally accredited by the American Bar Association as 
of January 31, 1998, none of the funds made available in any 
Appropriations Act may be expended for or on behalf of the 
School except for purposesof providing assistance to District 
of Columbia resident students enrolled at the School as of such date in 
paying tuition costs of enrollment at other law schools in the 
Washington Metropolitan Area, in accordance with a plan approved by the 
Congress. None of the funds appropriated for the District of Columbia 
School of Law shall be used for recruitment or capital expenditures.

                             Public Library

    The Committee recommends approval of the $22,036,000 and 
409 full-time equivalent positions (including $20,424,000 and 
398 full-time equivalent positions from local funds, $1,158,000 
and ten full-time equivalent positions from Federal funds, and 
$454,000 and one full-time equivalent position from other 
funds) requested for fiscal year 1998.
    The mission of the Public Library is to acquire and 
organize information, including books and other materials, to 
meet the educational, cultural and recreational needs of adults 
and children in the community; and to provide free access to 
these materials and services in a manner ``convenient to the 
homes and offices of all residents.''

                 Commission on the Arts and Humanities

    An appropriation of $2,057,000 and nine full-time 
equivalent positions (including $1,704,000 and two full-time 
equivalent positions from local funds and $353,000 and seven 
full-time equivalent positions from Federal funds) are 
recommended for the Commission on the Arts and Humanities for 
fiscal year 1998.
    The Commission on the Arts and Humanities objectives are to 
enrich the quality of life for the people of the District of 
Columbia through the arts, in partnership with the community.

                         Human Support Services

    A total of $1,718,939,000 and 6,096 full-time equivalent 
positions is recommended for the departments and agencies 
funded through this appropriation title.
    A summary comparing the Committee's recommendations with 
the estimates by department and activity follows:

                                                                                     HUMAN SUPPORT SERVICES                                                                                     
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        Bill compared with--                    
                                                                                     FY 1998     FY 1998     FY 1998               -------------------------------------------------------------
                     Agency/Activity                         FY 1997     FY 1997    District    Authority    Amended   Recommended                              FY 1998     FY 1998     FY 1998 
                                                            Approved     Revised     Request     Request     Request      in bill     FY 1997      FY 1997     District    Authority    Amended 
                                                                                                                                      Approved     Revised      Request     Request     Request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Department of Human Services.............................  1,538,200   1,539,621           0           0           0            0   (1,538,200)  (1,539,621)           0           0           0
Department of Human Development..........................          0           0     635,285     635,360     635,360      635,360      635,360      635,360           75           0           0
Department of Health.....................................          0           0     961,389     961,389     961,389      961,389      961,389      961,389            0           0           0
Department of Recreation and Parks.......................     33,614      27,491      25,929      26,088      26,088       26,088       (7,526)      (1,403)         159           0           0
Office on Aging..........................................     19,169      18,870      18,392      18,392      18,392       18,392         (777)        (478)           0           0           0
Public Benefit Corporation Subsidy.......................     59,735      37,935      44,335      44,335      44,335       44,335      (15,400)       6,400            0           0           0
Unemployment Compensation Fund...........................      7,678      10,678      10,678      10,678      10,678       10,678        3,000            0            0           0           0
Disability Compensation Fund.............................     24,793      24,089      21,089      21,089      21,089       21,089       (3,704)      (3,000)           0           0           0
Department of Human Rights...............................        974         950         927         927         927          927          (47)         (23)           0           0           0
Office on Latino Affairs.................................        688         660         666         666         666          666          (22)           6            0           0           0
Commission for Women.....................................          0           0          20          20          20           20           20           20            0           0           0
D.C. Energy Office.......................................      5,326       5,326       5,219       5,219       5,219        5,219         (107)        (107)           0           0           0
                                                          --------------------------------------------------------------------------------------------------------------------------------------
      Total, Human Support Services......................  1,690,177   1,665,620   1,723,929   1,724,163   1,724,163    1,724,163       33,986       58,543          234           0           0
Less Intra-District funds................................     (4,470)     (4,470)     (5,224)     (5,224)     (5,224)      (5,224)        (754)        (754)           0           0           0
                                                          --------------------------------------------------------------------------------------------------------------------------------------
      Revised, Human Support Services....................  1,685,707   1,661,150   1,718,705   1,718,939   1,718,939    1,718,939       33,232       57,789          234           0           0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                    Department of Human Development

    A total of $634,669,000 and 4,834 full-time equivalent 
positions (including $345,005,000 and 2,924 full-time 
equivalent positions from local funds, $254,846,000 and 1,903 
full-time equivalent positions from Federal funds, and 
$34,418,000 and seven full-time equivalent positions from other 
funds) are recommended in the bill for the Department of Human 
Development for fiscal year 1998.
    The Department of Human Development sets policy and 
administers the delivery of social and mental health services; 
implements and administers the District's programs under the 
Personal Responsibility and Work Opportunity Reconciliation 
Act; and serves as the focal point for policy and 
implementation of the Temporary Assistance for Needy Families 
program within the District.

                          Department of Health

    The Committee recommends $961,128,000 and 817 full-time 
equivalent positions (including $335,237,000 and 255 full-time 
equivalent positions from local funds, $620,674,000 and 526 
full-time equivalent positions from Federal funds, and 
$5,217,000 and 36 full-time equivalent positions from other 
funds) for the Department of Health for fiscal year 1998.
    The Department of Health sets policy and administers the 
delivery of health care services, implements and administers 
the District's programs under the Social Security Act Title 
XIX, and serves as the focal point for policies affecting and 
safeguarding public health within the District.

                   Department of Recreation and Parks

    An appropriation of $22,889,000 and 390 full-time 
equivalent positions (including $20,722,000 and 371 full-time 
equivalent positions from local funds, $34,000 from Federal 
funds, and $2,133,000 and 19 full-time equivalent positions 
from other funds) are recommended for fiscal year 1998 for the 
Department of Recreation and Parks.
    The mission of the Department of Recreation and Parks is to 
provide quality leisure services to residents and visitors to 
the District of Columbia in safe, well-maintained parks and 
facilities; to be environmentally responsible; to deliver 
programs that are stimulating, enriching, and culturally 
sensitive; to strategically manage financial and human 
resources; to provide adaptive programs and facilities for 
challenged customers; and to attain our goals and objectives 
through a dedicated team supported by volunteers, and public 
and private partnerships.

                            Office on Aging

    The Committee recommends the sum of $17,349,000 and 23 
full-time equivalent positions (including $12,289,000 and 14 
full-time equivalent positions from local funds, $5,055,000 and 
nine full-time equivalent positions from Federal funds, and 
$5,000 from other funds) for the Office on Aging for fiscal 
year 1998.
    The Office on Aging develops and carries out a 
comprehensive and coordinated system of health, education, 
employment, and social services for the District's elderly who 
are 60 years of age and older.

     District of Columbia General Hospital Payment (Public Benefit 
                              Corporation)

    A total of $44,335,000 (including $42,873,000 from local 
funds and $1,462,000 from Federal funds) is recommended as the 
District's share of the operating costs of the city's public 
acute care hospital in fiscal year 1998.
    The District of Columbia General Hospital Payment (Public 
Benefit Corporation) subsidy provides financing support for the 
Public Benefit Corporation's uncompensated health care and 
service delivery to District residents.

                     Unemployment Compensation Fund

    An appropriation of $10,678,000 from local funds is 
recommended for fiscal year 1998 for the Unemployment 
Compensation Fund.
    The mission of the Unemployment Compensation Fund is to 
provide unemployment compensation to eligible former District 
government employees, during periods of unemployment, as a 
result of separation through no fault of their own.

                      Disability Compensation Fund

    A total of $21,089,000 from local funds is recommended for 
the Disability Compensation Fund for fiscal year 1998.
    The mission of the Disability Compensation Fund is to 
provide District government employees injured on the job with 
workers' compensation, including medical care, vocational 
rehabilitation, compensation for wage loss, and survivors' 
compensation.

                         Office of Human Rights

    The sum of $927,000 and 16 full-time equivalent positions 
(including $821,000 and 16 full-time equivalent positions from 
local funds, and $106,000 from Federal funds) are recommended 
for the Office of Human Rights for fiscal year 1998.
    The mission of the Office of Human Rights is to ensure an 
end to illegal discriminatory practices in employment, housing 
and commercial space, public accommodations, education 
institutions, and District government contracting, for the 
private sector, as well as, District government employees.

                        Office on Latino Affairs

    The Committee recommends the sum of $636,000 and three 
full-time equivalent positions from local funds for the Office 
on Latino Affairs for fiscal year 1998.
    The objective of the Office on Latino Affairs is to ensure 
that health, education, employment, and social services are 
available to the Latino community within the District of 
Columbia.

                          Commission for Women

    The Committee recommends $20,000 from other funds for the 
Commission for Women for fiscal year 1998. The Commission 
forWomen develops policy pertaining to health, economic and equity 
issues affecting women in the District of Columbia.
    The Committee is pleased to learn of the Commission for 
Women's initiatives in the District of Columbia. This 
Commission, established by statute in 1978, currently addresses 
the important needs of women in our nation's capital and is 
operating with little or no funding. Despite the lack of staff, 
the Commission carries out the responsibilities of both city 
and state in advocacy for women's issues. Current initiatives 
include assisting District of Columbia agencies and other 
organizations with welfare-to-work projects. In this regard, 
the Commission is presently creating a public-private 
partnership model to ensure that women on welfare will be 
placed in the workplace.

                             Energy Office

    The Committee recommends the appropriation of $5,219,000 
and 13 full-time equivalent positions (including $4,525,000 and 
six full-time equivalent positions from Federal funds and 
$694,000 and seven full-time equivalent positions from other 
funds) for fiscal year 1998 for the Energy Office.
    The mission of the Energy Office is to enhance the 
District's quality-of-life and economic competitiveness through 
initiatives which improve energy efficiency. These initiatives 
include education programs, energy-saving regulations, direct 
conservation, and energy assistance services.

                              Public Works

    A total of $241,934,000 and 1,292 full-time equivalent 
positions for fiscal year 1998 is recommended in the bill for 
activities funded through this appropriation.
    A summary comparing the Committee's recommendations with 
the estimates by department and activity follows:

                                                                                          PUBLIC WORKS                                                                                          
                                                                                         [In thousands]                                                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                           Bill compared with--                 
                                                                                       FY 1998      FY 1998      FY 1998                --------------------------------------------------------
                     Agency/Activity                         FY 1997      FY 1997      District    authority     amended    Recommended                           FY 1998    FY 1998    FY 1998 
                                                             approved     revised      request      request      request       in bill     FY 1997     FY 1997    District  authority   amended 
                                                                                                                                          approved     revised    request    request    request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Department of Public Works...............................     159,042      156,587      148,198      149,458      149,458      149,458      (9,584)     (7,129)      1,260          0          0
Taxicab Commission.......................................       1,000          990          848          848          848          848        (152)       (142)          0          0          0
Washington Metropolitan Area Transit Commission..........          96           96           91           91           91           91          (5)         (5)          0          0          0
Washington Metropolitan Area Transit Authority (Metro)...     131,820      129,008      127,230      127,230      127,230      127,230      (4,590)     (1,778)          0          0          0
School Transit Subsidy...................................       3,845        3,839        3,450        3,450        3,450        3,450        (395)       (389)          0          0          0
                                                          --------------------------------------------------------------------------------------------------------------------------------------
    Total, Public Works..................................     295,803      290,520      279,817      281,077      281,077      281,077     (14,726)     (9,443)      1,260          0          0
Less Intra-District funds................................     (47,836)     (47,836)     (39,143)     (39,143)     (39,143)     (39,143)      8,693       8,693           0          0          0
                                                          --------------------------------------------------------------------------------------------------------------------------------------
    Revised, Public Works................................     247,967      242,684      240,674      241,934      241,934      241,934      (6,033)       (750)      1,260          0          0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                       Department of Public Works

    The Committee recommends the appropriation of $110,315,000 
and 1,283 full-time equivalent positions (including $96,935,000 
and 1,156 full-time equivalent positions from local funds, 
$3,350,000 and 51 full-time equivalent positions from Federal 
funds, and $10,030,000, and 76 full-time equivalent positions 
from other funds) for the Department of Public Works for fiscal 
year 1998.
    Geographic information systems (GIS).--The Committee 
continues to believe that development of a geographic 
information system (GIS) will provide efficiency and 
productivity in the District government, assist in the 
operation, maintenance and planning of the District's physical 
infrastructure, and enhance public safety and increase revenues 
through more accurate and efficient property tax collection. 
The National Capital Planning Commission is also providing 
administrative and financial resources to the District's GIS 
program. It is also the strong recommendation of the Regulatory 
Reform Commission that the GIS program be implemented as an 
assistance to the economic development of the District of 
Columbia. Because of the many benefits, financial and 
otherwise, that will accrue to the District, the Committee 
encourages the DPW to work toward implementing a GIS as soon as 
possible.
    The mission of the Department of Public Works is to improve 
the overall quality of life in the District of Columbia and 
enhance the District's ability to compete for residents, 
business, tourism and trade.

                           Taxicab Commission

    A total of $848,000 and nine full-time equivalent positions 
(including $277,000 and six full-time equivalent positions from 
local funds and $571,000 and three full-time equivalent 
positions from other funds) are recommended for the Taxicab 
Commission for fiscal year 1998.
    The mission of the Taxicab Commission is to ensure that the 
public is provided with safe and reliable taxicab and other 
transportation services through the regulation of the public 
vehicle-for-hire industry in the District of Columbia.

            Washington Metropolitan Area Transit Commission

    The Committee recommends $91,000 from local funds for 
fiscal year 1998 for the Transit Commission.
    The mission of the Washington Metropolitan Area Transit 
Commission is to ensure that the public is provided with 
responsible and reliable transportation services through the 
regulation of privately-owned, for-hire passenger carriers 
serving the region.

             Washington Metropolitan Area Transit Authority

    The Committee recommends approval of the requested 
$127,230,000 from local funds for fiscal year 1998 for the 
District's share of the operating expenses and debt services 
for Metrorail and Metrobus operations.
    The mission Washington Metropolitan Area Transit Authority 
is to provide safe, convenient, and cost-efficient mass transit 
service within the District of Columbia and throughout the 
Washington Metropolitan Area.

                         School Transit Subsidy

    The bill includes $3,450,000 from local funds for fiscal 
year 1998 for the school transit subsidy. The School Transit 
Subsidy provides a subsidy for school children who use metrobus 
and metrorail for educationally related transportation. The 
students share of the base adult Metrobus and Metrorail fare 
was increased from one-third to one-half beginning June 21, 
1995.

                        Financing and Other Uses

    The Committee recommends a total of $475,539,000 for the 
following appropriation titles:

                                                                                    FINANCING AND OTHER USES                                                                                    
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         Bill compared with--                   
                                                                                         FY 1998    FY 1998    FY 1998               -----------------------------------------------------------
                         Agency/Activity                           FY 1997    FY 1997    district  authority   amended   Recommended                            FY 1998     FY 1998     FY 1998 
                                                                   approved   revised    request     request   request      in bill     FY 1997     FY 1997    district    authority    amended 
                                                                                                                                       approved     revised     request     request     request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Washington Convention Center Transfer Payment...................      5,400      5,400      5,400      5,400      5,400       5,400           0           0           0           0           0 
Repayment of Loans and Interest.................................    333,710    333,710    365,548    365,196    384,430     366,976      33,266      33,266       1,428       1,780     (17,454)
Repayment of General Fund Recovery Debt.........................     38,314     38,314     39,020     39,020     39,020      39,020         706         706           0           0           0 
Short-Term Borrowing............................................     34,461     34,461     15,848     18,157     12,000      12,000     (22,461)    (22,461)     (3,848)     (6,157)          0 
Certificate of Participation....................................      7,926      7,926      7,923      7,923      7,923       7,923          (3)         (3)          0           0           0 
Inaugural Expenses..............................................      5,702      5,702          0          0          0           0      (5,702)     (5,702)          0           0           0 
Human Resources Development.....................................     12,257     12,257      4,896      6,000      6,000       6,000      (6,257)     (6,257)      1,104           0           0 
Management and Productivity Improvement.........................          0          0          0          0     30,000       5,000       5,000       5,000       5,000       5,000     (25,000)
Pay-As-You-Go Capital Outlay....................................          0          0          0          0          0      30,000      30,000      30,000      30,000      30,000      30,000 
D.C. Financial Responsibility and Management Assistance                                                                                                                                         
 Authority......................................................      3,400      3,220      3,220      3,220      3,220       3,220        (180)          0           0           0           0 
                                                                 -------------------------------------------------------------------------------------------------------------------------------
      Total, Financing and Other Uses...........................    441,170    440,990    441,855    444,916    487,993     475,539      34,369      34,549      33,684      30,623     (12,454)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

             WASHINGTON CONVENTION CENTER TRANSFER PAYMENT

    An appropriation of $5,400,000 from local funds is 
recommended for fiscal year 1998 as the general fund 
contribution to the Washington Convention Center.
    The primary purpose of the Washington Convention Center 
Transfer Payment is to provide an annual subsidy for the 
Washington Convention Center Enterprise operation which serves 
as a public enterprise to expand the tax base of the District 
of Columbia, provides space and facilities for local public 
shows and events, foster redevelopment of downtown Washington, 
D.C., and provides expanded employment and business 
opportunities for residents of the District of Columbia.

                    REPAYMENT OF LOANS AND INTEREST

    A total of $366,976,000 from local funds is recommended for 
the repayment of loans and interest for fiscal year 1998.
    The Repayment of Loans and Interest appropriation provides 
for the payment of the long-term debt service costs of the 
District government's long-term borrowings to finance capital 
project expenditures of general fund agencies and the 
amortization of costs for private hospital construction.

                REPAYMENT OF GENERAL FUND RECOVERY DEBT

    In fiscal year 1980, the District's financial results were 
reported according the generally accepted accounting principles 
(GAAP) and revealed an accumulated general fund operating 
deficit of $387,509,000 at the close of fiscal year 1980. This 
meant that the general fund's accrued liabilities from past 
years exceeded its current assets by $387,509,000. Over the 
next seven years the District reduced the deficit by a total of 
$182,916,000 or 47 percent. However, in fiscal year 1988 an 
unfavorable tax decision and other factors resulted in a 
further deficit of $14,279,000. In fiscal year 1989 and 1990 
spending pressures combined with falling revenues created 
further deficits that brought the accumulated general fund 
deficit to $331,589,000.
    In August 1991, Congressional legislation was approved 
(Public Law 102-106) and the District issued $336,605,000 in 
12-year general recovery bonds to eliminate the general fund 
deficit. The amount included $5,000,000 to cover the costs 
associated with issuing the bonds.
    The Committee recommends the request of $39,020,000 from 
local funds for fiscal year 1998 to cover the principal and 
interest due on these bonds. The following table provides a 
chronology of the changes in the District's accumulated general 
fund deficit from fiscal year 1980 through fiscal year 1996:

                                   GENERAL FUND ACCUMULATED SURPLUS (DEFICIT)                                   
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                 Fiscal year ending                         Noncash              Cash                Total      
----------------------------------------------------------------------------------------------------------------
Sept. 30, 1980......................................          ($203,509       \1\ ($184,000)      \2\ ($387,509)
  Adjustments during fiscal year 1981 \3\...........            (14,001)             92,000              77,999 
Sept. 30, 1981......................................           (217,510)            (92,000)           (309,510)
  Surplus during fiscal year 1982...................  ..................             13,061              13,061 
Sept. 30, 1982......................................           (217,510)            (78,939)           (296,449)
  Surplus during fiscal year 1983 \4\...............  ..................             17,038              17,038 
Sept. 30, 1983......................................           (217,510)            (61,901)           (279,411)
  Adjustment (internal services fund deficit).......             (7,909)  ..................             (7,909)
  Surplus during fiscal year 1984 \5\...............  ..................             17,460              17,460 
Sept. 30, 1984......................................           (225,419)            (44,441)           (269,860)
  Surplus during fiscal year 1985 \6\...............  ..................             24,926              24,926 
Sept. 30, 1985......................................           (225,419)            (19,515)           (244,934)
  Surplus during fiscal year 1986 \7\...............                538              19,515              20,053 
Sept. 30, 1986......................................           (224,881)  ..................           (224,881)
  Surplus during fiscal year 1987 \7\...............             20,288   ..................             20,288 
Sept. 30, 1987......................................           (204,593)  ..................           (204,593)
  Deficit during fiscal year 1988 \7\...............            (14,279)  ..................            (14,279)
Sept. 30, 1988......................................           (218,872)  ..................           (218,872)
  Surplus during fiscal year 1989 \7\...............              5,469   ..................              5,469 
Sept. 30, 1989......................................           (213,403)  ..................           (213,403)
  Deficit during fiscal year 1990...................           (118,186)  ..................           (118,186)
Sept. 30, 1990......................................           (331,589)  ..................           (331,589)
  Adjustment during fiscal year 1991 \8\............            331,589   ..................            331,589 
  Surplus during fiscal year 1991...................              1,570   ..................              1,570 
Sept. 30, 1991......................................  ..................  ..................              1,570 
  Surplus during fiscal year 1992...................              1,986   ..................              1,986 
Sept. 30, 1992......................................  ..................  ..................              3,556 
  Surplus during fiscal year 1993...................              7,766   ..................              7,766 
Sept. 30, 1993......................................  ..................  ..................             11,322 
  Deficit during fiscal year 1994...................           (335,428)  ..................           (335,428)
Sept. 30, 1994......................................  ..................  ..................           (324,106)
  Deficit during fiscal year 1995...................            (54,428)  ..................            (54,428)
Sept. 30, 1995......................................  ..................  ..................           (378,534)
  Deficit during fiscal year 1996...................            (75,322)  ..................            (75,322)
Sept. 30, 1996......................................  ..................  ..................       \9\ (453,856)
----------------------------------------------------------------------------------------------------------------
\1\ Amount District government had planned to borrow at the end of FY 1980. See p. 1032, of FY 1984 D.C.        
  Hearings.                                                                                                     
\2\ In addition, an imbalance of $66,208,000 in the capital budget of the D.C. Department of Transportation was 
  funded through (1) a reprogramming of $28,475,700 in the Supplemental Appropriations Act for fiscal year 1979 
  (Public Law 96-38) (see page 162, Senate Report No. 96-224) and (2) new budget (obligational) authority of    
  $37,733,100 in the D.C. Appropriations Act for fiscal year 1981 (see page 53. House Report No. 96-1271).      
\3\ Includes $51,400,000 in additional revenues, $9,699,000 reclassification of non-accrual employee annual     
  leave, $6,400,000 in expediture reductions, and $10,500,000 in accounting adjustments.                        
\4\ Budgeted at $20 million.                                                                                    
\5\ Budgeted at $15 million.                                                                                    
\6\ Budgeted at $20.1 million.                                                                                  
\7\ Budgeted at $20 million reduction.                                                                          
\8\ 12-year deficit recovery bonds sold September 1991 pursuant to P.L. 102-106 approved August 17, 1991.       
\9\ Cash portion of this amount is $300 million with balance of $154 million due to ``accrual'' estimates.      

                    INTEREST ON SHORT-TERM BORROWING

    The Committee recommends $12,000,000 from local funds for 
fiscal year 1998 to pay the interest and other costs associated 
with borrowings to meet short-term cash needs of the District 
government.

                     CERTIFICATES OF PARTICIPATION

    The Committee recommends $7,923,000 from local funds for 
the semiannual lease payments on the land site of the One 
Judiciary Square Building for fiscal year 1998.

                      HUMAN RESOURCES DEVELOPMENT

    The Committee recommends $6,000,000 from local funds for 
human resources development in the District government.

