Part B. Establishment and Enforcement of Financial Plan and Budget for District Government.

§ 47–392.01. Development of financial plan and budget for District of Columbia.

(a) Development of financial plan and budget. — For each fiscal year for which the District government is in a control period, the Mayor shall develop and submit to the Authority a financial plan and budget for the District of Columbia in accordance with this section.

(b) Contents of financial plan and budget. — A financial plan and budget for the District of Columbia for a fiscal year shall specify the budgets for the District government under part D of title IV of the District of Columbia Home Rule Act [§§ 1-204.41 through 1-204.56e] for the applicable fiscal year and the next 3 fiscal years (including the projected revenues and expenditures of each fund of the District government for such years), in accordance with the following requirements:

(1) The financial plan and budget shall meet the standards described in subsection (c) of this section to promote the financial stability of the District government.

(2) The financial plan and budget shall provide for estimates of revenues and expenditures on a modified accrual basis.

(3) The financial plan and budget shall:

(A) Describe lump sum expenditures by department by object class;

(B) Describe capital expenditures (together with a schedule of projected capital commitments of the District government and proposed sources of funding);

(D) Contain cash flow forecasts for each fund of the District government at such intervals as the Authority may require.

(4) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.

(5) The financial plan and budget shall include any other provisions and shall meet such other criteria as the Authority considers appropriate to meet the purposes of this Act, including provisions for changes in personnel policies and levels for each department or agency of the District government, changes in the structure and organization of the District government, and management initiatives to promote productivity, improvement in the delivery of services, or cost savings.

(1) In general. — The standards to promote the financial stability of the District government applicable to the financial plan and budget for a fiscal year are as follows:

(A) In the case of the financial plan and budget for fiscal year 1996, the expenditures of the District government for each fiscal year (beginning with fiscal year 1998) may not exceed the revenues of the District government for each such fiscal year.

(B) During fiscal years 1996 and 1997, the District government shall make continuous, substantial progress towards equalizing the expenditures and revenues of the District government for such fiscal years (in equal annual installments to the greatest extent possible).

(C) The District government shall provide for the orderly liquidation of the cumulative fund balance deficit of the District government, as evidenced by financial statements prepared in accordance with generally accepted accounting principles.

(D) If funds in accounts of the District government which are dedicated for specific purposes have been withdrawn from such accounts for other purposes, the District government shall fully restore the funds to such accounts.

(E) The financial plan and budget shall assure the continuing long-term financial stability of the District government, as indicated by factors including access to short-term and long-term capital markets, the efficient management of the District government’s workforce, and the effective provision of services by the District government.

(2) Application of sound budgetary practices. — In meeting the standards described in paragraph (1) of this subsection with respect to a financial plan and budget for a fiscal year, the District government shall apply sound budgetary practices, including reducing costs and other expenditures, improving productivity, increasing revenues, or combinations of such practices.

(3) Assumptions based on current law. — In meeting the standards described in paragraph (1) of this subsection with respect to a financial plan and budget for a fiscal year, the District government shall base estimates of revenues and expenditures on Federal law as in effect at the time of the preparation of the financial plan and budget.

(Apr. 17, 1995, 109 Stat. 108, Pub. L. 104-8, § 201; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 779, Pub. L. 105-33, § 11602(a).)

Prior Codifications

1981 Ed., § 47-392.1.

Section References

This section is referenced in § 2-352.02, § 38-1801.01, § 47-392.02, § 47-392.22, and § 47-393.

Cross References

Budget and financial management, control years, forwarding budgets consistent with financial plan and budget established under this chapter, see § 1-206.03.

D.C. charter schools, long-term reform plan, see § 38-1801.01.

Emergency Legislation

For temporary (90 day) multiyear budget plans for specific programs, see §§ 4002 to 4007 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

References in Text

“This Act,” referred to in subsection (b)(5), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

Editor's Notes

Sections 4402 to 4407 of D.C. Law 14-28 provided:

“Sec. 4402. No later than September 30, 2001, the following agencies and agencies responsible for the following programs, shall submit to the Council of the District of Columbia and to the Chief Financial Officer a multiyear financial plan as required by this title:

“(1) Risk Management programs administered by the Mayor;

“(2) Department of Mental Health; and

“(3) Settlements and Judgments Fund administered by the Corporation Counsel.

“Sec. 4403. The multiyear financial plan required by this title shall detail the projected cost of services for that agency or program for fiscal years 2002 through 2005, and shall be based on a performance plan for the same fiscal years. The multiyear financial plan shall specify reasonable assumptions for inflation, personal service levels, and wage increases, and identify all budgetary assumptions being used. The multiyear financial plan shall calculate and specify the cost per fiscal year to achieve the objectives and goals set forth in the performance plan.

“Sec. 4404. (a) For the purposes of this title, ‘performance plan’ is a detailed statement that includes:

“(1) A mission statement—a broad statement of central purpose;

“(2) Objectives—less broad statements of desired outcomes resulting from accomplishing the mission; and

“(3) Goals—target levels of performance expressed in tangible, measurable terms, against which actual achievement of objectives can be compared; a goal may be expressed as a population target, or as a quantitative standard, value, or rate.

“(b) The performance plan shall describe the strategy for how the mission (including its objectives and goals) will be accomplished. This description of strategy shall include all of the functions, activities, operations, and projects required for effective implementation of the performance plan. There shall be one or more measures of performance, that address both quantity and quality, for each goal. The performance plan shall state measurable or objective performance goals and objectives for all significant activities of the agency or program. The plan shall identify(describe and quantify) the classes of persons to be served and how(qualitatively and quantitatively) those classes will change as a result of the mission, objectives, and goals.

“(c) The performance plan shall also provide national norms, industry standards, typical benchmarks, performance measures from other cities, or other relevant comparative data.

“(d) An agency which prepared a performance plan pursuant to Title XLIV of the Fiscal Year 2001 Budget Support Act of 2000, effective October 19, 2000 (D.C. Law 13-172; 47 DCR 6308), in the previous fiscal year shall also provide an analysis of the agency’s performance vis-à-vis its performance plan.

“Sec. 4405. The multiyear financial plan shall include all funds, including local and federal funds.

“Sec. 4406. For each of the agencies specified in section 4402, the performance plan shall detail how the agency or program will provide improved service delivery that:

“(1) Fulfills its mission (including objectives and goals);

“(2) Reduces expenditures, especially from local funds; and

“(3) Creates operational efficiencies to accomplish this.

“Sec. 4407. The Chief Financial Officer shall have the authority to require greater specificity in the multiyear plan prior to submission, and to work with agencies to improve their submission.”

§ 47–392.02. Process for submission and approval of financial plan and annual District budget.

(a) Submission of preliminary financial plan and budget by Mayor. — Not later than the February 1 preceding a fiscal year for which the District government is in a control period, the Mayor shall submit to the Authority and the Council a financial plan and budget for the fiscal year which meets the requirements of § 47-392.01.

(b) Review by authority. — Upon receipt of the financial plan and budget for a fiscal year from the Mayor under subsection (a) of this section, the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this part.

(1) Certification to Mayor. —

(A) In general. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) of this section meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Mayor shall promptly submit the financial plan and budget to the Council pursuant to § 1-204.42.

(B) Deemed approval after 30 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, and Congress with a notice certifying approval under subparagraph (A)(i) of this paragraph or a statement of disapproval under subsection (d)(1) of this section upon the expiration of the 30-day period which begins on the date the Authority receives the financial plan and budget from the Mayor under subsection (a) of this section, the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 30-day period described in sub-subparagraph (i) of this subparagraph.

