RESTRICTED - No, t1~o1* released outside the General Accounting GCfce e"-. e.- t!e basis of specific approval by the Office of Lg - . s' on, a record of which is lipt : . b tie Distribution Section, Pullicaton.s Branch, QAS REPORT TO- THE SUBCOMMITTEE ON THE DISTRICT OF COLUMBIA COMMITTEE ON APPROPRIATIONS cUNITED STATES SENATE RELEASED Estimated, FederalI Assistance To The District Of Columbia For Fiscal Years 1970, 1971, And 1972 8- 118638 0 \ : .-... "':I-J86./.~0 BY. THE COMPTROLLER GENERAL OF THE UNITED STATES MARCH 5,197i COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-118638 Dear Mr. Chairman: In response to the former Chairman's request dated December 3, 1970, and your letter dated February 8, 1971, the table which follows shows estimates of Federal assistance to the District of Columbia for fiscal years 1970, 1971, and 1972. The sources used by us to gather this information and the estimating methods are identified in the foot- notes to the table. The table shows the amount of the Federal payment to the District of Columbia and the amount of the Federal grant and contract assist- ance to the benefit of the District and its residents through the District Government and other public and private organizations. Also, the table shows other Federal assistance to the benefit of the District and its residents. No attempt was made to compile all Federal expenditures made in the District. Excluded were Federal expenditures which were readily identifiable as not specifically benefiting the District and expendi- tures for salaries, services, and supplies. Excluded also were pay- ments to recipients for unemployment insurance, retirement, social security, and other similar payments. Further, no attempt was made to estimate the amount of assistance to the District and its residents for certain use of the U.S. Treasury, Smithsonian Institute (except for one neighborhood museum), District of Columbia National Guard, and various parks located in the District. No opinion is expressed or implied as to whether Federal assist- ance to the District is relatively greater or less than such assistance to the States. None of the data has been audited, although care was used in the collection and compilation procedures. Sincrrely yours, Comptroller General of the United States The Honorable Daniel K. Inouye, Chairman Subcommittee on the District of Columbia Committee on Appropriations United States Senate 50TH ANNIVERSARY 1921-1971 ESTIMATED FEDERAL ASSISTANCE TO THE DISTRICT OF COLUMBIA (In thousands) Foot- notes Fiscal year 1970 1971 1972 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA General Fund $108,166 $126,000 $153,000 Assistance to Finance Salary Increases - O - 8,000 -0 - Assistance to Finance Court Reform and Criminal Procedure Act of 1970 - 0 - 5,000 - 0 - Assistance to Finance Capital Outlay Program - O - - 0- 7.000 Total Federal Payment $108,166 $139,000 $160 000 FEDERAL GRANTS AND CONTRACTS FROM: (1) Department of Health, Education, and Welfare-- To District Government $ 75,714 $ 91,137 $110,780 To Public and/or Private Organizations 13,857 13,730 13,730 Office of Economic Opportunity-- To District Government 787 4,128 3,730 To Public and/or Private Organizations 16,159 16,761 16,761 Department of Agriculture-- To District of Columbia 4,799 3,6714 3,843 To Public and/or Private Organizations 6,217 14,729 20,763 Department of Transportation-- To District of Columbia 32,372 13,699 33,090 To Public and/or Private Organizations 313 313 313 Department of Justice-- To District Government 3,777 3,295 1,006 To Public and/or Private Organizations 720 720 720. Foot- notes Fiscal year 1970 1971 1972 Department of Commerce-- To District Government 197 $ 241 $ - 0 - To Public and/or Private Organizations 20 20 20 Department of Interior and Environmental Protection Agency-- To District Government 1,607 29,655 34,915 Department of Labor-- To District Government 2,767 4,943 5,254 To Public and/or Private Organizations 13,038 13,453 13,453 Department of Housing and Urban Development-- To District Government 22,832 36,084 68,315 To Public and/or Private Organizations 8,104 8,094 8,399 Other Federal Agencies-- To District Government 372 604 355 To Public and/or Private Organizations 1,356 1,356 1,356 Total Federal Grant and Contract Assistance $205,008 $256,636 $336,803 OTHER FEDERAL ASSISTANCE TO THE DISTRICT OF COLUMBIA Commission on Fine Arts (2) $ 58 $ 58 $ 58 Smithsonian Institute (3) 124 125 180 St. Elizabeths Hospital (4) 6,583 14,604 15,969 Howard University (5) 7,731 8,825 11,525 Freedmen's Hospital (6) 34,859 9,731 12,524 General Services Administration (7) 709 705 703 Civil Service Commission: Service, administrative expenses, and payments (8) 2,872 4,769 7,764 Increase in unfunded liabil- ity of Civil Service Retirement Fund (9) 68,940 