              MANAGEMENT AND PRODUCTIVITY IMPROVEMENT FUND

    The Committee recommends $5,000,000 from local funds for 
fiscal 1998 for the Management and Productivity Improvement 
Fund.

   Critical Improvements and Repairs to School Facilities and Streets

    The Committee recommends $30,000,000 for immediate, one-
time critical improvements and repairs to school facilities and 
neighborhood and other streets. These improvements and repairs 
are urgently needed for roof, boiler, and chiller renovation or 
replacement at District schools and to repair potholes and 
streets throughout the District. By allocating this $30,000,000 
for these improvements and repairs, the District will be able 
to avoid interest and other costs associated with borrowings. 
Language in the bill requires that the improvements and repairs 
be completed not later than August 1, 1998, prior to the 
scheduled opening of the 1998-99 school year.

DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE 
                               AUTHORITY

    The Committee recommends $3,220,000 for the operations of 
the District of Columbia Financial Responsibility and 
Management Assistance Authority for fiscal year 1998.

                            Enterprise Funds

    The Committee recommends a total of $641,300,000 for the 
activities funded through these appropriation titles.

                                                                                        ENTERPRISE FUNDS                                                                                        
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         Bill compared with--                   
                                                                                       FY 1998     FY 1998     FY 1998               -----------------------------------------------------------
                      Agency/Activity                          FY 1997     FY 1997    District    Authority    amended   Recommended                            FY 1998     FY 1998     FY 1998 
                                                              approved     revised     request     request     request     in bill      FY 1997     FY 1997    District    Authority    amended 
                                                                                                                                       approved     revised     request     request     request 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Department of Public Works (Utility Administration)........    200,000     200,000     263,425     263,425     263,425      263,425      63,425      63,425           0           0           0 
Washington Aqueduct........................................     25,743      25,743      33,885      33,885      33,885       33,885       8,142       8,142           0           0           0 
                                                            ------------------------------------------------------------------------------------------------------------------------------------
    Total, Water and Sewer Enterprise Fund.................    225,743     225,743     297,310     297,310     297,310      297,310      71,567      71,567           0           0           0 
Lottery and Charitable Games...............................    247,900     247,900     213,500     213,500     213,500      213,500     (34,400)    (34,400)          0           0           0 
Cable Television...........................................      2,511       2,467       2,467       2,467       2,467        2,467         (44)          0           0           0           0 
Public Service Commission..................................          0           0       4,547       4,547       4,547        4,547       4,547       4,547           0           0           0 
Office of People's Counsel.................................          0           0       2,428       2,428       2,428        2,428       2,428       2,428           0           0           0 
Department of Insurance and Securities Regulations.........          0           0       5,683       5,683       5,683        5,683       5,683       5,683           0           0           0 
Office of Banking and Financial Institutions...............          0           0         600         600         600          600         600         600           0           0           0 
Sports Commission (STARPLEX)...............................      8,717       8,717       8,936       5,936       5,936        5,936      (2,781)     (2,781)     (3,000)          0           0 
D.C. General Hospital......................................    118,034     116,494     108,434     108,434     108,434      108,434      (9,600)     (8,060)          0           0           0 
Retirement Board...........................................     16,667      16,667      16,762      16,762      16,762        4,898     (11,769)    (11,769)    (11,864)    (11,864)    (11,864)
Correctional Industries Fund...............................      9,152       9,152       9,432       9,432       9,432        9,432         280         280           0           0           0 
Washington Convention Center...............................     47,996      47,996      46,400      46,400      46,400       46,400      (1,596)     (1,596)          0           0           0 
                                                            ------------------------------------------------------------------------------------------------------------------------------------
    Total, Enterprise Funds................................    676,720     675,136     716,499     713,499     713,499      701,635      24,915      26,499     (14,864)    (11,864)    (11,864)
Less Intra-District Funds..................................    (81,231)    (68,276)    (67,250)    (67,250)    (60,335)     (60,335)     20,896       7,941       6,915       6,915           0 
                                                            ------------------------------------------------------------------------------------------------------------------------------------
    Revised, Enterprise Funds..............................    595,489     606,860     649,249     646,249     653,164      641,300      45,811      34,440      (7,949)     (4,949)    (11,864)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

       Water and Sewer Utility Authority and Washington Aqueduct

    The Committee recommends $263,425,000 from other fund for 
fiscal year 1998 for the Water and Sewer Utility Authority.
    The Water and Sewer Authority is responsible for providing 
retail water service to the District of Columbia and limited 
water service to portions of the surrounding metropolitan area. 
It is also responsible for providing retail wastewater 
collection and treatment service within the corporate limit of 
the District and wholesale service to portions of certain 
outlying areas, in an environmentally safe manner that protects 
our waterways.

                          Washington Aqueduct

    The Committee recommends $33,885,000 from other funds for 
fiscal year 1998 for the Washington Aqueduct.
    The mission of the Washington Aqueduct is to collect, 
purify, and pump an adequate supply of potable water for the 
District of Columbia, Arlington County, and the City of Falls 
Church, Virginia.

               Lottery and Charitable Games Control Board

    An appropriation of $213,500,000 and 100 full-time 
equivalent positions from revenue generated by the Board are 
recommended for fiscal year 1998 for the Lottery and Charitable 
Games Control Board.
    The mission of the District of Columbia Lottery and 
Charitable Games Control Board is to generate revenues for the 
general fund and regulate charitable games to support programs 
and services for the residents of the District of Columbia.

                       Office of Cable Television

    A total of $2,467,000 and eight full-time equivalent 
positions (including $2,135,000 and eight full-time equivalent 
positions from local funds and $332,000 from other funds) are 
recommended for the Office Cable Television for fiscal year 
1998.
    The mission of the Office of Cable Television is to 
protect, promote and advocate the public interest in cable 
television within the District of Columbia, to oversee and 
coordinate programming for the municipal channels, and to 
coordinate the Interagency Task Force on Telecommunications.

                       Public Service Commission

    A total of $4,547,000 (including $4,250,000 from local 
funds, $117,000 from Federal funds, and $180,000 from other 
funds) is recommended for fiscal year 1998 for the Public 
Service Commission.
    The mission of the Public Service Commission is to serve 
the public interest by ensuring that financially healthy 
utilities provide safe, reliable, and quality service at just 
and reasonable rates for District of Columbia residential, 
business and government ratepayers.

                       Office of People's Counsel

    The Committee has approved $2,428,000 from local funds for 
fiscal year 1998 for the Office of People's Counsel.
    The mission of the Office of the People's Counsel is to 
ensure that utility consumers of natural gas, electric, and 
telephone services, in the District of Columbia have legal 
representation before local and federal decision-making bodies.

           Department of Insurance and Securities Regulation

    The Committee recommends $5,683,000 and 89 full-time 
equivalent positions from other funds for the Department of 
Insurance and Securities Regulation for fiscal year 1998.
    The Department of Insurance and Securities Regulation is 
responsible for implementing and enforcing laws and regulations 
governing the insurance and securities industry in the District 
of Columbia.

              Office of Banking and Financial Institutions

    The Committee recommends $600,000 (including $100,000 from 
local funds and $500,000 from other funds) for the Office of 
Banking and Financial Institutions for fiscal year 1998.
    The Office of Banking and Financial Institutions is 
responsible for regulating all banking and financial 
institutions in the District of Columbia.

                      Sports Commission (STARPLEX)

    The Committee recommends $5,936,000 from other funds for 
the Sports Commission (STARPLEX) for fiscal year 1998.
    The mission of the Sports Commission, formerly the D.C. 
Armory Board, is to consolidate the District's efforts in 
attracting amateur and professional sporting events to the 
District. The Sports Commission is an independent agency of the 
District and is responsible for the management of the Robert F. 
Kennedy Stadium and the secondary use of the D.C. Armory ``to 
provide suitable facilities for major athletic events, 
conventions, . . . shall be operated as nearly as practicable 
on a self-supporting basis.''

                      D.C. General Hospital (PBC)

    The Committee recommends $59,599,000 from other funds for 
the District of Columbia General Hospital (Public Benefit 
Corporation) for fiscal year 1998.
    The Hospital provides inpatient, outpatient, emergency, 
diagnostic, preventive, and rehabilitative services.

                         D.C. Retirement Board

    The Committee recommends a total of $4,898,000 and eight 
full-time equivalent positions from investment income for 
fiscal year 1998 for the D.C. Retirement Board.
    The Committee reduced the funds available to the D.C. 
Retirement Board due to passage of The National Capital 
Revitalization Act of 1997 (Public Law 105-33) which 
transferred to the Federal government responsibility for most 
of the pension benefit provisions of the plans for police 
officers, fire fighters, teachers and judges. Approximately 
$3,000,000,000 of the D.C. Retirement Board's assets of 
$4,400,000,000 will be transferred to the Secretary of the 
Treasury to make pension payments to current and future 
retirees. The Committee also recommends bill language that 
limits the stipends for Board members to $5,000 per year.
    The mission of the District of Columbia Retirement Board is 
to invest, control, and manage the assets of the D.C. Teachers' 
Retirement Fund, the D.C. Police Officers and Fire Fighters' 
Retirement Fund, and the D.C. Judges Retirement Fund.

                      Correctional Industries Fund

    The Committee recommends $3,332,000 and 50 full-time 
equivalent positions from other funds for the Correctional 
Industries Fund for fiscal year 1998.
    The mission of the Correctional Industries Fund is to 
rehabilitate inmates by equipping them with a means of 
livelihood after their release from the institutions.

              Washington Convention Center Enterprise Fund

    The Committee recommends $41,000,000 from other funds for 
the Washington Convention Center Enterprise Fund for fiscal 
year 1998.
    The primary mission of the Washington Convention Center is 
to serve as a public enterprise to expand the tax base of the 
District of Columbia by promoting and hosting large 
international and national conventions and trade shows that 
bring hundreds of thousands of out-of-town delegates and 
exhibitors to the city, to provide space and facilities for 
local public shows and event, to foster redevelopment of 
downtown Washington, D.C., and provide expanded employment 
business opportunities for residents of the District of 
Columbia.
    The D.C. Committee to Promote Washington objective is to 
increase awareness of the District as a destination for travel, 
increase hotel occupancy, visitor spending, and business, and 
increase and support the number of festivals, including major 
sports and entertainment events.
    The Washington Convention and Visitors Association 
objective is to increase and improve the economic base of both 
the public and private sectors of the area by attracting many 
meetings and conventions to the area through promotion, 
marketing, and direct sales to local, national and 
international travelers.
    The D.C. Chamber of Commerce objective is to promote the 
District of Columbia as a tourist destination to minority 
markets and to increase District-based small minority, and 
under represented business' awareness of leisure travel, 
meeting, and convention opportunities in Washington, D.C.

                             CAPITAL OUTLAY

    The Committee recommends $269,330,000 for fiscal year 1998 
(consisting of $136,585,000 from local funds and $132,745,000 
from Federal funds) for the capital outlay program.
    A brief explanation of the Committee's recommendations is 
provided starting below:

                                                  CAPITAL OUTLAY                                                
----------------------------------------------------------------------------------------------------------------
                                                                                Committee        Bill compared  
                                                              Estimate        recommendation     with estimate  
----------------------------------------------------------------------------------------------------------------
Department of Business Services and Economic                                                                    
 Development:                                                                                                   
  One-Stop Business Center.............................         $2,705,000         $2,705,000                  0
Public Schools:                                                                                                 
  Critical improvements to school facilities...........         66,826,000         66,826,000                  0
  Roof, boiler and chiller renovation or replacement...         32,954,000         32,954,000                  0
Department of Public Works:                                                                                     
  Parking meters.......................................          3,000,000          3,000,000                  0
                                                        --------------------------------------------------------
    Total, Capital outlay, general fund................        105,485,000        105,485,000                  0
Highway trust fund.....................................         31,100,000         31,100,000                  0
Federal grants.........................................        132,745,000        132,745,000                  0
                                                        --------------------------------------------------------
    Grand total, Capital Outlay........................        269,330,000        269,330,000                  0
----------------------------------------------------------------------------------------------------------------

    Department of Business Services and Economic Development.--
The Committee recommends $2,705,000 for a one-stop business 
center.
    Public Schools.--The Committee recommends $66,826,000 for 
critical improvements to schools facilities, and $32,954,000 
for roof, boiler and chiller renovations and replacements.
    Department of Public Works.--The Committee recommends 
$3,000,000 for parking meters.
    Also included in the bill is $42,745,000 for Community 
Development Block Grants, $90,000,000 for highway grants and 
$31,100,000 for the highway trust fund.

                           General Provisions

    A number of general provisions are carried in the bill each 
year as the need warrants. Changes recommended or denied by the 
Committee are discussed in the paragraphs that follow:
    The Committee has retained the original language in Sec. 
123.
    The Committee has not approved the deletion of Sec. 129 the 
prohibition against use of funds for abortions.
    The Committee has retained Sec. 130 which prohibited the 
use of funds for the implementation of the Domestic Partners 
Act and revised to include D.C. Law and D.C. Code citations. .
    The Committee has approved the deletion of Sec. 131 which 
provided that the Commission on Judicial Disabilities and 
Tenure and the Judicial Nomination Commission shall serve 
without compensation on the Commissions.
    The Committee has approved the revisions to Sec. 132 of 
last year's bill (new Sec. 131) changing the Board of Education 
to the Emergency Transitional Education Board of Trustees and 
the deletion of (2) which required a report breaking out of FTE 
positions and staff for the most current pay period broken out 
on the basis of control center, responsibility center, detailed 
object, and agency reporting code, and for all funding sources.
    The Committee has approved the revisions to Sec. 133 of 
last year's bill (new Sec. 132) the deletion of (2) which 
required a report breaking out of FTE positions and staff for 
the most current pay period broken out on the basis of control 
center, responsibility center, detailed object, and agency 
reporting code, and for all funding sources.
    The Committee has approved the revision to Sec. 134 of last 
year's bill (new Sec. 133) changing the name of the Board of 
Education to Emergency Transitional Education Board of 
Trustees.
    The Committee has approved the revision to Sec. 135 of last 
year's bill (new Sec. 134) changing the name of the Board of 
Education to Emergency Transitional Education Board of 
Trustees.
    The Committee has approved the revision to Sec. 136 of last 
year's bill (new Sec. 135) changing the name of the Board of 
Education to Emergency Transitional Education Board of 
Trustees.
    The Committee has approved the deletion of Sec. 138 which 
modified the Board of Education reduction-in-force procedures.
    The Committee has retained Sec. 139 (new Sec. 137) which 
clarified the classification of employees of the District of 
Columbia public schools.
    The Committee has retained Sec. 140 (new Sec. 138) on 
modification of reduction-in-force procedures and includes 
restrictions on use of official vehicles, source of payment for 
detailed employees with District Government, and reforms to 
disability compensaton services.
    The Committee has retained Sec. 141 (new Sec. 139) setting 
a ceiling on expenses and deficit and revised fiscal year 1997 
language to reflect Committee markup and cap general fund 
expenditures to provide $100 million for debt reduction and 
$200 million for taxpayer relief fund. The Committee has also 
included a limitation on the number of full-time equivalent 
employees, and repealing provisions granting certain entities 
power to expend non-appropriated funds.
    The Committee has retained Sec. 144 (new Sec. 140) which 
provided that all accounting, budget, and financial management 
personnel (including personnel of independent agencies but not 
legislative and judicial branches of the District government) 
shall be appointed by, shall serve at the pleasure of, and 
shall act under the direction and control of the Chief 
Financial Officer. The Committee has included the Lottery Board 
employees, Medicaid program, independent contracting authority, 
clarification of grounds for removal from office, and 
permitting selection legal of counsel under this provision.
    The Committee has approved amendments to Sec. 143 (new Sec. 
141) which amends the D.C. Retirement Reform Act.
    The Committee has approved the deletion of Sec. 144 which 
was a technical amendment to the District of Columbia Self-
Government and Governmental Reorganization Act.
    The Committee has approved the deletion of Sec. 145 which 
was amendments to the District of Columbia School Reform Act of 
1995.
    The Committee has not approved the deletion of Sec. 146 
(new Sec. 142) Compliance with Buy American Act.
    The Committee has approved the deletion of Sec. 147 which 
provided that the Housing Finance Agency shall not be required 
to repay moneys advanced by the District government (including 
accrued interest thereon) pursuant to Congressional 
appropriations for fiscal years 1980 through 1992).
    The Committee has approved the deletion of Sec. 148 which 
was amendments to the District of Columbia School Reform Act of 
1995.
    The Committee has approved the deletion of Sec. 149 on 
energy and water savings at District of Columbia facilities.
    The Committee has approved the deletion of Sec. 150 on the 
reduction in number of members of the Board of Trustees of 
American University.
    The Committee has approved the deletion of Sec. 151 waiving 
of Congressional review of certain Council acts.
    The Committee has not approved the new Sec. 137 on reforms 
to the Disability Compensation Program. The reforms are under 
Sec. 138.
    The Committee has approved a new Sec. 143 on special 
masters budgets.
    The Committee has approved a Sec. 144 on the commencing of 
adverse actions for police.
    The Committee has approved a new Sec. 145 on notice to 
police officers for out-of-service assignments.
    The Committee has not approved the requested new Sec. 141 
on the reimbursement for Presidential Protection Assistance.
    The Committee has approved the new Sec. 146 on use of any 
surplus funds to be used to reduce the District's outstanding 
accumulated deficit.
    The Committee has approved a new Sec. 147 which includes 
cap on salary of Retirement Board members and resumption of 
certain terminated annuities paid to child survivors of police 
and firefighters.
    The Committee has approved a new Sec. 148 on pay raises for 
police officers.
    The Committee has approved a new Sec. 149 which prohibits 
increases in welfare payments.
    The Committee has approved a new Sec. 150 amending the 
Omnibus Consolidated Rescissions and Appropriations Act of 
1996.
    The Committee has approved a new Sec. 151 requiring 
impositions of liens for unpaid water and sewer bills.
    The Committee has approved a new Sec. 152 on restrictions 
of powers over the Chief Financial Officer and Inspector 
General,
    The Committee has approved a new Sec. 153 on the Financial 
Management System.
    The Committee has approved a new Sec. 154 on the 
clarification of authority to conduct audits. The intent of 
this section is to void the present contract to perform the 
annual audit of the District of Columbia for fiscal year 1997, 
and that it is within the exclusive jurisdiction of the 
Inspector General to award this contract. This responsibility 
rests with the Inspector General for fiscal year 1997 and all 
future fiscal years.
    The Committee has approved a new Sec. 155 requiring the use 
of direct deposit or mail for all payments.
    The Committee has approved a new Sec. 156 on revision of 
certain auditing requirements.
    The Committee has approved a new Sec. 157 on treatment of 
unclaimed property.
    The Committee has approved a new Sec. 158 on bond financing 
by District Government.
    The Committee has approved a new Sec. 159 on reopening of 
Pennsylvania Avenue in front of the White House.
    The Committee has approved a new Sec. 160 on deposit of 
annual Federal contribution with authority, dishonored check 
collection, requiring District Government officials to provide 
information upon request to Congressional Committees, 
prohibiting certain helicopter flights over District, 
conforming references to Internal Revenue Code of 1986, and 
standards for review of recommendations of Business Regulatory 
Review Commission in Review of Regulations by Authority.

                TITLE II--D.C. MEDICAL LIABILITY REFORM

    The Committee recommends a new title II that reforms 
medical liability practices in the District of Columbia. 
Section 202 provides for a statute of limitations that 
prohibits the initiation of liability action after the 
expiration of a 2-year period in certain instances and barring 
all actions after the expiration of a 5-year period that begins 
on the date the alleged injury occurred.
    Section 203 limits the amount of noneconomic damages in a 
health care liability action to $250,000.

                    TITLE III--D.C. EDUCATION REFORM

    The Committee continues its commitment to making world-
class educational opportunities available to the young people 
of Washington, D.C., and believes such opportunities are 
necessary to the revitalization of the city.
    The Committee recommends language in title III of the bill 
that will provide educational choices for families through 
expansion and improvement of the public charter school program 
as well as establish an educational choice scholarship program 
for children of low-income families. In addition, the bill 
includes language that continues administrative reforms of the 
public schools of the District of Columbia.

                         public charter schools

    The Committee recommends $5.25 million in local funds for 
charter schools, an innovation in public education which 
expands educational opportunities free from traditional public 
school bureaucracy. By repealing this exemption, a modicum of 
fairness is restored to the application of the local property 
tax among the more than 50 labor organizations located in the 
District of Columbia. Included in the $5.25 million recommended 
by the Committee is $300,000 for the District of Columbia 
Public Charter School Board. The Committee encourages the 
development of 20 additional charter schools, as authorized, 
and encourages the development of a science and technology 
vocational education and traditional charter schools.
    The bill makes several technical changes to the District of 
Columbia School Reform Act (P.L. 104-134) regarding charter 
schools. The bill permits public charter school funding 
allocations to take into account facility costs as well as the 
increased costs of boarding or residential schools. It also 
establishes the New Charter School Fund, a revolving account 
funded by $1.5 million in unexpended fiscal year 1997 funds, 
for new charter schools to receive advances for start-up costs.
    The bill also grants charter schools the authority to lease 
surplus District of Columbia public school property for $1 per 
year, and defines authority to purchase such property. The 
following surplus schools should be candidates for such 
priority leases to public charter schools: Crummell, Emery, 
Lenox, Logan, Randall, Richardson Annex, Syphax, Armstrong, 
Blair, Bruce, Carver, Chamberlain, Fillmore, Franklin, Gales, 
Giddings, Hardy, Hayes, Jackson, Langley, Old Congress Heights, 
Webster, Woodson, Wormley, Blow Pierce, Harrison, Keene, Lewis, 
McKinley, Petworth, Richardson and Woodbridge.
    As the District of Columbia develops a new pension system, 
the Committee recommends that every consideration for equity 
and ac-cess be extended to employees of public charter schools. 
Such equity and access should be designed to permit participation in 
the system at no cost to the system.

             LOW-INCOME SCHOLARSHIPS FOR EDUCATIONAL CHOICE

    The Committee recommends $7,000,000 in Federal funds to 
provide scholarships that will enable children of low-income 
families to have an educational choice which at the present 
time is only available to those of greater financial means.
    Under this program, a non-profit corporation is established 
to administer tuition, tutoring and transportation scholarships 
for District residents. For students whose family income is 
below the poverty level, tuition scholarships will cover the 
cost of tuition up to $3,200. For students whose family's 
income is between 100 percent and 185 percent of the poverty 
level, the scholarships will pay three-quarters of the tuition 
up to $2,400. Tuition scholarships may be used at private 
schools in the District and in public or private schools in 
surrounding jurisdictions. Tutoring and transportation 
assistance scholarships will cover the full cost of such 
activities, up to $500, for students whose family incomes are 
no more than 185 percent of the poverty level. Scholarships are 
awarded randomly to student applicants who are District of 
Columbia residents, enrolled in school, and within the income 
limits. This scholarship program operates in a manner similar 
to the G.I. Bill and Federal day care assistance where the 
choice of where the funds are expended is made by the 
scholarship recipient rather than the government. Language in 
the bill protects students' civil rights, and the rights of 
students with disabilities.
    The nonprofit corporation established to administer the 
program is overseen by a seven-member Board of Directors, six 
appointed by the President from nominations submitted by the 
Speaker of the House and the President of the Senate, and one 
appointed by the Mayor of the District of Columbia. The 
corporation is not an agency or entity of the U.S. or the 
District of Columbia governments.

