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~Ongrcssional1rc(Ord UNITED STATES OF AMERICA // /7~ .~", ~ongrCSSional1Rc(ord d PROCEEDINGS AND DEBATES OF THE 93 CONGRESS FIRST SESSION VOLUME 119-PART 13 MAY 16, 1973 TO MAY 29, 1973 (PAGES 15853 TO 17214) • UNITED STATES GOVERNMENT PRINTING OFFICE, WASHINGTON, 1973 _C,'«'<"·",,'_""',··-C,'--'_ 16152 CONGRESSIONAL RECORD-·HOUSE iSfity J7-, 'J9'78 proximately 18 months-sothat the revenue sources, and determines the'size' of ';' '·l();:seneftt.8 if6ril muse1iriis; paI'kB'.l1brarles. Congress will be able to establish a level the Federal Payment. Federal grants-in-aId and cultural activities which are financed by are available to the District as they are .to the Federal Government or are .located in the of Federal payment 1 year in advance state and local government.<;. District because it ,is .the Nation's Capital. of the beginning of the fiscal year in Great difficulty arises In trying to deter­ U.N"et cQSts. If anY'. after cOIll>iderin~.Other which such authorization would take mine precisely the costs and.benefits which compensation for tax base deficiencies and effect. accnle to the District of Columbia as a re­ the direct and Indirect taxes paid, of pro­ It is generally conceded that the prob­ sult of being the seat of the Federal Govern­ viding services to tax-exempt non-profit or­ lem of the Federal payment as it relates ment. Satisfactory techniques have not been ganizations and corporate oftlces doing busi­ to the District of Columbia leaves both developed for quantifying sUCh factors as the ness only with the Federal Government. of the principal parties relatively un­ infiuence of the Federal payroll, the tourist 12. Benefits of a relatively stable economy. trade dra>lrn by the Federal city, the effect Some of the above elements can be quan­ happy with the effort they expend to ar­ of Federal agency relocation and leasing deci­ tlfied; others are purely judgmental. The rive at an agreement regarding the level sions, the Impact of exempt Federal and re­ Commission believes that the Federal Pay­ of that payment. On the one hand, in lated property (I.e. embassies, national non­ ment will thus continue to represent a kind many instances the Congress deals with profit associations, etc.) as it relates to rev­ of equl11brium. balancing extraordinary net the matter in a relatively bulk increment enue collection, and the extra cost.<; the Dis­ benefits of the Federal presence with extraor­ manner, rather than approaching it on trict Incurs as a result of policing and clean­ dinary net costs, however these benefits and a refined statistical basis. However, ing up after national demonstrations. cost.<; may be defined. Adjustments In the Congress yielding in certain instances Many feel that the Federal Payment should Payment should be considered when these ex­ refiect only the extraordinary net cost (above traordinary element.<; change slgnlficantly to because it considers it does not have average or different in some way from com­ the extent that the adjustments can be based sufficient information on which to make parable cities) to the District of the Federal on measurable changes. a refined jUdgment, the authorization is presence. Others maintain that the Federal A continuing analysis of the elements af­ set on the basis of compromise rather Payment should be sufficient to make the fecting the level of the Federal Payment is than need for informed judgment. Mean­ District a model American city or, at least essential to recommending such adjustments while, the District government is often an orderly, attractive and pleasing National on a fall' and eqUitable basis. The Commis­ unhappy, it appears, because certain of Capital. In these approaches as well as others, sion believes that such analysis shOUld here­ its officials may feel that they have been there is little agreement as to Which costs after be conducted on a contInuing basis un­ and benefits are considered normal and which der the supervision of the Federal Office of unable to fully get across their story extraordinary, or how they should be refiected Management and BUdget in conjunction with to the Congress as far as justifying needs in the annual Federal Payment. Its annual review of the District Govern­ and convincing the Congress that a larg­ Although Intercity fiscal comparisons are ment's bUdget submission, and related inter­ er increase in the Federal payment is useful In determining the level of the Federal community revenue and expenditure com­ fully warranted. Payment, measurement difficulties preclude parisons developed by the District govern­ It is believed that the approach con­ establishing the Payment baSed solely on the ment. A background paper on the Federal tained in this bill would to a large extent difference between District expenditures and Payment may be found In Volume III of the revenues of average intercity rates. Neverthe­ Nelsen Commission