(2) Adoption of financial plan and budget by Council after receipt of approved financial plan and budget. — Notwithstanding the first sentence of § 1-204.46, not later than 30 days after receiving the financial plan and budget for the fiscal year from the Mayor under paragraph (1)(A)(ii) of this subsection, the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit such financial plan and budget to the Mayor and the Authority.

(3) Review of Council financial plan and budget by Authority. — Upon receipt of the financial plan and budget for a fiscal year from the Council under paragraph (2) of this subsection (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under § 1-204.04(f)), the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this part.

(4) Results of Authority review of Council’s initial financial plan and budget. —

(A) Approval of Council’s initial financial plan and budget. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph (2) of this subsection meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under § 1-204.46.

(B) Disapproval of Council’s initial budget. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph (2) of this subsection does not meet the requirements applicable under § 47-392.01, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor, the Council, the President, and Congress with a statement containing:

(i) The reasons for such disapproval;

(ii) The amount of any shortfall in the budget or financial plan; and

(iii) Any recommendations for revisions to the budget the Authority considers appropriate to ensure that the budget is consistent with the financial plan and budget.

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (A)(i) of this paragraph or a statement of disapproval under subparagraph (B) of this paragraph upon the expiration of the 15-day period which begins on the date the Authority receives the financial plan and budget from the Council under paragraph (2) of this subsection, the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in sub-subparagraph (i) of this subparagraph.

(5) Authority review of Council’s revised financial plan and budget. —

(A) Submission of Council’s revised financial plan and budget. — Not later than 15 days after receiving the statement from the Authority under paragraph (4)(B) of this subsection, the Council shall promptly by Act adopt a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority’s disapproval cited in the statement, and shall submit such financial plan and budget to the Mayor and the Authority.

(B) Approval of Council’s revised financial plan and budget. — If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) of this paragraph in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under § 1-204.46.

(i) In general. — If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) of this paragraph in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget does not meet the applicable requirements under § 47-392.01, the Authority shall:

(I) Disapprove the financial plan and budget;

(II) Provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval and describing the amount of any shortfall in the financial plan and budget; and

(III) Approve and recommend a financial plan and budget for the District government which meets the applicable requirements under § 47-392.01, and submit such financial plan and budget to the Mayor, the Council, the President, and Congress.

(ii) Transmission of rejected financial plan and budget. — The Council shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Mayor for transmission to the President and Congress under § 1-204.46.

(D) Deemed approval after 15 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) of this paragraph or a statement of disapproval under subparagraph (C) of this paragraph upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Council under subparagraph (A) of this paragraph, the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in sub-subparagraph (i) of this subparagraph.

(6) Deadline for transmission of financial plan and budget by Authority. — Notwithstanding any other provision of this section, not later than the June 15 preceding each fiscal year which is a control year, the Authority shall:

(A) Provide Congress with a notice certifying its approval of the Council’s initial financial plan and budget for the fiscal year under paragraph (4)(A) of this subsection;

(B) Provide Congress with a notice certifying its approval of the Council’s revised financial plan and budget for the fiscal year under paragraph (5)(B) of this subsection; or

(C) Submit to Congress an approved and recommended financial plan and budget of the Authority for the District government for the fiscal year under paragraph (5)(C) of this subsection.

(d) Action upon disapproval of Mayor’s preliminary financial plan and budget. —

(1) Statement of disapproval. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) of this section does not meet the requirements applicable under § 47-392.01, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor and the Council with a statement containing:

(A) The reasons for such disapproval;

(B) The amount of any shortfall in the financial plan and budget; and

(C) Any recommendations for revisions to the financial plan and budget the Authority considers appropriate to ensure that the financial plan and budget meets the requirements applicable under § 47-392.01.

(2) Authority review of Mayor’s revised financial plan and budget. —

(A) Submission of Mayor’s revised financial plan and budget. — Not later than 15 days after receiving the statement from the Authority under paragraph (1) of this subsection, the Mayor shall promptly submit to the Authority and the Council a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority’s disapproval cited in the statement.

(B) Approval of Mayor’s revised financial plan and budget. — If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) of this paragraph meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Mayor shall promptly submit the financial plan and budget to the Council pursuant to § 1-204.42.

(i) In general. — If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) of this paragraph does not meet the requirements applicable under § 47-392.01, the Authority shall:

(I) Disapprove the financial plan and budget;

(II) Shall provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval; and

(III) Recommend a financial plan and budget for the District government which meets the requirements applicable under § 47-392.01 and submit such financial plan and budget to the Mayor and the Council.

(ii) Submission of rejected financial plan and budget. — The Mayor shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Council pursuant to § 1-204.42.

(D) Deemed approval after 15 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) of this paragraph or a statement of disapproval under subparagraph (C) of this paragraph upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Mayor under subparagraph (A) of this paragraph, the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in sub-subparagraph (i) of this subparagraph.

(3) Action by Council. —

(A) Adoption of financial plan and budget. — Notwithstanding the first sentence of § 1-204.46, not later than 30 days after receiving the Mayor’s approved revised financial plan and budget for the fiscal year under paragraph (2)(B) of this subsection or (in the case of a financial plan and budget disapproved by the Authority) the financial plan and budget recommended by the Authority under paragraph (2)(C)(i)(III) of this subsection, the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit the financial plan and budget to the Mayor and the Authority.

(B) Review by Authority. — The financial plan and budget submitted by the Council under subparagraph (A) of this paragraph shall be subject to review by the Authority and revision by the Council in the same manner as the financial plan and budget submitted by the Council after an approved preliminary financial plan and budget of the Mayor under paragraphs (3), (4), (5), and (6) of subsection (c) of this section.

(e) Revisions to financial plan and budget. —

(1) Permitting Mayor to submit revisions. — The Mayor may submit proposed revisions to the financial plan and budget for a control year to the Authority at any time during the year.

(2) Process for review, approval, disapproval, and Council action. — Except as provided in paragraph (3) of this subsection, the procedures described in subsections (b), (c), and (d) of this section shall apply with respect to a proposed revision to a financial plan and budget in the same manner as such procedures apply with respect to the original financial plan and budget, except that subparagraph (B) of subsection (c)(1) (relating to deemed approval by the Authority of a preliminary financial plan and budget of the Mayor) shall be applied as if the reference to the term “30-day period” were a reference to “20-day period”.

(3) Exception for revisions not affecting appropriations. — To the extent that a proposed revision to a financial plan and budget adopted by the Council pursuant to this subsection does not increase the amount of spending with respect to any account of the District government, the revision shall become effective upon the Authority’s approval of such revision (subject to review by Congress under § 1-206.02(c)).

(f) Inclusion of operating funds in the capital improvements plan. —

(1) Each year's approved budget and financial plan shall include operating funds in the capital improvements plan at one of the following minimum levels:

(A) In each fiscal year included in the capital improvements plan, at least the amount reported for additions to total accumulated depreciation of capital assets (not including additions due to right-to-use assets) in the most recent annual comprehensive financial report for the District;

(B) Cumulatively in all fiscal years included in the capital improvements plan, at least 6 times the amount reported for additions to total accumulated depreciation of capital assets (not including additions due to right-to-use assets) in the most recent annual comprehensive financial report for the District; or

(i) Five times the amount reported for additions to total accumulated depreciation of capital assets (not including additions due to right-to-use assets) in the most recent annual comprehensive financial report for the District of Columbia; plus

(ii) $206 million.

(2) For the purposes of this subsection, the term operating funds means local funds, dedicated funds, special purpose revenue (other) funds, or enterprise funds, or federal funds received by the District government pursuant to the Infrastructure Investment and Jobs Act, approved November 15, 2021 (Pub. L. No. 117-58; 135 Stat. 429).