                   OTHER EDUCATION REFORM PROVISIONS

    The Committee recommends an appropriation of $1,000,000 in 
Federal funds for the District's public schools for payment to 
the District Education and Learning Technologies Advancement 
(DELTA) Council authorized by section 2604 of the District of 
Columbia School Reform Act of 1995 (Public Law 104-134). The 
objective of the DELTA Council is designed to be the formal 
private sector entity to solicit, organize, and coordinate 
private sector contributions to the public schools and secure 
contributions of technology, equipment, hardware and software, 
and pro bono contributions of time and expertise of private 
sector personnel. These Federal funds will be matched with 
private contributions of $3,000,000 which will provide a total 
of $4,000,000 to be used to coordinate educational technology 
advancement between business and the District's public schools. 
Considerable assistance is expected from the business community 
and nonprofit organizations.
     The bill includes language providing good-faith donors 
exemption from liability. The bill also includes language that 
gives the District of Columbia Public Schools contracting 
officer the option to waive the Davis-Bacon prevailing wage law 
in awarding construction and repair contracts based on quality 
and price, and thus obtain savings which can be devoted to 
other education priorities.
    The Committee notes that of some 50 labor organizations 
located in the District of Columbia, only one, the National 
Education Association, enjoys a congressionally mandated 
exemption from the local property tax. The bill includes 
language restoring fairness in the application of the local 
property tax among labor organizations in the District of 
Columbia.
    The bill includes language requiring a reduction of 200 
non-instructional full-time-equivalent staff positions by 
January 1, 1998. The bill also includes language directing the 
District of Columbia Public Schools to develop teacher 
performance benchmarks and incentives. The bill also includes 
$10 million for a pay raise for classroom teachers with valid 
teaching credentials, (to be distributed throughout the fiscal 
year as the qualification requirements are met) and requires a 
school-by-school budget and requesting an accurate student 
count, and requiring parents or guardians placing children in 
school or child care to prove District residency or else pay 
tuition.
    The Committee requests that the schools develop for the 
fiscal year 1999 budget submission a compensation structure 
providing the highest pay and prestige to staff teaching 
children and serving at the school sites, rather than at the 
central administrative office. The Committee requests that the 
schools develop a comprehensive education technology plan, in 
close cooperation with the business community, experts in the 
field, and nearby and similar school districts, to take best 
advantage of computer and technology donations affected by the 
21st Century Classrooms Act (P.L. 105-34, Title II B, Sec. 
224), expand technological literacy, and use technology to 
improve educational achievement. The committee requests that 
the schools work closely with law enforcement to improve 
children's understanding of and relationship with the law and 
the police, advance effective juvenile delinquency prevention 
programs such as the Learning for Life initiative of the 
National Capital Area Boy Scouts and to develop a simplified 
and improved school safety and discipline policy.

                    FIRE CODE COMPLIANCE AND SAFETY

    The Committee urges the District of Columbia Public Schools 
Emergency Board of Trustees, the Fire Marshal of the District 
of Columbia, and the appropriate judicial authorities to work 
with the community and experts in the field to develop and 
execute a more traditional and effective scheme of fire code 
compliance and safety.

                          RESCISSION OF FUNDS

    Pursuant to clause 1(b) of rule X of the House of 
Representatives, the Committee reports that no rescissions of 
prior year budget authority are recommended in the accompanying 
bill.

                       INFLATION IMPACT STATEMENT

    Clause 2(l)(4) of rule XI of the House of Representatives 
requests that each committee report accompanying a bill or 
resolution contain a statement as to whether enactment of the 
bill or resolution may have an inflationary impact on prices 
and costs in the operation of the national economy.
    It is the Committee's considered opinion that enactment of 
the accompanying bill will not have inflationary impact on 
prices and costs in the operation of the national economy, 
since the bill relates solely to the operation of the local 
government of the District of Columbia.
    The Committee recommends the appropriation of $827,500,000 
in Federal funds including a Federal contribution of 
$180,000,000 to the Operations of the Nation's Capital which 
becomes a part of local revenues from which appropriations for 
the operation of the City are made, $169,000,000 payment to the 
District of Columbia Corrections Trustee for Operations, 
$302,000,000 payment to the District of Columbia Corrections 
Trustee for correctional facilities, construction and repair, 
$123,000,000 for District of Columbia Courts, $23,000,000 for 
payment to the Pretrial Services, Defense Services, Parole, 
Adult Probation, and Offender Supervision Trustee for the 
District of Columbia, $7,000,000 Federal contribution for 
parental choice in education, $1,000,000 for District Education 
and Learning Technologies Advancement (DELTA) Council, 
$2,000,000 for the Inspector General for investigative efforts, 
$5,400,000 Federal payment for police pay raise, $2,600,000 
Federal payment for fire fighter pay raise, and $12,500,000 to 
the United States Park Police.

                   COMPARISON WITH BUDGET RESOLUTION

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), requires 
that the report accompanying a bill providing new budget 
authority contain a statement detailing how the authority 
compares with the reports submitted under section 602(b) of the 
Act for most recently agreed to concurrent resolution on the 
budget for the fiscal year. This information follows:

                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                      602(b) allocation         This bill--     
                                                                   ---------------------------------------------
                                                                      Budget                Budget              
                                                                     authority   Outlays   authority    Outlays 
----------------------------------------------------------------------------------------------------------------
Discretionary.....................................................         835       537         828         527
Mandatory.........................................................  ..........  ........  ..........  ..........
----------------------------------------------------------------------------------------------------------------

    The bill provides no new spending authority as described in 
section 401(c)(2) of the Congressional Budget and Impoundment 
Control Act of 1974 (Public Law 93-344), as amended.

                        CONSTITUTIONAL AUTHORITY

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives states that:
    ``Each report of a committee on a bill or joint resolution 
of a public character, shall include a statement citing the 
specific powers granted to the Congress in the Constitution to 
enact the law proposed by the bill or joint resolution.''
    The Committee on Appropriations bases its authority to 
report this legislation from the following:
    Clause 17 of Section 8 of Article I of the Constitution of 
the United States of America which states:
    ``The Congress shall have Power . . . To exercise exclusive 
Legislation in all Cases whatsoever, over such District (not 
exceeding ten Miles square) as may, by Cession of particular 
States, and the Acceptance of Congress, become the Seat of the 
Government of the United States . . .''. And
    Clause 7 of Section 9 of Article I of the Constitution of 
the United States which states:
    ``No money shall be drawn from the Treasury but in 
consequence of Appropriations made by law * * *''.
    Appropriations contained in this Act are made pursuant to 
these specific powers granted by the Constitution.

                    FIVE-YEAR PROJECTION OF OUTLAYS

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following table provided by the Congressional 
Budget Office contains 5-year projections of the outlays 
associated with the budget authority provided in the 
accompanying bill:

Federal funds

        Item and fiscal year                                      Amount
Budget authority in bill................................    $827,500,000
Outlays:
    1998................................................     527,000,000
    1999................................................     142,000,000
    2000................................................     144,000,000
    2001................................................      15,000,000
    2002................................................................

    The bill provides no new revenues or tax expenditures, and 
will have no effect on budget authority, tax expenditures, 
direct loan obligations, or primary loan guarantee commitments 
available under existing law for fiscal year 1998 and beyond.

          FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

    In accordance with section 308(a)(1)(D) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the Committee is required to report new budget 
authority and outlays provided for financial assistance to 
State and local governments. The accompanying bill contains 
Federal funding as follows:

        Item                                              Recommendation
New fiscal year 1998 budget authority...................    $827,500,000
Fiscal year 1998 outlays resulting therefrom............     527,000,000

                           TRANSFERS OF FUNDS

    Clause 1(b), rule X, of the Rules of the House of 
Representatives requires that the report include information 
describing the transfer of funds recommended in the 
accompanying bill.
    Language included under ``Executive Office of the 
President, Federal Payment to the District of Columbia Criminal 
Justice System'' provides transfer authority of $800,000 to the 
United States Parole Commission.

               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to Clause 3, rule XXI of the Rules of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which might be construed, under some circumstances, as directly 
or indirectly changing the application of existing law.
    1. Under ``Governmental Direction and Support'', there is 
language which provides that program fees collected from the 
issuance of bonds or other debt instruments shall be available 
for the payment of expenses of the District's debt management 
program. Section 490 of the Home Rule Charter (Public Law 93-
198, as amended) authorizes the District government to issue 
revenue bonds fora number of specified purposes and was amended 
by Public Law 95-218 specifically to enable the District government to 
act as a conduit for the issuance of revenue bonds for private colleges 
and universities. This language will allow the District government to 
be reimbursed for the costs of issuing bonds on behalf of third-party 
beneficiaries.
    3. Under ``Public Safety and Justice'', language provides 
an exemption for two classes of passenger motor vehicles from 
31 U.S.C. 1343(c) which states, in part, that:
    (c)(1) Except as specifically provided by law, an agency 
may use an appropriation to buy a passenger motor vehicle 
(except a bus or ambulance) only at a total cost (except costs 
required only for transportation) that
          * * * * * * *
          (C) is not more than the maximum price established by 
        the agency having authority under law to establish a 
        maximum price; and
          (D) is not more than the amount specified in a law.
    The classes of motor vehicles exempted from the price 
ceiling are vehicles used for police, fire fighting and fire 
prevention activities. Because of the special requirements for 
those types of vehicles the costs exceed the maximum set for 
passenger motor vehicles for regular use.
    4. Language is included under ``Public Safety and Justice'' 
authorizing the Mayor to reimburse the National Guard for 
expenses incurred in connection with emergency services 
performed by the Guard at the request of the Mayor. The 
language also provides that the availability of these funds is 
to be considered as constituting payment in advance for the 
emergency services involved.
    8. Language is included under ``Public Safety and Justice'' 
providing $500,000 for the Police Chief's confidential fund in 
fiscal year 1998 in accordance with the Police Chief's 
estimates.
    9. Language under ``Public Safety and Justice'' requires 
the Police Department to provide quarterly reports on its 
efforts to increase efficiency and improve the professionalism 
in the Department.
    10. Language under the ``Public Safety and Justice'' gives 
the Metropolitan Police Department and the Fire and Emergency 
Medical Services Department independent authority to make 
purchases up to $500,000 and provides that the District of 
Columbia government may not require the Department to submit to 
any other procurement review process, or to obtain the approval 
of any other official or employee.
    11. Language is included under ``Public Education System'' 
authorizing the District of Columbia Public Schools to accept 
not to exceed 31 motor vehicles for exclusive use in the driver 
education program.
    12. Language is included under ``Public Education System'' 
requiring the Board of Trustees of the University of the 
District of Columbia to establish a tuition rate for 
nonresident students at a level no lower than the rate for 
nonresident students at comparable public institutions of 
higher education in the metropolitan area.
    13. Under ``Human Support Services,'' there is language 
providing that appropriations available solely for employees' 
disability compensation shall remain available until expended. 
31 U.S.C. 1301(c)(2) provides in part, that:
    (c) An appropriation in a regular, annual appropriation law 
may be construed to be permanent or available continuously only 
if the appropriation--
          * * * * * * *
          (2) expressly provides that it is available after the 
        fiscal year covered by the law in which it appears.
    14. Language under ``Human Support Services'' prohibits the 
District from providing free government service to private 
nonprofit organizations if the District would not be qualified 
to receive reimbursement pursuant to the Stewart B. McKinney 
Homeless Act.
    15. Language is included under ``Public Works'' providing 
for the rental of one passenger-carrying vehicle for use by the 
Mayor and three passenger-carrying vehicles for use by the 
Council of the District of Columbia.
    16. Language under ``Repayment of General Fund Recovery 
Debt'' provides funds to reduce the District's accumulated 
general fund deficit.
    17. Language under ``Lottery and Charitable Games 
Enterprise Fund'' requires the use of non-Federal funds to 
finance the operations of the Lottery Board and directs the 
District to identify the source of funding from its own 
locally-generated revenues.
    18. The bill includes language under ``D.C. Retirement 
Board'' appropriating funds to pay legal, management, 
investment and other fees and administrative expenses of the 
District of Columbia Retirement Board. Section 121(f)(1) of the 
District of Columbia Retirement and Reform Act (Public Law 96-
122) states that all administrative expenses incurred by the 
Board are to be paid out of funds appropriated for such 
purposes. The language recommended by the Committee 
appropriates the total amount required for the operation of the 
board and specifies that the total amount is to be from the 
investment income of the pension funds. The language also 
clarifies that all expenses of the Board are to be paid from 
this appropriation. A requirement for quarterly reports as well 
as timely submission of budget data and audit information is 
also included in the language.
    19. Under ``Capital Outlay'' there is language that 
provides that the amount appropriated shall remain available 
until expended. This language is needed to provide an exemption 
to 31 U.S.C. 1301(c)(2) to allow the funds to remain available 
beyond fiscal year 1998. The exemption is needed because of the 
length of time required for the design and construction of 
capital projects.
    20. The Committee has included language under ``Capital 
Outlay'' requiring that funds appropriated for capital outlay 
projects shall be managed and controlled in accordance with 
procedures and limitations established under the financial 
management system and that all such funds shall be available 
only for the specific project and purpose intended.
    21. Section 101 of the ``General Provisions'' requires that 
all expenditures for consulting services obtained through 
procurement contracts be open for public inspection.
    22. Language under section 104 grants the Mayor the 
authority within rates prescribed by Federal Travel 
Regulations, to establish allowances for privately owned 
automobile and motorcycles used for official purposes.
    23. A proviso is included under section 105 of the bill 
permitting the Council of the District of Columbia to expend 
funds for travel and payment of dues without authorization by 
the Mayor.
    24. Section 106 appropriates funds for refunding 
overpayments of taxes collected and for paying judgments 
against the District of Columbia government.
    25. Section 107 of the ``General Provisions'' provides an 
exemption from the requirements of section 544 of the District 
of Columbia Public Assistance Act of 1982, effective April 6, 
1982 (D.C. Law 4-101; D.C. Code, sec. 3-205.44).

          Such amount as referred to in subsection (a) of this 
        section shall not be less than the full amount 
        determined as necessary on the basis of the minimum 
        needs of such person as established by the Council.

    Because of financing constraints, the District has 
regularly budgeted for a percentage of the public assistance 
payment standard, rather than for the full amount as required 
by Sec. 3-205.44 of the District of Columbia Code.
    26. Language in section 111 of the ``General Provisions'' 
has been carried since 1979 and allows the payment of a 
percentage of taxes collected to individual who provide 
information to the District resulting in the collection of 
taxes.
    27. A proviso is included under Section 113 requiring the 
Mayor to develop an annual plan for borrowing capital outlay 
funds and to submit quarterly reports to the Council of the 
District of Columbia and Congress.
    28. Language in section 114 of the ``General Provisions'' 
requires the Mayor to obtain approval from the Council of the 
District of Columbia prior to borrowing funds for capital 
projects.
    29. Section 115 of the ``General Provisions'' prohibits the 
Mayor from paying operating expenses with funds borrowed for 
capital projects.
    30. Language in section 116 prohibits the obligation or 
expenditure of funds by reprogramming unless advance approval 
is obtained in accordance with established procedures set forth 
in House Report No. 96-443 as modified in House Report No. 98-
265 or as modified by Public Law 104-8.
    31. Language in section 117 prohibits the use of Federal 
funds in the bill to provide a personal cook, chauffeur, or 
other personal servants to any officer or employee of the 
District of Columbia government.
    32. Language in section 118 prohibits the use of Federal 
funds in the bill to purchase passenger automobiles as defined 
in 15 U.S.C. 2001(2) with an Environmental Protection Agency 
estimated miles per gallon average of less than 22 miles per 
gallon.
    33. Language in section 119 authorizes the Mayor to set the 
salary of the City Administrator at a rate not to exceed the 
maximum statutory rate established for level IV of the Federal 
Executive Schedule under 5 U.S.C. 5315, and provides that this 
salary may be payable to the City Administrator during fiscal 
year 1998. The language also authorizes the Mayor to set the 
per diem rate for board members of the Redevelopment Land 
Agency in the same manner consistent with their authority to 
set these rates for members of other boards and commissions of 
the District government. The Mayor does not have this authority 
at the present time.
    34. Language under section 120 clarifies the pay setting 
authority for District employees as the District's Merit 
Personnel Act rather than title 5 of the United States Code.
    35. Language in section 121 exempts the District from 
provisions of section 322 of the Economy Act of 1932 concerning 
expenditures for office leasing, alterations, improvements and 
repairs. This exemption was recommended by the General 
Accounting Office and was first carried in the fiscal year 1985 
bill.
    36. Language in section 123 prohibits the District 
government from renewing or extending sole source contracts 
without opening them to the competitive bidding process as set 
forth in section 303 of the District of Columbia Procurement 
Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-
85).
    37. Sec. 124 requires any sequestration pursuant to the 
Balanced Budget and Emergency Deficit Control Act of 1985 
(Public Law 99-177) to be applied to each of the Federal fund 
appropriation accounts rather than to the aggregate total of 
these accounts.
    38. Language in section 125 provides that in the event a 
sequestration order is issued after the amounts appropriated to 
the District have been paid to the District, the Mayor is 
required to pay the Secretary of the Treasury, within 15 days 
after receipt of a request from the Secretary, the amounts 
sequestered by the order provided the sequestration percentage 
is applied to each of the Federal appropriation accounts and 
not applied to the aggregate total.
    39. Language in section 126 prohibits the expenditure of 
funds for programs or functions of which a reorganization plan 
is required but has not been approved by the Council.
    40. Language under section 127 allows the District of 
Columbia government to accept and use, with the Mayor's 
approval, donations received for public purposes authorized by 
law. The language also requires that accurate records be 
maintained by the agency or entity administering the program 
and that the records be available for audit and public 
inspection. The language also allows the Council of the 
District of Columbia and the Board of Education to accept gifts 
and donations without the approval of the Mayor.
    41. Language under section 128 continues current law as it 
relates to the prohibition on the use of Federal funds for 
salaries, expenses, or other costs associated with the offices 
of U.S. Senator or Representative under section of 4(d) of the 
D.C. Statehood Constitutional Convention Initiatives of 1979.
    42. Language in section 129 prohibits funds appropriated in 
this Act from being expended for abortions, except where the 
life of the mother would be endangered if the fetus were 
carried to term or where the pregnancy is the result of an act 
of rape or incest.
    43. Language in section 130 prohibits funds made available 
pursuant to any provision of this Act from being used to 
implement or enforce any system of registration of unmarried, 
cohabitating couples whether they are homosexual, lesbian, or 
heterosexual, including but not limited to registration for the 
purpose of extending employment, health, or governmental 
benefits to such couples onthe same basis such benefits are 
extended to legally married couples.
    44. Language in section 131 requires the Emergency 
Transitional Education Board of Trustees to submit to the 
Congress, Mayor, and Council of the District of Columbia no 
later than fifteen calendar days after the end of each month a 
report that sets forth:
          (a) Current month expenditures and obligations, year-
        to-date expenditures and obligations, and total fiscal 
        year expenditures projections vs. budget broken out on 
        the basis of control center, responsibility center, 
        agency reporting code, and object class, and for all 
        funds, including capital financing:
          (b) A list of each account for which spending is 
        frozen and the amount of funds frozen;
          (c) A list of all active contracts in excess of 
        $10,000 annually;
          (d) All reprogramming requests and reports; and
          (e) Changes made in the last month to the 
        organizational structure of the D.C. Public Schools.
    45. Language in section 132 requires the University of the 
District of Columbia to submit monthly reports as follows:
          (a) Current month expenditures and obligations, year-
        to-date expenditures and obligations, and total fiscal 
        year expenditures projections vs. budget broken out on 
        the basis of control center, responsibility center, and 
        object class, and for all funds including capital 
        financing;
          (b) A list of each account for which spending is 
        frozen and the amount of funds frozen;
          (c) A list of all active contracts in excess of 
        $10,000 annually;
          (d) All reprogramming requests and reports;
          (e) Changes made in the last month to the 
        organizational structure of the university.
    46. Language in section 133 requires annual reporting 
requirements from the Emergency Transitional Education Board of 
Trustees and the University of the District of Columbia on the 
number of validated schedule ``A'' positions, a compilation of 
all employees as of the proceeding December 31, verified as to 
its accuracy in accordance with the functions that each 
employee actually performs, and requires that the report be 
submitted to the Congress, the Mayor, and Council of the 
District of Columbia, not later than February 15 of each year.
    47. Language in section 134 requires the Emergency 
Transitional Education Board of Trustees and the University of 
the District of Columbia to submit to the Congress, the Mayor, 
and Council of the District of Columbia, revised appropriated 
funds operating budget for the public school system and the 
University of the District of Columbia for such fiscal year 
that is in the total amount of the approved appropriation and 
that realigns budgeted data for personal services and other-
than-personal services, respectively, with anticipated actual 
expenditures.
    48. Language in section 135 requires the Emergency 
Transitional Education Board of Trustees, the Board of Trustees 
of the University of the District of Columbia, the Board of 
Library Trustees, and the Board of Governors of the D.C. School 
of Law to vote on and approve their respective annual or 
revised budget before submission to the Mayor of the District 
of Columbia for inclusion in the Mayor's budget submission to 
the Council of the District of Columbia.
    49. Language in section 136 provides that the evaluation 
process and instruments for evaluating District of Columbia 
Public Schools employees shall be a non-negotiable item for 
collective bargaining purposes.
    50. Language in section 138 requires user offices to 
account for and pay for employees detailed within the District 
Government, amends the reduction-in-force procedures, restricts 
providers from whom employees may receive disability 
compensation services, and revises application of binding 
arbitration procedures under new personnel rules.
    51. Language in section 139 places a ceiling of the lesser 
of (1) total revenues, less $192,741,000 or (2) $4,493,375,000 
excluding $118,269,000 from intra-District funds on the total 
amount appropriated for operating expenses for the District of 
Columbia for fiscal year 1998 under the caption ``Division of 
Expenses'', limit 5 the number of full-time equivalent 
employees, and repeals provisions granting certain entities 
power to expend non-appropriated funds. In the latter case, the 
language is not intended to affect the Water and Sewer 
Authority's ability to meet its debt service requirements.
    52. Language in Sec. 140 clarifies the authority over 
financial personnel, gives the Chief Financial Officer 
independent contracting authority, and authority over the 
District Medicaid Program during a control year, requires 
monthly reports on revenues and expenditures, clarifies grounds 
for removal from office of the Chief Financial Officer, and 
permits the Chief Financial Officer to select legal counsel.
    53. Language in section 141 prohibits police, fire fighters 
and teachers having disability status unless the determination 
is made by a District designated entity and requires semi-
annual reports of the actuarial impact of disability 
retirements.
    54. Language in Sec. 142 states that none of the funds made 
available in this Act may be expended unless the entity agrees 
that in expending the funds the entity will comply with the Buy 
American Act.
    55. Language in Sec. 143 requires that all Special Masters 
appointed by the District of Columbia Superior Court or the 
U.S. District Court for the District of Columbia Circuit to any 
agency of the District of Columbia government prepare and 
annually submit to the District of Columbia Financial 
Responsibility and Management Assistance Authority, for 
inclusion in the annual budget, annual estimates of 
expenditures and appropriations.
    56. Language in Sec. 144 amends the District of Columbia 
Government Comprehensive Merit Personnel Act on commencing of 
adverse actions for police.
    57. Language in Sec. 145 changes the notice to police 
officers for out-of-service assignments.
    58. Language in Sec. 146 requires any unused surplus as of 
the end of the fiscal year be used to reduce the District's 
outstanding accumulated deficit.
    59. Language in Sec. 147 caps the salary of the Retirement 
Board members and resumes certain terminated annuities paid to 
child survivors of District of Columbia police and 
firefighters.
    60. Language in Sec. 148 provides a 5% pay raise for police 
officers who perform primarily nonadministrative public safety 
services and are certified by the Chief of the Department as 
having met the minimum ``Basic Certificate'' standards 
transmitted by the District of Columbia Financial 
Responsibility and Management Assistance Authority to Congress 
by letter dated May 19, 1997.
    61. Language in Sec. 149 prohibits an increase in welfare 
payments greater than the amount provided under the D.C. Public 
Assistance Act as in effect on the day after the effective date 
of the Public Assistance Temporary Amendment Act of 1997.
    62. Language in Sec. 150 amends the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996.
    63. Language in Sec. 151 requires that liens be imposed for 
water and sewer bills that are 60 or more days late and the 
liens be assigned to a private entity in exchange for a cash 
payment or securitization.
    64. Language in Sec. 152 provides restrictions on power 
over Chief Financial Officer and Inspector General.
    65. Language in Sec. 153 provides specifications for 
improvements in the Financial Management System in the short 
term and long term.
    66. Language in Sec. 154 provides clarification that the 
D.C. Inspector General contract for the District's annual 
audits.
    67. Language in Sec. 155 authorizes direct deposit or mail 
for all payments.
    68. Language in Sec. 156 revises certain auditing 
requirements.
    69. Language in Sec. 157 amends the Uniform Disposition of 
Unclaimed Property Act of 1980 for treatment of unclaimed 
property.
    70. Language in Sec. 158 prohibits the use of borrowings to 
finance or refund the accumulated general fund deficit, puts 
restrictions on debt restructuring, and requires all bonds to 
be sold at public sale.
    71. Language in Sec. 159 requires that the portion of 
Pennsylvania Avenue in front of the White shall be reopened to 
regular vehicular traffic beginning January 1, 1998.
    72. Language in Sec. 160 requires the annual Federal 
contribution be deposited into an escrow account held by the 
Authority, which shall allocate the funds to the Mayor. Also 
prescribes penalties for the handling and collection of 
dishonored checks, requires District government officials to 
provide information upon request to Congressional Committees, 
prohibits certain helicopter flights over the District, 
conforms references to the Internal Revenue Code of 1986, and 
sets standards for the control board to review recommendations 
of the Business Regulatory Reform Commission. Language also 
makes technical changes and exempts the independent regional 
Water and Sewer Authority from budget reductions imposed by the 
Council or the Control Board. A technical correction is made to 
the Balanced Budget Act of 1997 to designate the proper name of 
the ``Parks Authority''.

