[Senate Report 105-75]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 155
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-75
_______________________________________________________________________


 
             DISTRICT OF COLUMBIA APPROPRIATIONS BILL, 1998

                                _______
                                

               September 9, 1997.--Ordered to be printed

_______________________________________________________________________


  Mr. Faircloth, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1156]

    The Committee on Appropriations reports the bill (S. 1156) 
making appropriations for the government of the District of 
Columbia and other activities chargeable in whole or in part 
against the revenues of said District for the fiscal year 
ending September 30, 1998, and for other purposes, reports 
favorably thereon and recommends that the bill do pass.


                            C O N T E N T S

                              ----------                              
                                                                   Page
Summary of bill..................................................     3
General statement................................................     7
Total resources..................................................    10
Federal funds....................................................    10
Personnel........................................................    13
District of Columbia funds:
    Operating expenses:
        Governmental direction and support.......................    14
        Economic development and regulation......................    19
        Public safety and justice................................    22
        Public education system..................................    26
        Human support services...................................    29
        Public works.............................................    33
        Financing and other uses.................................    35
    Enterprise funds:
        Enterprise and other uses................................    38
        Water and Sewer Authority and the Washington Aqueduct....    38
        Lottery and Charitable Games Control Board...............    38
        Office of Cable Television...............................    38
        Public Service Commission................................    38
        Office of the People's Counsel...........................    38
        Department of Insurance and Securities Regulation........    39
        Office on Banking and Financial Institutions.............    39
        D.C. Sports Commission (Starplex)........................    39
        D.C. General Hospital payment............................    39
        D.C. Retirement Board....................................    39
        Washington Convention Center Authority...................    39
District of Columbia Financial Responsibility and Management 
  Assistance Authority...........................................    40
Capital outlay...................................................    41
Deficit reduction and revitalization.............................    42
General provisions...............................................    43
Compliance with paragraph 7, rule XVI of the Standing Rules of 
  the Senate.....................................................    45
Compliance with paragraph 7(c), rule XXVI of the Standing Rules 
  of the Senate..................................................    45
Compliance with paragraph 12, rule XXVI of the Standing Rules of 
  the Senate.....................................................    46

                            SUMMARY OF BILL

    The following discussion of the bill includes general 
information on initiatives and concerns of the Committee and an 
analysis of the total resources estimated to be available to 
the District of Columbia in the coming fiscal year.
    The Committee considered initial requests from the 
President for Federal funds totaling $712,070,000 for the 
District of Columbia appropriation. This amount was contained 
in the Budget of the U.S. Government--1998, transmitted to the 
Congress on February 6, 1997 (House Doc. 105-3). The requested 
funds consisted of $660,000,000 for the annual Federal payment 
to the District, and $52,070,000 as the Federal contribution to 
the various retirement systems.
    The fiscal year 1998 allocation for the District of 
Columbia appropriation was $805,000,000 in budget authority. 
The allocation reflected the possible passage of the 
President's proposal for the revitalization of the District of 
Columbia called the National Capital revitalization and self-
government improvement plan.
    On August 5, 1997, the President signed into law the 
National Capital Revitalization and Self-Government Improvement 
Act of 1997 (Revitalization Act), Public Law 105-33. The 
Revitalization Act provides for: (1) a Federal contribution of 
$190,000,000; (2) the Federal Government to assume the pension 
liability for judges, police and firefighters, and teachers; 
(3) the transfer of the District's adult felons to the Federal 
prison system; (4) payment of Federal funds for the operation 
of the D.C. court system; and (5) payment for the operation of 
offender services in the District of Columbia. In addition, the 
Revitalization Act includes management reform provisions not 
included in the President's proposal. The Revitalization Act 
authorizes funds to be appropriated for implementation of these 
proposals, enacted as the District of Columbia Management 
Reform Act of 1997. Because of the assumption by the Federal 
Government of the pension and criminal justice 
responsibilities, the act provides for the elimination of the 
Federal payment and the Federal contribution to the various 
retirement systems.
    On August 14, 1997, the President forwarded to Congress 
proposed budget amendments (House Doc. 105-118) that request a 
fiscal year 1998 appropriation for the District of Columbia 
totaling $777,000,000 in budget authority and $479,000,000 in 
outlays. The revised budget eliminates the prior request for 
the $660,000,000 Federal payment and the $52,070,000 annual 
contribution to District retirement funds. The revised budget 
requests appropriations of: (1) $160,000,000 as a contribution 
from the Federal Government toward the District's operating 
costs; (2) $169,000,000 for the administration and operation of 
D.C. correctional facilities; (3) $302,000,000 for the 
construction, renovation and repair of correctional facilities; 
(4) $123,000,000 for the operation of the D.C. court system; 
and (5) $23,000,000 for the operation of offender services.
    The Senate bill includes a recommendation of $1,892,455,000 
in Federal funds for the District of Columbia.
    In addition to the Federal funds recommended in the bill, 
provision is also made for $2,806,863,000 in District of 
Columbia funds.

Federal Funds

        Item                                                            

Federal payment for management reform implementation....      $8,000,000
Federal contribution....................................     190,000,000
Federal payment to D.C. corrections trustee operations..     169,000,000
Federal payment for correctional facilities.............     302,000,000
Federal payment for D.C. courts.........................     146,000,000
Federal payment for U.S. Park Police operations.........       5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal (Federal funds included in this bill)....     820,000,000
Federal grants and (estimated) reimbursements...........   1,072,455,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total Federal funds...............................   1,892,455,000

    A comparative summary of the appropriations recommended 
follows:

                                                               COMPARATIVE SUMMARY OF BILL                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Committee recommendation compared 
                                                                                                                               with (+ or -)--          
                                                            Fiscal year 1997   Fiscal year 1998      Committee     -------------------------------------
                                                                enacted            request         recommendation    Fiscal year 1997   Fiscal year 1998
                                                                                                                         enacted            request     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      FEDERAL FUNDS                                                                                                                     
                                                                                                                                                        
Federal payment to the District of Columbia..............      $660,000,000   .................  .................     -$660,000,000   .................
Federal contribution to retirement funds.................        52,070,000   .................  .................       -52,070,000   .................
Presidential inauguration................................         5,702,000   .................  .................        -5,702,000   .................
Federal contribution for repair of drinking water system.         1,000,000   .................  .................        -1,000,000   .................
Federal payment for management reform....................  .................  .................        $8,000,000         +8,000,000        +$8,000,000 
Federal contribution to the operations of the Nation's                                                                                                  
 Capital.................................................  .................      $160,000,000        190,000,000       +190,000,000        +30,000,000 
Payment to the D.C. corrections trustee, operations......  .................       169,000,000        169,000,000       +169,000,000   .................
Payment to the D.C. correction trustee for correctional                                                                                                 
 facilities, construction and repair.....................  .................       302,000,000        302,000,000       +302,000,000   .................
Payment to the D.C. courts...............................  .................  .................       146,000,000       +146,000,000       +146,000,000 
D.C. courts..............................................  .................       123,000,000   .................  .................      -123,000,000 
Payment to the pretrial services, defense service,                                                                                                      
 parole, adult probation, and offender supervision                                                                                                      
 trustee for the District of Columbia....................  .................        23,000,000   .................  .................       -23,000,000 
General provision section 148............................  .................  .................         5,000,000         +5,000,000         +5,000,000 
                                                          ----------------------------------------------------------------------------------------------
      Total, Federal funds to the District of Columbia...       718,772,000        777,000,000        820,000,000       +101,228,000        +43,000,000 
                                                          ==============================================================================================
                DISTRICT OF COLUMBIA FUNDS                                                                                                              
                                                                                                                                                        
Operating expenses:                                                                                                                                     
    General fund.........................................     3,396,527,000      2,633,585,000      2,633,585,000       -762,942,000   .................
    Financial authority..................................         3,400,000          3,220,000          3,220,000           -180,000   .................
    Deficit reduction and revitalization.................  .................       235,859,000        201,090,000       +201,090,000        -34,769,000 
                                                          ----------------------------------------------------------------------------------------------
      Total, operating expenses..........................     3,402,106,000      2,872,664,000      2,837,895,000       -595,243,000        -34,769,000 
Federal grants...........................................       855,401,000      1,072,455,000      1,072,455,000       +217,054,000   .................
Private and other funding................................       716,878,000        795,275,000        795,275,000        +79,000,000   .................
Intra-District funds.....................................       134,528,000        102,269,000        102,269,000        -32,259,000   .................
                                                          ----------------------------------------------------------------------------------------------
      Operating expenses before adjustment...............     5,108,913,000      4,842,663,000      4,807,894,000       -266,250,000        -34,769,000 
                                                          ----------------------------------------------------------------------------------------------
      Grand total, operating expenses....................     5,108,913,000      4,842,663,000      4,807,894,000       -266,250,000        -34,769,000 
Capital outlay:                                                                                                                                         
    General fund.........................................       (86,496,000)      (136,585,000)      (136,585,000)     (+223,081,000)  .................
    Water and sewer fund.................................  .................  .................  .................  .................  .................
                                                          ----------------------------------------------------------------------------------------------
      Total, capital outlay..............................       (86,496,000)      (136,585,000)      (136,585,000)     (+223,081,000)  .................
Federal grants and other.................................       133,419,000        132,745,000        132,745,000           -674,000   .................
                                                          ----------------------------------------------------------------------------------------------
      Total, capital outlay..............................        46,923,000        269,330,000        269,330,000       +222,407,000   .................
                                                          ==============================================================================================
      Grand Total........................................     5,155,836,000      5,111,993,000      5,077,224,000        -43,843,000        -78,612,000 
Less Intra-District funds................................      (134,528,000)      (102,269,000)      (102,269,000)      (-32,259,000)  .................
                                                          ----------------------------------------------------------------------------------------------
      Revised appropriations.............................     5,021,308,000      5,009,724,000      4,974,955,000        -58,341,000        -34,769,000 
--------------------------------------------------------------------------------------------------------------------------------------------------------


                           GENERAL STATEMENT

                district of columbia financial condition

    Fiscal year 1997 was the second full year that the District 
of Columbia Financial Responsibility and Management Assistance 
Authority (Authority) oversaw the District of Columbia 
(District) budget. During fiscal year 1997, the District made 
continued progress in reducing its deficit and the level of 
full-time equivalent [FTE] positions. The Congress approved a 
deficit of $74,000,000 in the fiscal year 1997 appropriation, 
and the District expects to meet this level by the end of 
fiscal year 1997. The District's proposed budget for fiscal 
year 1998 is in balance 1 year earlier than required under 
Public Law 104-8. During fiscal year 1997, borrowing terms for 
the District government from the private market improved, 
enabling the District government to borrow at lower interest 
rates. The number of FTE employees was reduced from 41,806 as 
of December 31, 1995, to 36,520 on December 31, 1996.
    The District continues to carry a cumulative deficit of 
$527,856,000. Serious management and operational problems 
remain, and service performance is still poor in many areas of 
government.

