District of Columbia Finances
AIMD/GGD-94-172BR: Published: Jun 22, 1994. Publicly Released: Jun 22, 1994.
- Full Report:
Pursuant to a congressional request, GAO provided information on the District of Columbia's financial status, focusing on the District's cash situation and budgets.
GAO found that: (1) the District faces unresolved long-term financial issues and continual short-term financial crises; (2) although the District received federal funding in 1991 to help relieve its cash shortfall, the city's cash balance continues to decline; (3) although the District has reached an agreement with the Retirement Board to defer pension payments until 1995, it is not expected to have sufficient cash reserves necessary to meet its payment deadline; (4) the District's ability to address its potential cash shortfalls is affected by its inability to successfully execute its budget and its limited authority to obtain short-term loans at fiscal year-end; (5) the District bases its forecasted cash balances on its annual budget and adjusts its expenditures to reflect the timing of actual cash receipts and disbursements; (6) the District may be forced to borrow from the U.S. Treasury by fiscal year 1995 if it cannot implement policies that will compensate for potential cash shortfalls; (7) revenue shortfalls have forced the District to increase revenues from local sources, obtain an increased federal payment, and use alternative measures to balance its budgets; (8) the District's supplemental budget estimates are inaccurate and do not reflect historical and projected trends; and (9) the District's fiscal year 1995 budget and long-term financial projections may be incomplete because they do not include deficits from enterprise funds and amounts for many preauthorized projects.