          COMPLIANCE WITH CLAUSE 3--RULE XIII (RAMSEYER RULE)

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in exiting law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                       DISTRICT OF COLUMBIA CODE

                     PART I--GOVERNMENT OF DISTRICT

          * * * * * * *

                        TITLE 1--ADMINISTRATION

          * * * * * * *

             CHAPTER 3--MAYOR, COUNCIL, AND OTHER OFFICERS

          * * * * * * *

Sec. 1-357. Imposition of fee for delivery of bad check in payment of 
                    obligation due District of Columbia; amount of fee; 
                    manner of collection; exception

    (a) The Mayor of the District of Columbia shall prescribe 
and impose, in addition to any other penalties provided by law, 
a fee to be paid by each person who gives or causes to be 
given, in payment of any tax, assessment, fee, charge, or other 
obligation due the government of the District of Columbia, a 
check which is subsequently dishonored or not duly paid. The 
amount of the fee shall be prescribed from time to time by the 
Mayor and shall be based on the approximate cost to the 
District of Columbia of handling dishonored or unpaid checks 
and collecting the amounts they represent. The fee shall be 
collected in the same manner as the original obligation. The 
Mayor may enter into a contract to collect the amount of the 
original obligation. Any receipt previously given in reliance 
upon such check shall be void, and no other receipt shall be 
given for the payment of the original amount due until the fee 
has also been paid. This section shall not apply to a check 
which is not paid because of the death of its drawer. The Mayor 
may issue rules and regulations necessary to carry out this 
section.
          * * * * * * *
    (c) In a case in which the amount of a dishonored or unpaid 
check is collected as a result of a contract, the Mayor shall 
collect any costs or expenses incurred to collect such amount 
from such person who gives or causes to be given, in payment of 
any obligation or liability due the government of the District 
of Columbia, a check which is subsequently dishonored or not 
duly paid. In a case in which the amount of a dishonored or 
unpaid check is collected as a result of an action at law or in 
equity, such costs and expenses shall include litigation 
expenses and attorney's fees.
    (d) An action at law or in equity for the recovery of any 
amount owed to the District as a result of subsection (c), 
including any litigation expenses or attorney's fees may be 
initiated--
          (1) by the Corporation Counsel of the District of 
        Columbia; or
          (2) in a case in which the Corporation Counsel does 
        not exercise his or her authority, by the person who 
        provides collection services as a result of a contract 
        with the Mayor.
    (e) Nothing in this section may be construed to eliminate 
the Mayor's exclusive authority with respect to any obligations 
and liabilities of the District of Columbia.
          * * * * * * *

                        CHAPTER 6--MERIT SYSTEM

          * * * * * * *

              Subchapter XVII_Adverse Actions; Grievances

Sec. 1-617.1. Adverse actions

    (a) * * *
          * * * * * * *
    (b-1)(1) [Except as provided in paragraph (2)] Except as 
provided in paragraphs (2) and (3) of this subsection, no 
corrective or adverse action shall be commenced pursuant to 
this section more than 45 days, not including Saturdays, 
Sundays, or legal holidays, after the date that the agency knew 
or should have known of the act or occurrence allegedly 
constituting cause, as that term is defined in subsection (d) 
of this section.
          * * * * * * *
    (3) Except as provided in paragraph (2) of this subsection, 
for members of the Metropolitan Police Department, no 
corrective or adverse action shall be commenced pursuant to 
this section more than 120 days, not including Saturdays, 
Sundays, or legal holidays, after the date that the agency knew 
or should have known of the act or occurrence allegedly 
constituting cause, as that term is defined in subsection (d) 
of this section.
          * * * * * * *

                Subchapter XXIV_Disability Compensation

Sec. 1-624.1. Definitions

    For the purpose of Sec. Sec. 1-624.1 through 1-624.45:
    (a) * * *
          * * * * * * *
    (c) The term ``medical, surgical, and hospital services and 
supplies'' included services and supplies by podiatrists, 
dentists, clinical psychologists, optometrists, chiropractors, 
osteopathic practitioners and hospitals within the scope of 
their practice as defined by District or State law and as 
designated by the Mayor to provide services to injured 
employees. Reimbursable chiropractic services are limited to 
treatment consisting of manual manipulation of the spine, to 
correct a subluxation as demonstrated by X-ray to exist, and 
subject to rules and regulations issued by the Mayor.
          * * * * * * *
    (r)(1) The term ``managed care organization'' means an 
organization of physicians and allied health professionals 
organized to and capable of providing systematic and 
comprehensive medical care and treatment of injured employees 
which is designated by the Mayor to provide such care and 
treatment under this title.
    (2) The term ``allied health professional'' means a medical 
care provider (including a nurse, physical therapist, 
laboratory technicians, X-ray technician, social worker, or 
other provider who provides such care within the scope of 
practice under applicable law) who is employed by or affiliated 
with a managed care organization.
          * * * * * * *

Sec. 1-624.3. Medical services and initial medical and other benefits

    (a) The District government shall furnish to an employee 
who is injured while in the performance of duty the services, 
appliances, and supplies prescribed or recommended by a 
qualified physician, which the Major considers likely to cure, 
give relief, reduce the degree or period of disability, or aid 
in lessening the amount of the monthly compensation. These 
services, appliances, and supplies shall be furnished:
          (1) * * *
          * * * * * * *
          [(3) By or on the order of District of Columbia 
        government medical officers and hospitals, or, at the 
        employee's option, by or on order of physicians and 
        hospitals designated or approved by the Mayor. Any 
        medical service provided shall be subject to 
        utilization review pursuant to Sec. 1-624.23.
    [The employee may initially select a physician to provide 
medical services, appliances, and supplies in accordance with 
such rules and regulations and instructions as the Mayor 
considers necessary, and may be furnished necessary and 
reasonable transportation and expenses incident to the securing 
of such services, appliances, and supplies. These expenses, 
when authorized or approved by the Mayor, shall be paid from 
the Employees' Compensation Fund.]
          (3) By or on the order of the District of Columbia 
        government medical officers and hospitals, or by or on 
        the order of a physician or managed care organization 
        designated or approved by the Major.
          * * * * * * *
    (c)(1) An employee to whom services, appliances, or 
supplies are furnished pursuant to subsection (a) shall be 
provided with such services, appliances, and supplies 
(including reasonable transportation incident thereto) by a 
managed care organization or other health care provider 
designated by the Mayor, in accordance with such rules, 
regulations, and instructions as the Mayor considers 
appropriate.
    (2) Any expenses incurred as a result of furnishing 
services, appliances, or supplies which are authorized by the 
Mayor under paragraph (1) shall be paid from the Employees' 
Compensation Fund.
    (3) Any medical service provided pursuant to this 
subsection shall be subject to utilization review under section 
2323.
          * * * * * * *

Sec. 1-624.24. Time for making claim; finding of facts; award; right to 
                    hearing; conduct of hearing

    (a) * * *
          * * * * * * *
    [(c) If compensation awarded under subsection (a) of this 
section is not paid within 20 days after the compensation 
becomes due, the amount of compensation owed shall increase by 
20% unless:
          [(1) A hearing or review is held pursuant to 
        subsection (b) of this section or Sec. 1-624.28 and the 
        Mayor or court, in connection with the hearing or 
        review, issues an order that stays the payment of 
        compensation; or
          [(2) a hearing examiner or court waives payment of 
        the 20% penalty upon a showing by the Mayor that, due 
        to conditions beyond the Mayor's control, the award 
        could not be paid within the 20 days.]
          * * * * * * *

                   Subchapter XXV_Reductions-in-Force

          * * * * * * *

Sec. 1-625.7 ABOLISHMENT OF POSITIONS FOR FISCAL YEAR

    (a) Notwithstanding any other provision of law, regulation, 
or collective bargaining agreement either in effector to be 
negotiated while this legislation is in effect for the fiscal year 
ending September 30, 1998, each agency head is authorized, within the 
agency head's discretion, to identify positions for abolishment.
    (b) Prior to February 1, 1998, each personnel authority 
shall make a final determination that a position within the 
personnel authority is to be abolished.
    (c) Notwithstanding any rights or procedures established by 
any other provision of this title, any District government 
employee, regardless of date of hire, who encumbers a position 
identified for abolishment shall be separated without 
competition or assignment rights, except as provided in this 
section.
    (d) An employee affected by the abolishment of a position 
pursuant to this section who, but for this section would be 
entitled to compete for retention, shall be entitled to one 
round of lateral competition pursuant to Chapter 24 of the 
District of Columbia Personnel Manual, which shall be limited 
to positions in the employee's competitive level.
    (e) Each employee who is a bona fide resident of the 
District of Columbia shall have added 5 years to his or her 
creditable service for reduction-in-force purposes. For 
purposes of this subsection only, a nonresident District 
employee who was hired by the District government prior to 
January 1, 1980, and has not had a break in service since that 
date, or a former employee of the United States Department of 
Health and Human Services at Saint Department of Health and 
Human Services at Saint Elizabeths Hospital who accepted 
employment with the District government on October 1, 1987, and 
has not had a break in service since that date, shall be 
considered a District resident.
    (f) Each employee selected for separation pursuant to this 
section shall be given written notice of at least 30 days 
before the effective date of his or her separation.
    (g) Neither the establishment of a competitive area smaller 
than an agency, nor the determination that a specific position 
is to be abolished, nor separation pursuant to this section 
shall be subject to review except that--
          (1) an employee may file a complaint contesting a 
        determination or a separation pursuant to title XV of 
        this Act or section 303 of the Human Rights Act of 1977 
        (DC Code, sec. 1-2543); and
          (2) an employee may file with the Office of Employee 
        Appeals an appeal contesting that the separation 
        procedures of subsections (d) and (f) were not properly 
        applied.
    (h) An employee separated pursuant to this section shall be 
entitled to severance pay in accordance with title XI of this 
Act, except that the following shall be includedin computing 
creditable service for severance pay for employees separated pursuant 
to this section--
          (1) four years for an employee who qualified for 
        veterans preference under this Act, and
          (2) three years for an employee who qualified for 
        residency preference under this Act.
    (i) Separation pursuant to this section shall not affect an 
employee's rights under either the Agency Reemployment Priority 
Program or the Displaced Employee Program established pursuant 
to Chapter 24 of the District Personnel Manual.
    (j) The Mayor shall submit to the Council a listing of all 
positions to be abolished by agency and responsibility center 
by March 1, 1998 or upon the delivery of termination notices to 
individual employees.
    (k) Notwithstanding the provisions of section 1708 or 
section 2402(d), the provisions of this Act shall not be deemed 
negotiable.
    (l) A personnel authority shall cause a 30-day termination 
notice to be served, no later than September 1, 1998, on any 
incumbent employee remaining in any position identified to be 
abolished pursuant to subsection (b) of this section.
          * * * * * * *

CHAPTER 7--DISTRICT OF COLUMBIA EMPLOYEES RETIREMENT PROGRAM MANAGEMENT

          * * * * * * *

  Subchapter II_Establishment of Retirement Board and Retirement Funds

Sec. 1-711. District of Columbia Retirement Board

    (a) * * *
          * * * * * * *
    (c)(1) Subject to the availability of appropriations for 
that purpose, each member of the Board shall be entitled to 
receive the hourly equivalent of the annual rate of pay in 
effect for the highest step of grade DS-15 under Chapter 6 of 
this title for each hour that the member is engaged in the 
actual performance of duties vested in the Board, except that a 
member of the Board who is a full-time officer or employee of 
the District of Columbia or the United States shall not be 
entitled to receive pay under this subsection for performance 
of duties vested in the Board during the employee's regularly 
scheduled working hours[.], and the total amount to which a 
member may be entitled under this subsection during a year 
(beginning with 1998) may not exceed $5,000.
          * * * * * * *

                        CHAPTER 11A--PROCUREMENT

          * * * * * * *

                 Subchapter II_Procurement Organization

          * * * * * * *

Sec. 1-1182.8. Creation and duties of Office of the Inspector General

    (a)(1)(A) * * *
          * * * * * * *
    (F) The Mayor may not enter into any contract, or issue any 
order, rule, or regulation, under this subsection with respect 
to any authority or activity under the jurisdiction of the 
Inspector General. Nothing in this subparagraph may be 
construed to affect the ability of the Mayor to remove the 
Inspector General from office during a year other than a 
control year.
    (G) The Authority or the Mayor (whichever is applicable) 
may remove the Chief Financial Officer under this paragraph 
only after the expiration of the 30-day period which begins on 
the date the Authority or the Mayor (as the case may be) 
submits a written statement to the Committees on Appropriations 
of the Senate and House of Representatives, the Committee on 
Government Reform and Oversight of the House of 
Representatives, and the Committee on Governmental Affairs of 
the Senate, explaining the factual circumstances involved.
    (H) For purposes of subparagraph (A), removal `for cause' 
means removal on any of the following grounds:
          (i) Permanent disability.
          (ii) Inefficiency.
          (iii) Neglect of duty.
          (iv) Malfeasance.
          (v) A felony or conduct involving moral turpitude.
          * * * * * * *
    (5) the Inspector may include in any audits conducted 
pursuant to this subsection (by contract or otherwise) of the 
activities of the District government such audits of the 
activities of the Authority as the Inspector General considers 
appropriate.
          * * * * * * *

                 TITLE 4.--POLICE AND FIRE DEPARTMENTS

          * * * * * * *

      CHAPTER 6--POLICE AND FIREFIGHTERS RETIREMENT AND DISABILITY

          * * * * * * *

Sec. 4-622. Survivor benefits and annuities

    (1) * * *
    (5)(A)
          * * * * * * *
    (D) If the annuity of a child under subparagraph (A) or 
subparagraph (B) terminates because of marriage and such 
marriage ends, the annuity shall resume on the first day of the 
month in which it ends, but only if the individual is not 
otherwise ineligible for the annuity.
          * * * * * * *

                      TITLE 42--PERSONAL PROPERTY

          * * * * * * *

              CHAPTER 2--DISPOSITION OF UNCLAIMED PROPERTY

          * * * * * * *

Sec. 42-202. Definitions

    As used in this chapter, the term:
          (1) * * *
          * * * * * * *
          [(4) ``Business association'' means any corporation 
        (other than a public corporation), joint stock company, 
        business trust, partnership, or any association for 
        business purposes of 2 or more individuals, whether or 
        not for profit, including a banking organization, 
        financial organization, life insurance corporation, or 
        utility.]
          (4) ``Business association'' means a corporation, 
        joint stock company, investment company, partnership, 
        unincorporated association, joint venture, limited 
        liability, business trust, trust company, financial 
        organization, insurance company, mutual fund, utility, 
        or other business entity consisting of one or more 
        persons, whether or not for profit.
          * * * * * * *
          (18) ``Record'' means information that is inscribed 
        on a tangible medium or that is stored in an electronic 
        or other medium and is retrievable in perceivable form.
          (19) ``Property'' means a fixed and certain interest 
        in or right in property that is held, issued, or owed 
        in the course of a holder's business, or by a 
        government or governmental entity, and all income or 
        increments therefrom, including an interest referred to 
        as or evidenced by any of the following:
                  (A) Money, check, draft, deposit, interest, 
                dividend, and income.
                  (B) Credit balance, customer overpayment, 
                gift certificate, security deposit, refund, 
                credit memorandum, unpaid wage, unused airline 
                ticket, unused ticket, mineral proceed, and 
                unidentified remittance and electronic fund 
                transfer.
                  (C) Stock or other evidence of ownership of 
                an interest in a business association.
                  (D) Bond, debenture, note, or other evidence 
                of indebtedness.
                  (E) Money deposited to redeem stocks, bonds, 
                coupons, or other securities or to make 
                distributions.
                  (F) An amount due and payable under the terms 
                of an insurance policy, including policies 
                providing life insurance, property and casualty 
                insurance, workers compensation insurance, or 
                health and disability benefits insurance.
                  (G) An amount distributable from a trust or 
                custodial fund established under a plan to 
                provide health, welfare, pension, vacation, 
                severance, retirement, death, stock purchase, 
                profit sharing, employee savings, supplemental 
                unemployment insurance, or similar benefits.

Sec. 42-203. Property presumed abandoned

    (a) All intangible personal property, not otherwise covered 
by this chapter, including any income or increment thereon and 
deducting any lawful charges, that is held or owing in the 
ordinary course of the holder's business and has remained 
unclaimed by the owner for more than [5] 3 years after it 
became payable or distributable is presumed abandoned.
          * * * * * * *
    (d) A record of the issuance of a check, draft, or similar 
instrument by a holder is prima facie evidence of property held 
or owned to a person other than the holder. In claiming 
property from a holder who is also the issuer, the Mayor's 
burden of proof as to the existence and amount of the property 
and its abandonment is satisfied by showing issuance of the 
instrument and passage of the requisite period of abandonment. 
Defenses of payment, satisfaction, discharge, and want of 
consideration are affirmative defenses that may be established 
by the holder.
          * * * * * * *

Sec. 42.206. Bank deposits and funds in financial organizations

    (a) Any demand, savings, or matured time deposit with a 
banking or financial organization, including deposits that are 
automatically renewable, and any funds paid toward the purchase 
of shares, a mutual investment certificate, or any other 
interest in a financial organization is presumed abandoned 
unless the owner within [5] 3 years has:
          (1) * * *
          * * * * * * *
    (d) A sum payable on any other written instrument on which 
a banking or financial organization or business association in 
the District is directly liable, including, but not limited to, 
certified checks, drafts, or money orders, that has been 
outstanding for more than [5] 3 years after it was payable, or 
after its issuance if payable on demand, is presumed abandoned 
unless the owner has, within [5] 3 years, communicated in 
writing with the banking or financial organization or business 
association concerning it or otherwise indicated an interest as 
evidence by a memorandum on file prepared by an employee of the 
banking or financial organization or business association.
    (e) No holder may impose with respect to property described 
in subsection (a) of this section any charges due to dormancy 
or inactivity, or cease payment of interest unless:
          (1) * * *
          * * * * * * *
          (4) The amount of the deduction is limited to an 
        amount that is not unconscionable.
    (f) No holder shall deduct from the amount of any draft, 
registered check, money order, certified check, traveler's 
check, cashier's check, treasurer's check, or any similar 
written instrument any charges imposed by reason of the failure 
to present such items for encashment unless:
          (1) * * *
          * * * * * * *
          (3) The amount of the deduction is limited to an 
        amount that is not unconscionable.

Sec. 42-207. Funds owing under life insurance policies

    (a) Funds held or owing under nay life or endowment 
insurance policy or annuity contract that has matured or 
terminated are presumed abandoned if unclaimed for more than 
[5] 3 years after the funds became due and payable as 
established form the records of the insurance company holding 
or owing the funds
          * * * * * * *
    (c) For purposes of this section, a life or endowment 
insurance policy or annuity contract not mature by actual proof 
of the death of the insured or annuitant according to the 
records of the company is matured and the proceeds due and 
payable if:
          (1) The company knows that the insured or annuitant 
        has died; or
          (2)(A) * * *
          * * * * * * *
          (C) Neither the insured nor any other person 
        appearing to have an interest in the policy within the 
        preceding [5] 3 years, according to the records of the 
        company, has assigned, readjusted, or paid premiums on 
        the policy, subjected the policy to a loan, 
        corresponded in writing with the company concerning the 
        policy, or otherwise indicated an interest as evidenced 
        by a memorandum or other record on file prepared by an 
        employee of the company.
          * * * * * * *

Sec. 42-208. Deposits and refunds held by utilities

    The following funds held or owing by any utility are 
presumed abandoned:
          (1) Any deposit, including any interest thereon, made 
        by a subscriber with a utility to secure payment for, 
        or any sum paid in advance for, utility services to be 
        furnished, less any lawful deductions, that has 
        remained unclaimed by the person appearing on the 
        records of the utility entitled thereto for more than 
        [5 years] 1 year after the termination of the services 
        for which the deposit or advance payment was made; and
          (2) Any sum which a utility has been ordered to 
        refund and which was received for utility services 
        rendered, together with any interest thereon, less any 
        lawful deductions, that has remained unclaimed by the 
        person appearing on the records of the utility entitled 
        thereto for more than [5 years] 1 year after it became 
        payable in accordance with the final determination or 
        order providing for the refund, regardless of whether 
        the final determination or order requires any person 
        entitled to a refund to make a claim.

Sec. 42-209. Stock and other intangible interests in business 
                    associations

    (a) Subject to Sec. 42-204, any stock, other certificate of 
ownership, or other intangible ownership interest, or any 
dividend, profit, distribution, interest, payment on principal, 
or other sum held or owing by a business association for or to 
the owner, is presumed abandoned if the owner has not claimed 
it, corresponded in writing with the business association 
concerning it, or otherwise communicated with the association 
concerning it, as evidenced by a memorandum or other record on 
file with the association with [5] 3 years after the date 
prescribed for payment or delivery.
    (b) Subject to Sec. 42-204, any intangible interest in a 
business association, as evidenced by the stock records or 
membership records of the association, is presumed abandoned 
if:
          (1) The interest in the association is owned by a 
        person who for more than [5] 3 years has not:
                  (A) Claimed a dividend, profit, distribution, 
                interest, payment on principal, or other sum 
                held or owing by the association for or to the 
                person; or
                  (B) Corresponded in writing with the 
                association or otherwise communicated with the 
                association, as evidenced by a memorandum or 
                other record on file with the association;
          (2) The association does not know the location of the 
        owner at the end of the [5-year] 3-year period; and
          * * * * * * *
    (d) For purposes of subsection (b), the return of official 
shareholder notifications or communications by the postal 
service as undeliverable shall be evidence that the association 
does not know the location of the owner.
    (e) In the case of property consisting of stock or other 
intangible ownership interest enrolled in a plan that provides 
for the automatic reinvestment of dividends, distribution, or 
other sums payable as a result of the interest, the property 
may not be presumed to be abandoned under this section unless 
either of the following applies:
          (1) The records available to the administrator of the 
        plan show, with respect to any intangible ownership 
        interest not enrolled in the reinvestment plan, that 
        the owner has not within 3 years communicated in any 
        manner described in subsection (a).
          (2) 3 years have elapsed since the location of the 
        owner became unknown to the association, as evidenced 
        by the return of official shareholder notifications or 
        by the postal service as undeliverable, and the owner 
        has not within those 3 years communicated in any manner 
        described in subsection (a). The 3-year period from the 
        return of official shareholder notifications or 
        communication shall commence from the earlier of the 
        return of the second such mailing or the time the 
        holder discontinues mailings to the shareholder.

