District of Columbia government-Continued Exhibit I-Public Schools of the District of Columbia, Statement Regarding Construction Program....... Exhibit J-Proposed Six Year Public Works Plan for Schools, 1968-73- Exhibit K-Number of Classrooms by Levels - - Exhibit L-Public Schools Construction Program, 1968-73. Exhibit M-Cost Per Classroom or Teaching Space for the 1968-73 School Construction Program.... Exhibit N-Comparative School Construction Costs and Space Utiliza- Federal payment-Percentage of Federal payment to the general fund, Methodology for estimating the burden of major taxes for a family of Methodology for estimating the burden of major taxes in the Washing- Per capita city tax revenues in the 21 largest cities of the United States, Rate comparison of major taxes in the Washington metropolitan area, Motor vehicle and trailer registration__. District of Columbia Public Schools: A comparison of the cost of elementary and secondary education in major public school systems of the Washington metropolitan area and in cities of over 500,000 population, 1965–66. A summary of actual and projected October enrollments in District Hughes, Phillip S., Acting Director, Bureau of the Budget, letter dated League of Women Voters of the District of Columbia, Elizabeth S. Johnson, Shipley, Carl L., chairman, District of Columbia Republican Committee, Tobriner, Hon. Walter N., President, District of Columbia Board of 59 FEDERAL PAYMENT-BORROWING AUTHORITY PROPOSALS FOR THE DISTRICT OF COLUMBIA-1967 MONDAY, JUNE 12, 1967 U.S. SENATE, SUBCOMMITTEE ON FISCAL AFFAIRS OF THE COMMITTEE ON THE DISTRICT OF COLUMBIA, Washington, D.C. The subcommittee met, pursuant to recess, at 10 a.m. in room 6226, New Senate Office Building, Senator William B. Spong (chairman) presiding. Present: Senator Spong. Also present: Chester H. Smith, staff director; Owen J. Malone, associate counsel; James S. Medill, assistant counsel; Howard A. Abrahams, assistant counsel; and Richard E. Judd, professional staff member. Senator SPONG. The hearing will come to order. I would like to have included in the hearing record at this point the following: Copy of the bill, S. 1218; copy of the bill, H.R. 8718; letter dated February 10, 1967, from Phillip S. Hughes, Acting Director, Bureau of the Budget, urging early and favorable action of this proposed legislation; letter dated March 17, 1967, from Carl L. Shipley, chairman, District of Columbia Republican Committee, commenting on the provisions of the proposed legislation; letter dated April 21, 1967, from Stephen Ailes, president, Federal City Council, expressing support on S. 1218, with attached resolution; letter dated June 9, 1967, from Walter N. Tobriner, President, District of Columbia Board of Commissioners, reporting on S. 1218; letter dated June 9, 1967, from Walter N. Tobriner, President, District of Columbia Board of Commissioners, reporting on H.R. 8718; a chart prepared by the Department of General Administration, District of Columbia government, entitled "Federal Payment-Percentage of Federal Payment to the General Fund, Fiscal Years 1924 to 1968." [S. 1218, 90th Cong., first sess.] A BILL To provide for computing the annual Federal payment authorization for the District of Columbia, and establishing a method for computing the annual borrowing authority for the general fund of the District of Columbia Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "District of Columbia Federal Payment Authorization and Borrowing Authority Act of 1967.” TITLE I-FEDERAL PAYMENT AUTHORIZATION SEC. 101. In recognition of the unique character of the District of Columbia as the Nation's Capital City, regular annual payments are hereby authorized to be appropriated from revenues of the United States to cover the proper Federal share of the expenses of the government of the District, and such annual payments, when appropriated, shall be paid into the general fund of the District. The annual payment authorized shall be an amount equal to 25 per centum of the sum of all tax revenues, including that portion of the motor vehicle registration fees but excluding fees from licenses and other charges, which the Commissioners estimate will be credited during each fiscal year to the general fund of the District of Columbia, including, by way of illustration and not as a limitation, revenues estimated to be derived from those categories of taxes (including penalties and interest thereon) of which the following are representative: Property taxes, both realty and personal tangible; sales and gross receipts taxes; income taxesindividual, corporation franchise, and unincorporated business franchise; the real estate deed recordation tax; inheritance and estate taxes; and so much of the motor vehicle registration fees as the Commissioners of the District of Columbia from time to time determine shall be credited to the general fund, as authorized by section 3(d) of title IV of the Act approved August 17, 1937 (50 Stat. 673, 681), as amended (D.C. Code, sec. 40-103 (d)). SEC. 102. The Commissioners shall annually compute the amount of the Federal payment authorized to be appropriated under this title, and the amount of such authorization so computed, shall be submitted to the Bureau of the Budget with each regular budget of the District of Columbia, and, as approved