PAYMENT OF FEDERAL WATER AND SEWER SERVICES Mr. DIXON. As I indicated earlier, for the Water and Sewer Fund you are requesting $152,784,000 and 1,288 positions. Prior to the Committee coming to order I asked you about the Administration's position, meaning the Federal Office of Management and Budget (OMB), as it relates to the lump-sum amount traditionally paid the District government for Federal water and sewage usage, and I would like you to state for the record what you think their position is. Mr. TOUCHSTONE. The OMB's position is that they would like us to bill the individual Federal agencies, and let the agencies be responsible for paying their water bills. We happen to think, in all candor, that it could play havoc in getting our money. We think it would be more efficient and, to be very honest, more effective, if we could get our money in one lump sum from one source. That would save time and it would save us a lot of haggling in getting the money. In addition to that, we think that it would help us to concentrate on those areas where we need to concentrate rather than spending a lot of time fighting with various agencies who honestly would not have this as a very high priority. Mr. DIXON. Traditionally, you have submitted a bill to them through the appropriations process? Mr. TOUCHSTONE. That is correct. GAO'S OPINION OF PROPOSED FEDERAL WATER AND SEWER PAYMENTS Mr. DIXON. At this point in the record, we will insert my letter dated March 5, 1987 to the Comptroller General of the United States and his reply dated April 1, 1987. [The material referred to follows:] MAJORITY MEMBERS JAMIE L WHITTEN, MISSISSIPPI, CHAIRMAN EDWARD P. BOLAND MASSACHUSETTS WILLIAM X HATCHER, KENTUCKY NEAL SMITH IOWA SIDNEY A. YATES. ILLINOIS DAVID R. OBEY, WISCONSIN EDWARD R ROYBAL, CALIFORNIA LOUIS STOKES, OHIO TOM BEVILL ALABAMA BILL CHAPPELL JR. FLORIDA BILL ALEXANDER ARKANSAS JOHN P MURTHA, PENNSYLVANIA BOB TRAXLER, MICHIGAN JOSEPH D. EARLY. MASSACHUSETTS LINDY (MRS. MALE) BOGGS, LOUISIANA MATTHEW F. MCHUGH, NEW YORK WILLIAM LEHMAN, FLORIDA MARTIN OLAV SABO. MINNESOTA JULIAN C. DIXON, CALIFORNIA VIC FAZIO, CALIFORNIA W.G. (BILL) HEFNER, NORTH CAROLINA LES AUCOIN, OREGON DANIEL K. AKAKA, HAWAII WES WATKINS, OKLAHOMA WILLIAM H. GRAY, PENNSYLVANIA BERNARD J. DWYER, NEW JERSEY BILL BONER TENNESSEE STENY H. HOYER, MARYLAND BOB CARR MICHIGAN ROBERT J. MRAZEK, NEW YORK Congress of the United States March 5, 1987 MINORITY MEMBERS SILVIO O. CONTE MASSACHSEN CLERK AND STAFF DIRECTOR TELEPHONE 002) 225-2771 RICHARD J. DURBIN, ILLINOIS RONALD D. COLEMAN, TEXAS ALAN 8. MOLLOHAN, WEST VIRGINIA Honorable Charles A. Bowsher Comptroller General of the United States U.S. General Accounting Office Washington, D. C. 20548 Dear Mr. Bowsher: The President's fiscal year 1988 budget does not include the District of Columbia's annual request for a lump-sum Federal payment for water and sewer services provided to the Federal government by the District. The President's budget proposes that the District treat the Federal establishment like private customers for water and sewer services received from the District. In addition, the President has not included in his budget the District government's request for supplemental funding reflecting adjustments in prior years' water and sewer appropriations based on audits of the metered accounts. The annual lump-sum payment to the District for water and sewer OFFSET Honorable Charles A. Bowsher March 4, 1987 Page Two otherwise appropriated, a sum corresponding to the estimated value of water and water services to be furnished to the United States:" Identical language is provided under D. C. Code, Sec. 43-1612 for sanitary sewer services. The Committee requests a written opinion by the Comptroller General as to 1) whether the President's fiscal year 1988 budget proposal is in accord with existing law; 2) whether the District government has the statutory authority to bill Federal agencies directly; and 3) whether an adjustment for either or both of the two preceding fiscal years is to be included in the President's budget. A copy of the material referred to above is enclosed for your convenience. Given our Committee's arduous hearing schedule, your early attention to this request will be appreciated. Best personal regards. Sincerely, A Chairman District of Columbia Subcommittee In your letter of March 5, 1987, you requested our opinion on the propriety of the President's proposal in the fiscal year 1988 Federal budget, that the Congress no longer appropriate a lump-sum annual payment to the District of Columbia in lieu of water and sewer charges. Instead the President proposes that the District bill individual Federal agencies directly for the water and sewer services provided to those agencies. Specifically, you asked whether (1) the President's proposal is in accord with existing law; (2) the District government has the authority to bill Federal agencies directly; and (3) the President's budget should have included adjustments for water and sewer services provided to the Federal Government in prior years. For the reasons indicated below we conclude that: (1) The President's proposal is contrary (2) The District of Columbia has no (3) The President's budget should contain BACKGROUND For many years, under the procedure set forth in statute, the President's annual buäget has requested a single lump-sum appropriation for payment to the District of Columbia in lieu of reimbursements for water, water services and sanitary sewer services provided to Federal facilities. See, e.g., Budget of the United States Government, Fiscal Year 1987 Appendix at I-Z15, 16 (1986). Each year the Congress appropriated a single, lump-sum payment to the District for water, water services, and sanitary sewer services. See, e.g., District of Columbia Appropriations Act, 1987, as enacted by Pub. L. No. 99-591, 100 Stat. 1341, 1341-180 (1986). For fiscal year 1988, however, the President's budget announces a significant change in the manner in which the Federal Government will pay the District of Columbia for water and sewer services. As explained in the Budget Appendix: This announced change is the subject of your inquiry.1/ In accordance with our normal procedures, we requested the views of the Director of the Office of 1/ To implement this change, on February 24, 1987, the B-226473 |