                             public schools

    On November 15, 1996, the Authority appointed a D.C. 
Emergency Transitional Education Board of Trustees (emergency 
board) to oversee the operation of the District's schools until 
June 30, 2000. The superintendent of schools was replaced by 
Gen. Julius W. Becton, Jr., who reports to the emergency board. 
The elected school board was designated to serve in an advisory 
capacity until June 30, 2000, when it is to resume management 
of the school system.

                  metropolitan police department [mpd]

    On December 10, 1996, a memorandum of understanding [MOU] 
partnership was entered into by D.C. officials for the purpose 
of reorganizing law enforcement and reducing crime. The MOU 
partners include the Authority, the Mayor, the Council of the 
District of Columbia, the chief of police, the U.S. attorney, 
the corporation counsel, and the chief judge of the superior 
court.
    The MOU partners agreed to delegate to the chief of police 
all personnel, purchasing and budget authority over the MPD. 
Consistent with the MOU plan to reduce crime, the chief of 
police reorganized MPD personnel and redeployed 400 officers as 
part of an enhanced enforcement effort to reduce crime.

                     court orders and receiverships

    In June 1997, the Commission on Mental Health Services, 
under the Department of Human Development, was placed under 
receivership. This brings to four the number of agencies of the 
District government placed under receivership since May 1995: 
the entire Department of Public and Assisted Housing (May 
1995); medical and mental health services at the D.C. jail, 
under the Department of Corrections (July 1995); and child 
welfare services, under the Department of Human Development 
(August 1995). Receiverships represent approximately 8 percent 
of the District's gross budget for fiscal year 1997.
    In addition, several other agencies are operating under 
court orders and negotiated consent decrees which mandate 
spending for minimum levels of services or timely actions as 
well as the possible imposition of fines until the cited 
situations are remedied. As a consequence of these 
receiverships and court orders, a substantial fraction of the 
District government is operating beyond the budgetary control 
of the District government, the Authority, or the Congress.

                         legislative proposals

    Supplemental appropriation request.--On April 14, 1997, the 
Authority submitted to the President and Congress a request for 
$52,379,000 in supplemental appropriations for fiscal year 1997 
to fund a 10-percent pay raise for Metropolitan Police 
Department police officers and to make emergency public school 
repairs. On April 23, 1997, the Senate Appropriations 
Subcommittee on the District of Columbia held a hearing on this 
request. In the Supplemental Appropriations and Rescissions 
Act, 1997 (S. 672), the Senate Appropriations Committee 
recommended a supplemental appropriation of $31,150,000 for the 
District, including $22,350,000 for emergency public school 
repairs and $8,800,000 for the police pay raise.
    Neither the President's supplemental budget nor the 
original House bill (H.R. 1469), contained supplemental funding 
for the District. In conference, the House recommended no 
additional Federal funding to the District and presented 
authorizing amendments to the Senate bill. The Senate did not 
agree to include the amendments in the emergency supplemental 
bill. As a consequence, no provision for the District was 
included in the final Supplemental Appropriations and 
Rescissions Act for Fiscal Year 1997 (Public Law 105-18), which 
was enacted June 2, 1997.
    The President's plan.--On January 14, 1997, President 
Clinton proposed the National Capital Revitalization and Self-
Government Improvement Plan (President's plan). The President's 
plan proposed an immediate elimination of the Federal payment 
to the District of Columbia. In exchange, the Federal 
Government would assume full responsibility for the District's 
prisons (except the D.C. jail); financial responsibility for 
the District's court system; and financial and administrative 
responsibility for the District's pension plans for District 
judges, police and firefighters, and teachers. In addition, it 
would take over IRS collection of the District's individual 
income taxes and employer payroll taxes, as well as increase 
the Federal share of the District's Medicaid expenses from 50 
to 70 percent.
    The President's plan also provided for District borrowing 
authority to finance its cumulative deficit and for continued 
authority for short-term loans from the U.S. Treasury, but with 
a dollar limit. The President's plan proposed a National 
Capital infrastructure fund and an economic development plan.
    On May 8, 1997, the District's Mayor and acting Council 
chairman, the chairman of the Authority, and the Director of 
the Office of Management and Budget signed a memorandum of 
understanding regarding the President's plan.
    Congressional action.--For purposes of congressional 
consideration, the President's plan was split into two parts. 
The economic development tax proposals were referred to the 
House Committee on Ways and Means and the Senate Committee on 
Finance. The remainder of the plan, as amended, was introduced 
in the House and referred to the House Committee on Government 
Reform and Oversight, D.C. Subcommittee. The subcommittee held 
hearings and reported out its version as the National Capital 
Revitalization and Self-Government Improvement Act of 1997, 
H.R. 1963, on June 19, 1997.
    Various tax incentive proposals.--Various Federal tax 
incentive proposals were introduced in fiscal year 1997, all 
with a goal of encouraging economic development in the Nation's 
Capital. Some proposals focused on attracting residents to the 
District, while others focused on attracting businesses, 
employment, and investment.

                          no consensus budget

    The District of Columbia Financial Responsibility and 
Management Assistance Act (Public Law 104-8) contains 
provisions for the submission of the District's proposed budget 
to the President and Congress. While the Mayor, Council, and 
Authority submitted a consensus budget for fiscal year 1997, 
they were unable to reach a consensus budget for fiscal year 
1998. In June, the District government and the Authority 
submitted two separate budgets for the Congress to consider. 
Although both budgets were balanced and of the same total 
dollar amount ($5,170,000,000), they differed in their proposed 
spending for certain functions. The Senate Appropriations 
Subcommittee on the District of Columbia held hearings on the 
fiscal year 1998 budget requests on July 10, 16, and 23, 1997.

    adoption of reconciliation conference report: national capital 
       revitalization and self-government improvement act of 1997

    The National Capital Revitalization and Self-Government 
Improvement Act of 1997 (the Revitalization Act), title XI of 
the Balanced Budget Act of 1997 (Public Law 105-33), was 
enacted August 5, 1997. The Revitalization Act incorporates 
provisions of both the President's plan and the House bill and 
contains a package of management reforms.
    The Revitalization Act eliminates the Federal payment and 
the annual contribution to the District pension fund. In 
exchange, the act transfers the following functions and 
responsibilities from the District's government to the Federal 
Government: (1) the pension liability for judges, police and 
firefighters, and teachers; (2) the D.C. court system; (3) the 
operation and repair of the District's corrections facilities; 
and (4) offender services.
    The Revitalization Act also provides the District with the 
ability to borrow up to $300,000,000 from the U.S. Treasury for 
a 10-year term and to issue District general obligation bonds 
to finance the District's accumulated deficit. The act expands 
the District's ability to use revenue bonds and revenue and 
bond anticipation notes. The act further requires the District 
government to submit a balanced budget for fiscal year 1998.
    The Revitalization Act requires major management reforms by 
transferring significant management responsibility from the 
Mayor to the Authority. It authorizes to the Authority an 
appropriation of funds to implement the management reform 
provisions of the act.
    A provision in title IV, section 4725(b) of the Balanced 
Budget Act of 1977 increases the Federal share of the 
District's Medicaid expenditures from 50 percent to 70 percent.
    Economic development tax incentives for the District are 
included in title VII of the Taxpayer Relief Act of 1997 (the 
Tax Act) (Public Law 105-34), also enacted August 5, 1997. The 
Tax Act establishes empowerment zones with economic incentives; 
reduces to zero the capital gains tax rate on business assets; 
and provides for a $5,000 tax credit to first-time home buyers.

                    amended d.c. budget submissions

    In response to the financial and structural changes to the 
District government resulting from the Revitalization Act and 
the Tax Act, on September 8, 1997, the District government and 
Authority submitted to Congress a revised budget request 
incorporating the changes made by the Revitalization Act. The 
revised District budget for fiscal year 1998 is $4,693,637,000.

                            TOTAL RESOURCES

    Based on recommendations in the bill, a total of 
$4,761,137,000, including $102,269,000 of intra-District funds, 
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. The 
financing of appropriations from District funds is from various 
local taxes, fees, charges, and other collections received by 
the District government.

                             FEDERAL FUNDS

    A total of $1,903,962,602 in Federal funds will be 
available to the District government during fiscal year 1998. 
Included in this total are the Federal contribution and the 
Federal payments for the D.C. correctional facilities, the 
operation of both the D.C. court system and offender services, 
management reform, and U.S. Park Police operations. Other 
Federal funds will be received by the District government 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 payment for management reform implementation....      $8,000,000
Federal contribution....................................     190,000,000
Federal payment to D.C. corrections trustee operations..     169,000,000
Federal payment for correctional facilities.............     302,000,000
Federal payment for D.C. courts.........................     146,000,000
Federal payment for U.S. Park Police operations.........       5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal (Federal funds included in this bill)....     820,000,000
Federal grants and (estimated) reimbursements...........   1,072,455,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total Federal funds...............................   1,892,455,000

                 FEDERAL PAYMENT FOR MANAGEMENT REFORM

    The Committee recommends an appropriation of $8,000,000 
from Federal funds to be made available to the Authority to 
implement management reforms authorized in the District of 
Columbia Management Reform Act of 1997 (the Management Reform 
Act), sections 11101 through 11106 of the Revitalization Act. 
Among its provisions, the Management Reform Act authorizes the 
Authority to hire management consultants to conduct 
comprehensive reviews of nine major agencies of the District 
government and four major citywide functions of the District 
government.
    The Management Reform Act responds to the crisis of 
mismanagement throughout the District government as documented 
by the Authority and underscored in testimony before the Senate 
Appropriations Subcommittee on the District of Columbia on July 
10, 1997. Among the more troubling findings presented to the 
Committee during the July 10, 1997, hearing were accounts of a 
dysfunctional procurement system, including examples of the 
widespread practice of emergency sole-source contracting, and 
contracts submitted to the Authority for approval in ways that 
were considered by the chair of the Authority to be a form of 
subterfuge to allow certain contracts to evade close scrutiny.
    The Management Reform Act follows an approach similar to 
that employed by the memorandum of understanding [MOU] group 
established in December 1996, in which a professional 
consulting firm was hired to review the operations of the 
Metropolitan Police Department [MPD]. The Management Reform Act 
identifies nine major agencies of the District government as 
well as four major citywide functions, each of which are to be 
the focus of comprehensive review by management consultants. 
The Committee notes that following enactment of the 
Revitalization Act, the Authority established the position of 
chief management officer [CMO] to carry out the 
responsibilities assigned to the Authority under the Management 
Reform Act. The Committee expects that the $8,000,000 
appropriated by the Committee will be available to implement 
the provisions of the Management Reform Act, including those 
responsibilites of the CMO and consultants hired by the 
Authority.

