District of Columbia: The Federal Payment Formula

GAO discussed the formula for determining the authorized federal payment to the District of Columbia. GAO noted that: (1) Congress compensates the District of Columbia for unreimbursed services provided to the federal government and deficiencies in the District's tax base; (2) the District's authorization for 1993 was greater than the amount appropriated for the previous fiscal year; (3) the local revenue base used by the District to calculate the amount of federal payment for fiscal year 1994 included total local revenues and the required revenue base included only general fund and lottery transfers; and (4) the current federal payment proposal would require that the amount authorized for any fiscal year be equal to or greater than the amount authorized for the previous fiscal year.