CONTENTS Staff summary of findings and conclusions. H.R. 325 (by Mr. Fauntroy) to provide for the admission of the State of New Ebel, Robert D., former executive director of the District of Columbia and Bograd, Louis, law firm of Arnold & Porter, Washington, DC, accompanied by Charles I. Cassell, president, D.C. Statehood Constitutional Convention.... 110, 111 Brimmer, Andrew F., president, Brimmer & Co., Inc........... 250 56 320 Greenburg, Paul, chairperson, Americans for Democratic Action, Greater Washington Chapter on behalf of Statehood Committee of Self-Determina- Hechinger, John W., president, Hechinger Co. 180 Kirk, Paul G., Jr., chairman of the Democratic National Committee, prepared 216 McKinney, Hon. Stewart B., prepared statement 32 Oulahan, Courts, member of the D.C. Bar and delegate to the D.C. Constitu- 115 Prepared statement with attachment. 123 Raven-Hansen, Peter, professor of law, George Washington University Law 35 Reuben, Lucy J., vice president, Financial Research Associates, Inc., and 310 MATERIAL SUBMITTED FOR THE RECORD American Civil Liberties Union Fund of the National Capital area, Arthur B. "Financial Implications of Statehood for the District of Columbia: Selected In the American Tradition: An Analysis of the Proposed Constitution of the State of New Columbia, a report by the law firm of Arnold & Porter. Statehood for D.C.-Struggle for Democracy Too Long Denied, by Maurice "Fiscal Prospects for the State of New Columbia," report by Brimmer & Co., 575 565 STAFF SUMMARY OF FINDINGS AND CONCLUSIONS For the past two Congresses, H.R. 325, and its predecessor, H.R. 3861-bills which would grant "Statehood for the District of Columbia"-have received much attention through hearings conducted by the Committee on the District of Columbia. In an effort to exhaustively address the concerns of those who are of the opinion that the District cannot afford to be a State, as well as those who argue that the District can no longer afford not to be a State, this hearing, in its entirety, centered around the economic and fiscal prospects of the District if it were to become the State of New Columbia. The controlling issues of the hearing were as follow: What financial gains or losses will the District of Columbia experience if it becomes a State? More specifically, what effect, if any, will Statehood have on the Federal payment? How will the taxing authority be affected by Statehood? Will the District, as a State, be treated any differently than the current government for purposes of Federal grants and loans? And finally, what are the expected transitional costs of statehood? A thorough examination of each of these issues was conducted through a study undertaken by a renowned economist and financial consultant who is also a former member of the Federal Reserve Board. Additionally, testimony was received from a former auditor for the District of Columbia; from one who serves as vice president of Financial Research Associates, Inc., a private research organization; from the former executive director of the Minnesota Tax Study Commission; and a former executive director of the District of Columbia Tax Revision Commission. The unanimous conclusion by each of the witnesses was, on the whole, as a State, the District would experience financial and economical gains rather than losses. (V) HEARING ON CONSTITUTIONAL ISSUES RAISED BY STATEHOOD FOR THE DISTRICT OF COLUMBIA-H.R. 325-A BILL TO PROVIDE FOR THE ADMISSION OF THE STATE OF NEW COLUMBIA INTO THE UNION TUESDAY, MAY 13, 1986 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON FISCAL AFFAIRS AND HEALTH, COMMITTEE ON THE DISTRICT OF COLUMBIA, Washington, DC. The subcommittee met, pursuant to call, at 10 a.m., in room 1310, Longworth House Office Building, Hon. Walter E. Fauntroy (chairman of the subcommittee) presiding. Present: Representative Fauntroy. Also present: Johnny Barnes, senior staff counsel; John Gnorski, minority staff director; Stephanie A. White, minority counsel; and Shahid Z. Abdullah, minority staff assistant. [The bill, H.R. 325, along with a section-by-section outline follow:] (1) |