                          FEDERAL CONTRIBUTION

    The Revitalization Act eliminates the Federal payment to 
the District of Columbia by repealing sections 501-503 of the 
District of Columbia Self-Government and Governmental 
Reorganization Act (sec. 47-73406, 3406.l D.C. Code). Section 
11601 of the Revitalization Act authorizes a fiscal year 1998 
Federal contribution of $190,000,000. The President's amended 
budget request for the District of Columbia requests a Federal 
contribution of $160,000,000. The Committee recommends a 
Federal contribution of $190,000,000 for fiscal year 1998. The 
Committee directs that $30,000,000 shall be used by the 
District government to repay the accumulated general fund 
deficit. The Committee recommends the balance of $160,000,000 
be used by the District government to carry out the financial 
plan of the District government.

           FEDERAL PAYMENT TO CORRECTIONS TRUSTEE OPERATIONS

    Pursuant to section 11601 of the Revitalization Act, the 
Committee recommends an appropriation of $169,000,000 for 
payment to the D.C. corrections trustee for the administration 
and operation of correctional facilities for sentenced adult 
felons.

              FEDERAL PAYMENT FOR CORRECTIONAL FACILITIES

    Pursuant to section 11202 of the Revitalization Act, the 
Committee recommends an appropriation of $302,000,000 for 
payment to the D.C. corrections trustee for correctional 
facilities. These funds are to remain available until expended. 
Of these funds, not less than $294,900,000 is available for 
transfer to the Federal Prison System, pursuant to section 
11202 of the Revitalization Act. These funds are for the 
construction, renovation, and repair of correctional facilities 
related to the transfer of D.C. adult felons to the Federal 
Prison System, and for the short-term improvements at the 
Lorton correctional complex as required to ensure the security 
of staff, inmates, and the community. The remaining $7,100,000 
is for necessary repairs and increased security at the Lorton 
corectional complex in Lorton, VA.

                    FEDERAL PAYMENT FOR D.C. COURTS

    The Committee directs the payment of $116,000,000 to the 
Administrative Office of the United States Courts. These funds 
are available only for obligation by the Joint Committee on 
Judicial Administration for the operation of the D.C. courts. 
Up to $750,000 of the funds are appropriated for the 
establishment and operation of the D.C. Truth in Sentencing 
Commission, as authorized in section 11211 of the 
Revitalization Act.
    The Committee further directs the payment of $30,000,000 to 
the Administrative Office of the U.S. Court. The funds may only 
be obligated by the offender supervision trustee for pretrial 
services, defense services, parole, adult probation, and for 
the administrative operating costs of the trustee's office.
    Pursuant to section 11231 of the Revitalization Act, up to 
$800,000 of the $30,000,000 shall be transferred to the U.S. 
Parole Commission

                             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 District estimated 
that it would receive a total of $1,205,200,000 in Federal 
grants during the coming fiscal year.
    The following table shows the amount of Federal grants the 
District expects to receive and the office or agency that 
expects to receive them:

Summary of Federal grants 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:
    Metropolitan 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 Services........................     875,520,000
    Department of Recreation and Parks..................          34,000
    Public Benefit Corporation..........................       1,462,000
    Office of Aging.....................................       5,055,000
    Human rights and minority business..................         106,000
    Energy Office.......................................       4,525,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, human support services.....................     886,702,000
                    ========================================================
                    ____________________________________________________
Public works: Department of Public Works................       3,350,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Federal grants-operating expenses..........   1,072,455,000
Capital outlay--grants..................................     132,745,000
                    --------------------------------------------------------
                    ____________________________________________________
      Grand total, Federal grants.......................   1,205,200,000

                               PERSONNEL

    The Committee notes with concern that, based on total full-
time equivalent [FTE] positions, the size of the District work 
force continues to exceed that of other cities of comparable 
size. The Committee further notes with concern the inability of 
District government agencies to produce accurate data on their 
FTE levels. To address these concerns, Congress included 
provisions in the Revitalization Act to require that 
consultants be hired to develop a management reform plan for 
the District's personnel system. The Committee expects that the 
management reform plans will result in reduced FTE levels and 
improvements in both the structure and accountability of the 
District government's work force.

                       DISTRICT OF COLUMBIA FUNDS

                           OPERATING EXPENSES

                    Government Direction and Support

    The Committee recommends a total of $105,177,000 for fiscal 
year 1998.
    A comparative summary by agency follows:

                                                           GOVERNMENTAL DIRECTION AND SUPPORT                                                           
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Council.......................................................        $8,658,000        $8,575,000        $8,575,000        $8,575,000        $8,575,000
Auditor.......................................................           962,000           919,000           919,000           919,000           919,000
ANC...........................................................           562,000           562,000           562,000           562,000           562,000
Mayor.........................................................         2,057,000         1,393,000         1,392,000         1,392,000         1,392,000
Executive Secretary...........................................         2,168,000         1,591,000         1,591,000         1,591,000         1,591,000
Communications................................................           348,000            90,000            90,000            90,000            90,000
Intergovernmental Relations...................................         1,226,000           670,000           670,000           670,000           670,000
City Administrator............................................         4,520,000         3,722,000         3,722,000         3,722,000         3,722,000
Personnel.....................................................        10,358,000         9,243,000         9,118,000         9,118,000         9,118,000
Administrative Services.......................................        27,186,000         9,451,000         7,921,000         7,921,000         7,921,000
Contract Appeals Board........................................           550,000           634,000           634,000           634,000           634,000
Tax Revision Commission.......................................  ................           500,000           500,000           500,000           500,000
Board of Elections and Ethics.................................         2,707,000         2,947,000         2,947,000         2,947,000         2,947,000
Campaign Finance..............................................           785,000           808,000           808,000           808,000           808,000
Public Employee Relations Board...............................           315,000           413,000           413,000           413,000           413,000
Employee Appeals..............................................         1,087,000         1,139,000         1,139,000         1,139,000         1,139,000
Council of Governments........................................           396,000           374,000           374,000           374,000           374,000
Inspector General.............................................         7,070,000         5,731,000         5,731,000         5,731,000         5,731,000
                                                                                                                                                        
                             OCFO                                                                                                                       
                                                                                                                                                        
CFO...........................................................         4,396,000         4,967,000         4,748,000         4,748,000         4,748,000
Budget........................................................        17,693,000        15,164,000        15,164,000        16,014,000        16,014,000
Financial Ops and Systems.....................................        14,423,000        11,742,000        12,442,000        12,442,000        12,442,000
Finance and Treasury..........................................         6,821,000         8,853,000         6,353,000         6,353,000         6,353,000
Tax and Revenue...............................................        20,536,000        17,495,000        19,514,000        19,514,000        19,514,000
                                                               -----------------------------------------------------------------------------------------
      OCFO, subtotal..........................................        63,869,000        58,221,000        58,221,000        59,071,000        59,071,000
                                                               -----------------------------------------------------------------------------------------
      Total, governmental direction and support...............       134,824,000       105,983,000       104,327,000       105,177,000       105,177,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

                  council of the district of columbia

    The Committee recommends $8,575,000 to be derived from 
general revenues for fiscal year 1998. The Council exercises 
its legislative responsibilities through 13 standing 
committees. Proposed legislation is referred to an appropriate 
committee where all data collection, hearings, analysis, and 
other related activities are conducted.

                              d.c. auditor

    The Committee recommends the requested appropriation for 
fiscal year 1998 of $919,000. The D.C. Auditor is required to 
audit the accounts and operations of the District government 
annually and certify revenue assumptions underlying budgetary 
and financial actions.

                advisory neighborhood commissions [anc]

    The Committee recommends the requested appropriation for 
fiscal year 1998 of $562,000. The ANC's have the responsibility 
for advising the District government on matters of public 
policy and issues such as planning, transportation, social 
services, health, safety, and sanitation, especially as they 
relate to their respective neighborhood commission areas. The 
37 chartered ANC's, which are made up of 299 single-member 
districts, serve as a liaison between the District government 
and the community.

                          office of the mayor

    The amount recommended for the Office of the Mayor is 
$1,392,000 for fiscal year 1998. The Mayor, as chief executive 
officer of the District government, has overall responsibility 
for the implementation of programs and the administration of 
District agencies. The Mayor interacts with State, National, 
and international representatives of both government and 
private sector businesses.

                        office of the secretary

    The Committee recommends $1,591,000 for fiscal year 1998. 
The Office of the Secretary serves as the administrative and 
logistical staff support to the Mayor and the immediate 
executive offices of the Mayor.

                        office of communications

    The Committee recommends the sum of $90,000 for the fiscal 
year 1998 budget. The Office of Communications is responsible 
for coordinating and disseminating official information to the 
news media and the public.

                 office of intergovernmental relations

    The Committee recommends $670,000 for the Office of 
Intergovernmental Relations for fiscal year 1998. This office 
is responsible for liaison activities for the Mayor on 
legislation both within the D.C. Council and the Congress, and 
with the White House, Federal agencies, and governments in the 
metropolitan area.

      office of the city administrator/deputy mayor for operations

    The Committee recommends $3,722,000 for fiscal year 1998 
for the City Administrator/Deputy Mayor for Operations. The 
City Administrator/Deputy Mayor for Operations is the primary 
official designated to exercise the powers and duties of the 
Mayor during the Mayor's absence.

                          office of personnel

    The Committee recommends the requested budget of $9,118,000 
for fiscal year 1998. The Office of Personnel is responsible 
for a personnel system which recruits, develops, and retains an 
efficient, qualified work force necessary to carry out public 
policy within the parameters and requirements of applicable 
laws, statutes, and published policies.

                 department of administrative services

    The Committee recommends $7,921,000 for fiscal year 1998. 
The Department of Administrative Services provides support 
service to District operating agencies. Its services include 
procuring major supply and equipment items; acquiring land and 
buildings; space rental; procuring energy, telecommunications, 
and janitorial services citywide; managing buildings; providing 
security services; managing the energy conservation program; 
managing information technology; and allocating space for 
District government agencies.

                         contract appeals board

    The Committee recommends the requested budget of $634,000 
for fiscal year 1998. The Contract Appeals Board hears, 
reviews, and decides upon all protests and appeals from the 
actions by contracting officers throughout the District 
government.

                      d.c. tax revision commission

    The Committee recommends the requested budget of $500,000 
for fiscal year 1998. The D.C. Tax Revision Commission was 
created by the Tax Revision Establishment Act of 1996, D.C. Law 
11-143, effective June 13, 1996. The fiscal year 1998 budgeted 
funds will be used to prepare comprehensive recommendations to 
the Council and Mayor to mitigate the current tax burden on 
taxpayers; broaden the tax base; and make the District's tax 
policy more competitive with surrounding jurisdictions.

                     board of elections and ethics

    The Committee recommends for fiscal year 1998 the requested 
budget of $2,947,000. The Board of Elections and Ethics is 
charged with administering and enforcing the election laws of 
the District of Columbia. The increased funds are provided for 
the likelihood of a citywide special election during fiscal 
year 1998.

                       office of campaign finance

    The Committee recommends $808,000 for fiscal year 1998. The 
Office of Campaign Finance is responsible for independently 
administering and enforcing District laws pertaining to 
campaigns for elected officials; lobbyist activities; and 
conflict of interest, and financial disclosure and ethical 
standards for public officials.

                    public employee relations board

    The Committee recommends $413,000 in fiscal year 1998. The 
Public Employees Relations Board is responsible for the 
impartial resolution of labor-management disputes in the 
District government.

                       office of employee appeals

    The Committee recommends $1,139,000 for fiscal year 1998, 
to be derived from general revenues. This office is responsible 
for hearing any employee appeal of a final agency decision 
affecting a performance rating, an adverse action, a reduction 
in force, the resolution of a grievance, an erroneous employee 
payment, a privacy and records management decision, or the 
classification of a position. Appeals may be heard by a three-
member panel constituting a quorum. At the option of the 
adversely affected party, an appeal from a decision of the 
panel may be taken either to the full five-member board or to 
the Superior Court of the District of Columbia.

             metropolitan washington council of governments

    The Committee recommends $374,000 for fiscal year 1998. The 
Metropolitan Washington Council of Governments provides a forum 
for the cooperative resolution of regional issues such as 
substance abuse, traffic congestion, public safety, inadequate 
housing, and air and water pollution.