Report. diminish, if not eliminate, this con­ less, Intercity comparisons are still extremely troversy and, in addition, permit the helpful as a starting point in determining Congress to act in a more informed man­ whether the standard of fairness seems to be HOUSE MEMBERS CALL FOR OVER­ ner as it relates to the Federal payment. observed for each new level of the Federal HAUL OF SOCIAL SERVICE REGU­ On the other hand, District government Payment. It is important to realize that the LATIONS officials, by providing for intercity fiscal knowledge gained from InterCity fiscal com­ comparisons in justifying their level of parisons is suggestive and not definitive­ The SPEAKER. Under a previous or­ request for a Federal payment, wUl be It must be used judiciously and its limita­ der of the House, the gentleman from informing the residents of the District tions must be understood. Minnesota (Mr. FRASER) is recognized that their need, at least on a basis com­ Because of the vital role the Federal Pay­ for 5 minutes. ment plays In District financial operations Mr. FRASER. Mr. Speaker, today the pared with other cities, is justifiable; and Its effect on the economy and eftlclency and that their revenue-raising efforts, of those operations, the determination of the senate Finance Committee is holding such as those relating to real estate tax, level of the Federal Payment has been a the last of 4 days of hearings on the are comparable with like cities, given matter of primary concern to the Commis­ revised social service regulations issued the uniqueness of the Nation's Capital. sion. The Commission has not been a.ble to by the Department of Health, Educa­ Certainly, the information supplied the develop a precise mathema.tical formula nor tion, and Welfare, on May l. Congress by the District government and does It believe the SUbject is amenable to In a statement submitted to Finance the Offie of Management and Budget such precision. Nevertheless, a. list of sev­ Committee Chairman RUSSELL LONG, 84 eral Identifiable elements of costs and bene­ House Members have called for an over­ should also serve to inform and reassure fits to the District of the Federal presence local residents that their taxes are being has been assembled which bears on the SUb­ haul of the May 1 regulations. used by the local government in an effec­ ject and should be considered, among others We feel that HEW has moved beyond tive and efficient manner. in future dellberations. congressional intent by using the regu­ This manner of arriving at a Federal 1. Revenues unobtainable because of the lations to convert social services from payment should also serve to inform the relative lack of taxable commercial and in­ a program intended to keep people off dustrial property. welfare to one which is targeted almost Nation's taxpayers, "who give a substan­ 2. Revenues unobtainable because of the tial measure of financial support to the exclusively on welfare recipients. relative lack of taxable business income. In an effort to exclude most nonrecip­ operation of the District government 3. Potential revenues that would be real­ (S. Rept. 91-1122, page 2)" that the Ized if the following exemptions from Dis­ ients from the program, HEW has un­ Congress is performing its proper and trict taxes were eliminated: intentionally provided an incentive for informed legislative oversight in estab­ a. Non-resident income earned in the Dis­ welfare dependency. Under new income lishing a Federal payment for the Dis­ trict eligibility standards, many cash as­ trict of Columbia. Your support on behalf b. Other special exemptions from Individ­ sistance recipients with outside earnings of this measure is solicited, and in order ual Income taxes will be able to qualify for free day care, to provide those in the Congress who may c. Exemptions from sales taxes for example, while p'eople at the same 4. Recurring and non-recurring costs of income level who are entirely self sup­ not have had an opportunity to read unreimbursed services to the Federal Gov­ some of the background as it relates to porting will be unable to obtain the ernment. free service. Obviously, there will be this matter, the excerpt from the Nelsen 5. Other expenditure requIrements placed little incentive for the welfare recipient Commission report which relates to this on the District by the Federal Government to become financially self-sufficient un­ matter is reprinted below: whIch are unique to the District. der this arrangement. THE FEDERAL PAYMENT 6. Benefits of Federal grantS-in-aid rela­ A copy of our letter to Senator LoNG The Fiscal relationship between the Dls­ tive to aid given other states and local gov­ follows: 1;rlct of Columbia and the Federal Govern­ ernments. HOUSE OF REPRESENTATIVES, ment has always been difficult to define, let 7. Recurring and non-recurring costs of Washington, D.O., May 15, 1973.
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