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rrSTnICTED - Not to fe relcasp otsde the General
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S°WAZT - lllIII Ci13
LM101785
B-] 41529 DEC 2 1376
To the Chairman, Subcommittee on Commerce,
Housing, and Transportation and theRELEASED
Chairman, Subcommittee on Fiscal Affairs
Committee on the Dis:rct of Columbi
House of Representatives
In your letter of December 2, 1975, you requested
S --a iegal'opinion on the binding nature of the agree-
ments between the Washingtor Metropolitan Area Transit
Authority and local governments to make capital con-
L44 tributions and payments for operating subsidies and
-_ the Authority's obligation to refund capital contri-
butions if the enti~e adopted regional rail system
is not completed;
--an analysis of the Authority's estimates of bus and
rail operating deficits in its budgets for fiscal
years 1977 through 1980, including an anfaiysis of
cost savings made possible by the reduction in the
hours and levels of service; and
--our suggestion regarding reporting formats to pro-
vide visibility for (1) bus and rail operations and
(2) the position of the various funds administered
by the Authority.
On April 26, 1976, we responded to your request for a
legal opinion on the binding nature of agreements with local
governments, stating that there are substantial questions as
to whether the agreements are legally enforceable.
Regarding the Authority's estimated bus and rail oper-
ating deficits for fiscal years 1977 through 1980, we believe
a comprehensive report on the system's status, funding and
possible alternatives for financing its capital cost and
operating deficits should be prepared. We intend to provide
a report covering these subjects to the Congress early in
calendar year 1977.
With respect to your request reqarding reporting formats
for bus and rail operations and the position of various funds
adminaistered by the Washington Metropolitan Area Transit Au-
thority, a uniform reporting systein has been developed by
PRAn-77-16](ViewImageLocal?handle=hein.gao/gaobaavri0001&div=1&collection=&method=preview&ext=.png&size=3)