Sec. 42-210. Property of business associations and banking or financial 
                    organizations held in course of dissolution

    (a) All intangible personal property distributable in the 
course of a voluntary or involuntary dissolution of a business 
association, banking organization, or financial organization 
organized under the laws of or created in the District, that is 
unclaimed by the owner within 60 days after the date of final 
distribution, is presumed abandoned.
    (b) All intangible property payable or distributable to a 
member or participant in a class action suit, either one 
allowed by the court to be maintained as such or one 
essentially handled as a class action suit and remaining for 
more than one year after the time for the final payment or 
distribution is presumed abandoned, unless within the preceding 
one year, there has been a communication betwwwn the member or 
participant and the holder concerning the property. Intangible 
property payable or distributable as the result of litigation 
or settlement of a dispute before a judicial or administrative 
body and remaining unclaimed for more than one year after the 
time for the final distribution is presumed abandoned.
          * * * * * * *

Sec. 42-211. Property held by fiduciaries

    (a) All intangible personal property and any income or 
increment thereon, held in a fiduciary capacity for the benefit 
of another person, is presumed abandoned unless the owner, 
within [5] 3 years after it becomes payable or distributable, 
has increased or decreased the principal, accepted payment of 
principal or income, corresponded in writing concerning the 
property, or otherwise indicated an interest as evidenced by a 
memorandum on file with the fiduciary.
          * * * * * * *

Sec. 42-212. Property held by public officers and agencies

    Except for property held by the Property Clerk of the 
Metropolitan Police Department, as provided in Sec. Sec. 4-152 
to 4-169, all intangible personal property held for the owner 
by any public corporation, public authority, or public officer 
of the District government, that has remained unclaimed by the 
owner for more than [2 years] 1 year, is presumed abandoned.

Sec. 42-213. Employee benefit trust distributions

    All employee benefit trust distributions and any income or 
other increment thereon is presumed abandoned if the owner 
within [5] 3 years after it becomes payable or distributable 
has not accepted the distribution, corresponded in writing 
concerning the distribution, or otherwise indicated an interest 
as evidenced by a memorandum or other record on file with the 
fiduciary of the trust or custodial fund or administrator of 
the plan under which the trust or fund is established.
          * * * * * * *

Sec. 42-215. Contents of safe deposit box or other safekeeping 
                    repository

    Except as provided in Sec. 34-103, all personal property, 
tangible or intangible, held in a safe deposit box or any other 
safekeeping repository in the District by any person in the 
ordinary course of business, which is unclaimed by the owner 
for [5] 3 years or more from the date on which the lease or 
rental period on the box or other repository expired is 
presumed abandoned.

Sec. 42-216. Unpaid wages or outstanding payroll checks

    [Unpaid wages or outstanding payroll checks] Wages or other 
compensation for personal services held or owing in the 
ordinary course of the holder's business that have remained 
unclaimed by the owner for more than 1 year after becoming 
payable or distributable are presumed abandoned.

Sec. 42-217. Report of property presumed abandoned

    (a) * * *
          * * * * * * *
    [(d) The report as of the prior June 30th must be filed 
before November 1st of each year, but the report as of the 
prior December 1st of life insurance corporations must be filed 
before May 1st of each year. The Mayor may postpone the 
reporting date upon written request by any person required to 
file a report. In calendar year 1981, the report concerning all 
property presumed to be abandoned as of June 30, 1980 (and 
December 1, 1980, for insurance companies), must be filed no 
later than June 20, 1981. In calendar year 1992, a report 
concerning all property presumed to be abandoned as of October 
31, 1991, must be filed no later than January 2, 1992.
    [(e) If the holder of property presumed abandoned under 
this chapter has in its records an address of the apparent 
owner, the holder shall, not more than 120 days prior to filing 
the report required by this section, send written notice to the 
owner at the last known address to prevent abandonment from 
being presumed. Within respect to the property required to be 
reported by June 20, 1981, pursuant to subsection (d) of this 
section, the holder shall send the written notice between March 
15, 1981, and June 20, 1981 (to prevent abandonment from being 
presumed) to the owner at the last known address.]
    (d)(1) The report as of the prior June 30th must be filed 
before November 1st of each year, but a report with respect to 
a life insurance company must be filed before May 1st of each 
year as of the prior December 31. The Mayor may postpone the 
reporting date upon written request by any person required to 
file a report.
    (2) In calendar year 1998, a report concerning all property 
presumed to be abandoned as of October 31, 1997, must be filed 
no later than January 2, 1998.
    (e) Not earlier than 120 days prior to filing the report 
required under this section (and not later than 60 days prior 
to filing such report), the holder of property presumed 
abandoned shall send written notice to the apparent owner of 
the property stating that the holder is in possession of 
property subject to this Act, but only if--
          (1) the holder has in its records an address for the 
        apparent owner, unless the holder's records indicate 
        that such address is not accurate; and
          (2) the value of the property is at least $50.
          * * * * * * *

Sec. 42-218. Notice of abandoned property

    (a) * * *
    (b) The published notice shall be entitled ``Notice of 
Names of Persons Appearing To Be Owners of Abandoned Property'' 
and shall contain:
          (1) * * *
          * * * * * * *
          [(3) A statement that if proof of claim is not 
        presented by the owner to the holder and if the owner's 
        right to receive the property is not established to the 
        holder's satisfaction before April 1st, or in the case 
        of life insurance companies October 1, the abandoned 
        property will be placed in the custody of the Mayor not 
        later than May 1st, or in the case of life insurance 
        corporations November 1st, and all further claims must 
        thereafter be directed to the Mayor.]
          (3) A statement that property of the owner is 
        presumed to be abandoned and has been taken into the 
        protective custody of the Mayor, except in the case of 
        property described in section 119(a)(1) which is not 
        paid or delivered to the Mayor pursuant to such 
        section.
          * * * * * * *
    (e) The mailed notice shall contain:
          (1) * * *
          * * * * * * *
          [(3) A statement that, if satisfactory proof of claim 
        is not presented by the owner to the holder by the date 
        specified in the published notice, the property will be 
        placed in the custody of the Major and all further 
        claims must be directed to the Mayor.]
          (3) A statement explaining that property of the owner 
        is presumed to be abandoned, the property has been 
        taken into the protective custody of the Mayor (other 
        than property described in section 119(a)(1) which is 
        not paid or delivered to the Mayor pursuant to such 
        section), and information about the property and its 
        return to the owner is available to a person having a 
        legal or beneficial interest in the property, upon 
        request to the Mayor.
          * * * * * * *
    [(g)(1) With respect to the property reported on or before 
June 20, 1981, pursuant to Sec. 42-217(d), the Mayor shall 
cause the newspaper notice required by subsection (a) of this 
section and the mailing notice required by subsection (d) of 
this section to be completed no later than July 15, 1981. The 
newspaper notice shall contain all the information required by 
paragraphs (1) and (2) of subsection (b) of this section and a 
statement that if proof of claim is not presented by the owner 
to the holder and if the owner's right to receive the property 
is not established to the holder's satisfaction on or before 
August 30, 1981, all further claims must thereafter be directed 
to the Mayor.
    [(2) With respect to the property reported on or before 
January 2, 1992, pursuant to Sec. 42-217(d), the Mayor shall 
cause the newspaper notice required by subsection (a) of this 
section to be completed no later than April 30, 1992. The 
newspaper notice shall contain all the information required by 
subsections (b) (1) and (2) of this section and a statement 
that if proof of claim is not presented by the owner to the 
holder and if the owner's right to receive the property is not 
established to the holder's satisfaction on or before June 1, 
1992, the abandoned property will be placed in the custody of 
the Mayor not later than July 1, 1992, and all further claims 
must thereafter be directed to the Mayor.]
    (g) With respect to property reported and delivered on or 
before January 2, 1998, pursuant to section 117(d)(2), the 
Mayor shall cause the newspaper notice required by subsection 
(a) and the notice mailed under subsection (d) to be completed 
no later than May 1, 1998.

Sec. 42-219. Payment or delivery of abandoned property

    [(a) Except as otherwise provided in subsections (b) and 
(c) of this section, every person who has filed a report under 
Sec. 42-217 shall, within 6 months after the final date for 
filing reports as required by Sec. 42-217, pay or deliver to 
the Mayor all abandoned property specified in the report. With 
respect to property reported by holders on or before June 20, 
1981, pursuant to Sec. 42-217(d), the holders shall pay or 
deliver to the Mayor all abandoned property specified in the 
report no later than September 15, 1981.
    [(b) If the owner establishes the right to receive the 
abandoned property to the satisfaction of the holder before the 
property has been delivered or if it appears that for some 
other reason the presumption of abandonment is erroneous, the 
holder need not pay or delivery the property which will no 
longer be presumed abandoned to the Mayor, but in lieu thereof 
shall file a verified written explanation of the proof of claim 
or of the error in the presumption of abandonment.
    [(c) In the case of sums payable on traveler's checks, 
money orders, and similar written instruments presumed 
abandoned under Sec. 42-205 or any other property reported 
pursuant to Sec. 42-217 for which the holder has not reported 
the name of the apparent owner, the property shall be paid or 
delivered to the Mayor at the time of filing the report 
specified in Sec. 42-217(d).]
    (a) Upon the filing of the report required under section 
117 with respect to property presumed abandoned, the holder of 
the property shall pay or deliver (or cause to be paid or 
delivered) to the Mayor the property described in the report as 
abandoned, except that--
          (1) in the case of property consisting of an 
        automatically renewable deposit for which a penalty or 
        forfeiture in the payment of interest would result if 
        payment were made to the Mayor at such time, the holder 
        may delay the payment or delivery of the property to 
        the Mayor until such time as the penalty or forfeiture 
        will not occur; and
          (2) in the case of tangible property held in a safe 
        deposit box or other safekeeping depository, the holder 
        shall pay or deliver (or cause to be paid or delivered) 
        the property to the Mayor upon the expiration of the 
        120-day period which begins on the date the holder 
        files the report required under section 117.
    (b) If the Mayor postpones the reporting date with respect 
to the property under section 117(d), the holder, upon receipt 
of the extension, may make an interim payment under this 
section on the amount the holder estimates will ultimately be 
due.
          * * * * * * *

Sec. 42-222. Sale of abandoned property

    (a) All abandoned property other than money delivered to 
the Mayor under this chapter [may be sold] which remains 
unclaimed one year after the delivery to the Mayor may be sold 
after the delivery by the Mayor to the highest bidder at public 
sale. The Mayor may decline the highest bid and reoffer the 
property for sale if the Mayor considers the price bid 
insufficient. The Mayor need not offer any property for sale 
if, in the Mayor's opinion, the probable cost of sale exceeds 
the value of the property.
          * * * * * * *
    (d)(1) Notwithstanding subsection (a), abandoned property 
consisting of securities delivered to the Mayor under this Act 
may not be sold under this section until the expiration of the 
3-year period which begins on the date the property is 
delivered to the Mayor, except that the Mayor may sell the 
property prior to the expiration of such period if the Mayor 
finds that sale at such time is in the best interests of the 
District of Columbia.
    (2) If the Mayor sells any property described in paragraph 
(1) prior to the expiration of the 3-year period described in 
such paragraph, any person making a claim with respect to the 
property pursuant to this Act prior to the expiration of such 
period is entitled to either the proceeds of the sale of the 
securities or the market value of the securities at the time 
the claim is made, whichever is greater, less any deduction for 
fees pursuant section 123(c). If the Mayor does not sell any 
such property prior to the expiration of such 3-year period, a 
person may make a claim with respect to the property in 
accordance with section 124 and other applicable provisions of 
this Act.
          * * * * * * *

Sec. 42-229. Periods of limitations

    (a) * * *
    [(b) No action or proceeding may be commenced by the Mayor 
to enforce any provision of this chapter more than 10 years 
from the date any property was reportable under this chapter. 
With respect to property initially reportable pursuant to 
Sec. 42-242, no action or proceeding may be commenced by the 
Mayor to enforce any provisions of this chapter more than 10 
years from the effective date of this chapter.]
    (b) No action or proceeding may be commenced by the Mayor 
to enforce any provision of this Act with respect to the 
reporting, delivery, or payment of property more than 10 years 
after the holder specifically identified the property in a 
report filed with the Mayor or gave express notice to the Mayor 
of a dispute regarding the property. The period of limitation 
shall be tolled in the absence of such a report or other 
express notice, or by the filing of a report that is 
fraudulent.

Sec. 42-230. Verified reports; examination of records

    (a) * * *
          * * * * * * *
    [(d) If a holder shall fail to maintain the records 
required by Sec. 42-232 and the available records of the holder 
for the periods subject to the chapter are not sufficient to 
permit the preparation of a report and delivery of abandoned 
property, the holder shall be ordered to report and delivery 
such property as may reasonably be estimated based upon any 
other records of the holder which exist.]
    (d) If a holder fails to maintain the records required by 
section 132 and the records of the holder available for the 
periods for which this Act applies to the property involved are 
insufficient to permit the preparation of a report and delivery 
of the property, the holder shall be required to report and pay 
such amounts as may reasonably be estimated from any available 
records.
          * * * * * * *

Sec. 42-232. Retention of records

    [(a) Except as provided in subsection (b) of this section 
and unless the Mayor provides otherwise by rule, every holder 
required to file a report under Sec. 42-217 shall, as to any 
property for which it has obtained the address of the owner, 
maintain a record of the name and address of the owner for 10 
years after the date the property may have become reportable.]
    (a) Except as provided in subsection (b) and unless the 
Mayor provides otherwise by rule, every holder required to file 
a report under section 117 shall retain all books, records, and 
documents necessary to establish the accuracy of such report 
and the compliance of the report with the requirements of this 
Act for 10 years after the property becomes reportable, 
together with a record of the name and address of the owner of 
the property in the case of any property for which the holder 
has obtained the last known address of the owner.
          * * * * * * *

Sec. 42-235. Interested and penalties

    (a) * * *
    [(b) Any person who willfully fails to submit a report or 
perform other duties required under this chapter shall pay $200 
for each day the report is not rendered or the duty is not 
performed, but shall not pay more than $10,000.
    [(c) Any person who willfully fails to pay or deliver 
property to the Mayor as required under this chapter shall pay 
in addition to interest as prescribed by subsection (a) of this 
section, a civil penalty equal to 25% of the value of the 
property that should have been paid or delivered.
    [(d) Any person who willfully refuses to pay or deliver 
property to the Mayor as required under this chapter, within 30 
days after written demand, is guilty of a misdemeanor and upon 
conviction may be punished by a fine of not more than $300 or 
imprisonment for not more than 90 days, or both. Prosecution 
shall be by the Office of the Corporation Counsel.]
    (b) Except as otherwise provided in subsection (c), a 
person who fails to report, pay, or deliver property within the 
time prescribed under this Act, or fails to perform other 
duties imposed by this Act, shall pay (in addition to the 
interest required under subsection (a)) a civil penalty of $200 
for each day the report, payment, or delivery is withheld or 
the duty is not performed, up to a maximum of $10,000.
    (c) A person who willfully fails to report, pay, or deliver 
property within the time prescribed under this Act, or fails to 
perform other duties imposed by this Act, shall pay (in 
addition to the interest required under subsection (a)) a civil 
penalty of $1,000 for each day the report, payment, or delivery 
is withheld or the duty is not performed, up to a maximum of 
$25,000, plus 25 percent of the value of any property that 
should have been paid or delivered.
    (d) The Mayor may waive the imposition of any interest or 
penalty (or any part thereof) against any person under 
subsection (b) or (c) if the person's failure to pay or deliver 
property is satisfactorily explained to the Mayor and if the 
failure has resulted from a mistake by the person in 
understanding or applying the law or the facts involved.
          * * * * * * *
    (f) A holder who fails to exercise due diligence with 
respect to information required to be reported under section 
117 shall pay (in addition to any other interest or penalty 
which may be imposed under this section) a penalty of $10 with 
respect to each item involved.
          * * * * * * *

                 TITLE 47--TAXATION AND FISCAL AFFAIRS

          * * * * * * *

                 CHAPTER 18--INCOME AND FRANCHISE TAXES

          * * * * * * *

   Subchapter I_Repeal of Prior Income Tax Law and Applicability of 
                    Subchapter; General Definitions

          * * * * * * *

Sec. 47-1801.4--General definitions

    For the purposes of this chapter and wherever appearing 
herein, unless otherwise required by the context the term:
          (1) * * *
          * * * * * * *
          [(28A) ``Internal Revenue Code of 1986'' means the 
        Internal Revenue Code of 1986 (100 Stat. 2085; 26 
        U.S.C. 1 et seq.), as amended through April 11, 1995. 
        The provisions of the Internal Revenue Code of 1986 
        shall be effective on the same dates that they are 
        effective for federal tax purposes, except that section 
        162(l) shall only apply to taxable years beginning 
        after December 31, 1994.]
          (28A) The term ``Internal Revenue Code of 1986'' 
        means the Internal Revenue Code of 1986 (100 Stat. 
        2085; 26 U.S.C. 1 et seq.), as amended through August 
        20, 1996. The provisions of the Internal Revenue Code 
        of 1986 shall be effective on the same dates that they 
        are effective for Federal tax purposes.
          * * * * * * *

                  CHAPTER 34--MISCELLANEOUS PROVISIONS

          * * * * * * *

[Sec. 47-3401.1. Intermediate-term advances for liquidation of deficit.

  [(a) In General.--If the conditions in subsection (b) are 
satisfied, the Secretary shall make an advance of funds from 
time to time, out of any money in the Treasury not otherwise 
appropriated and to the extent provided in advance in annual 
appropriations Acts, for the purpose of assisting the District 
government in liquidating the outstanding accumulated operating 
deficit of the general fund of the District government existing 
as of September 30, 1997.
  [(b) Conditions to Making Any Intermediate-Term Advance.--The 
Secretary shall make an advance under this section if--
          [(1) the Mayor delivers to the Secretary the 
        following instruments, in form and substance 
        satisfactory to the Secretary--
                  [(A) a financing agreement in which the Mayor 
                agrees to procedures for requisitioning 
                advances;
                  [(B) a requisition for an advance under this 
                section; and
                  [(C) a promissory note evidencing the 
                District government's obligation to reimburse 
                the Treasury for the requisitioned advance, 
                which note may be a general obligation bond 
                issued under section 461(a) of the District of 
                Columbia Self-Government and Governmental 
                Reorganization Act by the District government 
                to the Secretary if the Secretary determines 
                that such a bond is satisfactory;
          [(2) the date on which the requisitioned advance is 
        requested to be made is not later than 3 years from the 
        date of enactment of the Balanced Budget Act of 1997;
          [(3) the District government delivers to the 
        Secretary--
                  [(A) evidence demonstrating to the 
                satisfaction of the Secretary that, at the time 
                of the Mayor's requisition for an advance, the 
                District government is effectively unable to 
                obtain credit in the public credit markets or 
                elsewhere in sufficient amounts and on 
                sufficiently reasonable terms to meet the 
                District government's need for financing to 
                accomplish the purpose described in subsection 
                (a); and
                  [(B) a schedule setting out the anticipated 
                timing and amounts of requisitions for advances 
                under this section;
          [(4) the Authority certifies to the Secretary that--
                  [(A) there is an approved financial plan and 
                budget in effect under the District of Columbia 
                Financial Responsibility and Management 
                Assistance Act of 1995 for the fiscal year in 
                which the requisition is to be made;
                  [(B) at the time that the Mayor's requisition 
                for an advance is delivered to the Secretary, 
                the District governmentis in compliance with 
the approved financial plan and budget;
                  [(C) both the receipt of funds from such 
                advance and the reimbursement of Treasury for 
                such advance are consistent with the approved 
                financial plan and budget for the year;
                  [(D) such advance will not adversely affect 
                the financial stability of the District 
                government; and
                  [(E) at the time that the Mayor's requisition 
                for an advance is delivered to the Secretary, 
                the District government is effectively unable 
                to obtain credit in the public credit markets 
                or elsewhere in sufficient amounts and on 
                sufficiently reasonable terms to meet the 
                District government's need for financing to 
                accomplish the purpose described in subsection 
                (a);
          [(5) the Inspector General of the District of 
        Columbia certifies to the Secretary the information 
        described in subparagraphs (A) through (D) of paragraph 
        (4), and in making this certification, the Inspector 
        General may rely upon an audit conducted by an outside 
        auditor engaged by the Inspector General under section 
        208(a)(4) of the District of Columbia Procurement 
        Practices Act of 1985 if, after reasonable inquiry, the 
        Inspector General concurs in the findings of such 
        audit;
          [(6) the Secretary determines that--
                  [(A) there is reasonable assurance of 
                reimbursement for the requisitioned advance; 
                and
                  [(B) the debt owed by the District government 
                to the Treasury on account of the requisitioned 
                advance will not be subordinate to any other 
                debt owed by the District or to any other 
                claims against the District; and
          [(7) the Secretary receives from such persons as the 
        Secretary determines to be appropriate such additional 
        certifications and opinions relating to such matters as 
        the Secretary determines to be appropriate.
  [(c) Amount of Any Intermediate-Term Advance.--
          [(1) In general.--Except as provided in paragraph 
        (3), if the conditions in paragraph (2) are satisfied, 
        each advance made under this section shall be in the 
        amount designated by the Mayor in the Mayor's 
        requisition for such advance.
          [(2) Conditions applicable to designated amount.--
        Paragraph (1) applies if--
                  [(A) the Mayor certifies that the amount 
                designated in the Mayor's requisition for such 
                advance is needed to accomplish the purpose 
                described in subsection (a) within 30 days of 
                the time that the Mayor's requisition is 
                delivered to the Secretary; and
                  [(B) the Authority concurs in the Mayor's 
                certification under subparagraph (A).
          [(3) Maximum amount.--Notwithstanding paragraph (1), 
        the aggregate amount of all advances made under this 
        section shall not be greater than $300,000,000.
  [(d) Maturity of Any Intermediate-Term Advance.--
          [(1) In general.--Except as provided in paragraphs 
        (2) and (3), each advance made under this section shall 
        mature on the date designated by the Mayor in the 
        Mayor's requisition for such advance.
          [(2) Latest permissible maturity date.--
        Notwithstanding paragraph (1), the maturity date for 
        any advance made under this section shall not be later 
        than 10 years from the date on which the first advance 
        under this section is made.
          [(4) Secretary's right to require early 
        reimbursement.--Notwithstanding paragraph (1), if the 
        Secretary determines, at any time while any advance 
        made under this section has not been fully reimbursed, 
        that the District is able to obtain credit in the 
        public credit markets or elsewhere in sufficient 
        amounts and on sufficiently reasonable terms, in the 
        judgment of the Secretary, to refinance all or a 
        portion of the unpaid balance of such advance in the 
        public credit markets or elsewhere without adversely 
        affecting the financial stability of the District 
        government, the Secretary may require reimbursement for 
        all or a portion of the unpaid balance of such advance 
        at any time after the Secretary makes the 
        determination.
  [(e) Interest Rate.--Each advance made under this section 
shall bear interest at an annual rate equal to a rate 
determined by the Secretary at the time that the Secretary 
makes such advance taking into consideration the prevailing 
yield on outstanding marketable obligations of the United 
States with remaining periods to maturity comparable to the 
repayment schedule of such advance, plus \1/8\ of 1 percent.
  [(f) Other Terms and Conditions.--Each advance made under 
this section shall be on such other terms and conditions, 
including repayment schedule, as the Secretary determines to be 
appropriate.
  [(g) Deposit of Advances.--As provided in section 204(b) of 
the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995, advances made under this 
section for the account of the District government shall be 
deposited by the Secretary into an escrow account held by the 
Authority.]
          * * * * * * *
                              ----------                              


                      BALANCED BUDGET ACT OF 1997

          * * * * * * *

             TITLE XI--DISTRICT OF COLUMBIA REVITALIZATION

          * * * * * * *

                  Subtitle B--Management Reform Plans

          * * * * * * *

SEC. 11105. REFORM OF POWERS AND DUTIES OF DEPARTMENT HEADS.