(g) [Omitted]

(h) [Omitted]

(i) Expedited submission and approval of consensus budget and financial plan. — Notwithstanding any other provision of this section, if the Mayor, the Council, and the Authority jointly develop a financial plan and budget for the fiscal year which meets the requirements applicable under § 47-392.01 and which the Mayor, Council, and Authority certify reflects a consensus among them:

(1) Such financial plan and budget shall serve as the budget of the District government for the fiscal year adopted by the Council under § 1-204.46; and

(2) The Mayor shall transmit the financial plan and budget to the President and Congress under such section.

(j) Reserve funds. —

(1) Budget reserve. —

(A) In general. — For each of the fiscal years 2002 and 2003, the budget of the District government for the fiscal year shall contain a budget reserve in the following amounts:

(i) $120,000,000, in the case of fiscal year 2002.

(ii) $70,000,000, in the case of fiscal year 2003.

(B) Availability of funds. — Any amount made available from the budget reserve described in subparagraph (A) shall remain available until expended.

(C) Availability of fiscal year 2001 budget reserve funds. — For fiscal year 2001, any amount in the budget reserve shall remain available until expended.

(2) Cumulative cash reserve. — In addition to any other cash reserves required under [§ 1-204.50a], for each of the fiscal years 2004 and 2005, the budget of the District government for the fiscal year shall contain a cumulative cash reserve of $50,000,000.

(3) Conditions on use. — The District of Columbia may obligate or expend amounts in the budget reserve under paragraph (1) or the cumulative cash reserve under paragraph (2) only in accordance with the following conditions:

(A) The Chief Financial Officer of the District of Columbia shall certify that the amounts are available.

(B) The amounts shall be obligated or expended in accordance with laws enacted by the Council in support of each such obligation or expenditure.

(C) The amounts may not be used to fund the agencies of the District of Columbia government under court ordered receivership.

(D) The amounts may be obligated or expended only if the Mayor notifies the Committees on Appropriations of the House of Representatives and Senate in writing 30 days in advance of any obligation or expenditure.

(4) Replenishment. — Any amount of the budget reserve under paragraph (1) or the cumulative cash reserve under paragraph (2) which is expended in 1 fiscal year shall be replenished in the following fiscal year appropriations to maintain the required balance.

(j-1) Fiscal Stabilization Reserve Account. —

(1) The Chief Financial Officer shall create a segregated nonlapsing account within the cumulative General Fund of the District of Columbia (“General Fund”) balance to be designated the Fiscal Stabilization Reserve Account.

(2) The Fiscal Stabilization Reserve Account may be used by the Mayor for the following purposes:

(A) Those purposes permitted for use of the Contingency Reserve Fund, specified in § 1-204.50a(b)(4), as certified by the Chief Financial Officer, with approval of the Council by act;

(B) Funding for locally approved expenditures during a lapse in regular appropriations; provided, that any amounts used must be replenished immediately at the conclusion of the lapse;

(C) Funding for the appropriations advance to District of Columbia Public Schools and District of Columbia Public Charter Schools as authorized by the annual budget and financial plan; provided, that any amounts used must be replenished immediately upon the approval of the District's annual budget for that year; and

(D) Funding for locally appropriated expenditures in Fiscal Year 2023.

(2A) The Fiscal Stabilization Reserve Account may be used by the Chief Financial Officer to cover cash flow needs; provided, that any amounts used shall be replenished to the Fiscal Stabilization Reserve Account in the same fiscal year.

(3) At full funding, the Fiscal Stabilization Reserve Account shall be equal to 2.34% of the District’s General Fund operating expenditures for each fiscal year.

(j-2) Cash Flow Reserve Account. —

(1) The Chief Financial Officer shall create a segregated nonlapsing account within the cumulative General Fund balance to be designated the Cash Flow Reserve Account.

(2) The Cash Flow Reserve Account may be used by the Chief Financial Officer to cover the following:

(A) Cash-flow needs; provided, that any amounts used must be replenished to the Cash Flow Reserve Account in the same fiscal year; and

(B) Funding for locally approved expenditures during a lapse in regular appropriations; provided, that any amounts used must be replenished immediately at the conclusion of the lapse.

(3) At full funding, the Cash Flow Reserve Account shall be equal to 10% of the General Fund operating budget for each fiscal year.

(4) [Repealed].

(j-3)(1) Fund Balance Deposit Requirements. — If either of the Fiscal Stabilization Reserve Account or the Cash Flow Reserve Account are below full funding, as specified in, respectively, subsections (j-1) and (j-2) of this section, immediately upon issue of the Annual Comprehensive Financial Report, the Chief Financial Officer shall deposit 50% of the undesignated end-of-year fund balance into each account, or 100% of the end-of-year fund balance into the remaining account that has not reached capacity, to fully fund these accounts to the extent that the undesignated end-of-year fund balance allows.

(2) If, upon the issuance of the Fiscal Year 2025 Annual Comprehensive Financial Report, the Fiscal Stabilization Reserve Account is not fully funded as specified in subsection (j-1)(3) of this section, the Fiscal Year 2027 budget shall allocate a sufficient amount to achieve full funding.

(j-4) [Increase in Fiscal Stabilization Reserve Account]. — If amounts required for the Emergency Cash Reserve Fund or the Contingency Reserve Fund pursuant to § 1-204.50a are reduced, the amount required to be deposited in Fiscal Stabilization Reserve Account shall be increased by a like amount.

(j-5) [Use of Remaining Unrestricted Fund Balance]. — If at the close of a fiscal year, the District has fully funded the Emergency, Contingency, Fiscal Stabilization, and Cash Flow Reserves, all additional uncommitted amounts in the unrestricted fund balance of the General Fund of the District of Columbia as certified by the Annual Comprehensive Financial Report shall be used for the following purposes; except, that at the close of Fiscal Year 2022, $113 million of such additional uncommitted amounts instead shall be transferred to the District Unemployment Fund, established by § 51-102:

(1) 50% shall be deposited in the Housing Production Trust Fund; and

(2) 50% shall be committed in the General Fund balance for Pay-As-You-Go Capital, to be transferred to the General Capital Improvements Fund upon appropriation to specific capital projects.

(k) Positive fund balance. — [Repealed].

(l) [DC Streetcar and Integrated Premium Transit System defined]. — [Repealed].

(Apr. 17, 1995, 109 Stat. 109, Pub. L. 104-8, § 202; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 779, Pub. L. 105-33, § 11603(b); Oct. 21, 1998, 112 Stat. 2681, Pub. L. 105-277, § 155; Apr. 20, 1999, D.C. Law 12-264, § 52(g), 46 DCR 2118; Nov. 29, 1999, 113 Stat. 1523, Pub. L. 106-113, § 148; Nov. 22, 2000, 114 Stat. 2440, Pub. L. 106-522, § 159(b); Dec. 21, 2001, 115 Stat. 923, Pub. L. 107-96,§ 133(a); Mar. 25, 2009, D.C. Law 17-360, § 2(d), 56 DCR 1200; Mar. 3, 2010, D.C. Law 18-111, § 7211(c), 57 DCR 181; Sept. 24, 2010, D.C. Law 18-223, § 7162, 57 DCR 6242; Apr. 8, 2011, D.C. Law 18-370, § 792, 58 DCR 1008; Sept. 14, 2011, D.C. Law 19-21, § 7012(a)(3), 58 DCR 6226; Sept. 20, 2012, D.C. Law 19-168, § 8008, 59 DCR 8025; Dec. 24, 2013, D.C. Law 20-61, § 8022, 60 DCR 12472; Feb. 26, 2015, D.C. Law 20-155, §§ 1042, 6033, 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 8032, 62 DCR 10905; Oct. 8, 2016, D.C. Law 21-160, §§ 6053, 7142, 63 DCR 10775; Dec. 13, 2017, D.C. Law 22-33, § 8052, 64 DCR 7652; Mar. 19, 2020, D.C. Law 23-68, § 12(a), 67 DCR 743; Nov. 13, 2021, D.C. Law 24-45, § 7102, 68 DCR 010163; Sept. 21, 2022, D.C. Law 24-167, §§ 7022, 7032, 69 DCR 009223; Sept. 6, 2023, D.C. Law 25-50, § 7032, 70 DCR 10366; Sept. 18, 2024, D.C. Law 25-217, §§ 7092, 7233, 71 DCR 9990.)