34,850 39,480 General Accounting Office (10) 304 470 512 Federal City College and Washington Technical Institute (11) 18 432 290 Foot- notes Fiscal year 1970 1971 1972 National Capital Planning Com- mission (12) $ 519 $ 586 $ 645 Washington Metropolitan Area Transit Authority (13) 45,905 65,770 54,600 Washington Airports (14) 751 1,191 630 U.S. Treasury (15) 1,098 1,477 1,477 Commission on the Organization of the Government of the District of Columbia (16) - 0 - 325 175 Metropolitan Washington Council of Governments (17) 325 600 572 Total Other Federal Assistance 170,796 144518 147,1 i04 Grand Total (18) $483,970 $540,154 $643,907 1Datafor the fiscal year 1970 Federal grant assistance to the District and its residents was obtained, for the most part, from records maintained by the grantors. In a few instances, however, the required data was not read- ily available and, for such instances, we used the amounts reported by the District. Overall the total amount of grants to the District Government as reported by the District was relatively close to the total amount compiled by us. The grants to public and private organizations that were readily determina- ble as being national in scope and/or primary benefit to the Federal Govern- ment were excluded. However, some of the smaller grants to these organizations that were included may have been national in scope; we did not examine in detail the purpose of these grants. Estimated Federal grants to the District of Columbia for fiscal year 1971 and 1972 were obtained from the District. On February 23, 1971, a District official informed us that these estimates were subject to revisions. The 1971 and 1972 grants to public and private organizations were estimated by (1) obtaining the organizations or Federal agencies' estimates for the United Planning Organization, the food stamp program, and the United Capital Housing Authority (about 60 percent of the total for fiscal year 1970) and (2) by assuming that the grants to the other organizations (about 40 percent of the 1970 total) will be funded at the same level as fiscal year 1970. Compilation of grants for fiscal year 1970 showed that over 100 public and private organizations received grants which assisted the District and-its residents. 3 2 0fficials of the Commission estimated that about 50 percent of the Commission's workload is applicable to the District. 3 Representsthe costs of operating a neighborhood museum which appears to be of special benefit to the District residents. 4Federal contributions to cost of patient care of District of Columbia resi- dents in St. Elizabeths Hospital: FY 1970 FY 1971 FY 1972 a. Per diem rate for patient care $22.77 $31.11 $37.25 b. Per diem rate paid by District of Columbia 17.94 18.52 22.84 c. Portion of per diem rate paid by Federal Government $ 4.83 $12.59 $14.41 d. Number of D.C. patient days 1,362,889 1,159,970 1,108,248 e. Amount of Federal funds supporting care for D.C. patients $6,582,754 $14,604,022 $15,969,854 Data provided by an official of the hospital. 5 Since35.3 percent of Howard University students (school year 1969-1970) were recorded as having been born in the District of Columbia, we considered 35.3 percent of the budget authority as Federal assistance to the District of Columbia. FY 1970 FY 1971 FY 1972 Total budget authority $61,969,000 $36,185,000 $47,043,000 Less: Freedmen's Hospital operat- ing and construction costs 40,068 000 11,185,000 14,395,400 Total Howard University $21,901,000 $25,000,000 $32,647,600 Estimated assistance to District-- 35.3 percent of total for Howard $ 7,731.053 $ 8,825 ,000 $11,524.602 Data provided by a university official. 6Freedmen'sHospital officials estimated that 87 percent of their patients are D.C. residents. We therefore considered 87 percent of Freedments operating and construction costs as assistance to the District. 4 7 Represents estimate of fair market value of rent-free office space provided to the District of Columbia Government by GSA. Estimated fair rental values per square foot were provided by GSA. 8 Estimated costs applicable to the District of Columbia Government which are included in Civil Service Commission funding. Estimates were provided by the Civil Service Commission. 9The District of Columbia Government and its Civil Service employees are mem- bers of the Civil Service Retirement System, the costs of which are shared by the employees and the Federal Government. The Federal Government, however, has not deposited into the retirement fund its full share of contributions needed to provide retirement benefits. In fiscal year 1970, the Federal Government deficiency in the retirement fund increased by about $6.9 billion. Such annual increases in the unfunded liability represent the increase in the amount needed to provide for the retirement due the employees in the Federal Civil Service Retirement System. The Federal Government is liable. for making provision for and paying retirement annuities. Since the District's Civil Service employees constitute about 1 percent of the total in the system, we estimated that about 1 percent of the annual increase in the unfunded liability ($69 million for fiscal year 1970 for example) pertains to the Federal Government's obligation to provide its share of the retirement benefits for District employees. Estimates were provided by the Civil Service Commission. 