  (a) * * *
  (b) Control Over Personnel.--
          (1) In general.--Notwithstanding any other provision 
        of law and except as provided in [paragraph (3)] 
        paragraphs (3) and (4), all personnel of the 
        departments of the government of the District of 
        Columbia described in section 11102(b)(1) shall be 
        appointed by and shall act under the direction and 
        control of the head of the department involved.
          * * * * * * *
          (3) Requirements for adverse actions.--The head of 
        each of the departments described in section 
        11102(b)(1) may take corrective or adverse action 
        against any personnel of the department [pursuant] in 
        accordance with binding arbitration procedures in 
        effect under a collective bargaining agreement, or 
        pursuant to rules (promulgated consistent with the 
        publication and comment provisions of the District of 
        Columbia Administrative Procedure Act) which--
                  (A) * * *
          * * * * * * *
          (4) Exception for personnel under direction and 
        control of chief financial officer.--This subsection 
        shall not apply with respect to any personnel who are 
        appointed by, serve at the pleasure of, and act under 
        the direction and control of the Chief Financial 
        Officer of the District of Columbia pursuant to section 
        424(a)(4) of the District of Columbia Home Rule Act.
          * * * * * * *

                      Subtitle C--Criminal Justice

                         CHAPTER 1--CORRECTIONS

SEC. 11201. BUREAU OF PRISONS.

  (a) * * *
          * * * * * * *
  (g) Lorton Correctional Complex.--
          (1) * * *
          (2) Transfer of land.--
                  (A) In general.--
                          (i) * * *
                          (ii) Fairfax county [department of 
                        parks and recreation] parks 
                        authority.--Any acres of parcel 106-4-
                        001-54 located west of Ox Road (State 
                        Route 123) on which the Lorton 
                        Correctional Complex is located not 
                        transferred under clause (i) shall be 
                        assigned to the Department of the 
                        Interior, National Park Service, for 
                        conveyance to the Fairfax County 
                        [Department of Parks and Recreation] 
                        Parks Authority for recreational 
                        purposes pursuant to the section 
                        203(k)(2) of the Federal Property and 
                        Administrative Services Act of 1949 (40 
                        U.S.C. 484(k)(2)).
          * * * * * * *

                  Subtitle H--Miscellaneous Provisions

        CHAPTER 1--REGULATORY REFORM IN THE DISTRICT OF COLUMBIA

SEC. 11701. REVIEW AND REVISION OF REGULATIONS AND PERMIT AND 
                    APPLICATION PROCESSES.

  (a) Review of Current Regulations by Authority.--
          (1) In general.--Not later than 6 months after the 
        date of the enactment of this title, the District of 
        Columbia Financial Responsibility and Management 
        Assistance Authority shall complete a review of 
        regulations of the District of Columbia in effect as of 
        the date of the enactment of this title and analyze the 
        extent to which such regulations unnecessarily and 
        inappropriately impair economic development in the 
        District of Columbia and the financial stability and 
        management efficiency of the District of Columbia 
        government. [To the greatest extent possible, such 
        review shall take into account the work and 
        recommendations of the Business Regulatory Reform 
        Commission pursuant to the Business Regulatory Reform 
        Commission Act of 1994 (DC Code, sec. 2-4101 et seq.) 
        and other existing and ongoing public and private 
        regulatory reform efforts.] In carrying out such 
        review, the Authority shall include an explicit 
        reference to each recommendation made by the Business 
        Regulatory Reform Commission pursuant to the Business 
        Regulatory Reform Commission Act of 1994 (DC Code, sec. 
        2-4101 et seq.), together with specific findings and 
        conclusions with respect toeach such recommendation. 
The Authority shall transmit the findings of its review to the Mayor, 
Council, and Congress.
          * * * * * * *

               CHAPTER 2--OTHER MISCELLANEOUS PROVISIONS

          * * * * * * *

[SEC. 11714. PERMITTING EXCESS APPROPRIATIONS BY WATER AND SEWER 
                    AUTHORITY FOR CAPITAL PROJECTS.

  [(a) In General.--Section 445A of the District of Columbia 
Self-Government and Governmental Reorganization Act (DC Code, 
sec. 43-1691), as added by section 4(a) of the District of 
Columbia Water and Sewer Authority Act of 1996, is amended--
          [(1) by striking ``The District'' and inserting ``(a) 
        In General.--The District''; and
          [(2) by adding at the end the following new 
        subsection:
  [``(b) Permitting Expenditure of Excess Revenues for Capital 
Projects in Excess of Budget.--Notwithstanding the amount 
appropriated for the District of Columbia Water and Sewer 
Authority for capital projects for a fiscal year, if the 
revenues of the Authority for the year exceed the estimated 
revenues of the Authority provided in the annual budget of the 
District of Columbia for the fiscal year, the Authority may 
obligate or expend an additional amount for capital projects 
during the year equal to the amount of such excess revenues.''.
  [(b) Conforming Amendment.--The fourth sentence of section 
446 of such Act (DC Code, sec. 47-304), as amended by section 
2(c)(2) of the District of Columbia Water and Sewer Authority 
Act of 1996, is amended by striking ``in section 467(d)'' and 
inserting ``in section 445A(b), section 467(d)''.
  [(c) Effective Date.--The amendments made by this section 
shall apply with respect to fiscal years beginning on or after 
October 1, 1996.]
          * * * * * * *
                              ----------                              


DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE 
                              ACT OF 1995

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``District of 
Columbia Financial Responsibility and Management Assistance Act 
of 1995''.
  (b) Table of Contents.--The table of contents of this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

                 TITLE II--RESPONSIBILITIES OF AUTHORITY

 Subtitle A--Establishment and Enforcement of Financial Plan and Budget 
                         for District Government

Sec. 201. Development of financial plan and budget for District of 
          Columbia.
     * * * * * * *
Sec. 205. Deposit of annual Federal contribution with Authority.
     * * * * * * *

          TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY

          * * * * * * *

SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.

  (a) * * *
          * * * * * * *
  [(d) Use of Interest on Accounts for District.--
          [(1) In general.--Notwithstanding any other provision 
        of this Act, the Authority may transfer or otherwise 
        expend any amounts derived from interest earned on 
        accounts held by the Authority on behalf of the 
        District of Columbia for such purposes as it considers 
        appropriate to promote the economic stability and 
        management efficiency of the District government.
          [(2) Spending not subject to appropriation by 
        congress.--Notwithstanding subsection (a)(3), any 
        amounts transferred or otherwise expended pursuant to 
        paragraph (1) may be obligated or expended without 
        approval by Act of Congress.]
          * * * * * * *
  (e) Annual Financial Audit.--
          (1) In general.--For each fiscal year (beginning with 
        fiscal year 1997), the Authority shall enter into a 
        contract, using annual appropriations to the Authority, 
        with an auditor who is a certified public accountant 
        licensed in the District of Columbia to conduct an 
        audit of the Authority's financial statements for the 
        fiscal year, in accordance with generally accepted 
        government auditing standards, and the financial 
        statements shall be prepared in accordance with 
        generally accepted accounting principles.
          (2) Contents.--The auditor shall include in the audit 
        conducted under this subsection the following 
        information:
                  (A) An audited budgetary statement comparing 
                gross actual revenues and expenditures of the 
                Authority during the fiscal year with amounts 
                appropriated, together with the revenue 
                projections on which the appropriations are 
                based, to determine the surplus or deficit 
                thereof.
                  (B) An unaudited statement of monthly cash 
                flows, showing projected and actual receipts 
                and disbursements by category (with variances).
                  (C) A discussion and analysis of the 
                financial condition and results of operations 
                of the Authority prepared by the independent 
                auditor.
          (3) Submission.--The Authority shall submit the audit 
        reports and financial statements conducted under this 
        subsection to Congress, the President, the Comptroller 
        General, the Council, and the Mayor.

                TITLE II--RESPONSIBILITIES OF AUTHORITY

Subtitle A--Establishment and Enforcement of Financial Plan and Budget 
                        for District Government

          * * * * * * *

SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERNMENT TO ENSURE 
                    COMPLIANCE WITH APPROVED FINANCIAL PLAN AND BUDGET.

  (a) * * *
  (b) Effect of Approved Financial Plan and Budget on Contracts 
and Leases.--
          (1) * * *
          * * * * * * *
          (5) Deemed approval.--If the Authority does not 
        notify the Mayor (or the appropriate officer or agent 
        of the District government) that it has determined that 
        a contract or lease submitted under this subsection is 
        consistent with the financial plan and budget or is not 
        consistent with the financial plan and budget during 
        the 30-day period which begins on the first day after 
        the Authority receives the contract or lease, the 
        Authority shall be deemed to have determined that the 
        contract or lease is consistent with the financial plan 
        and budget.
          [(5)] (6) Application to rules and regulations.--The 
        provisions of this subsection shall apply with respect 
        to a rule or regulation issued or proposed to be issued 
        by the Mayor (or the head of any department or agency 
        of the District government) in the same manner as such 
        provisions apply to a contract or lease.
          * * * * * * *

SEC. 205. DEPOSIT OF ANNUAL FEDERAL CONTRIBUTION WITH AUTHORITY.

  (a) In General.--
          (1) Deposit into escrow account.--In the case of a 
        fiscal year which is a control year, the Secretary of 
        the Treasury shall deposit any Federal contribution to 
        the District of Columbia for the year authorized under 
        section 11601(c)(2) of the Balanced Budget Act of 1997 
        into an escrow account held by the Authority, which 
        shall allocate the funds to the Mayor at such intervals 
        and in accordance with such terms and conditions as it 
        considers appropriate to implement the financial plan 
        for the year. In establishing such terms and 
        conditions, the Authority shall give priority to using 
        the Federal contribution for cash flow management and 
        the payment of outstanding bills owed by the District 
        government.
          (2) Exception for amounts withheld for advances.--
        Paragraph (1) shall not apply with respect to any 
        portion of the Federal contribution which is withheld 
        by the Secretary of the Treasury in accordance with 
        section 605(b)(2) of title VI of the District of 
        Columbia Revenue Act of 1939 to reimburse the Secretary 
        for advances made under title VI of such Act.
  (b) Expenditure of Funds from Account in Accordance With 
Authority Instructions.--Any funds allocated by the Authority 
to the Mayor from the escrow account described in paragraph (1) 
may be expended by the Mayor only in accordance with the terms 
and conditions established by the Authority at the time the 
funds are allocated.
          * * * * * * *

SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT 
                    RESPONSIBILITY.

  (a) * * *
          * * * * * * *
      (d) Additional Power To Issue Orders, Rules, and 
Regulations.--
          (1) In general.--In addition to the authority 
        described in [subsection (c),] subsection (c) (and 
        except as provided in paragraph (4)), the Authority may 
        at any time issue such orders, rules, or regulations as 
        it considers appropriate to carry out the purposes of 
        this Act and the amendments made by this Act, to the 
        extent that the issuance of such an order, rule, or 
        regulation is within the authority of the Mayor or the 
        head of any department or agency of the District 
        government, and any such order, rule, or regulation 
        shall be legally binding to the same extent as if 
        issued by the Mayor or the head of any such department 
        or agency.
          * * * * * * *
          (4) Exception for chief financial officer and 
        inspector general.--Effective July 1, 1997, the 
        Authority may not enter into any contract, or issue any 
        order, rule, or regulation, under this subsection with 
        respect to any authority or activity (including 
        activities relating to personnel management) under the 
        jurisdiction of the Chief Financial Officer or 
        Inspector General of the District of Columbia. Nothing 
        in this paragraph may be construed to affect the 
        ability of the Authority to remove the Chief Financial 
        Officer or Inspector General from office during a 
        control year.

                 Subtitle C--Other Duties of Authority

          * * * * * * *

SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.

      (a) * * *
          * * * * * * *
      (d) Facility or Property Described.--A facility or 
property described in this subsection is a facility or property 
which is described in [section 2209(b)(1)(B) of the District of 
Columbia School Reform Act of 1995] section 2209(b)(1)(C) of 
the District of Columbia School Reform Act of 1995, other than 
a facility or real property that is subject to a lease under 
section 2209(b)(1)(A)(ii) of such Act,and with respect to which 
the Authority has made the following determinations:
          (1) * * *
          * * * * * * *
                              ----------                              


 DISTRICT OF COLUMBIA SELF-GOVERNMENT AND GOVERNMENTAL REORGANIZATION 
                                  ACT

          * * * * * * *

                            TABLE OF CONTENTS

             TITLE I--SHORT TITLE, PURPOSES, AND DEFINITIONS

Sec. 101. Short title.
     * * * * * * *

                     TITLE IV--THE DISTRICT CHARTER

     * * * * * * *

            Part D--District Budget and Financial Management

               Subpart 1--Budget and Financial Management

Sec. 441. Fiscal year.
     * * * * * * *
Sec. 445B. Special masters' budgets.
     * * * * * * *

                            Part E--Borrowing

                          Subpart 1--Borrowing

Sec. 461. District's authority to issue and redeem general obligation 
          bonds for capital projects.
     * * * * * * *
Sec. 468. Restrictions on restructuring of debt.
     * * * * * * *

                     TITLE IV--THE DISTRICT CHARTER

          * * * * * * *

                           Part B--The Mayor

          * * * * * * *

          chief financial officer of the district of columbia

  Sec. 424. (a) Establishment of Office.--
          (1) * * *
                  (A) in paragraph (2), by striking ``, who 
                shall be appointed'' and all that follows 
                through ``direction and control''; and
          (2) Office of the treasurer.--The Office shall 
        include the Office of the Treasurer, which shall be 
        headed by the Treasurer of the District of Columbia[, 
        who shall be appointed by the Chief Financial Officer 
        and subject to the Chief Financial Officer's direction 
        and control].
          * * * * * * *
          [(4) Service of heads of other offices.--
                  [(A) Office heads appointed by mayor.--With 
                respect to the head of the Office of the Budget 
                and the head of the Department of Finance and 
                Revenue--
                          [(i) the Mayor shall appoint such 
                        individuals with the advice and consent 
                        of the Council, subject to the approval 
                        of the Authority during a control year; 
                        and
                          [(ii) during a control year, the 
                        Authority may remove such individuals 
                        from office for cause, after 
                        consultation with the Mayor.
                  [(B) Office heads appointed by chief 
                financial officer.--With respect to the 
                Controller of the District of Columbia and the 
                head of the Office of Financial Information 
                Services--
                          [(i) the Chief Financial Officer 
                        shall appoint such individuals subject 
                        to the approval of the Mayor; and
                          [(ii) the Chief Financial Officer may 
                        remove such individuals from office for 
                        cause, after consultation with the 
                        Mayor.]
          (4) Authority over financial personnel.--
                  (A) In general.--Notwithstanding any other 
                provision of law or regulation (including any 
                law or regulation providing for collective 
                bargaining or the enforcement of any collective 
                bargaining agreement), the heads and all 
                personnel of the offices described in 
                subparagraph (B), together with all other 
                District of Columbia accounting, budget, and 
                financial management personnel (including 
                personnel of independent agencies but not 
                including personnel of the legislative or 
                judicial branches of the District government) 
                shall be appointed by, shall serve at the 
                pleasure of, and shall act under the direction 
                and control of the Chief Financial Officer, and 
                shall be considered at-will employees not 
                covered by the District of Columbia Government 
                Comprehensive Merit Personnel Act of 1978.
                  (B) Offices described.--The offices referred 
                to in this subparagraph are as follows:
                          (i) The Office of the Treasurer (or 
                        any successor office).
                          (ii) The Controller of the District 
                        of Columbia (or any successor office).
                          (iii) The Office of the Budget (or 
                        any successor office).
                          (iv) The Office of Financial 
                        Information Services (or any successor 
                        office).
                          (v) The Department of Finance and 
                        Revenue (or any successor office).
                          (vi) The District of Columbia Lottery 
                        and Charitable Games Control Board (or 
                        any successor office).
                  (C) Removal of personnel by authority.--In 
                addition to the power of the Chief Financial 
                Officer to remove any of the personnel covered 
                under this paragraph, the Authority may remove 
                any such personnel for cause, after 
                consultation with the Mayor and the Chief 
                Financial Officer.
          (5) Exclusion from contracting authority of mayor.--
        The Mayor may not enter into any contract, or issue any 
        order, rule, or regulation, under this subsection with 
        respect to any authority or activity under the 
        jurisdiction of the Chief Financial Officer. Nothing in 
        this paragraph may be construed to affect the ability 
        of the Mayor to remove the Chief Financial Officer from 
        office during a year other than a control year.
          (6) Selection of counsel.--In any action brought by 
        or on behalf of the Chief Financial Officer, and in any 
        action brought against the Chief Financial Officer, the 
        Chief Financial Officer shall be represented by such 
        counsel as it may select, including the Corporation 
        Counsel of the District of Columbia.
  (b) Appointment.--
          (1) * * *
          (2) Removal.--
                  (A) * * *
          * * * * * * *
                  (C) Consultation with congress.--The 
                Authority or the Mayor (whichever is 
                applicable) may remove the Chief Financial 
                Officer under this paragraph only after the 
                expiration of the 30-day period which begins on 
                the date the Authority or the Mayor (as the 
                case may be) submits a written statement to the 
                Committees on Appropriations of the Senate and 
                the House of Representatives, the Committee on 
                Government Reform and Oversight of the House of 
                Representatives, and the Committee on 
                Governmental Affairs of the Senate, explaining 
                the factual circumstances involved.
                  (D) For cause defined.--For purposes of this 
                paragraph, removal ``for cause'' means removal 
                on any of the following grounds:
                          (i) Permanent disability.
                          (ii) Inefficiency.
                          (iii) Neglect of duty.
                          (iv) Malfeasance.
                          (v) A felony or conduct involving 
                        moral turpitude.
  (c) Functions During Control Year.--During a control year, 
the Chief Financial Officer shall have the following duties:
          (1) * * *
          * * * * * * *
          (18) Administering the State plan for medical 
        assistance for the District of Columbia under title XIX 
        of the Social Security Act, including exercising all 
        responsibilities over the finances and personnel of the 
        Office for Public Health Financing or any successor 
        office responsible for administering such plan.
          * * * * * * *
  (d) Functions During All Years.--At all times, the Chief 
Financial Officer shall have the following duties:
          (1) * * *
          * * * * * * *
          (8) Preparing monthly reports containing the 
        following information (and submitting such reports to 
        Congress, the Council, the Mayor, and the Authority not 
        later than the 21st day of the month following the 
        month covered by the report):
                  (A) The cash flow of the District government, 
                including a statement of funds received and 
                disbursed for all standard categories of 
                revenues and expenses.
                  (B) The revenues and expenditures of the 
                District government, including a comparison of 
                the amounts projected for such revenues and 
                expenditures in the annual budget for the 
                fiscal year involved with actual revenues and 
                expenditures during the month.
                  (C) The obligations of funds made by or on 
                behalf of the District government, together 
                with a statement of accounts payable and the 
                disbursements paid towards such accounts during 
                the month and during the fiscal year involved.
          (9) Ensuring that any regular report on the status of 
        the funds of the District government prepared by the 
        Chief Financial Officer includes information on the 
        funds of all entities within the District government 
        (including funds in any accounts of the Authority and 
        interest earned on such accounts).
          * * * * * * *

            Part D--District Budget and Financial Management

               Subpart 1--Budget and Financial Management

          * * * * * * *


                        special masters' budgets


  Sec. 445B. All Special Masters appointed by the District of 
Columbia Superior Court or the United States District Court for 
the District of Columbia to any agency of the District of 
Columbia government shall prepare and annually submit to the 
District of Columbia Financial Responsibility and Management 
Assistance Authority, for inclusion in the annual budget, 
annual estimates of expenditures and appropriations. Such 
annual estimates shall be approved by the District of Columbia 
Financial Responsibility and Management Assistance Authority 
and the Council of the District of Columbia pursuant to section 
202 of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995.
          * * * * * * *

             reductions in budgets of independent agencies

  Sec. 453. (a) * * *
          * * * * * * *
  [(c) Subsection (a) shall not apply to amounts appropriated 
or otherwise made available to the Council or to the District 
of Columbia Financial Responsibility and Management Assistance 
Authority established under section 101(a) of the District of 
Columbia Financial Responsibility and Management Assistance Act 
of 1995.]
  (c) Subsection (a) shall not apply to amounts appropriated or 
otherwise made available to the Council, the District of 
Columbia Financial Responsibility and Management Assistance 
Authorityestablished under section 101(a) of the District of 
Columbia Financial Responsibility and Management Assistance Act of 
1995, or the District of Columbia Water and Sewer Authority established 
pursuant to the Water and Sewer Authority Establishment and Department 
of Public Works Reorganization Act of 1996.
          * * * * * * *

                           Part E--Borrowing

                          Subpart 1--Borrowing

 district's authority to issue and redeem general obligation bonds for 
                            capital projects

  Sec. 461. (a)(1) Subject to the limitations in section 
603(b), the District may incur indebtedness by issuing general 
obligation bonds to refund indebtedness of the District at any 
time outstanding, to finance the outstanding accumulated 
operating deficit of the general fund of the District of 
$331,589,000, existing as of September 30, 1990, [to finance or 
refund the outstanding accumulated operating deficit of the 
general fund of the District of $500,000,000, existing as of 
September 30, 1997,] and to provide for the payment of the cost 
of acquiring or undertaking its various capital projects. Such 
bonds shall bear interest, payable on such dates, at such date 
or dates and at such maturities as the Mayor, subject to the 
provisions of section 462 of this Act, may from time to time 
determine to be necessary to make such bonds marketable.
  (2) The District may not issue any general obligation bonds 
to finance the operating deficit [existing as of September 30, 
1990] described in paragraph (1) after September 30, 1992.
          * * * * * * *

                         public or private sale

  Sec. 466. General obligation bonds issued under this part 
[may be sold at a private sale on a negotiated basis (in such 
manner as the Mayor may determine to be in the public 
interest), or may be sold] shall be sold at public sale upon 
sealed proposals after publication of a notice of such public 
sale at least once not less than 10 days prior to the date 
fixed for sale in a daily newspaper carrying municipal bond 
notices and devoted primarily to financial news or to the 
subject of State and municipal bonds published in the city of 
New York, New York, and in 1 or more newspapers of general 
circulation published in the District. Such notice of public 
sale shall state, among other things, that no proposal shall be 
considered unless there is deposited with the District as a 
down payment a certified check, cashier's check, or surety for 
an amount equal to at least 2 percent of the par amount of 
general obligation bonds bid for, and the Mayor shall reserve 
the right to reject any and all bids.
          * * * * * * *


                 restrictions on restructuring of debt


  Sec. 468. Notwithstanding any other provision of this title, 
the District may not borrow any funds or issue any bonds, 
notes, or other obligations to repay any other borrowing of 
funds or issuance of bonds, notes, or other obligations 
unless--
          (1) the aggregate cost to the District of the new 
        borrowing or issuance does not exceed the aggregate 
        cost of the original borrowing or issuance; and
          (2) the date provided for the final repayment of the 
        new borrowing or issuance is not later than the date 
        provided for the final repayment of the original 
        borrowing or issuance.
          * * * * * * *