Prior Codifications

1981 Ed., § 47-392.2.

Section References

This section is referenced in § 2-352.02, § 39-205.01, § 47-392.03, § 47-392.04, § 47-392.06, § 47-392.08, § 47-393, and § 47-2402.

Effect of Amendments

Public Law 105-33 added (i).

Public Law 105-33 added a second subsection (i).

Public Law 106-113 redesignated the second subsection (i) as subsection (j); and added (k).

Public Law 106-522 rewrote (j)(1); added (j)(4); and repealed (k).

Public Law 107-96 rewrote (j).

D.C. Law 17-360 added subsec. (j-1).

D.C. Law 18-111 substituted “that not less than $25 million” for “that $25 million” in (j-1)(3)(A); and substituted “Cash Reserve, including the $25 million specified in paragraph 3(A) of this subsection,” for “Cash Reserve” in (j-1)(4).

D.C. Law 18-223 rewrote (f) and (j-1); and added (j-2), (j-3), and (j-4).

D.C. Law 18-370 substituted “December 7, 2010” for “May 26, 2010” in (f)(3).

D.C. Law 19-21 substituted “2013” for “2012”; and, in subsec. (f)(3), substituted “May 24, 2011” for “May 26, 2010” in (f)(2).

The 2012 amendment by D.C. Law 19-168 substituted “fiscal year 2016” for “fiscal year 2013” in (f)(2); and substituted “May, 2015” for “May 24, 2011” in (f)(3).

The 2013 amendment by D.C. Law 20-61 added “Beginning in the fiscal year following the completion of the capital construction of the Streetcar Project” in (f)(5)(A); and added (f)(6).

The 2015 amendment by D.C. Law 20-155 rewrote (f)(2); substituted “in May of the previous year” for “May, 2015” in (f)(3); rewrote (j-1)(2) and (j-2)(2); added (j-2)(4); substituted “Fiscal Year 2045” for “the fiscal year following the completion of the capital construction of the Streetcar Project” in (f)(5)(A); rewrote (f)(6); and added (l).

The 2015 amendment by D.C. Law 21-36 substituted “Fiscal Year 2019” for “Fiscal Year 2017” in (f)(2).

Applicability

Section 7033 of D.C. Law 25-50 provided that the amendments to this section by § 7032 of D.C. Law 25-50 shall apply as of June 27, 2023.

Section 7033 of D.C. Act 25-172 provided that the amendments to this section by § 7032 of D.C. Act 25-172 shall apply as of June 27, 2023.

Section 16 of D.C. Law 23-68 provided that the changes made to this section by D.C. Law 23-68 shall apply as of October 1, 2019.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7233 of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 days) amendment of this section, see § 7092 of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 days) amendment of this section, see § 7032 of Fiscal Year 2024 Budget Support Emergency Act of 2023 (D.C. Act 25-172, July 14, 2023, 70 DCR 9933).

For temporary (90 days) amendment of this section, see § 7032 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) amendment of this section, see § 7022 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) amendment of this section, see § 7102 of Fiscal Year 2022 Budget Support Emergency Act of 2021 (D.C. Act 24-159, Aug. 23, 2021, 68 DCR 008602).

For temporary (90 days) amendment of this section, see § 12(a) of Fiscal Year 2020 Budget Support Clarification Second Emergency Amendment Act of 2019 (D.C. Act 23-201, Jan. 22, 2020, 67 DCR 731).

For temporary (90 days) amendment of this section, see § 8052 of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8052 of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) detail of expenditures, see §§ 2 to 4 of Use of the Reserve Funds Omnibus Emergency Act of 2002 (D.C. Act 14-360, April 30, 2002, 49 DCR 4724).

For temporary (90 day) detail of purpose of expenditures, see § 2 of Use of the Fiscal Year 2002 Reserve Funds Emergency Act of 2002 (D.C. Act 14-393, June 25, 2002, 49 DCR 6091).

For the temporary (90 day) reallocation of prior budgeted reserve funds, see § 302 of the Fiscal Year 2003 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-97, June 20, 2003, 50 DCR 5472).

For temporary (90 day) funding allocation for youth development strategy and public safety purposes, see § 401 of Crime Reduction Initiative Emergency Amendment Act of 2006 (D.C. Act 16-491, October 19, 2006, 53 DCR 8818).

For temporary (90 day) amendment of section, see § 7081(c) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section 3a of D.C. Law 17-360, see § 7031 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7211(c) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section 3a of D.C. Law 17-360, see § 7031 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 7211(c) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 7162 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).

For temporary (90 day) amendment of section, see § 791 of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

For temporary (90 day) amendment of section, see § 7012(a)(3) of Fiscal Year 2012 Budget Support Emergency Act of 2011 (D.C. Act 19-93, June 29, 2011, 58 DCR 5599).

For temporary (90 day) amendment of section, see § 8008 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 8008 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

For temporary (90 days) amendment of this section, see § 8022 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of this section, see § 8022 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

For temporary (90 days) amendment of this section, see §§ 1042 and 6043 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see §§ 1042 and 6033 of the Fiscal Year Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see §§ 1042 and 6033 of the Fiscal Year Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 8032 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 day) addition, see § 302 of Fiscal Year 2003 Budget Support Temporary Act of 2003 (D.C. Law 15-25, July 22, 2003, law notification 50 DCR 6095).

Short Title

Short title: Section 7161 of D.C. Law 18-223 provided that subtitle Q of title VII of the act may be cited as the “Sustainable Capital Investment and Fund Balance Restoration Act of 2010”.

Short title: Section 791 of D.C. Law 18-370 provided that subtitle J of title VII of the act may be cited as “Budget Support Act Technical Amendment Act of 2010 Emergency Amendment Act of 2010”.

Section 8021 of D.C. Law 20-61 provided that Subtitle C of Title VIII of the act may be cited as the “Pay-as-you-go Capital Account and Streetcar Funding Dedication Act of 2013”.

References in Text

Section 450A of the District of Columbia Home Rule Act, referred to in subsec. (j)(2), is Pub. L. 93-198, title IV, § 450A, which is classified to § 1-204.50a.

Editor's Notes

Section 133(b) and (c) of Pub. L. 107-96 provided:

“(b) Effective date.—The amendment made by subsection (a) shall take effect October 1, 2001.

Section 794 of D.C. Law 18-370 provided: “Sec. 794. This subtitle shall apply as of January 3, 2011.”

“(c) Conforming amendments.—Section 159(c) of the District of Columbia Appropriations Act, 2001 (Public Law 106-522; 114 Stat. 2482) is amended to read as follows:

“(c) Effective Date. —

“(1) In general.—Except as provided in paragraph (2), this section and the amendments made by this section shall take effect on October 1, 2000.

“(2) Repeal of positive fund balance requirement.—The amendment made by subsection (b)(2) shall take effect October 1, 1999.

