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1 89-791; 80 Stat. 1426), there is authorized to be appro

2 priated Federal capital contributions to the Commissioner in

3 such amounts as may be necessary to defray the cost of con4 structing projects which have been included in the budget 5 estimates for the District and approved by the Congress, in 6 making capital outlay appropriations to the District: Pro7 vided, That such project or projects shall be included by 8 the Commissioner in the budget estimates of the Commis9 sioner only after he has approved an education program and 10 financial plan for the Federal City College and the Wash11 ington Technical Institute submitted to him jointly by the 12 Chairman of the Board of Higher Education and the Chair

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man of the Board of Vocational Education. Such plan, to be 14 known as “The District of Columbia Higher Education Pro15

gram and Financial Plan”, may be amended from time to

16 time as appropriate and shall include the following

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(1)

estimate of the total cost of construction of

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all proposed physical facilities, including construction scheduling and annual capital cost requirements;

(2) estimates and projections of student body en

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rollment;

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(3) overall financial plans for operating expenses;

(4) admission policies as they may affect student body enrollment levels;

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(5) estimates of financial assistance for which the

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District may qualify under various Federal grant-in-aid

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higher education program and financial plan. 6 In approving the higher education program and financial

plan required by this section, the Commissioner may make 8 such modifications as he determines necessary in the interest 9 of economy and efficiency of the operations of the institutions 10 of higher education or of other agencies of the District, or 11

the Commissioner may disapprove such plan and return it, 12

together with his reasons for disapproval, to the respective 13 institutions for resubmission.

14 (b) There is authorized to be appropriated such sums 15 as may be necessary to carry out the purposes of subsection 16 (a) and of titles I and II of the District of Columbia Edu

17 cation Act.

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(c) Title III of the District of Columbia Education Act

19 is repealed.

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TERMINATION OF THE DISTRICT'S AUTHORITY TO BORROW

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FROM THE TREASURY

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SEC. 14. (a) The first section of the Act entitled "An

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Act to authorize the Commissioners of the District of Colum

24 bia to borrow funds for capital improvement programs and

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to amend provisions of law relating to Federal Government

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1 participation in meeting costs of maintaining the Nation's 2 Capital City", approved June 6, 1958 (72 Stat. 183; D.C. 3 Code, sec. 9–220), is amended by striking out the subsec4 tion designation “(a)” and by striking out subsections (b), 5

(c), (d), and (e).

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(b) The Act entitled “An Act authorizing loans from 7 the United States Treasury for the expansion of the District 8 of Columbia water system”, approved June 2, 1950 (60 9 Stat. 195; D.C. Code, sec. 43–1540), is repealed.

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(c) Title II of the Act entitled "An Act to authorize the

11 financing of a program of public works construction for the 12 District of Columbia, and for other purposes”, approved May 13 18, 1954 (68 Stat. 104), is amended by striking out sec14 tions 213, 214, 216, 217, and 218 (D.C. Code, sections 4315 1612, 1613, 1615, 1616, and 1617), authorizing loans from 16 the United States Treasury for sanitary and combined sewer 17 systems of the District.

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(d) Section 402 of title IV of such Act approved May 19 18, 1954 (68 Stat. 110; D.C. Code, sec. 7–133), authorizing 20 loans from the United States Treasury for the District of 21 Columbia highway construction program, is repealed. 22

(e) Nothing contained in this section shall be deemed 23 to relieve the District of its obligation to repay any loan 24 made to it under the authority of the Acts specified in the

preceding subsections, nor to preclude the District from

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1 using the unexpended balance of any such loan appropriated 2 to the District prior to the effective date of this Act.

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APPROPRIATIONS AUTHORIZED

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SEC. 15. Appropriations to carry out the purposes of

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SEC. 16. This Act shall become effective on the date

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Sec. 17. If any provision of this Act or the application 11 thereof to any person or circumstance, is held invalid, the

12 validity of the remainder of the Act, and the application of 13 such provisions to other persons or circumstances, shall not

14 be affected.

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET,

Washington, D.C., March 26, 1970.
Hon. SPIRO T. AGNEW,
President of the Senate,
Washington, D.C.

DEAR MR. PRESIDENT: I am transmitting herewith a draft of legislation to authorize the District of Columbia to issue obligations to finance District capital programs, to provide Federal funds for District of Columbia institutions of higher education, and for other purposes.

This legislation, the “District of Columbia Capital Program Financing Act of 1970,” will provide a new, comprehensive mechanism for financing District of Columbia capital improvement programs by shifting-on a phased basisDistrict public works financing from direct Federal loans to local D.C. bonds. In addition, the bill proposes a new method for funding the capital improvement programs for District of Columbia institutions of higher education—the Federal City College and the Washington Technical Institute.

The District's capital improvement programs are currently financed mainly from loans received by the District from the United States Treasury. These loans are made to the District's general fund for capital improvement programs and to special funds of the District for specific programs, such as water and sewer construction programs and the District's highway program. The general and special funds are based upon specific legislation which establishes the

loan authority for each fund. Within the established authority, Congress appropriates funds each year which the District Government then may draw through loans from the United States Treasury. The loans are usually thirty-year loans and are repaid annually, both interest and part of the principal, through the District's budget.

The current situation presents an appropriate opportunity to reassess critically all aspects of the District's financing of capital programs. The Congress, in enacting a formula debt ceiling for the District's general fund borrowing, recognized the need for reevaluation of this mechanism by authorizing the formula for the three-year period 1968-1969–1970, thus reaching a "leveling off point without further action by the Congress. Furthermore, it is projected that the special funds of the District will completely obligate their loan authorities either by the end of fiscal year 1970 or in fiscal year 1971.

This pressing necessity for reassessment of the financing of District public works projects is reinforced by this Administration's concerted effort to review all existing Federal programs and financial arrangements to prune or reform obsolete or ineffectual programs. The President has submitted a 1971 budget which includes a package of program reforms, terminations, and restructuring; the proposal to shift the financing of District capital improvement projects from direct Federal loans to local D.C. bonds is included in these actions. without the conversion to bond financing, additional 1971 Federal outlays of $55 million would be required to fund the planned D.C. capital outlay program. With enactment of the proposed legislation, outlay reduction for the Federal Government over the fiscal years 1972-75 would average $154 million per year. In essence, this legislation removes an immediate burden from the U.S. taxpayer for financing District of Columbia public works projects while simultaneously providing the District with, for the first time, a financial management mechanism with sufficient flexibility to allow the District to respond to the highest priority needs of the city. The bill does not affect the authority of the Congress, which will still control expenditures through the annual appropriation process.

This bond legislation is desirable for other significant reasons, including the following:

It is entirely consistent with the desire for a greater degree of self-government for the District of Columbia.

It provides the District with a financing mechanism more comparable to those of States and localities throughout the Nation.

It removes District capital improvement programs from complete dependence upon the constraints of the Federal budgetary climate and therefore enables the District to plan more comprehensively and meaningfully. The other major element of the bill would finance construction of permanent campuses for Federal City College and the Washington Technical Institute by direct capital grants rather than the direct capital loans now employed, thus removing a substantial burden on the future outstanding debt of the District. The Federal Government, as the primary employer in the District, has a stake in upgrading the skills of the local work force. The need for Federal support of

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