            TITLE VI--RESERVATION OF CONGRESSIONAL AUTHORITY

          * * * * * * *

                       limitations on the council

  Sec. 602. (a) The Council shall have no authority to pass any 
act contrary to the provisions of this Act except as 
specifically provided in this Act, or to--
          (1) * * *
          * * * * * * *
          (9) enact any act, resolution, or rule with respect 
        to any provision of title 23 of the District of 
        Columbia Code (relating to criminal procedure), or with 
        respect to any provision of any law codified in title 
        22 or 24 of the District of Columbia Code (relating to 
        crimes and treatment of prisoners), or with respect to 
        any criminal offense pertaining to articles subject to 
        regulation under chapter 32 of title 22 of the District 
        of Columbia Code, during the forty-eight full calendar 
        months immediately following the day on which the 
        members of the Council first elected pursuant to this 
        Act take office; [or]
          (10) enact any act, resolution, or rule with respect 
        to the District of Columbia Financial Responsibility 
        and Management Assistance Authority established under 
        section 101(a) of the District of Columbia Financial 
        Responsibility and Management Assistance Act of 
        1995[.]; or
          (11) enact any act, resolution, or rule which 
        increases the amount of payment which may be for any 
        individual under the Temporary Assistance for Needy 
        Families Program to an amount greater than the amount 
        provided under such program under the District of 
        Columbia Public Assistance Act of 1982, as in effect on 
        the day after the effective date of the Public 
        Assistance Temporary Amendment Act of 1997.
          * * * * * * *
                              ----------                              


    SECTION 152 OF THE DISTRICT OF COLUMBIA APPROPRIATIONS ACT, 1996

                     Chief Financial Officer Powers

    Sec. 152. Notwithstanding any other provision of law, for 
the fiscal years ending September 30, 1996 and September 30, 
1997--
          [(a) the heads and all personnel of the following 
        offices, together with all other District of Columbia 
        executive branch accounting, budget, and financial 
        management personnel, shall be appointed by, shall 
        serve at the pleasure of, and shall act under the 
        direction and control of the Chief Financial Officer:
                  [The Office of the Treasurer.
                  [The Controller of the District of Columbia.
                  [The Office of the Budget.
                  [The Office of Financial Information 
                Services.
                  [The Department of Finance and Revenue.
The District of Columbia Financial Responsibility and 
Management Assistance Authority established pursuant to Public 
Law 104-8, approved April 17, 1995, may remove such individuals 
from office for cause, after consultation with the Mayor and 
the Chief Financial Officer.]
          * * * * * * *
                              ----------                              


    SECTION 142 OF THE DISTRICT OF COLUMBIA APPROPRIATIONS ACT, 1997

         chief financial officer powers during control periods

  Sec. 142. Notwithstanding any other provision of law, during 
any control period in effect under subtitle A of title II of 
the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995 the following shall apply:
          [(a) The heads and all personnel of the following 
        offices, together with all other District of Columbia 
        accounting, budget, and financial management personnel 
        (including personnel of independent agencies but not 
        including personnel of the legislative and judicial 
        branches of the District government), shall be 
        appointed by, shall serve at the pleasure of, and shall 
        act under the direction and control of the Chief 
        Financial Officer:
                  [The Office of the Treasurer.
                  [The Controller of the District of Columbia.
                  [The Office of the Budget.
                  [The Office of Financial Information 
                Services.
                  [The Department of Finance and Revenue.
        The District of Columbia Financial Responsibility and 
        Management Assistance Authority established pursuant to 
        Public Law 104-8, approved April 17, 1995, may remove 
        such individuals from office for cause, after 
        consultation with the Mayor and the Chief Financial 
        Officer.]
          * * * * * * *
                              ----------                              


 SECTION 517 OF THE OMNIBUS CONSOLIDATED RECISSIONS AND APPROPRIATIONS 
                              ACT OF 1996

    Sec. 517. The Secretary of Health and Human Services shall 
grant a waiver of the requirements set forth in section 
1903(m)(2)(A)(ii) of the Social Security Act to D.C. Chartered 
Health Plan, Inc. of the District of Columbia: Provided, That 
such waiver shall be deemed to have been in place for all 
contract periods from October 1, 1991 through the current 
contract period or [October 1, 1999] the date of the enactment 
of this Act, whichever shall be later.
                              ----------                              


             DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

          * * * * * * *

              TITLE II--DISTRICT OF COLUMBIA SCHOOL REFORM

          * * * * * * *

SEC. 2003. GENERAL EFFECTIVE DATE.

  Except as otherwise provided in this title, this title [shall 
be effective during the period beginning on the date of 
enactment of this Act and ending 5 years after such date.] 
shall take effect on the date of the enactment of this Act.
          * * * * * * *

                   Subtitle B--Public Charter Schools

          * * * * * * *

SEC. 2203. PROCESS FOR APPROVING OR DENYING PUBLIC CHARTER SCHOOL 
                    PETITIONS.

    (a) * * *
          * * * * * * *
    (i) Number of Petitions.--
          (1) * * *
          (2) Subsequent years.--
                  [(A) In general.--Subject to subparagraph 
                (B), during calendar year 1997, and during each 
                subsequent calendar year, each eligible 
                chartering authority shall not approve more 
                than 10 petitions to establish a public charter 
                school under this subtitle. Any such petition 
                shall be approved during the period that begins 
                on January 1 and ends on April 1.]
                  (A) In general.--
                          (i) Annual limit.--Subject to 
                        subparagraph (B) and clause (ii), 
                        during calendar year 1997, and during 
                        each subsequent calendar year, each 
                        eligible chartering authority shall not 
                        approve more than 10 petitions to 
                        establish a public charter school under 
                        this subtitle.
                          (ii) Timetable.--Any petition 
                        approved under clause (i) shall be 
                        approved during an application approval 
                        period that terminates on April 1 of 
                        each year. Such an approval period may 
                        commence before or after January 1 of 
                        the calendar year in which it 
                        terminates, except that any petition 
                        approved at any time during such an 
                        approval period shall count, for 
                        purposes of clause (i), against the 
                        total number of petitions approved 
                        during the calendar year in which the 
                        approval period terminates.
          * * * * * * *

SEC. 2205. BOARD OF TRUSTEES OF A PUBLIC CHARTER SCHOOL.

  (a) Board of Trustees.--The members of a Board of Trustees of 
a public charter school shall be elected or selected pursuant 
to the charter granted to the school. Such Board of Trustees 
shall have an odd number of members that does not exceed [7,] 
15, of which--
          (1) * * *
          * * * * * * *

SEC. 2209. DISTRICT OF COLUMBIA PUBLIC SCHOOL SERVICES TO PUBLIC 
                    CHARTER SCHOOLS.

  (a) * * *
    (b) Preference in Leasing or Purchasing Public School 
Facilities.--
          (1) Former public school property.--
                  [(A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of 
                a facility or property described in 
                subparagraph (B), the Mayor and the District of 
                Columbia Government shall give preference to an 
                eligible applicant whose petition to establish 
                a public charter school has been conditionally 
                approved under section 2203(d)(2), or a Board 
                of Trustees, with respect to the purchase or 
                lease of a facility or property described in 
                subparagraph (B), provided that doing so will 
                not result in a significant loss of revenue 
                that might be obtained from other dispositions 
                or uses of the facility or property.]
                  (A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of 
                a facility or property described in 
                subparagraph (C), the Mayor and the District of 
                Columbia Government--
                          (i) subject to clause (ii), shall 
                        give preference to an eligible 
                        applicant whose petition to establish a 
                        public charter school has been 
                        conditionally approved under section 
                        2203(d)(2), or a Board of Trustees, 
                        with respect to the purchase of a 
                        facility or property described in 
                        subparagraph (C), if doing so will not 
                        result in a significant loss of revenue 
                        that might be obtained from other 
                        dispositions or uses of the facility or 
                        property; and
                          (ii) shall lease a facility or 
                        property described in subparagraph (C), 
                        at an annual rate of $1, to an eligible 
                        applicant whose petition to establish a 
                        public charter school has been 
                        conditionally approved under section 
                        2203(d)(2), or a Board of Trustees, 
                        if--
                                  (I) the eligible applicant or 
                                Board of Trustees requests a 
                                lease pursuant to this 
                                paragraph for the purpose of 
                                operating the facility or 
                                property as a public charter 
                                school under this subtitle; and
                                  (II) the facility or property 
                                is not yet otherwise disposed 
                                of (by sale, lease, or 
                                otherwise).
                  (B) Termination of lease.--Any lease entered 
                into pursuant to this paragraph with respect to 
                a public charter school shall be deemed to 
                terminate--
                          (i) upon the denial of an application 
                        to renew the charter granted to the 
                        school under section 2212, or, in a 
                        case where judicial review of the 
                        denial is sought under section 
                        2212(d)(6), upon the entry of an order, 
                        not subject to further review, 
                        upholding a decision to deny such an 
                        application, whichever occurs later;
                          (ii) upon the revocation of the 
                        charter granted to the school under 
                        section 2213, or, in a case where 
                        judicial review of the revocation is 
                        sought under section 2213(c)(6), upon 
                        the entry of an order, not subject to 
                        further review, upholding the 
                        revocation, whichever occurs later; or
                          (iii) in the case of a lease to an 
                        eligible applicant whose petition to 
                        establish a public charter school has 
                        been conditionally approved under 
                        section 2203(d)(2), upon the 
                        termination of such conditional 
                        approval by reason of the applicant's 
                        failure timely to submit the 
                        identification and information 
                        described in section 2202(6)(B)(i).
                  [(B)] (C) Property described.--A facility or 
                property referred to in subparagraph (A) is a 
                facility, or real property--
                          (i) * * *
          * * * * * * *
          (2) Current public school property.--
                  [(A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of 
                a facility or property described in 
                subparagraph (B), the Mayor and the District of 
                Columbia Government shall give preference to an 
                eligible applicant whose petition to establish 
                a public charter school has been conditionally 
                approved under section 2203(d)(2), or a Board 
                of Trustees, in leasing, or otherwise 
                contracting for the use of, a facility or 
                property described in subparagraph (B).]
                  (A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of 
                a facility or property described in 
                subparagraph (C), but subject to paragraph (3), 
                the Mayor and the District of Columbia 
                Government shall lease a facility or property 
                described in subparagraph (C), at an annual 
                rate of $1, to an eligible applicant whose 
                petition to establish a public charter school 
                has been conditionally approved under section 
                2203(d)(2), or a Board of Trustees, if the 
                eligible applicant or Board of Trusteesrequests 
a lease pursuant to this paragraph for the purpose of--
                          (i) operating the facility or 
                        property as a public charter school 
                        under this subtitle; or
                          (ii) using the facility or property 
                        for a purpose directly related to the 
                        operation of a public charter school 
                        under this subtitle.
                  (B) Termination of lease.--Any lease entered 
                into pursuant to this paragraph with respect to 
                a public charter school shall be deemed to 
                terminate--
                          (i) upon the denial of an application 
                        to renew the charter granted to the 
                        school under section 2212, or, in a 
                        case where judicial review of the 
                        denial is sought under section 
                        2212(d)(6), upon the entry of an order, 
                        not subject to further review, 
                        upholding a decision to deny such an 
                        application, whichever occurs later;
                          (ii) upon the revocation of the 
                        charter granted to the school under 
                        section 2213, or, in a case where 
                        judicial review of the revocation is 
                        sought under section 2213(c)(6), upon 
                        the entry of an order, not subject to 
                        further review, upholding the 
                        revocation, whichever occurs later; or
                          (iii) in the case of a lease to an 
                        eligible applicant whose petition to 
                        establish a public charter school has 
                        been conditionally approved under 
                        section 2203(d)(2), upon the 
                        termination of such conditional 
                        approval by reason of the applicant's 
                        failure timely to submit the 
                        identification and information 
                        described in section 2202(6)(B)(i).
                  [(B)] (C) Property described.--A facility or 
                property referred to in subparagraph (A) is a 
                facility, real property, or a designated area 
                of a facility or real property, that--
                          (i) is under the jurisdiction of the 
                        Board of Education; and
                          (ii) is available for use because the 
                        Board of Education is not using, for 
                        educational, administrative, or other 
                        purposes, the facility, real property, 
                        or designated area.
          * * * * * * *
          (3) Special rule for persons converting public school 
        into charter school.--
                  (A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of 
                a facility or property described in this 
                paragraph, the Mayor and the District of 
                Columbia Government shall lease a facility or 
                property, at an annual rate of $1, to an 
                eligible applicant whose petition to establish 
                a public charter school has been conditionally 
                approved under section 2203(d)(2), or a Board 
                of Trustees, if--
                          (i) the facility or property is under 
                        the jurisdiction of the Board of 
                        Education;
                          (ii) the eligible applicant or Board 
                        of Trustees requests a lease pursuant 
                        to this paragraph for the purpose of 
                        operating the facility or property as a 
                        public charter school under this 
                        subtitle; and
                          (iii) immediately prior to the date 
                        of such request, the facility or 
                        property--
                                  (I) was operated as a 
                                District of Columbia public 
                                school, and the requirements of 
                                section 2202(a) were met; or
                                  (II) was operated as a public 
                                charter school under this 
                                subtitle.
                  (B) Termination of lease.--Any lease entered 
                into pursuant to this paragraph with respect to 
                a public charter school shall be deemed to 
                terminate--
                          (i) upon the denial of an application 
                        to renew the charter granted to the 
                        school under section 2212, or, in a 
                        case where judicial review of the 
                        denial is sought under section 
                        2212(d)(6), upon the entry of an order, 
                        not subject to further review, 
                        upholding a decision to deny such an 
                        application, whichever occurs later;
                          (ii) upon the revocation of the 
                        charter granted to the school under 
                        section 2213, or, in a case where 
                        judicial review of the revocation is 
                        sought under section 2213(c)(6), upon 
                        the entry of an order, not subject to 
                        further review, upholding the 
                        revocation, whichever occurs later; or
                          (iii) in the case of a lease to an 
                        eligible applicant whose petition to 
                        establish a public charter school has 
                        been conditionally approved under 
                        section 2203(d)(2), upon the 
                        termination of such conditional 
                        approval by reason of the applicant's 
                        failure timely to submit the 
                        identification and information 
                        described in section 2202(6)(B)(i).
          * * * * * * *

SEC. 2214. PUBLIC CHARTER SCHOOL BOARD.

  (a) * * *
          * * * * * * *
  (g) Authorization of Appropriations.--For the purpose of 
carrying out the provisions of this section and conducting the 
Board's functions required by this subtitle, there are 
authorized to be appropriated to the Board $300,000 for fiscal 
year 1997 and such sums as may be necessary for each of the 3 
succeeding fiscal years.
          * * * * * * *

 Subtitle D--Per Capita District of Columbia Public School and Public 
                         Charter School Funding

SEC. 2401. ANNUAL BUDGETS FOR SCHOOLS.

  (a) * * *
  (b) Formula.--
          (1) * * *
          * * * * * * *
          (3) Exceptions.--
                  (A) * * *
                  (B) Payment.--Notwithstanding paragraph (2), 
                the Mayor and the District of Columbia Council, 
                in consultation with the Board of Education and 
                the Superintendent, may adjust the amount of 
                the annual payment under paragraph (1) to 
                increase the amount of such payment if a 
                District of Columbia public school or a public 
                charter school serves a high number of 
                students--
                          (i) with special needs; [or]
                          (ii) who do not meet minimum literacy 
                        standards[.]; or
                          (iii) to whom the school provides 
                        room and board in a residential 
                        setting.
                  (C) Adjustment for facilities costs.--
                Notwithstanding paragraph (2), the Mayor and 
                the District of Columbia Council, in 
                consultation with the Board of Education and 
                the Superintendent, shall adjust the amount of 
                the annual payment under paragraph (1) to 
                increase the amount of such payment for a 
                public charter school to take into account 
                leases or purchases of, or improvements to, 
                real property, if the school, not later than 
                April 1 of the fiscal year preceding the 
                payment, requests such an adjustment.
          * * * * * * *

SEC. 2403. PAYMENTS.

  (a) In General.--
          (1) * * *
          (2) Transfer of escrow funds.--
                  [(A) Initial payment.--Not later than October 
                15, 1996, and not later than October 15 of each 
                year thereafter, the Mayor shall transfer, by 
                electronic funds transfer, an amount equal to 
                75 percent of the amount of the annual payment 
                for each public charter school determined by 
                using the formula established pursuant to 
                section 2401(b) to a bank designated by such 
                school.]
                  (A) Initial payment.--
                          (i) In general.--Except as provided 
                        in clause (ii), not later than October 
                        15, 1996, and not later than October 15 
                        of each year thereafter, the Mayor 
                        shall transfer, by electronic funds 
                        transfer, an amount equal to 75 percent 
                        of the amount of the annual payment for 
                        each public charter school determined 
                        by using the formula established 
                        pursuant to section 2401(b) to a bank 
                        designated by such school.
                          (ii) Reduction in case of new 
                        school.--In the case of a public 
                        charter school that has received a 
                        payment under subsection (b) in the 
                        fiscal year immediately preceding the 
                        fiscal year in which a transfer under 
                        clause (i) is made, the amount 
                        transferred to the school under clause 
                        (i) shall be reduced by an amount equal 
                        to 75 percent of the amount of the 
                        payment under subsection (b).
                  (B) Final payment.--
                          (i) In general.--Except as provided 
                        in [clause (ii),] clauses (ii) and 
                        (iii), not later than May 1, 1997, and 
                        not later than May 1 of each year 
                        thereafter, the Mayor shall transfer 
                        the remainder of the annual payment for 
                        a public charter school in the same 
                        manner as the initial payment was made 
                        under subparagraph (A).
                          (ii) Adjustment for enrollment.--Not 
                        later than March 15, 1997, and not 
                        later than March 15 of each year 
                        thereafter, if the enrollment number of 
                        a public charter school has changed 
                        from the number reported to the Mayor 
                        and the Board of Education, as required 
                        under section 2402(a), the Mayor shall 
                        increase the payment in an amount equal 
                        to 50 percent of the amount provided 
                        for each student who has enrolled in 
                        such school in excess of such 
                        enrollment number, or shall reduce the 
                        payment in an amount equal to 50 
                        percent of the amount provided for each 
                        student who has withdrawn or dropped 
                        out of such school below such 
                        enrollment number.
                          (iii) Reduction in case of new 
                        school.--In the case of a public 
                        charter school that has received a 
                        payment under subsection (b) in the 
                        fiscal year immediately preceding the 
                        fiscal year in which a transfer under 
                        clause (i) is made, the amount 
                        transferred to the school under clause 
                        (i) shall be reduced by an amount equal 
                        to 25 percent of the amount of the 
                        payment under subsection (b).
  [(b) Exception for New Schools.--
          [(1) Authorization.--There are authorized to be 
        appropriated $200,000 for each fiscal year to carry out 
        this subsection.
          [(2) Disbursement to mayor.--The Secretary of the 
        Treasury shall make available and disburse to the 
        Mayor, not later than August 1 of each of the fiscal 
        years 1996 through 2000, such funds as have been 
        appropriated under paragraph (1).
          [(3) Escrow.--The Mayor shall place in escrow, for 
        use by public charter schools, any sum disbursed under 
        paragraph (2) and not paid under paragraph (4).
          [(4) Payments to schools.--The Mayor shall pay to 
        public charter schools described in paragraph (5), in 
        accordance with this subsection, any sum disbursed 
        under paragraph (2).
          [(5) Schools described.--The schools referred to in 
        paragraph (4) are public charter schools that--
                  [(A) did not operate as public charter 
                schools during any portion of the fiscal year 
                preceding the fiscal year for which funds are 
                authorized to be appropriated under paragraph 
                (1); and
                  [(B) operated as public charter schools 
                during the fiscal year for which funds are 
                authorized to be appropriated under paragraph 
                (1).
          [(6) Formula.--
                  [(A) 1996.--The amount of the payment to a 
                public charter school described in paragraph 
                (5) that begins operation in fiscal year 1996 
                shall be calculated by multiplying $6,300 by 
                \1/12\ of the total anticipated enrollment as 
                set forth in the petition to establish the 
                public charter school; and
                  [(B) 1997 through 2000.--The amount of the 
                payment to a public charter school described in 
                paragraph (5) that begins operation in any of 
                fiscal years 1997 through 2000 shall be 
                calculated by multiplying the uniform dollar 
                amount used in the formula established under 
                section 2401(b) by \1/12\ of the total 
                anticipated enrollment as set forth in the 
                petition to establish the public charter 
                school.
          [(7) Payment to schools.--
                  [(A) Transfer.--On September 1 of each of the 
                years 1996 through 2000, the Mayor shall 
                transfer, by electronic funds transfer, the 
                amount determined under paragraph (6) for each 
                public charter school from the escrow account 
                established under subsection (a) to a bank 
                designated by each such school.
                  [(B) Pro rata and remaining funds.--
                Subparagraphs (C) and (D) of subsection (a)(2) 
                shall apply to payments made under this 
                subsection, except that for purposes of this 
                subparagraph references to District of Columbia 
                public schools in such subparagraphs (C) and 
                (D) shall be read to refer to public charter 
                schools.]
  (b) Payments to New Schools.--
          (1) Establishment of fund.--There is established in 
        the general fund of the District of Columbia a fund to 
        be known as the ``New Charter School Fund''.
          (2) Contents of fund.--The New Charter School Fund 
        shall consist of--
                  (A) unexpended and unobligated amounts 
                appropriated from local funds for public 
                charter schools for fiscal year 1997 that 
                reverted to the general fund of the District of 
                Columbia;
                  (B) amounts credited to the fund in 
                accordance with this subsection upon the 
                receipt by a public charter school described in 
                paragraph (5) of its first initial payment 
                under subsection (a)(2)(A) or its first final 
                payment under subsection (a)(2)(B); and
                  (C) any interest earned on such amounts.
          (3) Expenditures from fund.--
                  (A) In general.--Not later than June 1, 1998, 
                and not later than June 1 of each year 
                thereafter, the Chief Financial Officer of the 
                District of Columbia shall pay, from the New 
                Charter School Fund, to each public charter 
                school described in paragraph (5), an amount 
                equal to 25 percent of the amount yielded by 
                multiplying the uniform dollar amount used in 
                the formula established under section 2401(b) 
                by the total anticipated enrollment as set 
                forth in the petition to establish the public 
                charter school.
                  (B) Pro rata reduction.--If the amounts in 
                the New Charter School Fund for any year are 
                insufficient to pay the full amount that each 
                public charter school described in paragraph 
                (5) is eligible to receive under this 
                subsection for such year, the Chief Financial 
                Officer of the District of Columbia shall 
                ratably reduce such amounts for such year on 
                the basis of the formula described in section 
                2401(b).
                  (C) Form of payment.--Payments under this 
                subsection shall be made by electronic funds 
                transfer from the New Charter School Fund to a 
                bank designated by a public charter school.
          (4) Credits to fund.--Upon the receipt by a public 
        charter school described in paragraph (5) of--
                  (A) its first initial payment under 
                subsection (a)(2)(A), the Chief Financial 
                Officer of the District of Columbia shall 
                credit the New Charter School Fund with 75 
                percent of the amount paid to the school under 
                paragraph (3); and
                  (B) its first final payment under subsection 
                (a)(2)(B), the Chief Financial Officer of the 
                District of Columbia shall credit the New 
                Charter School Fund with 25 percent of the 
                amount paid to the school under paragraph (3).
          (5) Schools described.--A public charter school 
        described in this paragraph is a public charter school 
        that--
                  (A) did not enroll any students during any 
                portion of the fiscal year preceding the most 
                recent fiscal year for which funds are 
                appropriated to carry out this subsection; and
                  (B) operated as a public charter school 
                during the most recent fiscal year for which 
                funds are appropriated to carry out this 
                subsection.
          (6) Authorization of appropriations.--There are 
        authorized to be appropriated to the Chief Financial 
        Officer of the District of Columbia such sums as may be 
        necessary to carry out this subsection for each fiscal 
        year.
          * * * * * * *

                 Subtitle F--Partnerships With Business

          * * * * * * *

[SEC. 2603. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

    [A private, nonprofit corporation shall be eligible to 
receive a grant under section 2602 if the corporation is a 
national business organization incorporated in the District of 
Columbia, that--
          [(1) has a board of directors which includes members 
        who are also chief executive officers of technology-
        related corporations involved in education and 
        workforce development issues;
          [(2) has extensive practical experience with 
        initiatives that link business resources and expertise 
        with education and training systems;
          [(3) has experience in working with State and local 
        educational agencies throughout the United States with 
        respect to the integration of academic studies with 
        workforce preparation programs; and
          [(4) has a nationwide structure through which 
        additional resources can be leveraged and innovative 
        practices disseminated.]