by the Director of the Bureau of the Budget, shall be submitted to the Congress. Each such computation shall be determined on the basis of estimates of the tax revenues referred to in section 101 of this title which are expended to be credited to the general fund of the District of Columbia during the fiscal year for which the annual payment is being computed: Provided, That the amount so determined shall be subject to review after such fiscal year, and if the Federal payment appropriated on the basis of the amount so determined differs from the amount determined on the basis of revenues actually received and credited to the general fund, the Federal payment authorization for the second year succeeding such fiscal year shall be adjusted to the extent of such difference. SEC. 103. Article VI of the District of Columbia Revenue Act of 1947 (61 Stat. 361), as amended (D.C. Code, sec. 47-2501a and 47-2501b), is repealed. SEC. 104. This title may be cited as the "District of Columbia Federal Payment Authorization Act." SEC. 105. This title shall take effect with respect to fiscal years beginning on and after July 1, 1967. TITLE II-AUTHORIZATION FOR LOANS TO THE DISTRICT OF COLUMBIA FROM THE UNITED STATES TREASURY SEC. 201. Subsection (b) of the first section of the Act approved June 6, 1958 (72 Stat. 183), as amended (D.C. Code, sec. 9–220(b)), is amended to read as follows: "(b) To assist in financing the cost of constructing facilities required for activities financed by the general fund of the District, the Commissioners are hereby authorized to accept loans for the District from the United States Treasury, and the Secretary of the Treasury is hereby authorized to lend to the Commissioners such sums as may hereafter be appropriated for such purpose: Provided, That no loan made pursuant to this subsection shall cause the amount required to service the aggregate indebtedness of the District payable from the general fund to exceed 6 per centum of the total of the following: (1) the sum of the tax revenues, including that portion of the motor vehicle registration fees but excluding fees from licenses and other charges, which the Commissioners estimate will be credited to the general fund during the fiscal year for which request for such loan is made, including, by way of illustration and not as a limitation, revenues estimated to be derived from those categories of taxes (including penalties and interest thereon) of which the following are representative: Property taxes, both realty and personal tangible; sales and gross receipts taxes; income taxesindividual, corporation franchise, and unincorporated business franchise; the real estate deed recordation tax; inheritance and estate taxes; and so much of the motor vehicle registration fees as the Commissioners of the District of Columbia from time to time determine is to be credited to the general fund, as authorized by section 3(d) of title IV of the Act approved August 17, 1937 (50 Stat. 673, 681), as amended (D.C. Code, sec. 40-103(d)); and (2) the annual payment authorized to be made from revenues of the United States to cover the Federal share of the expenses of the government of the District of Columbia for the fiscal year for which such request for a loan is made: Provided further, That any loan made pursuant to this section for use in any fiscal year must first be appropriated by the Congress: And provided further, That such appropriations shall not be construed to alter or to eliminate the procedures for consultation, advice, and recommendation provided in the National Capital Planning Act of 1952 (D.C. Code, sec. 1-1001 et seq.): And provided further, such sums as may be necessary annually but not exceeding a cumulative total of $50,000,000 of the principal amount of loans authorized to be appropriated pursuant to this subsection shall be available for appropriation from District of Columbia funds to carry out the purposes of the National Capital Transportation Act of 1965 (79 Stat. 663), and such sums as may be necessary annually but not exceeding a cumulative total of $40,000,000 of the principal amount of loans authorized to be appropriated pursuant to this subsection shall be available for appropriation from District of Columbia funds to carry out the purposes of titles I and II of the District of Columbia Public Education Act approved November 7, 1966 (80 Stat. 1426). Such loans, when advanced, shall be deposited in the Treasury of the United States to the credit of the general fund of the District." SEC. 202. Subsection (f) of the first section of the Act approved June 6, 1958 (72 Stat. 183), as amended (D.C. Code, sec. 9-220 (f)), is repealed. SEC. 203. This title shall take effect with respect to fiscal years beginning on and after July 7, 1967. [H.R. 8718, 90th Cong., first sess.] AN ACT To increase the annual Federal payment to the District of Columbia and to provide a method for computing the annual borrowing authority for the general fund of the District of Columbia Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "District of Columbia Federal Payment Authorization and Borrowing Authority Act of 1967". TITLE I-FEDERAL PAYMENT AUTHORIZATION SECTION 101. Section 1 of article VI of the District of Columbia Revenue Act of 1947 (D.C. Code, sec. 47-2501a) is amended (1) by striking out "June 30, 1967" and inserting in lieu thereof "June 30, 1968", and (2) by striking out “"$60,000,000" and inserting in lieu thereof "$70,00,000". TITLE II—AUTHORIZATION FOR LOANS TO THE DISTRICT OF SEC. 201. Subsection (b) of the first section of the Act approved June 6, 1958 (D.C. Code, sec. 9–220 (b)), is amended to read as follows: "(b) (1) To assist in financing the cost of constructing facilities required for activities financed by the general fund of the Dstrict, the Commissioners are hereby authorized to accept loans for the District from the United States Treasury, and the Secretary of the Treasury is hereby authorized to lend to the Commissioners such sums as may hereafter be appropriated for such purpose, except that no loan made under this subsection after June 30, 1967, shall cause the amount which is required to be paid in any fiscal year out of the general fund of the District as principal and interest on the aggregate indebtedness of the District to exceed "(A) in the case of an amount required to be paid in a fiscal year ending in 1968, 1969, or 1970, 6 per centum of the general revenue of the District which the Commissioners estimate will be credited to the general funds of the District during such fiscal year; or "(B) in the case of an amount required to be paid in a fiscal year ending after June 30, 1970, 6 per centum of the general revenue of the District credited to the general fund of the District for the fiscal year ending June 30, 1970. "(2) For purposes of paragraph (1) of this subsection, the term 'general revenue of the District' means the sum of "(A) the tax revenues of the District, including but not limited to the revenues (including penalties and interest) derived from the following taxes: (i) taxes imposed on real and tangible personal property, (ii) sales and gross receipts taxes, (iii) taxes on the incomes of individuals, corporations, and unincorporated businesses, (iv) real estate deed recordation taxes, and (v) inheritance and estate taxes; "(B) proceeds from the motor vehicle registration fees collected under section 3 of title IV of the District of Columbia Revenue Act of 1937 (D.C. Code, sec. 40-103); and "(C) the amount of the appropriation authorized by section 1 of article VI of the District of Columbia Revenue Act of 1947. "(3) The appropriation of any loan made under this subsection shall not be construed to alter or to eliminate the procedures for consultation, advice, and recommendation provided in the National Capital Planning Act of 1952 (D.C. Code, sec. 1-1001 et seq.). $50,000,000 of the principal amount of the loans authorized to be made to the Commissioners under this subsection shall be utilized to carry out the purposes of the National Capital Transportation Act of 1965 (D.C. Code, secs. 1-1404, 1-1421-1-1426); and $40,000,000 of the principal amount of such loans shall be utilized to carry out the purposes of the District of Columbia Public Education Act (Public Law 89-791). "(4) Any loan made under this subsection shall be in addition to any other loans heretofore or hereafter made to the Commissioners for any other purpose, and when advanced shall be deposited in the Treasury of the United States to the credit of the general fund of the District." SEC. 202. Subsection (f) of the first section of the Act approved June 6, 1958 (D.C. Code, sec. 9–220 (f)), is repealed. TITLE III-ELIGIBILITY FOR EMPLOYMENT IN THE DISTRICT OF COLUMBIA GOVERNMENT SEC. 301. In any program of recruitment or hiring of individuals to fill positions in the government of the District of Columbia, no officer or employee of the government of the District of Columbia shall exclude or give preference to the residents of the District of Columbia or any State of the United States on the basis of residence, religion, race, color, or national origin. Passed the House of Representatives June 1, 1967. Attest: W. PAT JENNINGS, Clerk. EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., February 10, 1967. Hon. HUBERT H. HUMPHREY, DEAR MR. PRESIDENT: I transmit herewith a proposed bill to provide an equitable and systematic method for authorizing the Federal Government's contribution toward meeting the expenses of the District of Columbia and for setting a limit on Federal loans which are authorized to be made to the District for general capital improvements. As the President indicated in his District of Columbia budget message, the increased Federal payment and the additional borrowing that this legislation would authorize are essential to finance the present needs of our Capital City as reflected in the budget estimates for 1968 and to help provide a more adequate level of financing for the years ahead. The other part of the financial program for future requirements will be the development of local tax proposals which will be the subject of a proposed independent study of District revenue sources. Funds for this study will be included in a 1967 supplemental budget estimate for the District. I urge early and favorable action on this legislation, Sincerely, PHILLIP S. HUGHES, Acting Director. Mr. CHESTER H. SMITH, DISTRICT OF COLUMBIA REPUBLICAN COMMITTEE, Staff Director, Committee on the District of Columbia, New Senate Office Building, Washington, D.C. DEAR CHESTER: Thank you for your letter of March 13 and the copy of S. 1218. |