“(3) Transfer of funds.—All funds identified by the District government pursuant to section 148 of Public Law 106-113, as reflected in the certified annual financial report for fiscal year 2000, shall be deposited during fiscal year 2002 into the Emergency and Contingency Reserve Funds established pursuant to section 159 of Public Law 106-522, during fiscal year 2002.”

Prior to the addition of (i) by Pub. L. 105-33, (e) was the last subsection of this section. Public Law 105-33 made no disposition with respect to (f), (g), and (h), so those subsections have been set out as “Omitted.”

Application of § 11603(b) of Pub. L. 105-33: Section 11603(c) of title XI of Pub. L. 105-33, 111 Stat. 779, the National Capital Revitalization and Self-Government Improvement Act of 1997, provided that the amendment made by § 11603(b) shall apply with respect to fiscal years beginning with fiscal year 1998.

Section 2002 of D.C. Law 13-38 provided:

“(a) Pursuant to section 155 of the District of Columbia Appropriations Act, 1999, approved October 21, 1998 (Pub. L. No. 105-277; 112 Stat. 2681 171), the District shall have a reserve in the amount of $150 million (‘Reserve’).

“(b) The criteria for spending from this Reserve are to ensure budget balance in case of a shortfall in revenue, or to provide flexibility to fund such expenditures as nonrecurring initiatives that support sustainable and measurable increases in revenues through enhanced service delivery, that reduce costs, that are unforeseen demands on District spending, or that constitute an investment in fostering the District’s economic well-being. The District shall spend the funds from the Reserve in such a way that an appropriate balance is available in the 1st, 2nd, and 3rd quarters to ensure balance between revenues and expenditures at year end. Under no circumstances should the budgeted Reserve serve to provide resources to agencies to allow them to overspend their budget.

“(c) In accordance with the criteria set forth in subsection (b) of this section, funds from the Reserve shall be applied in the following order:

“(1) To ensure budget balance in case of a shortfall in revenue;

“(2) To expenditures that are identified in subsection (d) of this section;

“(3) To expenditures that reduce the District’s long-term debt; and

“(4) To other expenditures that meet the criteria set forth in subsection (b) of this section.

“(d) The following expenditures shall be funded from the reserve in Fiscal Year 2000:

“(1) $60,000 to the Council, to hire an independent consultant to negotiate a contract between the District and the Health and Hospitals Public Benefit Corporation for services for uninsured residents;

“(2) $1,000,000 to the Office of the Mayor, to fund one-time program enhancements;

“(3) $4,100,000 to the Office of the City Administrator, including $1 million in one-time program enhancements and $3.1 million for non-personal services expenditures, to support planning for managed competition, including activity-based costing;

“(4) $3,700,000 to the Department of Employment Services, to fund youth-related programs;

“(5) $5,833,000 to the Department of Consumer and Regulatory Affairs, to fund one-time neighborhood stabilization programs;

“(6) $850,000 to the Department of Corrections, to fund one-time funding for a physical plant;

“(7) $18,000,000 to District of Columbia Public Schools, to fund selected special education placements and the LaShawn Receivership;

“(8) $3,000,000 to the University of the District of Columbia, to fund one-time technology enhancements;

“(9) $1,227,000 to the Public Library, to fund one-time non-personal service increases;

“(10) $1,246,000 to the Department of Human Services, to fund one-time expenditures;

“(11) $996,000 to the Department of Health, to fund one-time expenditures;

“(12) $15,000,000 to the Children and Youth Initiative, to fund one-time program enhancements;

“(13) $5,257,000 to the LaShawn Receiver, including $3,100,000 to fund one-time youth programs, and $2,157,000 to bring it to full funding;

“(14) $1,000,000 to the Mental Health Receiver, to fund one-time expenditures;

“(15) $11,540,000 to the Department of Public Works, to fund one-time program enhancements;

“(16) $1,542,000 to the Department of Motor Vehicles, to fund one-time motor vehicle information system enhancements; and

“(17) $16,050,000 to the Tobacco Settlement Trust Fund, reflecting a transfer to create the Trust Fund.”

Section 3a of D.C. Law 17-360, as added by section 7031 of D.C. Law 18-111, provided:

“Sec. 3a. Applicability.

“Section 2(d) of D.C. Law 17-360 shall take effect subject to the inclusion of its fiscal effect in an approved budget and financial plan.”.

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.

§ 47–392.03. Review of activities of district government to ensure compliance with approved financial plan and budget.

(a) Review of Council acts. —

(1) Submission of acts to Authority. — The Council shall submit to the Authority each act passed by the Council and signed by the Mayor during a control year or vetoed by the Mayor and repassed by two-thirds of the Council present and voting during a control year, and each act passed by the Council and allowed to become effective without the Mayor’s signature during a control year, together with the estimate of costs accompanying such act required under § 1-206.02(c)(3).

(2) Prompt review by Authority. — Upon receipt of an act from the Council under paragraph (1) of this subsection, the Authority shall promptly review the act to determine whether it is consistent with the applicable financial plan and budget approved under this part and with the estimate of costs accompanying the act (described in paragraph (1) of this subsection).

(3) Actions by Authority. —

(A) Approval. — If the Authority determines that an act is consistent with the applicable financial plan and budget, the Authority shall notify the Council that it approves the act, and the Council shall submit the act to Congress for review in accordance with § 1-206.02(c).

(B) Finding of inconsistency. — If the Authority determines that an act is significantly inconsistent with the applicable financial plan and budget, the Authority shall:

(i) Notify the Council of its finding;

(ii) Provide the Council with an explanation of the reasons for its finding; and

(iii) To the extent the Authority considers appropriate, provide the Council with recommendations for modifications to the act.

(4) Effect of finding. — If the Authority makes a finding with respect to an act under paragraph (3)(B) of this subsection, the Council may not submit the act to Congress for review in accordance with § 1-206.02(c).

(5) Deemed approval. — If the Authority does not notify the Council that it approves or disapproves an act submitted under this subsection during the 7-day period (excluding Saturdays, Sundays, and legal holidays) which begins on the first day (excluding Saturdays, Sundays, and legal holidays) after the Authority receives the act from the Council, the Authority shall be deemed to have approved the act in accordance with paragraph (3)(A) of this subsection. At the option of the Authority, the previous sentence shall be applied as if the reference to “7-day period” were a reference to “14-day period” if during such 7-day period the Authority so notifies the Council and the Mayor.

(6) Preliminary review of proposed acts. — At the request of the Council, the Authority may conduct a preliminary review of proposed legislation before the Council to determine whether the legislation as proposed would be consistent with the applicable financial plan and budget approved under this part, except that any such preliminary review shall not be binding on the Authority in reviewing any act subsequently submitted under this subsection.

(b) Effect of approved financial plan and budget on contracts and leases. —

(1) Mandatory prior approval for certain contracts and leases. —

(A) In general. — In the case of a contract or lease described in subparagraph (B) of this paragraph, which is proposed to be entered into by the District government during a control year, the Mayor (or the appropriate officer or agent of the District government) shall submit the proposed contract or lease to the Authority. The Authority shall review each contract or lease submitted under this subparagraph, and the Mayor (or the appropriate officer or agent of the District government) may not enter into the contract or lease unless the Authority determines that the proposed contract or lease is consistent with the financial plan and budget for the fiscal year.

(B) Contracts and leases described. — A contract or lease described in this subparagraph is:

(i) A labor contract entered into through collective bargaining; or

(ii) Such other type of contract or lease as the Authority may specify for purposes of this subparagraph.

