Oversight Committee Advances Legislation to Help D.C. Schools, Protect D.C. Govt. Services from Shutdown

July 24, 2013

WASHINGTON – Today, the House Oversight and Government Reform Committee advanced H.R. 2793, the District of Columbia Financial Efficiency Act by unanimous consent. The legislation was introduced yesterday by Committee Chairman Darrell Issa, R-Calif., in response to ongoing financial management and efficiency concerns in D.C.

“These simple reforms will improve the financial management of the District of Columbia government, particularly in regard to protecting schools and other critical services in the D.C. government when Congress and the President can’t reach agreement on federal funding,” said Issa. “I thank Congresswoman Norton for her help on this legislation, and look forward working with her further.”

This legislation does three things:

  1. Allows flexibility for DC to set its own fiscal year.  Currently, the city is tied to the federal fiscal year—October to September.  DC has requested a July to June fiscal year like all other states and localities to help prepare funding for the school year;
  1. Protects City Services Against Effects of Federal Government Shut Down. In the event Congress fails to pass a DC spending bill – or any other federal spending bill that addresses DC’s budget, e.g. a continuing resolution – on the date of the new fiscal year, DC would be allowed to spend its local funds– that is dollars they raise via taxes and fees– as approved through their budgeting process.  Any existing funding restrictions approved in the last federal spending bill would still apply to DC’s local dollars.  As soon as the next federal spending bill is signed into law, DC would then be subject to any additional restrictions that bill placed on them; and
  1. Tie Maximum Salary of Chief Financial Officer to Senior Federal Executives: D.C. is currently engaged in a nationwide search for a new CFO. The bill would allow the maximum annual salary for the CFO to be the equivalent of the max compensation for an SES employee, which is the Vice President’s salary $230,700.  It does not set the salary at that level, only places a ceiling on what DC can pay the CFO.

Chairman Issa has pledged to continue working with Congresswoman Norton and City officials on the proposal as it advances this Congress.

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