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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)

      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.




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