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CONTENTS

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STATEMENTS

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
Cochran, J. Otis, professor of law, University of Tennessee...

56
Ebel, Robert D., former executive director of the District of Columbia and
Minnesota Tax Revision Commission...

320

Fauntroy, Hon. Walter E., opening statements

26, 165, 245

Greenburg, Paul, chairperson, Americans for Democratic Action, Greater

Washington Chapter on behalf of Statehood Committee of Self-Determina-

tion for the District of Columbia......

207

Hechinger, John W., president, Hechinger Co.

180

Kirk, Paul G., Jr., chairman of the Democratic National Committee, prepared

statement with attached news release.....

216

McKinney, Hon. Stewart B., prepared statement

32
Oulahan, Courts, member of the D.C. Bar and delegate to the D.C. Constitu-
tional Convention, 1981....

115
Prepared statement with attachment

123
Raven-Hansen, Peter, professor of law, George Washington University Law
Center

35
Reuben, Lucy J., vice president, Financial Research Associates, Inc., and
associate professor of finance, George Mason University

310
Rodino, Hon. Peter W., a Representative in Congress from the State of New
Jersey, prepared statement...

168

Saltzburg, Stephen A., professor of law, University of Virginia.

101

Schrag, Philip G., professor of law, Georgetown University

85

Spitzer, Arthur B., legal director, American Civil Liberties Union of the

National Capital area...

219

Watson, Matthew S., Esq., former auditor for the District of Columbia............... 277

MATERIAL SUBMITTED FOR THE RECORD
American Civil Liberties Union Fund of the National Capital area, Arthur B.

Spitzer, legal director; letter to Hon. Walter E. Fauntroy, dated July 21,

1986..

"Financial Implications of Statehood for the District of Columbia: Selected

Issues," report by Financial Research Associates, Inc...

240

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 Co-
lumbia"-have received much attention through hearings conduct-
ed 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 eco-

nomic 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 finan-

cial gains or losses will the District of Columbia experience if it be-

comes a State? More specifically, what effect, if any, will Statehood

have on the Federal payment? How will the taxing authority be af-

fected 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 finan-
cial 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 organiza-
tion; 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 eco-
nomical gains rather than losses.

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