This paper by Carol O'Cleireacain and Alice Rivlin proposes that the federal government offset several fiscal handicaps that hinder the nation's capital by providing a continuing contribution to the budget of the city of Washington.
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.
Thanks to Kurt Sommer
FULL STORY: A Sound Fiscal Footing for the Nation's Capital: A Federal Responsibility

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