A Sound Fiscal Footing For D.C.: A Federal Responsibility

Great nations support great capital cities, but the United States has neglected Washington, D.C. This paper, co-authored by Carol O'Cleireacain and Alice M. Rivlin, proposes that the federal government support the District of Columbia by making a predictable annual contribution to the city's budget. The paper examines the arguments for such a payment, including the fiscal handicaps imposed on the District by its capital-city status and the fact that it is a city without a state. It explores alternative forms the contribution might take and ways taxpayers can be assured the money is well spent without impairing the ability of District citizens to govern themselves.