10 Represents estimated costs incurred in providing audit function to the District of Columbia Government by the General Accounting Office. 1 1 Consists of actual and estimated interest income from endowment fund of $7,241,706 provided by HEW in lieu of a land grant. 1 2 0fficials of the Commission estimated that about 50 percent of the Commission's workload is applicable to the District. 1 3Represents estimated percentage of benefit to District of Columbia from Fed- eral appropriations to WMATA. FY 1970 FY 1971 FY 1972 Total Federal appropriation $126,112,000 $180,688,000 $150,000,000 Percentage of Benefit to the District 36.4% 36.4% 36.4% Benefit to the District $ 45.905,000 $ 65,770,000 $ 54,600,000 5 The percentage of 36.4 was based on a formula established by WMATA for allocations of costs to be paid by each of the communities involved. We were informed by WMATA officials that this formula would be a fair basis on which to distribute the Federal contribution. 4Consists of income or loss from operations of Washington National and Dulles International Airports attributed to the District of Columbia. FY 1970 FY 1971 FY 1972 Gain from operations of Washington National $3,559,000 $ 2,509,000 $3,541,000 Percentage of total passen- gers which had come to, or departed from, the District 48% 48% 48% Amount attributed to the District from National 1,708,320 1,204,320 1,699,680 Loss from operations of Dulles International -5,720,000 -5,571,000 -5,418,000 Percentage of total passen- gers which had come to, or departed from, the District 43% 43% 43% Amount attributed to the District from Dulles -2,459,600 -2,395,530 -2,329,740 Net loss attributed to the District $ -751,280 $-1,191,210 $ -630,060 Percentages used for the District were based on a study made for the Federal Aviation Administration. 1 5Represents the estimated cost to the Federal Government to make interest-free short-term loans to the District and to make loans under the Medical Facili- ties Construction Act of 1968 at an interest rate of 2-1/2 percent. 16Consist of funds appropriated in fiscal year 1971 for expenses necessary to carry cut purpose of the Commission outline in Public Law 91-405 (Little Hoover Commlission). 17An official of the Council estimated that about 26 percent of the Council's workload was aoplicable to the District. 1 8 The table does not show a dollar amount for certain services provided to the District by the U.S. Treasury, the Smithsonian Institute, the National Park Service, and the District of Columbia National Guard because of the diffi- culty of weighing the benefits received and/or the additional cost to the Federal Government for providing such services. 6 The U.S. Treasury acts as a depository for District revenues; prepares checks for District expenditures, for which it is reimbursed; and lends money to the District at average Treasury rates for long-term borrowings. The total long-term loans outstanding at June 30, 1970, was about $325 million. Total appropriations of $45.0 million have been requested for the Smithsonian for fiscal year 1972. However, the Smithsonian is considered primarily of national benefit rather than strictly as a benefit to Dis- trict residents. An official of the National Capital Region informed us that the costs for the operation and maintenance of various parks in the District of Columbia are: $8.4 million for fiscal year 1970; $16.3 million for fiscal year 1971; and $18.8 million for fiscal year 1972. In fiscal year 1970, the District paid for about 50 percent of the operating expenses. In fiscal.years 1971 and 1972, the total operating expenses are to be funded through Federal appropriations to the Department of Interior. During fiscal year 1970, the Federal Government contributed over $8 million for the operation of the D.C. National Guard. The roles of the Guard are to (1) augment the active Army and Air Force during times of war or national emergency and (2) support the local law enforcement agencies if needed. U.S. GAO Wash., D.C. 7
Estimated Federal Assistance to the District of Columbia for Fiscal Years 1970, 1971, and 1972
Published by the Government Accountability Office on 1971-03-05.
Below is a raw (and likely hideous) rendition of the original report. (PDF)