                          Independent Agencies

                    office of the inspector general

    The Committee recommends $5,731,000 in fiscal year 1998. 
The Office of the Inspector General is responsible for the 
prevention and detection of fraud, abuse, waste, and 
mismanagement in the programs and operations of the District 
government.

                 office of the chief financial officer

    The Committee recommends $4,748,000 for fiscal year 1998. 
Through comprehensive financial management, the Office of the 
Chief Financial Officer is responsible for bringing fiscal 
stability, accountability, and integrity to the District 
government to support public services and restore stakeholder 
confidence in the government of the District of Columbia.

                     office of budget and planning

    The Committee recommends $2,001,000 for fiscal year 1998. 
The Office of Budget and Planning serves as executive advisor 
on the budget for the District of Columbia. It prepares, 
monitors, analyzes, and executes the District's budget and 
financial plan, including operating funds, capital funds, and 
enterprise funds.

              office of grants management and development

    The Committee recommends $14,013,000 for fiscal year 1998. 
The mission of the Office of Grants Management and Development 
is to assist the District government in obtaining and 
administering the maximum amount of grant resources in support 
of its policies and programs to enhance the government's 
immediate and long-term financial condition. The office is 
responsible for ensuring that grant funds are properly budgeted 
and expended.

                     office of finance and treasury

    The Committee recommends $6,353,000 for fiscal year 1998. 
The Office of Finance and Treasury is responsible for the 
District's asset management. It also coordinates payments to 
vendors and service providers, accepts payments for service and 
taxes, manages District borrowing and debt repayment, and 
maintains relationships with the investment community.

               office of financial operations and systems

    The Committee recommends $12,442,000 for fiscal year 1998. 
This office is responsible for maintaining financial data 
integrity and providing a stable and disciplined processing 
environment to generate accurate and consistent information to 
the District's stakeholders. The budgeted funds are for the 
support of activities relating to accounting policy, accounting 
operations, and financial reporting.

                       office of tax and revenue

    The Committee recommends $19,514,000 for fiscal year 1998. 
The office is responsible for ensuring the effective 
administration and enforcement of the District's business, 
income, excise, and real property tax laws. The office 
initiates tax compliance and collection efforts, processes 
taxpayers' returns and refunds, and provides tax-related 
assistance and information for the general public.

                  Economic Development and Regulation

    The Committee recommends $132,072,000 for fiscal year 1998, 
of which $12,000,000 will be collected from business 
improvement district tax revenue.
    Following is a tabulation of the allocated funds by agency 
or department:

                                                           ECONOMIC DEVELOPMENT AND REGULATION                                                          
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Business Services and Economic Development....................       $51,370,000       $48,119,000       $46,400,000       $46,400,000       $46,400,000
Zoning........................................................           858,000           855,000           855,000           855,000           855,000
Department of Employment Services.............................        62,577,000        57,263,000        56,991,000        56,991,000        56,991,000
Consumer and Regulatory Affairs...............................        13,885,000        14,013,000        13,307,000        13,307,000        13,307,000
Public Assisted Housing.......................................         8,163,000         4,650,000         2,080,000         2,080,000         2,080,000
Appeals and Review............................................           153,000           153,000           153,000           153,000           153,000
Board Real Property Appeals/Assessments.......................           343,000           286,000           286,000           286,000           286,000
                                                               -----------------------------------------------------------------------------------------
      Total, economic development.............................       137,349,000       125,339,000       120,072,000       120,072,000       120,072,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

               BUSINESS SERVICES AND ECONOMIC DEVELOPMENT

    The Committee recommends $46,400,000 for fiscal year 1998 
for business services and economic development. This area is 
organized functionally along six major programs: Business 
development; tourism and promotions; Office of Planning; 
minority business; international business; housing and 
community development; and certain programs and functions of 
consumer and regulatory affairs. The Deputy Mayor/City 
Administrator for Economic Development has oversight 
responsibilities for the programs under this area.

                            OFFICE OF ZONING

    The Committee recommends $855,000 in fiscal year 1998. 
Established by D.C. Law 8-163, the Office of Zoning 
Independence Act of 1990, the Office of Zoning provides 
professional, technical, and administrative staff support to 
the Zoning Commission and Board of Zoning Adjustment.

               DEPARTMENT OF PUBLIC AND ASSISTED HOUSING

    The Committee recommends $2,080,000 for fiscal year 1998.
    The Department of Public and Assisted Housing was 
established in 1987 to ensure the provision of safe, decent, 
and sanitary public and subsidized housing to eligible District 
residents based upon eligibility criteria or guidelines 
established under applicable Federal and local regulations.

                   DEPARTMENT OF EMPLOYMENT SERVICES

    The Committee recommends $56,991,000 for fiscal year 1998. 
The Department of Employment Services provides opportunities 
for citizens to prepare for, find, and maintain gainful 
employment; provides income maintenance to mitigate the effects 
of unemployment; and ensures the quality of working conditions 
for wage earners by protecting their health, safety, rights, 
and benefits. In this role, the department operates more than 
30 programs with both local funds and Federal grants.

                      BOARD OF APPEALS AND REVIEW

    The Committee recommends $153,000, to be derived from 
general revenues, for fiscal year 1998. The Board of Appeals 
and Review, established in 1955, is an administrative agency 
commissioned to review agency decisions on citations and 
notices of violations filed by citizens in accordance with the 
District of Columbia Administrative Procedures Act.

             BOARD OF REAL PROPERTY ASSESSMENTS AND APPEALS

    The Committee recommends $286,000, to be derived from 
general revenues, for fiscal year 1998. The Board is 
responsible for ensuring that real property in the District is 
assessed at 100 percent of its estimated market value and at 
rates equal to similar properties.

             DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

    The Committee recommends $13,307,000 for fiscal year 1998. 
The Department of Consumer and Regulatory Affairs is the major 
regulatory agency in the District. It is charged with 
regulating business activities, land and building use, 
occupational and professional conduct and standards, rental 
housing and condominiums, and health and social services care 
facilities.

                       Public Safety and Justice

    The Committee recommends a total of $529,739,000 in fiscal 
year 1998 for the public safety and justice activities funded 
in this appropriation.
    A comparative summary by agency follows:

                                                                PUBLIC SAFETY AND JUSTICE                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Police........................................................      $271,044,000      $271,779,000      $266,779,000      $266,779,000      $266,779,000
Fire..........................................................       104,395,000       101,905,000        98,779,000        98,779,000        98,779,000
Court of Appeals..............................................         6,023,000         6,000,000         6,000,000  ................  ................
Superior Court................................................        76,736,000        71,147,000        73,746,000  ................  ................
Court System..................................................        35,459,000        35,152,000        35,152,000  ................  ................
Settlements and Judgments.....................................        14,800,000        14,800,000        14,800,000        14,800,000        14,800,000
Pretrial......................................................         5,909,000         5,006,000         5,006,000  ................  ................
Corrections...................................................       268,541,000       247,697,000       257,703,000        53,398,000        85,167,000
Parole........................................................         8,131,000         7,617,000         7,545,000  ................  ................
Emergency Preparedness........................................         2,844,000         2,837,000         2,837,000         2,837,000         2,837,000
Police and Fire Retirement....................................       226,700,000       211,000,000       211,000,000        47,700,000        47,700,000
Judges Retirement.............................................         5,500,000         3,100,000         3,100,000  ................  ................
Corporation Counsel...........................................        16,992,000        12,616,000        12,616,000        12,616,000        12,616,000
Public Defender...............................................         7,797,000         7,753,000         7,753,000  ................  ................
National Guard................................................           876,000           858,000           858,000           858,000           858,000
Judicial Disabilities.........................................           125,000           125,000           125,000           125,000           125,000
Judicial Nomination...........................................            78,000            78,000            78,000            78,000            78,000
                                                               -----------------------------------------------------------------------------------------
      Total, public safety and justice........................     1,051,950,000       999,469,000     1,003,877,000       494,970,000       529,739,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

                     METROPOLITAN POLICE DEPARTMENT

    The Committee recommends $266,779,000 for the Metropolitan 
Police Department [MPD] for fiscal year 1998.
    The MPD is the primary law enforcement agency of the 
District of Columbia. The department's overall mission is to 
ensure public safety through the protection of life and 
property.
    The Committee commends the development by the MPD of the 83 
police service areas [PSA] throughout the District of Columbia. 
The goal of the PSA teams to provide 24-hour, 7 days-per-week 
coverage to geographically manageable, neighborhood-based areas 
will help restore a sense of confidence and security to 
District residents. To ensure that Congress is regularly 
updated, the Committee directs the MPD to provide quarterly 
reports on PSA activities and accomplishments in reducing crime 
in the District's neighborhoods to the Appropriations 
Committees of the House of Representatives and the Senate, the 
House Committee on Government Reform and Oversight, and the 
Senate Governmental Affairs Committee.
    The Committee notes that the District Council recently 
rejected a proposal to allow for the imposition of the death 
penalty for individuals convicted of murder of a District law 
enforcement officer. The Committee further notes that it is 
currently a capital offense to murder a Federal law enforcement 
officer in the District and that legislation is under 
consideration in the Senate and House that would allow the 
imposition of capital punishment for the first degree murder of 
a District law enforcement officer. The Committee encourages 
the adoption of this or similar legislation that would enhance 
the protection of all police and other law enforcement officers 
in the District.
    The Committee is concerned about the ongoing problem of 
loitering, panhandling, alcohol consumption, verbal harassment, 
littering, and other improper and illegal activities in parks 
and other public spaces in the District. These activities 
discourage visitors to the District, hamper economic and 
neighborhood development, and facilitate serious criminal 
activity. The Committee directs the MPD, in consultation with 
the Council, the Mayor, the Authority, and relevant Federal law 
enforcement agencies, to develop and implement a plan to end 
such activities and ensure that public spaces are safe and 
attractive for families and others seeking legitimate 
recreation. The Committee further directs the MPD to adopt a 
zero tolerance enforcement strategy for public space 
misconduct.