SEC. 2603. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

  A private, nonprofit corporation shall be eligible to receive 
a grant under section 2602 if the corporation is a business 
organization incorporated in the District of Columbia, that--
          (1) has a board of directors which includes members 
        who are also executives of technology-related 
        corporations involved in education and workforce 
        development issues;
          (2) has extensive practical experience with 
        initiatives that link business resources and expertise 
        with education and training systems;
          (3) has experience in working with State and local 
        educational agencies with respect to the integration of 
        academic studies with workforce preparation programs; 
        and
          (4) has a structure through which additional 
        resources can be leveraged and innovative practices 
        disseminated.
          * * * * * * *

                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             ROLLCALL No. 1

    Date: September 29, 1997.
    Measure: District of Columbia Appropriations Bill, FY 1998.
    Motion by: Mr. Moran.
    Description of Motion: To amend the Taylor amendment by 
substituting entire new bill text that included the text of the 
Senate reported D.C. Appropriations Bill plus a five percent 
pay raise for policemen and fire fighters.
    Results: Rejected 19 yeas to 23 nays, 1 present.
        Members Voting Yea            Members Voting Nay
Ms. DeLauro                         Mr. Aderholt
Mr. Dixon                           Mr. Bonilla
Mr. Edwards                         Mr. Callahan
Mr. Fazio                           Mr. Cunningham
Mr. Hoyer                           Mr. DeLay
Miss Kaptur                         Mr. Frelinghuysen
Mrs. Lowey                          Mr. Hobson
Mrs. Meek                           Mr. Kingston
Mr. Mollohan                        Mr. Knollenberg
Mr. Moran                           Mr. Lewis
Mr. Obey                            Mr. Livingston
Ms. Pelosi                          Mr. Miller
Mr. Price                           Mrs. Northup
Mr. Sabo                            Mr. Packard
Mr. Serrano                         Mr. Porter
Mr. Skaggs                          Mr. Rogers
Mr. Stokes                          Mr. Skeen
Mr. Visclosky                       Mr. Taylor
Mr. Yates                           Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
        Members Voting Present          
Mr. Nethercutt

                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed blow:

                             ROLLCALL No. 2

    Date: September 29, 1997.
    Measure: District of Columbia Appropriations Bill, FY 1998.
    Motion by: Mr. Lewis of California.
    Description of Motion: To report the bill and authorize the 
Chairman to seek a rule on such terms and conditions as he may 
deem appropriate, and to authorize the Chairman to move that 
the House disagree to the amendments of the Senate on the bill.
    Results: Adopted 23 yeas to 18 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Ms. DeLauro
Mr. Bonilla                         Mr. Dixon
Mr. Callahan                        Mr. Edwards
Mr. Cunningham                      Mr. Hoyer
Mr. DeLay                           Miss Kaptur
Mr. Frelinghuysen                   Mrs. Lowey
Mr. Hobson                          Mrs. Meek
Mr. Knollenberg                     Mr. Mollohan
Mr. Lewis                           Mr. Moran
Mr. Livingston                      Mr. Obey
Mr. Miller                          Ms. Pelosi
Mr. Nethercutt                      Mr. Price
Mrs. Northup                        Mr. Sabo
Mr. Packard                         Mr. Serrano
Mr. Porter                          Mr. Skaggs
Mr. Rogers                          Mr. Stokes
Mr. Skeen                           Mr. Visclosky
Mr. Taylor                          Mr. Yates
Mr. Tiahrt
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf

                              COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATION) AUTHORITY FOR 1997 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR 1998                             
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Appropriated                                                                                     Bill compared with--                  
                                                             1997        FY 1997      FY 1998      FY 1998      FY 1998    Recommended ---------------------------------------------------------
                                                          (enacted to    revised      District   authority's    amended      in bill    Appropriated   FY 1997    District  Authority   FY 1998 
                                                             date)                    request       request     request                     1997       revised    request    request    amended 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                     FEDERAL FUNDS                                                                                                                                                              
                                                                                                                                                                                                
Federal payment to the District of Columbia............      660,000      660,000      660,000      660,000            0            0     (660,000)   (660,000)  (660,000)  (660,000)         0 
Federal contributions to retirement funds..............       52,070       52,070       52,070       52,070            0            0      (52,070)    (52,070)   (52,070)   (52,070)         0 
Presidential Inauguration..............................        5,702        5,702            0            0            0            0       (5,702)     (5,702)         0          0          0 
Federal contribution for repair of drinking water                                                                                                                                               
 system................................................        1,000        1,000            0            0            0            0       (1,000)     (1,000)         0          0          0 
Federal contribution to the Operations of the Nation's                                                                                                                                          
 Capital...............................................            0            0            0            0      160,000      180,000      180,000     180,000    180,000    180,000     20,000 
Federal payment for the Inspector General for                                                                                                                                                   
 Investigative efforts.................................            0            0            0            0            0        2,000        2,000       2,000      2,000      2,000      2,000 
Federal Payment for police pay raise...................            0            0            0            0            0        5,400        5,400       5,400      5,400      5,400      5,400 
Federal Payment for fire fighters pay raise............            0            0            0            0            0        2,600        2,600       2,600      2,600      2,600      2,600 
Federal contribution to Public Schools.................            0            0            0            0            0        1,000            0    .........  .........         0   .........
Payment to the District of Columbia Corrections Trustee                                                                                                                                         
 Operations............................................            0            0            0            0      169,000      169,000      169,000     169,000    169,000    169,000          0 
Payment to the District of Columbia Corrections Trustee                                                                                                                                         
 for Correctional Facilities, Construction and Repair..            0            0            0            0      302,000      302,000      302,000     302,000    302,000    302,000          0 
Federal payment to the District of Columbia Criminal                                                                                                                                            
 Justice System........................................            0            0            0            0      146,000      146,000      146,000     146,000    146,000    146,000          0 
Payment to the National Park Service, Park Police......            0            0            0            0            0       12,500       12,500      12,500     12,500     12,500     12,500 
Federal Payment to the District of Columbia Scholarship                                                                                                                                         
 Fund..................................................            0            0            0            0            0        7,000        7,000       7,000      7,000      7,000      7,000 
                                                        ----------------------------------------------------------------------------------------------------------------------------------------
      Total, Federal funds.............................      718,772      718,772      712,070      712,070      777,000      827,500      108,728     108,728    115,430    115,430     50,500 
                                                        ========================================================================================================================================
               DISTRICT OF COLUMBIA FUNDS                                                                                                                                                       
                                                                                                                                                                                                
Operating Expenses:                                                                                                                                                                             
    Governmental Direction and Support.................      115,663      110,522      106,982      104,327      105,177      119,177        3,514       8,655     12,195     14,850     14,000 
    Economic Development & Regulation..................      135,704      131,202      125,339      120,072      120,072      120,072      (15,632)    (11,130)    (5,267)         0          0 
    Public Safety and Justice..........................    1,041,281    1,037,893      999,470    1,003,877      494,970      502,970     (538,311)   (534,923)  (496,500)  (500,907)     8,000 
    Public Education System............................      758,815      750,077      755,106      756,044      672,444      673,444      (85,371)    (76,633)   (81,662)   (82,600)     1,000 
    Human Support Services.............................    1,685,707    1,661,150    1,718,705    1,718,939    1,718,939    1,718,939       33,232      57,789        234          0          0 
    Public Works.......................................      247,967      242,684      240,674      241,934      241,934      241,934       (6,033)       (750)     1,260          0          0 
    Washington Convention Center Transfer Payment......        5,400        5,400            0            0            0        5,400            0           0      5,400      5,400      5,400 
    Repayment of Loans and Interest....................      333,710      333,710            0            0            0      366,976       33,266      33,266    366,976    366,976    366,976 
    Repayment of General Fund Recovery Debt............       38,314       38,314            0            0            0       39,020          706         706     39,020     39,020     39,020 
    Payment of Interest on Short-Term Borrowing........       34,461       34,461            0            0            0       12,000      (22,461)    (22,461)    12,000     12,000     12,000 
    Presidential Inauguration..........................        5,702        5,702            0            0            0            0       (5,702)     (5,702)         0          0          0 
    Certification of Participation.....................        7,926        7,926            0            0            0        7,923           (3)         (3)     7,923      7,923      7,923 
    Human Resources Development........................       12,257       12,257            0            0            0        6,000       (6,257)     (6,257)     6,000      6,000      6,000 
    Cost Reduction Initiatives.........................      (47,411)           0            0            0            0            0       47,411           0          0          0          0 
    Management and Productivity Improvement Fund.......            0            0            0            0            0        5,000        5,000       5,000      5,000      5,000      5,000 
    Financial Authority................................        3,400        3,220            0        3,220        3,220        3,220         (180)          0      3,220          0          0 
    Financing and Other Uses...........................            0            0      441,855      441,696      484,773            0            0           0   (441,855)  (441,696)  (484,773)
    Pay-As-You-Go Capital Outlay.......................            0            0            0            0            0       30,000       30,000      30,000     30,000     30,000     30,000 
                                                        ----------------------------------------------------------------------------------------------------------------------------------------
      Total, Local funds (general fund)................    4,378,896    4,374,518    4,388,131    4,390,109    3,841,529    3,852,075     (526,821)   (522,443)  (536,056)  (538,034)    10,546 
                                                        ========================================================================================================================================
    Enterprise and Other Uses..........................            0            0       15,725       15,725       15,725            0            0           0    (15,725)   (15,725)   (15,725)
    Water and Sewer Authority & Wash. Aqueduct.........      221,362      221,362      297,310      297,310      297,310      297,310       75,948      75,948          0          0          0 
    Lottery & Charitable Games.........................      247,900      247,900      213,500      213,500      213,500      213,500      (34,400)    (34,400)         0          0          0 
    Cable Television...................................        2,511        2,467            0            0            0        2,467          (44)          0      2,467      2,467      2,467 
    Public Service Commission..........................            0            0            0            0            0        4,547        4,547       4,547      4,547      4,547      4,547 
    Office of People's Counsel.........................            0            0            0            0            0        2,428        2,428       2,428      2,428      2,428      2,428 
    Office of Banking and Financial Institutions.......            0            0            0            0            0          600          600         600        600        600        600 
    Dept. of Insurance and Securities Regulation.......            0            0            0            0            0        5,683        5,683       5,683      5,683      5,683      5,683 
    Sports Commission (Starplex).......................        8,717        8,717        8,936        5,936        5,936        5,936       (2,781)     (2,781)    (3,000)         0          0 
    D.C. General Hospital..............................       52,684       64,099       52,684       52,684       59,599       59,599        6,915      (4,500)     6,915      6,915          0 
    D.C. Retirement Board..............................       16,667       16,667       16,762       16,762       16,762        4,898      (11,769)    (11,769)   (11,864)   (11,864)   (11,864)
    Correctional Industries Fund.......................        3,052        3,052        3,332        3,332        3,332        3,332          280         280          0          0          0 
    Washington Convention Center.......................       42,596       42,596       41,000       41,000       41,000       41,000       (1,596)     (1,596)         0          0          0 
                                                        ----------------------------------------------------------------------------------------------------------------------------------------
      Total, Enterprise and Other Uses.................      595,489      606,860      649,249      649,249      653,164      641,300       45,811      34,440     (7,949)    (4,949)   (11,864)
                                                        ========================================================================================================================================
      Total, Operating Expenses........................    4,974,385    4,981,378    5,037,380    5,036,358    4,494,693    4,493,375     (481,010)   (488,003)  (544,005)  (542,983)    (1,318)
                                                        ========================================================================================================================================
Capital Outlay:                                                                                                                                                                                 
    General Fund.......................................       46,923       46,923      128,624      269,330      269,330      269,330      222,407     222,407    140,706          0          0 
                                                        ========================================================================================================================================
      Total, District of Columbia Funds................    5,021,308    5,028,301    5,166,004    5,305,688    4,764,023    4,762,705     (258,603)   (265,596)  (403,299)  (542,983)    (1,318)
      Less Savings from the National Capital                                                                                                                                                    
       Revitalization Act of 1997......................     (619,637)    (619,637)    (597,069)    (584,536)           0            0      619,637     619,637    597,069    584,536          0 
                                                        ----------------------------------------------------------------------------------------------------------------------------------------
      Revised Total....................................    4,401,671    4,408,664    4,568,935    4,721,152    4,764,023    4,762,705      361,034     354,041    193,770     41,553     (1,318)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


 DISSENTING VIEWS OF HON. DAVID OBEY, HON. JAMES P. MORAN, HON. JULIAN 
                  C. DIXON, AND HON. MARTIN OLAV SABO

    Over the past few years, Congress has helped the District 
of Columbia to get back on its feet. The relationship between 
the District and the Federal government was redefined, 
management controls were put into place, and the Federal 
government assumed responsibilities which had become a burden 
on the District. With this bill, we are withdrawing our helping 
hand.
    As reported from the Subcommittee, the bill offered little 
to the people of the District of Columbia. It cut $300M from 
the consensus budget submitted by the Mayor, Council and 
Control Board, which would have resulted in a 22% across the 
board cut in discretionary spending. An arbitrary 10% cut in 
personnel was imposed on all but the police and fire 
departments, even though there has already been a 27% cut in 
the city's workforce since 1995. Beyond the actual 
appropriations, page after page of general provisions and 
unrelated titles were added to the bill, overriding the 
authority of elected officials as well as the very body charged 
by Congress with turning the city around: the Control Board.
    Wisely, the full Committee amended the bill to eliminate 
the $300 Million funding cut and restore some, but not all, of 
the staffing cuts. It also eliminated an unfair and unwanted 
residency requirement for District of Columbia employees, which 
would have impacted more than two-thirds of the city's police 
officers, 50% of its firefighters and 44% of its teachers.
    Despite this amendment, however, there remains a laundry 
list of legislative and ancillary provisions. In fact, the 
House bill contains more than 62 provisions that are not found 
in the Senate bill. While some of these are justifiable 
technical corrections, others are unwarranted micro-management 
of the District, pure and simple.
    These include items such as closing the DC law school, 
putting a permanent cap on welfare payments, restricting 
authority to approve contracts, and cutting DC school 
personnel. We also have the downright silly provisions, such as 
restricting issuance of a business license for helicopter 
tours; a trivial matter which should not concern this 
Committee, Finally we have the ideological provisions the 
majority has been advocating nationally, such as the school 
vouchers, allowing waivers of the Davis-Bacon Act, and medical 
malpractice reform. None of these belong in the bill.
    The Committee's job is to evaluate the City's budget 
request and appropriate federal funds. Decisions over the day 
to day operations of the District should be left to the Mayor 
and the City Council. The first level of oversight is provided 
by the Control Board. Federal legislation affecting the 
District of Columbia should be considered by District of 
Columbia Subcommittee of the Government Reform Committee.
    The Administration has indicated that it will veto the bill 
if some of these provisions remain. The best course for the 
House is to adopt a clean bill that supports the consensus 
budget. This would be easily conferenced with the Senate, and 
signed by the President. A clean bill will allow the city to 
move forward with the reforms that must be put into place.

                            dc voucher plan

    Among the numerous legislative items included in this bill 
is a so-called ``Student Opportunity Scholarship'' program 
which the majority argues is the answer to the problems 
besetting the District of Columbia Public Schools. This program 
would authorize $45 million over five years to fund tuition 
vouchers for District students. We oppose the inclusion of such 
a program in this bill. We believe it is fundamentally unfair 
and simply wrong for the majority to hold the District of 
Columbia's budget hostage to its national agenda of promoting 
private school vouchers at the expense of public education.
    As the new fiscal year begins, we face a situation where 
the District of Columbia government will be operating without 
an agreed upon budget, yet the majority has attached to this 
bill a voucher proposal that they know will result in a 
Presidential veto. Unfortunately, the majority seems intent on 
ignoring the lessons of two years ago when it took six months 
because of the voucher issue--including several filibusters in 
the Senate--before a final District of Columbia Appropriations 
Bill became law. A similar delay this year will only distract 
the District from making needed management and financial 
reforms and force the District back into a crisis environment 
where the order of the day is managing to a Continuing 
Resolution rather than improving the schools, repairing the 
roads, and reducing crime.
Vouchers will not ensure parental choice in education for 97% of DC 
        students
    Educational choice is held up by voucher supporters as the 
main reason that Members should embrace this bill. But choice 
for whom? We all agree that the District of Columbia schools 
are not doing the job we want in providing a high quality 
education to all District students. But, we are also convinced 
that providing an opportunity for 2,000 to 3,000 DC students to 
attend private schools will not improve public education for 
the remaining 75,000, or 97 percent, students remaining in 
District schools.
    The vouchers proposal does not represent real choice for 
the majority of District families. And even the lucky few 
parents whose children might receive a voucher are being 
unfairly led to believe that their children can attend any 
private school to which they apply. They should know that the 
bill allows private schools to screen out and deny admission to 
students on the basis of religion, test scores, behavior, and 
physical ability, in contrast to public schools, which don't 
have the luxury of closing their doors to students who pose a 
challenge.
    Moreover, the maximum tuition voucher of $3,200 for 
students at the poverty level and $2,400 for students at 185 
percent of the poverty level effectively puts many, if not 
most, private schools out of the range of voucher students. 
According to a Congressional Research Service analysis, even 
the maximum vouchers would be insufficient to pay the full cost 
of attending many private schools or any suburban public 
school, This meansthat the few low-income parents whose 
students are fortunate enough to receive a voucher will have to pay the 
difference, putting real educational choice out of the reach of most 
poor families.
    The voucher plan fails to contribute to the overall 
improvement of DC public schools and diverts attention and 
resources away from efforts to raise standards and improve 
achievement in the DC schools
    We believe that the challenge for our Committee and 
Congress is not to help 2,500 students move out, but to help 
all 78,000 students in the District move up academically. If we 
are serious about providing a solution for 100 percent of the 
students, not just 3 percent of the students, we can put $7.0 
million in federal funds to better use. With $7.0 million in 
federal funds:
          116 DC schools--benefiting 60,000 students--could 
        implement comprehensive school reform programs based on 
        solid educational research--like the widely successful 
        Success for All developed at Johns Hopkins University--
        that helps prevent kids from falling behind in 
        reading--and the Laboratory for Success model developed 
        at Temple University;
          140 new after school programs could be started to 
        provide safe havens and additional learning 
        opportunities for 14,000 children in the District who 
        otherwise would be home alone;
          new textbooks for every elementary and secondary 
        school student could be purchased; and
          66,000 new hard cover books for the District's public 
        libraries could be bought.

The voucher plan erodes local control over education policy

    In support of their case, voucher proponents often refer to 
the failures of the school system, documented in a November 
1996 study conducted by the District of Columbia Financial 
Responsibility and Management Assistance Authority. However, 
the story of the public schools should not end there. In 
response to these findings, the Authority embarked on a bold 
initiative to shake up the school system by implementing a new 
management structure with a mandate to improve the public 
schools. Specifically, on November 15, 1996, the Authority 
appointed General Julius W. Becton, Jr. as Chief Executive 
Officer and Superintendent of DCPS and established the 
Emergency Transitional Education Board of Trustees.
    Although General Becton has been on the job for less than a 
year, he has already taken significant steps to move the public 
schools in a more positive direction. He has developed an 
academic plan focusing on high standards and accountability for 
results, redesigned the budget structure to hold managers 
accountable for spending, and implemented comprehensive 
security and facilities' management plans. These efforts hold 
much promise for the system.
    We need a vote of confidence for General Becton, who has 
faced an army of problems during his brief tenure but has made 
real progress. We can help the public schools improve by 
holding the administrators and teachers accountable while 
ensuring that infrastructure and instruction needs are met.

The effectiveness of vouchers in improving educational achievement is 
        uncertain

    Evaluations of existing voucher programs provide no 
conclusive evidenced of the benefit of these programs for 
student achievement. Research on the impact of existing private 
school voucher programs has not demonstrated substantial 
achievement benefits. In fact, most differences between 
performance in public and private schools can be explained by 
the family background of the students (i.e. family income, 
parents' educational attainment, etc.).
    Milwaukee and Cleveland are the only communities in the 
country to provide publicly-funded tuition vouchers for private 
schools. The Cleveland experiment is too new to evaluate, but 
the Milwaukee program is the longest-running publicly funded 
voucher program. Three separate evaluations of the Milwaukee 
program have found vastly different results.
    The first evaluation conducted by Professor John Witte of 
the University of Wisconsin found that the educational 
performance for voucher students did not improve significantly, 
concluding that: ``There is no evidence that choice students do 
better or worse than Milwaukee Public Schools students once we 
have controlled for gender, race, income, grade, and prior 
achievement.''
    A second evaluation of the Witte data by Paul Peterson at 
Harvard did find evidence that the Milwaukee voucher program 
had a substantial positive impact on the achievement of 
students who remained in the program for 3 to 4 years. However, 
this second analysis has been severely criticized as being 
flawed because it did not account for the severe attrition of 
voucher students during the two years in which the study 
claimed positive results. Moreover, this second evaluation did 
not control for student family background and prior 
achievement.
    A third evaluation of the Milwaukee program found that 
voucher students outperformed non-voucher students in math, but 
not in reading.
    These conflicting results provide more a lesson in the art 
of statistics, than in the effectiveness of voucher programs. 
The one clear implication of these studies is that the impact 
of voucher programs on student achievement remains unproven.

Vouchers will result in protracted litigation

    If adopted, we believe this voucher plan will certainly 
face a court challenge. The Supreme Court has consistently held 
that public funds cannot pay, either directly or indirectly, 
for the religious education or the religious mission of 
parochial schools. With regard to the only two publicly funded 
voucher programs in the country--in Milwaukee and Cleveland, 
both state courts have ruled that the participation of 
religious schools violates federal and state constitutional 
provisions barring governmental aid to religious institutions.
    Most policymakers would agree that District students 
deserve a quality public education. However, adopting a 
publicly funded voucher program for the District of Columbia 
was a bad idea two years ago when Congress rejected it, and it 
remains a bad idea now.

                                   David Obey.
                                   James P. Moran.
                                   Julian C. Dixon.
                                   Martin Olav Sabo.

                                
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