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GGD-81-67 1 (1981-04-23)

handle is hein.gao/gaobabbvf0001 and id is 1 raw text is: BY THE COMPTROLLER GENERAL Report To The Congress OF THE UNITED STATES Th Federal Payment To The District Of Columbia: }Experience Since Home Rule fAnalysis Of Proposals For Change About 21 percent, or $300 million, of the District of Columbia's operating budget comes from a direct Federal payment. Since 1975, when a locally elected government first took office, --the Federal payment has increased, but it has declined in relation to the total District budget and in purchasing power; --local tax collections have increased by more than inflation, and the tax burden on moderate and upper income households is relatively higher than in surrounding juris- dictions and in other cities; --the District tax base is strong and should continue to almost keep up with inflation without rate increases; and --the Congress has used its power over the Federal payment and the District budget to make changes in programs and to seek im- proved financial management. A new method for making the Federal payment and more consistent fiscal data could help District of Columbia officials manage the city better. Although a formula could be used to determine the payment, other approaches could yield the same benefits. Any change in the Federal payment must be a political decision because of the intricate relationship and divergent interests of the Federal and District Governments. O$D 'ST42,. 40 GGD-81-67 APRIL 23, 1981

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