             FIRE AND EMERGENCY MEDICAL SERVICES DEPARTMENT

    The Committee recommends $98,779,000 for fiscal year 1998. 
The department is responsible for providing fire prevention, 
firefighting, and emergency medical and ambulance services 
throughout the District of Columbia.

               police and firefighters' retirement system

    The Committee recommends $47,700,000 for the police and 
fire retirement system for fiscal year 1998. The police and 
firefighters' retirement system provides annuity payments and 
other retirement and disability benefits for the District 
Metropolitan Police and Fire Department retirees and survivors.

                     OFFICE OF CORPORATION COUNSEL

    For the Office of the Corporation Counsel, the Committee 
recommends $12,616,000 and 271 FTE positions for fiscal year 
1998.
    The Office of the Corporation Counsel is the legal office 
of the District government. It conducts all legal business for 
the District of Columbia except the prosecution of adults for 
felonies and serious misdemeanors.

                       SETTLEMENTS AND JUDGMENTS

    The Committee recommends $14,800,000 from general revenues 
for fiscal year 1998 for the payment of settlements and 
judgments.
    This special account was established for the settlement of 
claims and suits and the payment of judgments that have been 
entered against the District of Columbia. Pursuant to D.C. Law 
3-114, the District of Columbia Tort Claims Settlement 
Authority Act of 1980, the District has unlimited settlement 
authority, thereby enabling discretionary avoidance of 
potentially large and excessive judgments.

                       DEPARTMENT OF CORRECTIONS

    The Committee recommends $85,167,000 for the Department of 
Corrections for fiscal year 1998. The Department of Corrections 
protects the public by holding pretrial and convicted persons 
in a secure setting and by increasing the probability that 
those placed in its care will live law-abiding lives after 
their release. Toward this objective, the department provides 
educational training and counseling opportunities to inmates 
during incarceration.
    It is the intent of Congress that the 2,000 D.C. sentenced 
felons scheduled to be housed in private contract facilities by 
December 31, 1999, as required by subtitle C, chapter 1, 
section 11201(c)(1)(A) of the National Capital Revitalization 
Act of 1997 (Revitalization Act), are in addition to any 
District of Columbia inmates already housed in contract 
facilities as of the date of enactment of the Revitalization 
Act.

                          D.C. NATIONAL GUARD

    The Committee recommends $858,000 for the D.C. National 
Guard for fiscal year 1998. The National Guard provides 
community service programs to the District in addition to its 
more traditional public safety and military activities. They 
include operating an annual youth leadership camp for selected 
high school students, participating in various District and 
community ceremonial functions, and sponsoring numerous 
charitable activities. The D.C. National Guard consists of 22 
Army and 18 Air Force National Guard units with an authorized 
strength of 3,158.

                    OFFICE OF EMERGENCY PREPAREDNESS

    The Committee recommends $2,837,000 for fiscal year 1998. 
The agency has the primary responsibility for directing, 
administering, and coordinating emergency management 
responsibilities for the District of Columbia. As mandated by 
law, the agency provides the personnel and administrative 
support to maintain an annual 24-hour daily executive command 
and communications center. A backup emergency operations center 
is also maintained at the District's youth center in Lorton, 
VA.

             COMMISSION ON JUDICIAL DISABILITIES AND TENURE

    The Committee recommends $125,000 for the Commission on 
Judicial Disabilities and Tenure for fiscal year 1998. The 
Commission on Judicial Disabilities and Tenure has jurisdiction 
over all active and senior judges of the D.C. courts (the 
Superior Court of the District of Columbia and the D.C. Court 
of Appeals) in four specific areas: (1) a judge's conduct 
warranting disciplinary action; (2) involuntary retirement of a 
judge for reasons of health; (3) evaluation of a judge who 
seeks reappointment at the end of his or her term; and (4) 
review of a retiring judge who wishes to continue performing 
judicial duties as a senior judge.

                     JUDICIAL NOMINATION COMMISSION

    The Committee recommends the full budget request of 
$78,000, to be derived from general revenues, for the Judicial 
Nomination Commission in fiscal year 1998. The Commission is 
responsible for selecting and recommending nominees to the 
President to fill judicial vacancies in the D.C. court system.

                        Public Education System

    A total of $672,444,000 is recommended for fiscal year 1998 
for the operation of the public education system of the 
District of Columbia.
    A comparative summary by agency follows:

                                                                 PUBLIC EDUCATION SYSTEM                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public Schools................................................      $568,626,000      $563,334,000      $564,129,000      $564,129,000      $564,129,000
Public Charter Schools........................................         2,835,000         1,235,000         1,235,000         1,235,000         1,235,000
University of the District of Columbia........................        75,605,000        73,939,000        74,087,000        74,087,000        74,087,000
Public Library................................................        21,770,000        22,041,000        22,036,000        22,036,000        22,036,000
Arts and Humanities...........................................         2,187,000         2,057,000         2,057,000         2,057,000         2,057,000
Teachers Retirement...........................................        88,900,000        92,500,000        92,500,000         8,900,000         8,900,000
                                                               -----------------------------------------------------------------------------------------
      Total, public education.................................       759,923,000       755,106,000       756,044,000       672,444,000       672,444,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

                  BOARD OF EDUCATION (PUBLIC SCHOOLS)

    The Committee recommends $564,129,000 for the D.C. public 
schools. The D.C. public schools provide preschool, 
kindergarten, elementary, secondary, and continuing education 
programs for approximately 80,000 District students.
    The Committee recognizes that Junior Reserve Officer 
Training Corps [JROTC] programs provide invaluable benefits to 
high school students throughout the country, particularly for 
young people in need of discipline, direction, and practical 
skills training for future careers in either the military or 
civilian sector. The Committee encourages the DCPS to implement 
JROTC programs in all District high schools and appropriate 
charter schools. In addition, the Committee urges the DCPS to 
review the feasibility and potential benefits of developing a 
full-time, residential JROTC Academy for students at risk of 
not completing their education or engaging in destructive 
behavior.

                      teachers' retirement system

    The Committee recommends $8,900,000 for payment to the 
teachers' retirement system. This fund provides payments to 
teachers retired under the Disability and Service Retirement 
Program and for survivor benefits and refund payments of 
retirement contributions made by teachers leaving the 
retirement program before attaining retirement eligibility.

                         PUBLIC CHARTER SCHOOLS

    The Committee recommends $1,235,000 for D.C. public charter 
schools for fiscal year 1998. The fiscal year 1998 budget 
provides funds for the two public charter schools currently in 
operation.
    A public charter school is a publicly funded school that is 
separate from the D.C. public schools [DCPS]. Public charter 
schools are exempt from D.C. statutes, policies, rules, and 
regulations established for DCPS and are organized in 
accordance with the D.C. Nonprofit Corporation Act. A public 
charter school exercises exclusive control over its educational 
program, expenditures, administration, personnel, and 
instructional methods within authorized limitations. The Public 
Charter Board, composed of seven members, works in conjunction 
with the D.C. School Board as the eligible chartering authority 
for public charter schools.

                 UNIVERSITY OF THE DISTRICT OF COLUMBIA

    The Committee recommends $74,087,000 for the University of 
the District of Columbia for fiscal year 1998.

                             PUBLIC LIBRARY

    The Committee recommends $22,036,000 for the Public Library 
for fiscal year 1998. The Public Library was created to furnish 
books and other printed 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 all residents. The Public 
Library system comprises a main library (Martin Luther King 
Memorial Library), 26 neighborhood facilities and 2 specialized 
bookmobiles. Special services are provided for the deaf, the 
homebound, the blind, the physically handicapped, seniors, low-
level adult readers, and adult basic education learners.

                 COMMISSION ON THE ARTS AND HUMANITIES

    The Committee recommends a total of $2,057,000 for fiscal 
year 1998. The Commission of the Arts and Humanities serves 
simultaneously as the District of Columbia's municipal arts 
agency and as its designated state arts agency. It works in 
partnership with the community to enrich the quality of life 
for the District's citizens.

                         Human Support Services

    The Committee recommends a total of $1,718,939,000 for 
fiscal year 1998 for the operation of the human support 
services of the District of Columbia.
    A comparative summary follows:

                                                                 HUMAN SUPPORT SERVICES                                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Human Services--non-Medicaid..................................                NA      $672,618,000      $672,829,000      $672,829,000      $672,829,000
Medicaid......................................................                NA       834,556,000       834,420,000       834,420,000       834,420,000
Foster Care...................................................                NA        88,548,000        88,548,000        88,548,000        88,548,000
Public Health Clinics.........................................                NA                NA                NA                NA                NA
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Human Services................................    $1,539,621,000     1,595,722,000     1,595,797,000     1,595,797,000     1,595,797,000
Department of Recreation and Parks............................        27,491,000        22,730,000        22,889,000        22,889,000        22,889,000
Office on Aging...............................................        18,870,000        17,349,000        17,349,000        17,349,000        17,349,000
Public Benefit Corporation....................................        37,935,000        44,335,000        44,335,000        44,335,000        44,335,000
Unemployment Compensation.....................................        10,678,000        10,678,000        10,678,000        10,678,000        10,678,000
Disability Compensation.......................................        24,089,000        21,089,000        21,089,000        21,089,000        21,089,000
Human Rights and Minority Business............................           950,000           927,000           927,000           927,000           927,000
Energy Office.................................................         5,326,000         5,219,000         5,219,000         5,219,000         5,219,000
Latino Affairs................................................           660,000           636,000           636,000           636,000           636,000
Commission on Women...........................................  ................            20,000            20,000            20,000            20,000
                                                               -----------------------------------------------------------------------------------------
      Total, health and human services........................     1,665,620,000     1,718,705,000     1,718,939,000     1,718,939,000     1,718,939,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
NA: Not available.                                                                                                                                      

                      DEPARTMENT OF HUMAN SERVICES

    The Committee recommends a total of $1,595,797,000 for the 
Department of Human Services for fiscal year 1998. In 1997 the 
Department of Human Services was divided into two distinct 
departments, Department of Human Development [DHD] and the 
Department of Health [DOH]. However, the budgetary aspects of 
the former Department of Human Services have not been 
formalized.
    The DHD is responsible for setting policy and administering 
delivery of social and mental health services; implementation 
and administration of the District's program under the Personal 
Responsibility and Work Opportunity Reconciliation Act; and 
policy and implementation of the Temporary Assistance for Needy 
Families Program.
    The DOH 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.
    The Committee is aware of the need for an adult and 
pediatric heart transplant program at a not-for-profit academic 
medical center servicing this Nation's Capital. The D.C. 
metropolitan area is the only major metropolitan area that does 
not have an academic medical center with a heart transplant 
program. Since this not-for-profit medical center has recently 
enhanced its capabilities by the addition of a nationally and 
internationally renowned cardiovascular surgeon and a 
nationally known pediatric cardiologist, the Committee strongly 
recommends that the State health planning and development 
agency approve the certificate of need application for a 
nonprofit academic medical center in the District of Columbia 
that has an approved lung transplant program.

