Feds to Go Local in D.C.

January 14, 1997

Feds to Go Local in D.C.

Under a new plan proposed by President Clinton, several federal agencies would take over the operation of District of Columbia services, including local tax collection, prisons, and road maintenance.

Citing the severe budget windfalls and declining services the city government faces, Clinton called for indefinite federal takeover of some services in return for eliminating the $660 million annual federal payment to the District. That payment is intended to compensate the city for the property taxes it doesn't get because of the large federal presence in the city.

According to a report in The Washington Post, a senior Clinton Administration official said the plan would provide $773 million in additional funds to the District over five years and increase the federal budget deficit by $339 million. The U.S. would assume responsibility for the District's burgeoning pension plan for retired city workers, cover a larger portion of the city's high Medicaid bills, spend over $1 billion for street repairs, finance the $500 million budget deficit the city faces, and assume the costs of running the D.C. prison system.

The Internal Revenue Service will collect the city's taxes and the Justice Department will run the city's prisons. Other agencies will manage road repairs.

What will happen to the city employees who now perform those services has not yet been determined.

Congress must approve Clinton's plan for it to take effect.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.


When you download a report, your information may be shared with the underwriters of that document.