(2) Authority to review other contracts and leases after execution. —

(A) In general. — In addition to the prior approval of certain contracts and leases under paragraph (1) of this subsection, the Authority may require the Mayor (or the appropriate officer or agent of the District government) to submit to the Authority any other contract (including a contract to carry out a grant) or lease entered into by the District government during a control year which is executed after the Authority has approved the financial plan and budget for the year under § 47-392.02(c) or (d), or any proposal of the District government to renew, extend, or modify a contract or lease during a control year which is made after the Authority has approved such financial plan and budget.

(B) Review by Authority. — The Authority shall review each contract or lease submitted under subparagraph (A) of this paragraph to determine if the contract or lease is consistent with the financial plan and budget for the fiscal year. If the Authority determines that the contract or lease is not consistent with the financial plan and budget, the Mayor shall take such actions as are within the Mayor’s powers to revise the contract or lease, or shall submit a proposed revision to the financial plan and budget in accordance with § 47-392.02, so that the contract or lease will be consistent with the financial plan and budget.

(3) Special rule for fiscal year 1995. — The Authority may require the Mayor to submit to the Authority any proposal to renew, extend, or modify a contract or lease in effect during fiscal year 1995 to determine if the renewal, extension, or modification is consistent with the budget for the District of Columbia under the District of Columbia Appropriations Act, 1995.

(4) Special rule for contracts subject to Council approval. — In the case of a contract or lease which is required to be submitted to the Authority under this subsection and which is subject to approval by the Council under the laws of the District of Columbia, the Mayor shall submit such contract or lease to the Authority only after the Council has approved the contract or lease.

(5) Application to rules and regulations. — The provisions of this subsection shall apply with respect to a rule or regulation issued or proposed to be issued by the Mayor (or the head of any department or agency of the District government) in the same manner as such provisions apply to a contract or lease.

(1) Submissions of requests to Authority. — If the Mayor submits a request to the Council for the reprogramming of any amounts provided in a budget for a fiscal year which is a control year after the budget is adopted by the Council, the Mayor shall submit such request to the Authority, which shall analyze the effect of the proposed reprogramming on the financial plan and budget for the fiscal year and submit its analysis to the Council not later than 15 days after receiving the request.

(2) No action permitted until analysis received. — The Council may not adopt a reprogramming during a fiscal year which is a control year, and no officer or employee of the District government may carry out any reprogramming during such a year, until the Authority has provided the Council with an analysis of a request for the reprogramming in accordance with paragraph (1) of this subsection.

§ 47–392.04. Restrictions on borrowing by District during control year.

(a) Prior approval required. —

(1) In general. — The District government may not borrow money during a control year unless the Authority provides prior certification that both the receipt of funds through such borrowing and the repayment of obligations incurred through such borrowing are consistent with the financial plan and budget for the year.

(2) Revisions to financial plan and budget permitted. — If the Authority determines that the borrowing proposed to be undertaken by the District government is not consistent with the financial plan and budget, the Mayor may submit to the Authority a proposed revision to the financial plan and budget in accordance with § 47-392.02(e) so that the borrowing will be consistent with the financial plan and budget as so revised.

(3) Borrowing described. — This subsection shall apply with respect to any borrowing undertaken by the District government, including borrowing through the issuance of bonds under part E of title IV of the District of Columbia Home Rule Act [§§ 1-204.61 through 1-204.90], the exercise of authority to obtain funds from the United States Treasury under title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04), or any other means.

(4) Special rules for treasury borrowing during fiscal year 1995. —

(A) No prior approval required during initial period following appointment. — The District government may requisition advances from the United States Treasury under title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04) without the prior approval of the Authority during the 45-day period which begins on the date of the appointment of the members of the Authority (subject to the restrictions described in such title, as amended by subsection (c) of this section).

(B) Criteria for approval during remainder of fiscal year. — The District government may requisition advances described in subparagraph (A) of this paragraph during the portion of fiscal year 1995 occurring after the expiration of the 45-day period described in such subparagraph if the Authority finds that:

(i) Such borrowing is appropriate to meet the needs of the District government to reduce deficits and discharge payment obligations; and

(ii) The District government is making appropriate progress toward meeting its responsibilities under this Act (and the amendments made by this Act).

(b) Deposit of funds obtained through treasury with Authority. —

(1) Automatic deposit during control year. — If the Mayor requisitions funds from the Secretary of the Treasury pursuant to title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04) during a control year (beginning with Fiscal Year 1996), such funds shall be deposited by the Secretary into an escrow account held by the Authority, to be used as follows:

(A) The Authority shall expend a portion of the funds for its operations during the fiscal year in which the funds are requisitioned, in such amount and under such conditions as are established under the budget of the Authority for the fiscal year under § 47-391.06(a).

(B) The Authority shall allocate the remainder of such funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate, consistent with the financial plan and budget for the year and with any other withholding of funds by the Authority pursuant to this Act.

(2) Optional deposit during fiscal year 1995. —

(A) During initial period following appointment. — If the Mayor requisitions funds described in paragraph (1) of this subsection during the 45-day period which begins on the date of the appointment of the members of the Authority, the Secretary of the Treasury shall notify the Authority, and at the request of the Authority shall deposit such funds into an escrow account held by the Authority in accordance with paragraph (1) of this subsection.

(B) During remainder of fiscal year. — If the Mayor requisitions funds described in paragraph (1) of this subsection during the portion of fiscal year 1995 occurring after the expiration of the 45-day period described in subparagraph (A) of this paragraph, the Secretary of the Treasury shall deposit such funds into an escrow account held by the Authority in accordance with paragraph (1) of this subsection at the request of the Authority.

(d) Deposit of borrowed funds with authority. — If the District government borrows funds during a control year, the funds shall be deposited into an escrow account held by the Authority, to be allocated by the Authority to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate, consistent with the financial plan and budget for the year and with any other withholding of funds by the Authority pursuant to this Act.

(e) Expenditure of funds from account in accordance with authority instructions. — Any funds allocated by the Authority to the Mayor from the escrow account described in subsection (b)(1) of this section or the escrow amount described in subsection (d) of this section may be expended by the Mayor only in accordance with the terms and conditions established by the Authority at the time the funds are allocated.

(f) Prohibition against borrowing while suit pending. — The Mayor may not requisition advances from the Treasury pursuant to §§ 47-3401 through 47-3401.04 if there is an action filed by the Mayor or the Council which is pending against the Authority challenging the establishment of or any action taken by the Authority.

(Apr. 17, 1995, 109 Stat. 119, Pub. L. 104-8, § 204; Sept. 30, 1996, 110 Stat. 3009 1456, 1457, Pub. L. 104-208, § 5203(e)(1), (e)(2)(A); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.4.

Section References

This section is referenced in § 1-204.90, § 7-1831.03, § 47-391.06, § 47-392.06, § 47-3401, § 47-3401.01, and § 47-3401.02.

Cross References

Secretary of the Treasury, intermediate-term advances for liquidation of deficit, see § 47-3401.01.

Secretary of the Treasury, provision for short-term advances to District government, see § 47-3401.

Secretary of the Treasury, short-term advances for seasonal cash-flow management, see § 47-3401.02.

References in Text

“This Act,” referred to in subsections (a)(4)(B)(ii) and (b), is the District of Columbia financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

§ 47–392.05. Deposit of annual federal contribution with Authority.

(a) In general. —

(1) Deposit into escrow account. — In the case of a fiscal year which is a control year, the Secretary of the Treasury shall deposit any Federal contribution to the District of Columbia for the year authorized under § 47-3406.02(b) into an escrow account held by the Authority, which shall allocate the funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate to implement the financial plan for the year. In establishing such terms and conditions, the Authority shall give priority to using the Federal contribution for cash flow management and the payment of outstanding bills owed by the District government.

