About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-202915 1 (1981-06-10)

handle is hein.gao/gaobabjbv0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 20548 B-202915 June 10, 1981 The Honorable William V. RothDo>Jit make avai l bi.... i a- Chairman, Committee on Governmental Affairs United States Senate Dear Mr. Chairman: Your March 31, 1931, letter requested our fviews on S.7447 a bill to authorize the District of Columbia to issue and sell general obligation bonds for the purpose of paying certain lia- bilities of the District, and for other purposes. You asked for any recommendations we might have concerning possible Com- mittee action. Whether the District should be authorized to issue and sell general obligation bonds to pay current liabilities and thus finance part of the accumulated operating deficit is a matter of congressional prerogative, and we make no recommendations in that regard. However, we have some observations for considera- tion during your deliberations on this issue. The District estimates that debt service totalling about $400 million would be required to repay the $184 million ini- tially borrowed. A significant amount of operating revenue--an estimated $20 million a year--would have to be dedicated for a substantial future period--20 years. Decisions to commit a city to this type of financing are usually reserved for capital pro- jects with a useful life at least as long as the term of the obligation involved. Only a portion of the reported accumulated'deficit as of September 30, 1930, constitutes a cash need. The proposed legislation recognizes three items that we previously identi- fied as not constituting a cash need, namely; interest, accrued annual leave, and taxes, and eliminates these items from the $388 million accumulated deficit, to arrive at the $184 million amount which would be financed from bonds. If the intent is to restrict the amount of the bonds au- thorized to the cash shortfall associated with the deficit, there are other current liabilities which are similar to the liabilities excluded by the proposed bill. 67,2-30

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most