The Federal Payment to the DC Government Under Alternative Payment Methods
GGD-88-80FS: Published: May 5, 1988. Publicly Released: Jun 6, 1988.
In response to a congressional request, GAO provided information on proposed changes to the method of calculating federal payments to the District of Columbia.
GAO found that: (1) federal payments under various alternatives varied from $425 million to over $1 billion; (2) the highest payment would result from a 40-percent payment formula from the District's general fund revenues; (3) the lowest payments would result from a formula based on the current annual payment; (4) payments based on 24-percent-of-revenues formula came closest to providing the amount needed to close the District's projected deficit for fiscal years 1989 through 1993; and (5) although the District's projected deficit provides a basis for comparing the effect of the various formulas, the primary criteria in determining the federal payment should be the costs and benefits associated with the federal presence in the District.