                   DEPARTMENT OF RECREATION AND PARKS

    The Committee recommends the sum of $22,889,000 for fiscal 
year 1998. The department develops and provides a comprehensive 
recreation program for residents of and visitors to the 
District of Columbia.

                            OFFICE ON AGING

    The fiscal year 1998 recommendation for the Office on Aging 
is $17,349,000. The Office on Aging was created to develop a 
comprehensive system of health and social services for the 
District's citizens who are 60 years of age and older and to 
administer the provisions of the Older Americans Act, Public 
Law 89-73.

                D.C. PUBLIC BENEFIT CORPORATION SUBSIDY

    The Committee recommends $44,335,000 as a subsidy to the 
D.C. Public Benefit Corporation for fiscal year 1998 to provide 
financing support for the Public Benefit Corporation's 
uncompensated health care and service delivery to the District.
    The D.C. General Hospital payment agency has been renamed 
the D.C. Public Benefit Corporation subsidy. The public health 
clinic budget, employees, and the responsibility to operate the 
clinics were transferred from the DHS to the Public Benefit 
Corporation [PBC] in fiscal year 1996. The level of subsidy is 
being reviewed in the context of the future role of public 
health services within the overall health care delivery system 
of the District. The activities of the authorized PBC are 
expected to generate additional funds to make the system less 
reliant on direct District support over the next 5 years.

                     UNEMPLOYMENT COMPENSATION FUND

    The Committee recommends $10,678,000 for fiscal year 1998. 
The unemployment compensation fund is a statutory program 
established by D.C. Code, section 46-101 et seq., to provide 
unemployment compensation to eligible former District 
government employees during periods of unemployment.

                      DISABILITY COMPENSATION FUND

    The Committee recommends $21,089,000 for the disability 
compensation fund for fiscal year 1998. The disability 
compensation funds are provided for District government 
employees who are injured on the job with workers' 
compensation, permanent and temporary disability compensation, 
burial expense in case of death, compensation for surviving 
dependents, and, where practicable, vocational rehabilitation.

      DEPARTMENT OF HUMAN RIGHTS AND MINORITY BUSINESS DEVELOPMENT

    The Committee recommends $927,000 for fiscal year 1998. The 
department was established to ensure an end to illegal 
discriminatory practices in employment, housing and commercial 
space, public accommodations, educational institutions, and 
District government and private sector contracting. It was 
created through the reorganization of the Office of Human 
Rights and the administrative office of the Minority Business 
Opportunity Commission.

                        OFFICE OF LATINO AFFAIRS

    The Committee recommends $636,000 for fiscal year 1998. The 
agency is required to carry out planning, coordination, and 
monitoring activities to ensure that the full range of 
education, employment, health, and social services available to 
District residents are made equally available to the Latino 
community.

                          COMMISSION FOR WOMEN

    The Committee recommends an appropriation of $20,000 for 
fiscal year 1998. The funding for the Commission comes from 
private and other sources. The Commission assists District 
women on health, economic, and equity issues.

                             ENERGY OFFICE

    The Committee recommends an appropriation of $5,219,000 for 
the Energy Office in fiscal year 1998. The Energy Office was 
established by D.C. Law 3-132, the Energy Act of 1980, to 
coordinate the energy activities occurring in the District of 
Columbia. The office prepares energy plans, identifies energy 
issues, prepares energy supply and demand forecasts, develops 
energy emergency contingency plans, and participates in various 
proceedings before the Public Service Commission.

                              Public Works

    The Committee recommends a total of $241,934,000 for the 
activities to be funded under this account during fiscal year 
1998.
    A comparative summary by agency follows:

                                                                      PUBLIC WORKS                                                                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public Works..................................................      $156,587,000      $109,055,000      $110,315,000      $110,315,000      $110,315,000
Taxicab Commission............................................           990,000           848,000           848,000           848,000           848,000
WMATA.........................................................       129,008,000       127,230,000       127,230,000       127,230,000       127,230,000
Transit Commission............................................            96,000            91,000            91,000            91,000            91,000
School Transit Subsidy........................................         3,839,000         3,450,000         3,450,000         3,450,000         3,450,000
                                                               -----------------------------------------------------------------------------------------
      Total, public works.....................................       290,520,000       240,674,000       241,934,000       241,934,000       241,934,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

                       DEPARTMENT OF PUBLIC WORKS

    The Committee recommends $110,315,000 for fiscal year 1998. 
The Department of Public Works is responsible for maintaining 
the District's physical infrastructure, collecting and 
disposing of solid waste, administering motor vehicle 
regulations, and maintaining all of the District's vehicles and 
equipment except those of the departments of police, fire, 
public schools, and corrections.

                           RECYCLING PROGRAM

    As requested by the Authority and the Council, the 
Committee specifically appropriates $2,400,000 for recycling 
activities. The Committee supports the District government's 
decision to restore recycling services to District residents.

                           TAXICAB COMMISSION

    The Committee recommends $848,000 for fiscal year 1998. The 
D.C. Taxicab Commission is responsible for the regulation of 
taxicabs and passenger vehicles for hire in the District.

            WASHINGTON METROPOLITAN AREA TRANSIT COMMISSION

    The Committee recommends $91,000, to be derived from 
general revenues, for fiscal year 1998. The commission 
administers and carries out the delegated powers of the 
Washington metropolitan area regulation compact. The compact 
confers upon the commission jurisdiction over the regulation 
and improvement of specified transportation within the 
metropolitan area.

             WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

    The Committee recommends $127,230,000 for fiscal year 1998. 
The transit authority is responsible for the planning and 
construction of a 103-mile Metrorail system, the establishment 
of recommended fares, and the determination of funding sources 
for the various programs.

                         SCHOOL TRANSIT SUBSIDY

    The Committee recommends $3,450,000 for fiscal year 1998. 
This program provides a subsidy for reduced-fare transportation 
of schoolchildren who use Metrobus or Metrorail for 
educationally related transportation.

                        Financing and Other Uses

    The Committee recommends a total of $454,773,000 for the 
activities to be funded under this account during fiscal year 
1998.
    A comparative summary by agency follows:

                                                                FINANCING AND OTHER USES                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Fiscal year 1998--        
                                                                                    Mayor/Council       Authority    -----------------------------------
                                                                  1997 adjusted    estimate (June    estimate (June       District                      
                                                                                        1997)             1997)           estimate          Committee   
                                                                                                                      (September 1997)   recommendation 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Repayment of loans and interest...............................      $333,710,000      $365,548,000      $365,196,000      $384,430,000      $384,430,000
Short-term borrowing..........................................        34,461,000        15,848,000        18,157,000        12,000,000        12,000,000
Convention Center transfer....................................         5,400,000         5,400,000         5,400,000         5,400,000         5,400,000
General fund recovery debt....................................        38,314,000        39,020,000        39,020,000        39,020,000        39,020,000
Human resource development....................................        12,257,000         4,896,000         6,000,000         6,000,000         6,000,000
Certificate of participation..................................         7,926,000         7,923,000         7,923,000         7,923,000         7,923,000
Inaugural expenses............................................         5,702,000  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, financing and other uses.........................       437,770,000       438,635,000       441,696,000       454,773,000       454,773,000
Financial Authority...........................................         3,220,000         3,220,000         3,220,000         3,220,000         3,220,000
Deficit reduction and revitalization..........................  ................  ................  ................       235,859,000       201,090,000
                                                               -----------------------------------------------------------------------------------------
      Total, general fund.....................................     4,481,176,000     4,387,131,000     4,390,109,000     4,047,388,000     4,047,388,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

             WASHINGTON CONVENTION CENTER TRANSFER PAYMENT

    The Committee recommends $5,400,000 for the Washington 
Convention Center for fiscal year 1998. The Washington 
Convention Center was constructed to foster the economic 
revitalization goals of the District of Columbia through 
convention and tourism promotion.

                    REPAYMENT OF LOANS AND INTEREST

    The Committee recommends $384,430,000 for fiscal year 1998. 
The repayment of loans and interest provides funds for cash 
outlays for debt service on the District's long-term borrowing 
to finance capital project expenditures and a portion of the 
amortized cost for private hospitals.

                REPAYMENT OF GENERAL FUND RECOVERY DEBT

    The Committee recommends the request of $39,020,000 for 
fiscal year 1998. The funds are appropriated for the debt 
service associated with the financing of the District's 
$331,600,000 accumulated deficit at the end of fiscal year 
1990. This projected debt service amount is approximately 
$706,000 higher than the fiscal year 1997 adjusted budget due 
to increased interest expense associated with the fact that 
series 1991B is a variable rate bond issue and subject to 
market fluctuations. The fiscal year 1998 appropriation will 
pay debt service on the 1991B bonds, the only outstanding issue 
of the two series sold in fiscal year 1991 to eliminate the 
accumulated general fund deficit as of September 30, 1990.

                          SHORT-TERM BORROWING

    The Committee recommends $12,000,000 in fiscal year 1998 
for the payment of interest and other costs associated with the 
District borrowing to meet short-term cash needs. Cash flow 
issues are generally caused by timing differences between the 
receipt of certain revenues and the need to disburse cash for 
operating needs, such as pension checks, payroll checks, or 
food stamp payments.
    The recommended amount will fund interest expense on short-
term borrowings of approximately $200,000,000 expected during 
fiscal year 1998 to meet cash flow needs. A portion is expected 
to be borrowed from the U.S. Treasury during the first quarter 
of the fiscal year.

                      HUMAN RESOURCES DEVELOPMENT

    The Committee recommends $6,000,000 for human resources 
development for fiscal year 1998. The human resources 
development budget allocates funds to support training and 
other work force initiatives for the District government.

                     CERTIFICATES OF PARTICIPATION

    The Committee recommends $7,923,000 for the certificates of 
participation for fiscal year 1998.

                            ENTERPRISE FUNDS

                       Enterprise and Other Uses

    The Committee recommends $15,725,000 for enterprise funds 
for fiscal year 1998.
    Following is a tabulation of the allocated funds by agency 
or department:

         Water and Sewer Authority and the Washington Aqueduct

    The Committee recommends a total of $297,310,000, of which 
funds $263,425,000 is for the Water and Sewer Authority and 
$33,885,000 is for the Washington Aqueduct for fiscal year 
1998.
    The Water and Sewer Authority was established as an 
independent agency pursuant to the District of Columbia Water 
and Sewer Act of 1996 (Public Law 104-184, enacted August 6, 
1996). As a result, the new authority assumed certain major 
functions previously performed by the District, such as 
treasury, procurement, and human resource services. The 
authority is governed by an 11-member Board of Directors. 
Operations are supported by administrative, financial, and 
engineering services.
    The Washington Aqueduct collects, purifies, and pumps 
potable water for the District of Columbia, Arlington County, 
the city of Falls Church, VA. Funding for the Washington 
Aqueduct comes from the Water and Sewer Authority.

