Imágenes de páginas
PDF
EPUB

Table V-5

Federal Funding of District of Columbia Programs: Expected Impact of Statehood

Other Major Programs

(Amounts in Thousands of Dollars)

[blocks in formation]

Expected Impact of Statehood

This is a project grant program available to state and local governments.

Statehood should have no impact.

[blocks in formation]

Data from FY 1987 Budget Schedule, Volume 1, and the 1986 Catalog.

115

The District of Columbia Energy Office receives a number of formula grants to provide low income home energy. The funding level in FY 1986 was $7.2 million, with $6.2 million proposed for FY 1987. All states and the District of Columbia are eligible for the formula grant programs. Thus, statehood should not have an impact.

Table V-5 also includes a U.S. Department of Transportation Grant for Highway Planning Research. The funding level for FY 1986 was $1.1 million, with the same level proposed for FY 1987. This is a project grant program available to state and local governments. Here, also, statehood would have no likely impact.

-0

[merged small][merged small][merged small][ocr errors][merged small]

FINANCIAL IMPLICATIONS OF STATEHOOD FOR THE DISTRICT OF COLUMBIA:

SELECTED ISSUES

by

FINANCIAL RESEARCH ASSOCIATES, INC.

Submitted To

THE DISTRICT OF COLUMBIA STATEHOOD COMMISSION

and

THE DISTRICT OF COLUMBIA STATEHOOD COMPACT COMMISSION

September 1986

SUMMARY AND OVERVIEW

The objective of this study is to provide an analysis of certain issues concerning the economic and financial implications of statehood for the District of Columbia. These issues are directly related to the potential effects of statehood upon the sources of revenues that may be available to the District of Columbia. These issues, also, address the potential incremental costs of statehood.

The primary topic of this study is the role of the federal payment in the fiscal integrity of the proposed state of New Columbia. The study, also addresses the taxing authority and responsibility under statehood and the incremental costs of statehood. In each case, the analysis focuses upon the economic and financial implications of the issue.

This examination of the issues concludes that there will

continue to be a significant role for the federal payment under statehood for the District of Columbia.

There will continue to

exist conceptual rationale for such a payment, and there will continue to be a need for such a payment. Further, there needs to be more predictability in the amount of any such payment. Either a formula determination or a tie to a constant dollar

amount would provide such predictability.

However, if the state of New Columbia is granted the full

fiscal and taxing authority of other states, the federal payment

may not have to grow as large as might otherwise be the case. Furthermore, as most of the mechanisma of statehood are already in place, the transition costs, which are one time costs, may be adequately borne by the residents. The only significant

additional aspect of the overall administrative and regulatory structure is an anticiapated judicial and prosecutorial division. In general, the government of the District of Columbia already successfully assumes several of the functions of municipalities

and states.

N

« AnteriorContinuar »