Norton Bill for Mid-Year Budget Autonomy Goes to President for Signature - September 25, 2006

Norton Bill for Mid-Year Budget Autonomy Goes to President for Signature
September 25, 2006

Washington, DC—Congresswoman Eleanor Holmes Norton (D-DC) today said a major bill to assist the District of Columbia in carrying out timely and critical operational responsibilities received final approval as a result of House passage this evening and is on its way to the President for his signature. The D.C. Omnibus Authorization Act, sponsored by Norton and Government Reform Committee Chairman Tom Davis (R-VA), includes permanent mid-year budget autonomy in a collection of crucial provisions that have been approved or passed by the District, but must come to Congress before becoming law. Norton said that the most important Omnibus Authorization provision, long sought by the District since Home Rule was granted, allows the city to spend local funds without coming back to Congress for approval through the congressional mid-year supplemental appropriations process. Norton convinced appropriators to implement this critical change for the first time beginning this year, but the provision in today’s bill is needed to authorize mid-year budget autonomy permanently. “This is the first structural change in the original Home Rule Act since it was enacted 40 years ago. It takes us close to budget autonomy, my priority for next session, especially if the Democrats take back the Congress.” Norton said, “It is impossible to overestimate the hardship to this or any city of being unable to carry on normal business and engage in fiscal transactions--from spending local revenue already in the bank for vital city needs to floating baseball stadium bonds-- without coming to Congress. Budget autonomy from the congressional supplemental process essentially enacts part of the D.C. Budget Autonomy Act that Chairman Davis and I have introduced to give the District greater freedom from the annual congressional appropriations process that redundantly requires the District’s balanced budget to come to the Congress before it becomes effective.”

The Omnibus Act includes many other vital provisions, including one that Norton fought especially hard for, giving greater city control and use of reserve funds--up to 50 percent--with specific procedures for reimbursement. Norton said that the District’s sound fiscal practices, along with limitations required by Congress, have led to an impressive reserve fund. However, Norton said, “Residents watched the neglect of basic services, and continued to send their children to dilapidated public school buildings while the District grew an ever larger reserve fund that could not be tapped.” As a result of Norton’s work with appropriators last year, D.C. already is spending part of its reserves that had been piling up.

Both the House and the Senate approved an Omnibus Authorization bill earlier this session. However, the House needed to approve the Senate version that added provisions not in the House bill. The new provisions include: a change in the fiscal year that the District of Columbia Public Schools requested; permission for the D.C. libraries to accept gifts (currently only the Mayor's office can receive them); enhanced dental and vision benefits for court employees; and a requirement that within one year of congressional passage, the District must start using a metered system for taxicabs, unless the Mayor signs an executive order opting out.