(2) Exception for amounts withheld for advances. — Paragraph (1) of this subsection shall not apply with respect to any portion of the Federal contribution which is withheld by the Secretary of the Treasury in accordance with § 47-3401.03(b)(2) to reimburse the Secretary for advances made under §§ 47-3401 to 47-3401.04(b)(1).

(b) Expenditure of funds from account in accordance with Authority instructions. — Any funds allocated by the Authority to the Mayor from the escrow account described in subsection (a)(1) of this section may be expended by the Mayor only in accordance with the terms and conditions established by the Authority at the time the funds are allocated.

(Apr. 17, 1995, 109 Stat. 131, Pub. L. 104-8, § 205; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 777, Pub. L. 105-33, § 11601(b)(2)(A); Nov. 19, 1997, 111 Stat. 2186, Pub. L. 105-100, § 157(a)(1); Apr. 20, 1999, D.C. Law 12-264, § 52(h), 46 DCR 2118.)

Prior Codifications

1981 Ed., § 47-392.5.

Section References

This section is referenced in § 47-392.06.

Cross References

Security for advances, requirements, see § 47-3401.03.

Effective Dates

Section 157(a)(3) of Pub. L. 105-100, 111 Stat. 2186, the District of Columbia Appropriations Act, 1998, provided that the amendments made by § 157(a) shall take effect as if included in the enactment of Pub. L. 105-33, 111 Stat. 251, the Balanced Budget Act of 1997.

Editor's Notes

Section 11601(b)(2)(A) of Pub. L. 105-33, 111 Stat. 777, the Balanced Budget Act of 1997, repealed this section. However, § 157(a)(1) of Pub. L. 105-100, 111 Stat. 2160, the District of Columbia Appropriations Act, 1998, reenacted and amended this section, effective as if included in the enactment of Pub. L. 105-33.

§ 47–392.06. Effect of finding of non-compliance with financial plan and budget.

(a) Submission of reports. — Not later than 30 days after the expiration of each quarter of each fiscal year (beginning with Fiscal Year 1996), the Mayor shall submit reports to the Authority describing the actual revenues obtained and expenditures made by the District government during the quarter with its cash flows during the quarter, and comparing such actual revenues, expenditures, and cash flows with the most recent projections for these items.

(b) Demand for additional information. — If the Authority determines, based on reports submitted by the Mayor under subsection (a) of this section, independent audits, or such other information as the Authority may obtain, that the revenues or expenditures of the District government during a control year are not consistent with the financial plan and budget for the year, the Authority shall require the Mayor to provide such additional information as the Authority determines to be necessary to explain the inconsistency.

(1) In general. — After requiring the Mayor to provide additional information under subsection (b) of this section, the Authority shall certify to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless:

(A)(i) The additional information provides an explanation for the inconsistency which the Authority finds reasonable and appropriate; or

(ii) The District government adopts or implements remedial action (including revising the financial plan and budget pursuant to § 47-392.02(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget; and

(B) The Mayor agrees to submit the reports described in subsection (a) of this section on a monthly basis for such period as the Authority may require.

(2) Special rule for inconsistencies attributable to acts of Congress. —

(A) Determination by Authority. — If the Authority determines that the revenues or expenditures of the District government during a control year are not consistent with the financial plan and budget for the year as approved by the Authority under § 47-392.02 as a result of the terms and conditions of the budget of the District government for the year as enacted by Congress or as a result of any other law enacted by Congress which affects the District of Columbia, the Authority shall so notify the Mayor.

(B) Certification. — In the case of an inconsistency described in subparagraph (A) of this paragraph, the Authority shall certify to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless the District government adopts or implements remedial action (including revising the financial plan and budget pursuant to § 47-392.02(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget.

(d) Effect of certification. — If the Authority certifies to the Secretary of the Treasury that a variance exists:

(1) The Authority may withhold any funds deposited with the Authority under § 47-392.04(b), § 47-392.04(d) or § 47-392.05(a) which would otherwise be expended on behalf of the District government; and

(2) The Secretary shall withhold funds otherwise payable to the District of Columbia under such federal programs as the Authority may specify (other than funds dedicated to making entitlement or benefit payments to individuals), in such amounts and under such other conditions as the Authority may specify.

§ 47–392.07. Recommendations on financial stability and management responsibility.

(a) In general. — The Authority may at any time submit recommendations to the Mayor, the Council, the President, and Congress on actions the District government or the Federal Government may take to ensure compliance by the District government with a financial plan and budget or to otherwise promote the financial stability, management responsibility, and service delivery efficiency of the District government, including recommendations relating to:

(1) The management of the District government’s financial affairs, including cash forecasting, information technology, placing controls on expenditures for personnel, reducing benefit costs, reforming procurement practices, and placing other controls on expenditures;

(2) The relationship between the District government and the Federal Government;

(3) The structural relationship of departments, agencies, and independent agencies within the District government;

(4) The modification of existing revenue structures, or the establishment of additional revenue structures;

(5) The establishment of alternatives for meeting obligations to pay for the pensions of former District government employees;

(6) Modifications or transfers of the types of services which are the responsibility of and are delivered by the District government;

(7) Modifications of the types of services which are delivered by entities other than the District government under alternative service delivery mechanisms (including privatization and commercialization);

(8) The effects of District of Columbia laws and court orders on the operations of the District government;

(9) The establishment of a personnel system for employees of the District government which is based upon employee performance standards; and

(10) The improvement of personnel training and proficiency, the adjustment of staffing levels, and the improvement of training and performance of management and supervisory personnel.

(b) Response to recommendations for actions within authority of District government. —

(1) In general. — In the case of any recommendations submitted under subsection (a) of this section during a control year which are within the Authority of the District government to adopt, not later than 90 days after receiving the recommendations, the Mayor or the Council (whichever has the Authority to adopt the recommendation) shall submit a statement to the Authority, the President, and Congress which provides notice as to whether the District government will adopt the recommendations.

(2) Implementation plan required for adopted recommendations. — If the Mayor or the Council (whichever is applicable) notifies the Authority and Congress under paragraph (1) of this subsection that the District government will adopt any of the recommendations submitted under subsection (a) of this section, the Mayor or the Council (whichever is applicable) shall include in the statement a written plan to implement the recommendation which includes:

(A) Specific performance measures to determine the extent to which the District government has adopted the recommendation; and

(B) A schedule for auditing the District government’s compliance with the plan.

(3) Explanations required for recommendations not adopted. — If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under paragraph (1) of this subsection that the District government will not adopt any recommendation submitted under subsection (a) of this section which the District government has authority to adopt, the Mayor or the Council shall include in the statement explanations for the rejection of the recommendations.

(1) In general. — If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under subsection (b)(1) of this section that the District government will not adopt any recommendation submitted under subsection (a) of this section which the District government has authority to adopt, the Authority may by a majority vote of its members take such action concerning the recommendation as it deems appropriate, after consulting with the Committee on Government Reform and Oversight of the House of Representatives and the Committee on Governmental Affairs of the Senate.

(2) Effective date. — This subsection shall apply with respect to recommendations of the Authority made after the expiration of the 6-month period which begins April 17, 1995.

(d) Additional power to issue orders, rules, and regulations. —

(1) In general. — In addition to the authority described in subsection (c) of this section, the Authority may at any time issue such orders, rules, or regulations as it considers appropriate to carry out the purposes of this Act and the amendments made by this Act, to the extent that the issuance of such an order, rule, or regulation is within the authority of the Mayor or the head of any department or agency of the District government, and any such order, rule, or regulation shall be legally binding to the same extent as if issued by the Mayor or the head of any such department or agency.