               Lottery and Charitable Games Control Board

    The Committee recommends $213,500,000 for fiscal year 1998. 
The Lottery and Charitable Games Control Board administers the 
legalized lotteries and on-line numbers games, in addition to 
regulating the conduct of charitable games in the District.

                       Office of Cable Television

    The Committee recommends $2,467,000 for fiscal year 1998. 
The office monitors the compliance of the District's private 
cable provider with the terms and conditions of the cable 
franchise agreement. The office also serves as an advocate for 
cable subscribers in resolving disputes and recommends 
strategies for using the technology to enhance economic 
development.

                       Public Service Commission

    The Committee recommends $4,547,000 for fiscal year 1998. 
The commission is responsible for serving the public interest 
by ensuring that utilities provide safe, reliable, and quality 
service at reasonable rates for District residential, business, 
and government ratepayers.

                     Office of the People's Counsel

    The Committee recommends $2,428,000 for fiscal year 1998. 
The Office of the People's Counsel acts as an advocate on 
behalf of District consumers of natural gas, electric, 
telephone, and taxi services in all matters affecting rates or 
service.

           Department of Insurance and Securities Regulation

    The Committee recommends $5,683,000 for fiscal year 1998. 
The Department of Insurance and Securities Regulation [DISR] is 
established as an independent agency by D.C. bill 11-415, the 
Department of Insurance and Securities Regulation Establishment 
Act of 1996. The DISR is responsible for implementing and 
enforcing laws and regulations governing the insurance and 
securities industry in the District.

              Office on Banking and Financial Institutions

    The Committee recommends $600,000 for fiscal year 1998. The 
Office of Banking and Financial Institutions was established 
pursuant to D.C. Law 11-142, Banking and Branching Act of 1996, 
to regulate all banking and financial institutions in the 
District of Columbia.

                   D.C. Sports Commission (Starplex)

    The Committee recommends $5,936,000 to be derived from the 
operations of the commission for fiscal year 1998.
    The commission, formerly the D.C. Armory Board, is governed 
by an 11-member board and operates the Robert F. Kennedy 
Stadium and D.C. Armory. All funds recommended are earned from 
tenant and clients. Additional revenue is earned from parking 
fees and concessions sales from events held at the armory 
facilities. The final year of the Washington Redskins' lease 
with the Sports Commission is 1997. The departure will reduce 
revenues by approximately $3,000,000 annually. One of the main 
issues facing the Sports Commission is the need to find 
additional tenants and events.

                     D.C. General Hospital Payment

    The Committee recommends $52,684,000 for fiscal year 1998. 
The D.C. General Hospital provides health care services to 
District residents and others who present themselves for 
emergency care.

                         D.C. Retirement Board

    The Committee recommends $16,762,000 for the operations of 
the D.C. Retirement Board for fiscal year 1998. These funds are 
derived from the invested proceeds of the board. The Board 
invests, controls, and manages the assets of various District 
employee retirement funds.

                      Correctional Industries Fund

    The Committee recommends $3,332,000 for the correctional 
industries fund in fiscal year 1998.

                 Washington Convention Center Authority

    The Committee recommends $41,000,000, combined with 
$5,400,000 by transfer from the general fund for a total 
operating level of $46,400,000, for fiscal year 1998. The 
Washington Convention Center Authority serves as a public 
enterprise fund to expand the District's tax base.

DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE 
                               AUTHORITY

    The Committee recommends $3,220,000 for fiscal year 1998. 
The Authority has the responsibility to eliminate budget 
deficits and management inefficiencies in the District 
government. Following the enactment of the Revitalization Act, 
the Authority has been given expanded authority to implement 
extensive management reforms in the District.

Financial management system

    On April 26, 1996, the Omnibus Consolidated Rescissions and 
Appropriations Act of 1996 (Public Law 104-134) was enacted. 
This law appropriated $28,000,000 in capital outlay to the 
District of Columbia to improve or replace the District's 
financial management system [FMS]. The act provided that 
$2,000,000 of the appropriation be used to develop a needs 
analysis and assessment of the existing financial management 
environment; and the balance of $26,000,000 be used to procure 
the necessary hardware and installation of new software, 
conversion, testing, and training. The act further stated that 
the $26,000,000 could not be obligated or expended until: (1) 
the Authority submitted to Congress a needs analysis and 
assessment of the existing financial management environment; 
and (2) 30 days lapsed after receipt of the report to Congress.
    On August 1, 1996, the conference report to accompany H.R. 
3845, the fiscal year 1997 appropriations bill for the District 
of Columbia, provided that the $28,000,000 approved in fiscal 
year 1996 under the ``Capital outlay'' heading was available 
initially for 2 years for obligation. In the Fiscal Year 1997 
District of Columbia Appropriation Act (Public Law 104-194), 
Congress increased the amount available for the District's FMS 
improvement project by $3,123,000, for a total appropriation of 
$31,123,000.
    The appropriation act further provided that if, during that 
time, any or all of such amount were obligated, all of the 
budget authority would remain available until expended. On 
December 9, 1996, the Authority transmitted to Congress the 
required needs assessment, entitled ``Capabilities Assessment 
of the Financial Management System.'' The existing FMS 
environment was discussed; the deficiencies in the current 
system were listed; and a detailed explanation of each option 
was presented. As a result of the obligation of a part of the 
available amounts for an assessment of needs, the appropriated 
funds remain available until exhausted.
    The District of Columbia Management Reform Act of 1997 
(Public Law 105-33, enacted August 5, 1997) requires the 
Authority to develop and implement management reform plans for 
nine major District government agencies and four major 
management areas, including information resources management. 
An integral component of these management reforms is timely, 
accurate financial information, which can only be generated by 
correcting the current FMS deficiencies immediately. The 
Committee recognizes that, without a new FMS, the District 
government cannot produce reliable data, and any effort at 
management reform will be severely hampered.
    On June 23, 1997, the Authority issued the request for 
proposals to prospective vendors. On September 5, 1997, the 
Authority selected a vendor to design and install a new FMS for 
the District government. The Committee is satisfied that the 
Authority has met all legislative prerequisites to proceed with 
the leasing or procurement of a new FMS. To afford the 
Authority the latitude and flexibility required to acquire the 
FMS best suited to the District's needs and capabilities, the 
Committee has included amending language to prior 
appropriations law to allow that funds previously appropriated 
to the Authority can be obligated for either the leasing or 
procurement of the various components of a new FMS. The 
Committee remains committed to ensuring that the District 
government acquires a FMS that will facilitate financial 
management reform.

Nuisance property abatement

    The Committee is concerned that nuisance property abatement 
remains a serious problem in the District. Hundreds of 
properties in the District, due to their disrepair, use for 
criminal activity, general neglect or abandonment, or other 
condition, constitute pubic nuisances and significantly impair 
commercial and neighborhood development and facilitate criminal 
activity. The Committee directs the Authority to develop and 
implement a plan to increase substantially the number of 
nuisance properties that are abated, either by the property 
owners or by the District government. The Committee further 
directs the Authority to identify and report to the Committee 
on any significant impediments which would prevent the 
Authority or District government from implementing a plan for 
nuisance property abatement.

Medical malpractice reform

    The Committee notes with concern that the District of 
Columbia is one of the few jurisdictions in the country that 
has failed to enact medical malpractice reform. The continued 
increase in medical litigation in the District drives up the 
cost and reduces the availability of health care for all 
District residents and others who receive health care in the 
District, discourages providers from locating in the District 
due to extremely high medical malpractice insurance rates, and 
places an undue burden on taxpayer-provided health care 
resources. The Committee directs that the District of Columbia 
Financial Responsibility and Management Assistance Authority, 
in consultation with the District government, evaluate the 
issue of medical malpractice reform and report to Congress by 
March 1, 1998, recommendations on medical malpractice reform 
for the District.

                             CAPITAL OUTLAY

    The Committee recommends $269,330,000 for capital projects 
in fiscal year 1998, including $105,485,000 from local funds, 
$132,745,000 in Federal grants, and $31,100,000 financed 
through the District's transportation highway trust fund.
    Department of Public Works.--$90,000,000 is included from 
the Federal highway trust fund for planned projects in safety 
and system rehabilitation improvements.
    Department of Public Works.--$3,000,000, derived from local 
funds, will be used for the Local Street Program.
    Department of Public Works.--$31,100,000, derived from the 
transportation trust fund, will be used as matching funds for 
Federal aid funds.
    Public schools.--$98,785,000, derived from local sources, 
will continue emergency and stabilization repairs and 
improvements in the public schools.
    Department of Business Services and Economic Development.--
$3,700,000 to fund a project to implement technology 
infrastructure modernization and improvements in the One-Step 
Business Center.
    Department of Business Services and Economic Development.--
$42,745,000, in Federal grants from the Department of Housing 
and Community Development, including $34,251,000 in community 
development block grant funds, $5,811,000 in home investment 
partnerships, $2,500,000 in housing opportunities for persons 
with AIDS projects, and $183,000 from the Emergency Shelter 
Grant Program.

                  DEFICIT REDUCTION AND REVITALIZATION

    The Committee has included language in the bill which 
directs that the one-time net benefit of $201,090,000 to the 
District, realized as a result of the enactment of the 
Revitalization Act, be allocated by the Authority among three 
categories. The Committee directs that not less than 
$160,000,000 of the net benefit will be used to reduce the 
accumulated deficit, estimated to be $527,000,000 at September 
30, 1997. Other amounts will be used for debt service on much 
needed capital improvements to the District's infrastructure. 
Finally, an amount will be used for management and productivity 
improvements. This amount is required as the result of the 
requirement in the act that the Authority contract with 
consultants, within 30 days of the August 5, 1997, enactment, 
to develop management reform plans for nine District government 
agencies and four citywide functions. These plans must be 
implemented within 90 days of the contract signing. The bill 
language requires the Authority to notify the Committee upon 
its allocation of these funds.
    On September 8, 1997, the Authority, the District Council, 
and the Mayor reached agreement on a consensus budget amendment 
to their respective budgets. The Authority transmitted the 
concensus budget request that same day. The Committee directs 
that not less than $160,000,000 of the $201,090,000 realized as 
a result of the Revitalization Act be used for deficit 
reduction.

