Skip to main content

District of Columbia: Structural Imbalance and Management Issues

GAO-03-666 Published: May 22, 2003. Publicly Released: Jun 05, 2003.
Skip to Highlights

Highlights

District officials have recently reported both a budget gap and a more permanent structural imbalance between costs and revenue raising capacity. They maintain that the structural imbalance largely stems from the federal government's presence and restrictions on the District's tax base. Accordingly, at various times District officials have asked the Congress for additional funds and other measures to enhance revenues. In a preliminary September 2002 report, GAO concluded that the District had not provided sufficient data and analysis to discern whether, or to what extent, it is facing a structural imbalance. At that time, GAO also agreed to perform a more comprehensive analysis and was asked to (1) determine whether, or to what extent, the District faces a structural imbalance between its revenue capacity and its public service responsibilities, (2) identify any significant constraints on the District's revenue capacity, (3) discuss factors beyond the control of District officials that influence the District's spending in key program areas as well as factors within its control, such as management problems, and (4) report on the District's deferred infrastructure projects and outstanding debt service and related expenses that might be affected by a structural imbalance. The District concurred with our key findings.

Full Report

Media Inquiries

Sarah Kaczmarek
Managing Director
Office of Public Affairs

Public Inquiries

Topics

Balanced budgetsEconomic analysisFinancial managementFiscal policiesIntergovernmental fiscal relationsInternal controlsMedicaidExpenditure of fundsBudget deficitFederal property