(2) Notification. — Upon issuing an order, rule, or regulation pursuant to this subsection, the Authority shall notify the Mayor, the Council, the President, and Congress.

(3) No judicial review of decision to issue order. — The decision by the Authority to issue an order, rule, or regulation pursuant to this subsection shall be final and shall not be subject to judicial review.

(Apr. 17, 1995, 109 Stat. 133, Pub. L. 104-8, § 207; Sept. 30, 1996, 110 Stat. 3009 1457, Pub. L. 104-208, § 5203(f); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.7.

Section References

This section is referenced in § 47-391.01 and § 47-395.

References in Text

“This Act,” referred to in subsection (d)(1), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

Editor's Notes

Council Response to the District of Columbia Financial Responsibility and Management Assistance Authority Regulatory Reform Section 207 Recommendations Emergency Resolution of 1998: Pursuant to Resolution 12-673, effective August 24, 1998, the Council responded, on an emergency basis, to the regulatory reform section 207 recommendations made by the District of Columbia Financial Responsibility and Management Assistance Authority.

§ 47–392.08. Special rules for Fiscal Year 1996.

(a) Adoption of transition budget. — Notwithstanding any provision of § 47-392.02 to the contrary, in the case of Fiscal Year 1996, the following rules shall apply:

(1) Not later than 45 days after the appointment of its members, the Authority shall review the proposed budget for the District of Columbia for such fiscal year submitted to Congress under § 1-204.46 (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under § 1-204.04(f) and the multiyear plan for the District of Columbia prepared pursuant to § 1-204.43, and shall submit any recommendations for modifications to such financial plan and budget to promote the financial stability of the District government to the Mayor, the Council, the President, and Congress.

(2) Not later than 15 days after receiving the recommendations of the Authority submitted under paragraph (1) of this subsection, the Council (in consultation with the Mayor) shall promptly adopt a revised budget for the fiscal year (in this section referred to as the “transition budget”), and shall submit the transition budget to the Authority, the President, and Congress.

(3) Not later than 15 days after receiving the transition budget from the Council under paragraph (2) of this subsection, the Authority shall submit a report to the Mayor, the Council, the President, and Congress analyzing the budget (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under § 1-204.04(f), and shall include in the report such recommendations for revisions to the transition budget as the Authority considers appropriate to promote the financial stability of the District government during the fiscal year.

(b) Financial plan and budget. —

(1) Deadline for submission. — For purposes of § 47-392.02, the Mayor shall submit the financial plan and budget for Fiscal Year 1996 as soon as practicable after April 17, 1995 (in accordance with guidelines established by the Authority).

(2) Adoption by Council. — In accordance with the procedures applicable under § 47-392.02 (including procedures providing for review by the Authority):

(A) The Council shall adopt the financial plan and budget for the fiscal year (including the supplemental budget incorporated in the financial plan and budget) prior to the submission by the Mayor of the financial plan and budget for Fiscal Year 1997 under § 47-392.02(a); and

(B) The financial plan and budget adopted by the Council (and, in the case of a financial plan and budget disapproved by the Authority, together with the financial plan and budget approved and recommended by the Authority) shall be submitted to Congress (in accordance with the procedures applicable under such section) as a supplemental budget request for Fiscal Year 1996 (in accordance with § 1-204.46).

(3) Transition budget as temporary financial plan and budget. — Until the approval of the financial plan and budget for Fiscal Year 1996 by the Authority under this subsection, the transition budget established under subsection (a) of this section (as enacted by Congress) shall serve as the financial plan and budget adopted under this part for purposes of this Act (and any provision of law amended by this Act) for Fiscal Year 1996.

(1) Monthly determination of progress toward financial plan and budget. — During each month of Fiscal Year 1996 prior to the adoption of the financial plan and budget, the Authority shall determine whether the District government is making appropriate progress in preparing and adopting a financial plan and budget for the fiscal year under this part.

(2) Certification. — The Authority shall provide the President and Congress with a certification if the Authority finds that the District government is not making appropriate progress in developing the financial plan and budget for a month, and shall notify the President and Congress that the certification is no longer in effect if the Authority finds that the District government is making such progress after the certification is provided.

(3) Prohibition against allocation of advances if certification in effect. — At any time during which a certification under paragraph (2) of this subsection is in effect, the Authority may not allocate any funds obtained through advances to the Mayor under §§ 47-3401 through 47-3401.04 from the escrow account in which the funds are held.

§ 47–392.09. Control periods described.

(a) Initiation. — For purposes of this Act, a “control period” is initiated upon the occurrence of any of the following events (as determined by the Authority based upon information obtained through the Mayor, the Inspector General of the District of Columbia, or such other sources as the Authority considers appropriate):

(1) The requisitioning by the Mayor of advances from the Treasury of the United States under title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04), or the existence of any unreimbursed amounts obtained pursuant to such authority;

(2) The failure of the District government to provide sufficient revenue to a debt service reserve fund of the Authority under part C of this subchapter;

(3) The default by the District government with respect to any loans, bonds, notes, or other form of borrowing;

(4) The failure of the District government to meet its payroll for any pay period;

(5) The existence of a cash deficit of the District government at the end of any quarter of the fiscal year in excess of the difference between the estimated revenues of the District government and the estimated expenditures of the District government (including repayments of temporary borrowings) during the remainder of the fiscal year or the remainder of the fiscal year together with the first 6 months of the succeeding fiscal year (as determined by the Authority in consultation with the Chief Financial Officer of the District of Columbia);

(6) The failure of the District government to make required payments relating to pensions and benefits for current and former employees of the District government; or

(7) The failure of the District government to make required payments to any entity established under an interstate compact to which the District of Columbia is a signatory.

(b) Termination. —

(1) In general. — A control period terminates upon the certification by the Authority that:

(A) The District government has adequate access to both short-term and long-term credit markets at reasonable interest rates to meet its borrowing needs; and

(B) For 4 consecutive fiscal years (occurring after April 17, 1995) the expenditures made by the District government during each of the years did not exceed the revenues of the District government during such years (as determined in accordance with generally accepted accounting principles, as contained in the comprehensive annual financial report for the District of Columbia under § 1-204.48(a)(4)).

(2) Consultation with Inspector General. — In making the determination under this subsection, the Authority shall consult with the Inspector General of the District of Columbia.

(c) Control period deemed to exist upon enactment. — For purposes of this part, a control period is deemed to exist beginning April 17, 1995.

(Apr. 17, 1995, 109 Stat. 136, Pub. L. 104-8, § 209; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.9.

Section References

This section is referenced in § 1-204.90, § 7-1831.03, § 47-391.07, § 47-392.21, and § 47-393.

Cross References

National capital revitalization corporation, evaluation, submission of reports, see § 1-1219.13.

References in Text

“This Act,” referred to in the introductory language of (a), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

Part B. Establishment and Enforcement of Financial Plan and Budget for District Government.

§ 47–392.01. Development of financial plan and budget for District of Columbia.

§ 47–392.02. Process for submission and approval of financial plan and annual District budget.

§ 47–392.03. Review of activities of district government to ensure compliance with approved financial plan and budget.

§ 47–392.04. Restrictions on borrowing by District during control year.

§ 47–392.05. Deposit of annual federal contribution with Authority.

§ 47–392.06. Effect of finding of non-compliance with financial plan and budget.

§ 47–392.07. Recommendations on financial stability and management responsibility.

§ 47–392.08. Special rules for Fiscal Year 1996.

§ 47–392.09. Control periods described.

§ 47–392.10. [Reserved].