                           GENERAL PROVISIONS

    The bill contains various general provisions which are 
contained annually in appropriations bills. The following 
summarizes the Committee recommendations pertaining to these 
provisions:
    The Committee recommends various changes throughout the 
general provisions for style and updating.
    Section 131 is a new section that allows funds previously 
appropriated to the District government for a new financial 
management system [FMS] to be obligated for either the leasing 
or procurement of the various components of a new FMS.
    Section 132 is a new section that amends provisions of the 
District of Columbia Self-Government and Governmental 
Reorganization Act. The amendments provide that performance 
accountability plans required under the act shall be submitted 
to the District of Columbia Financial Management and Assistance 
Authority and that accountability reports shall be submitted to 
the District's chief financial officer. The section also amends 
the dates for submission of the plans and reports to Congress.
    Section 133 is a new section that clarifies the provisions 
of the Revitalization Act of 1997 relating to the role of the 
District Council in confirming the Mayor's nominations to head 
departments of the District government.
    Section 134 restricts the use of funds appropriated under 
this act for any abortion 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 rape or incest.
    Section 135 restricts the use of funds appropriated under 
this act to implement the District's Domestic Partners Act, 
D.C. Act 9-188.
    Sections 136, 137, 138, and 142 amend prior general 
provisions of Public Law 104-194 to substitute the Emergency 
Transitional Education Board of Trustees for the Board of 
Education of the D.C. public school system for purposes of 
reporting requirements.
    Section 141 makes permanent the provisions of section 143 
of the District of Columbia Appropriations Act of 1997 (Public 
Law 104-194) that relate to police, fire, and emergency medical 
services disability retirement benefits.
    Section 143 is a new section that requires the special 
masters appointed by the D.C. courts to District government 
agencies to prepare and submit to the District of Columbia 
Financial Responsibility and Management Assistance Authority 
annual estimates of expenditures and appropriations.
    Section 144 is a new section that provides for 
reimbursement to the District government from the Federal 
Government for law enforcement services, personnel, equipment, 
and facilities provided by the District for the protection of 
the President and Vice President of the United States.
    Section 145 is a new section that appropriates $5,000,000 
to the National Park Service for the operations of the U.S. 
Park Police in the District of Columbia.
    Section 146 is a new provision. The District Council has 
proposed reducing the funding for the D.C. initiative homeless 
services in the District of Columbia from a fiscal year 1997 
level of $11,300,000 to $7,600,000 for fiscal year 1998. The 
proposed new general provision would maintain the fiscal year 
1997 level of funding for these services.
    Section 147 is a new provision that directs the District of 
Columbia Financial Responsibility and Management Assistance 
Authority and the chief executive officer of the D.C. public 
schools to report to the relevant committees of Congress by 
April 1, 1998, on all measures necessary and steps to be taken 
to ensure that schools open on time for the 1998-99 academic 
year.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    The bill includes $5,000,000 in appropriations to the 
National Park Service for the operations of the U.S. Park 
Police in the District of Columbia.

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, the accompanying 
bill was ordered reported from the Committee, subject to 
amendment and subject to appropriate scorekeeping, by recorded 
vote of 26-1, a quorum being present.
        Yeas                          Nays
Chairman Stevens                    Mr. Shelby
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Burns
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mr. Faircloth
Mrs. Hutchison
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Bumpers
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Boxer

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    In the opinion of the Committee, it is necessary to 
dispense with the requirements of this subsection to expedite 
the business of the Senate.

                                            BUDGETARY IMPACT OF BILL                                            
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS  
                                                     AMENDED                                                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays        
                                                             ---------------------------------------------------
                                                               Committee    Amount  of   Committee    Amount  of
                                                               allocation      bill      allocation      bill   
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations                                                    
 to its subcommittees of amounts in the First Concurrent                                                        
 Resolution for 1998: Subcommittee on the District of                                                           
 Columbia:                                                                                                      
    Defense discretionary...................................  ...........  ...........  ...........  ...........
    Nondefense discretionary................................          820          820          500          500
    Violent crime reduction fund............................  ...........  ...........  ...........  ...........
    Mandatory...............................................  ...........  ...........  ...........  ...........
Projections of outlays associated with the recommendation:                                                      
    1997....................................................  ...........  ...........  ...........          500
    1998....................................................  ...........  ...........  ...........          161
    1999....................................................  ...........  ...........  ...........          144
    2000....................................................  ...........  ...........  ...........           15
    2001 and future year....................................  ...........  ...........  ...........  ...........
Financial assistance to State and local governments for 1998                                                    
 in bill....................................................           NA          820           NA          500
----------------------------------------------------------------------------------------------------------------
NA: Not applicable.                                                                                             


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1997 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL 
                                                                        YEAR 1998                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Senate Committee recommendation   
                                                                                                   Committee              compared with (+ or -)        
                        Item                          1997 appropriation    Budget estimate     recommendation   ---------------------------------------
                                                                                                                  1997 appropriation    Budget estimate 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                    FEDERAL FUNDS                                                                                                                       
                                                                                                                                                        
Federal payment to the District of Columbia.........       $660,000,000   ..................  ..................      -$660,000,000   ..................
Federal contribution to retirement funds............         52,070,000   ..................  ..................        -52,070,000   ..................
Presidential Inauguration...........................          5,702,000   ..................  ..................         -5,702,000   ..................
Federal contribution for repair of drinking water                                                                                                       
 system.............................................          1,000,000   ..................  ..................         -1,000,000   ..................
Federal payment for management reform...............  ..................  ..................         $8,000,000          +8,000,000         +$8,000,000 
Federal contribution to the operations of the                                                                                                           
 Nation's Capital...................................  ..................       $160,000,000         190,000,000        +190,000,000         +30,000,000 
Payment to the District of Columbia Corrections                                                                                                         
 Trustee, Operations................................  ..................        169,000,000         169,000,000        +169,000,000   ..................
Payment to the District of Columbia Correction                                                                                                          
 Trustee for Correctional Facilities, Construction                                                                                                      
 and Repair.........................................  ..................        302,000,000         302,000,000        +302,000,000   ..................
Payment to the District of Columbia Courts..........  ..................  ..................        146,000,000        +146,000,000        +146,000,000 
District of Columbia Courts.........................  ..................        123,000,000   ..................  ..................       -123,000,000 
Payment to the Pretrial Services, Defense Service,                                                                                                      
 Parole, Adult Probation, and Offender Supervision                                                                                                      
 Trustee for the District of Columbia...............  ..................         23,000,000   ..................  ..................        -23,000,000 
General provision Sec. 145..........................  ..................  ..................          5,000,000          +5,000,000          +5,000,000 
                                                     ===================================================================================================
      Total, Federal funds to the District of                                                                                                           
       Columbia.....................................        718,772,000         777,000,000         820,000,000        +101,228,000         +43,000,000 
                                                     ===================================================================================================
           DISTRICT OF COLUMBIA FUNDS \1\                                                                                                               
                                                                                                                                                        
                 Operating Expenses                                                                                                                     
                                                                                                                                                        
Governmental direction and support..................       (115,663,000)       (105,177,000)       (105,177,000)       (-10,486,000)  ..................
Economic development and regulation.................       (135,704,000)       (120,072,000)       (120,072,000)       (-15,632,000)  ..................
Public safety and justice...........................     (1,041,281,000)       (494,970,000)       (529,739,000)      (-511,542,000)       (+34,769,000)
Public education system.............................       (758,815,000)       (672,444,000)       (672,444,000)       (-86,371,000)  ..................
Human support services..............................     (1,685,707,000)     (1,718,939,000)     (1,718,939,000)       (+33,232,000)  ..................
Public works........................................       (247,967,000)       (241,934,000)       (241,934,000)        (-6,033,000)  ..................
Financing and other.................................  ..................       (454,773,000)       (454,773,000)      (+454,773,000)  ..................
Washington Convention Center Fund \2\...............         (5,400,000)  ..................  ..................        (-5,400,000)  ..................
Repayment of loans and interest \2\.................       (333,710,000)  ..................  ..................      (-333,710,000)  ..................
Repayment of general fund recovery debt \2\.........        (38,314,000)  ..................  ..................       (-38,314,000)  ..................
Short-term borrowing \2\............................        (34,461,000)  ..................  ..................       (-34,461,000)  ..................
Inaugural expenses..................................         (5,702,000)  ..................  ..................        (-5,702,000)  ..................
Workforce Reduction.................................  ..................  ..................  ..................  ..................  ..................
Certification of participation \2\..................         (7,926,000)  ..................  ..................        (-7,926,000)  ..................
Human resources development \2\.....................        (12,257,000)  ..................  ..................       (-12,257,000)  ..................
Cost Reduction Initiatives..........................       (-47,411,000)  ..................  ..................       (+47,411,000)  ..................
D.C. Financial Responsibility and Management                                                                                                            
 Assistance Authority...............................         (3,400,000)         (3,220,000)         (3,220,000)          (-180,000)  ..................
Deficit reduction and revitalization................  ..................       (235,859,000)       (201,090,000)      (+201,090,000)       (-34,769,000)
                                                     ---------------------------------------------------------------------------------------------------
      Total, operating expenses, general fund.......     (4,378,896,000)     (4,047,388,000)     (4,047,388,000)      (-331,508,000)  ..................
                                                                                                                                                        
                   Capital Outlay                                                                                                                       
                                                                                                                                                        
General fund........................................        (46,923,000)       (269,330,000)       (269,330,000)      (+222,407,000)  ..................
                                                                                                                                                        
                  Enterprise Funds                                                                                                                      
                                                                                                                                                        
Enterprise and other uses...........................  ..................        (15,725,000)        (15,725,000)       (+15,725,000)  ..................
Water and Sewer Authority and the Washington                                                                                                            
 Aqueduct...........................................       (221,362,000)       (297,310,000)       (297,310,000)       (+75,948,000)  ..................
Lottery and Charitable Games Enterprise Fund........       (247,900,000)       (213,500,000)       (213,500,000)       (-34,400,000)  ..................
Cable Television Enterprise Fund....................         (2,511,000)  ..................  ..................        (-2,511,000)  ..................
Sports Commission (STARPLEX)........................         (8,717,000)         (5,936,000)         (5,936,000)        (-2,781,000)  ..................
D.C. General Hospital...............................        (52,684,000)        (52,684,000)        (52,684,000)  ..................  ..................
D.C. Retirement Board...............................        (16,667,000)        (16,762,000)        (16,762,000)           (+95,000)  ..................
Correctional Industries.............................         (3,052,000)         (3,332,000)         (3,332,000)          (+280,000)  ..................
Washington Convention Center Enterprise Fund........        (42,596,000)        (41,000,000)        (41,000,000)        (-1,596,000)  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Enterprise Funds.......................       (595,489,000)       (646,249,000)       (646,249,000)       (+50,760,000)  ..................
                                                     ===================================================================================================
      Total, District of Columbia funds.............     (5,021,308,000)     (4,962,967,000)     (4,962,967,000)       (-58,341,000)  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Revised Total, District of Columbia funds.....     (5,021,308,000)     (4,962,967,000)     (4,962,967,000)       (-58,341,000)  ..................
                                                     ===================================================================================================
      Total:                                                                                                                                            
          Federal Funds to the District of Columbia.        718,772,000         777,000,000         820,000,000        +101,228,000         +43,000,000 
          District of Columbia funds................     (5,021,308,000)     (4,962,967,000)     (4,962,967,000)       (-58,341,000)  ..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Fiscal year 1998 estimates for District of Columbia Funds are those of the D.C. Financial Responsibility and Management Assistance Authority.       
\2\ Appropriated in Financing and other in the fiscal year 1998 Senate bill.                                                                            



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