District of Columbia Financial Control Board
Encyclopedia
The District of Columbia Financial Control Board (officially the District of Columbia Financial Responsibility and Management Assistance Authority) was a five-member body established by the United States Congress
in 1995 to oversee the finances of Washington, D.C.
Created through the District of Columbia Financial Responsibility and Management Assistance Act of 1995, the board had the power to override decisions by Washington's mayor and city council.
It suspended its activities on September 30, 2001, when the District achieved its fourth consecutive balanced budget.
grants Congress the authority "To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the acceptance of Congress, become the Seat of the Government of the United States." However, after several attempts at governing bodies of various structures and independence, Congress in 1973 passed legislation (the District of Columbia Home Rule Act
) investing local government in a mayor
and 13-member city council
, to be elected by the District's citizens. However, all legislation and executive actions were subject to congressional oversight and approval.
By the mid-1990s, however, DC's elected officials had mired the capital in a financial crisis. In particular, the mayoral administrations of Marion Barry
and Sharon Pratt Kelly
had frequently outspent their budgets, squandering city finances by the hiring vast numbers of city employees (so many that the city could not keep track of precisely how many), mismanagement, and extravagances. A Government Accounting Office audit conducted during Kelly's administration in 1994 projected a $1 billion shortfall by Fiscal Year 1999; when Barry regained the office of mayor in 1995, his new administration found that FY96 would include a deficit of over $700 million.
Barry soon petitioned Congress for financial rescue — although his proposal did not include significant cuts in the city's budget or payroll, but relied on federal funding to compensate for the gap in funding. At that time, however, Republicans had just taken control of Congress, based partly on promises of fiscal restraint; instead of injecting federal cash into the city, Congress enacted legislation to create the Control Board, assuming budgetary and spending oversight over the mayor's office.
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
in 1995 to oversee the finances of Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
Created through the District of Columbia Financial Responsibility and Management Assistance Act of 1995, the board had the power to override decisions by Washington's mayor and city council.
It suspended its activities on September 30, 2001, when the District achieved its fourth consecutive balanced budget.
Background
Article I, Section 8 The United States ConstitutionUnited States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
grants Congress the authority "To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the acceptance of Congress, become the Seat of the Government of the United States." However, after several attempts at governing bodies of various structures and independence, Congress in 1973 passed legislation (the District of Columbia Home Rule Act
District of Columbia Home Rule Act
The District of Columbia Home Rule Act is a United States federal law passed on December 24, 1973 which devolved certain congressional powers of the District of Columbia to local government, furthering District of Columbia home rule...
) investing local government in a mayor
Mayor of the District of Columbia
The Mayor of the District of Columbia is the head of the executive branch of the government of Washington, D.C. The Mayor has the duty to enforce city laws, and the power to either approve or veto bills passed by the Council of the District of Columbia...
and 13-member city council
Council of the District of Columbia
The Council of the District of Columbia is the legislative branch of the local government of the District of Columbia. As permitted in the United States Constitution, the District is not part of any U.S. state and is instead overseen directly by the federal government...
, to be elected by the District's citizens. However, all legislation and executive actions were subject to congressional oversight and approval.
By the mid-1990s, however, DC's elected officials had mired the capital in a financial crisis. In particular, the mayoral administrations of Marion Barry
Marion Barry
Marion Shepilov Barry, Jr. is an American Democratic politician who is currently serving as a member of the Council of the District of Columbia, representing DC's Ward 8. Barry served as the second elected mayor of the District of Columbia from 1979 to 1991, and again as the fourth mayor from 1995...
and Sharon Pratt Kelly
Sharon Pratt Kelly
Sharon Pratt Kelly , formerly Sharon Pratt Dixon and now known as Sharon Pratt, was the third mayor of the District of Columbia from 1991 to 1995. Pratt was the first African-American woman to serve as mayor of a major American city...
had frequently outspent their budgets, squandering city finances by the hiring vast numbers of city employees (so many that the city could not keep track of precisely how many), mismanagement, and extravagances. A Government Accounting Office audit conducted during Kelly's administration in 1994 projected a $1 billion shortfall by Fiscal Year 1999; when Barry regained the office of mayor in 1995, his new administration found that FY96 would include a deficit of over $700 million.
Barry soon petitioned Congress for financial rescue — although his proposal did not include significant cuts in the city's budget or payroll, but relied on federal funding to compensate for the gap in funding. At that time, however, Republicans had just taken control of Congress, based partly on promises of fiscal restraint; instead of injecting federal cash into the city, Congress enacted legislation to create the Control Board, assuming budgetary and spending oversight over the mayor's office.
Board members
- Alice M. Rivlin, chair, 1998–2001
- Constance Berry NewmanConstance Berry NewmanConstance Ernestine Berry Newman was the United States Assistant Secretary of State for African Affairs from June 2004 to April 2005.-Early life:...
, 1995–2001 - Robert P. Watkins III, 1998–2001
- Eugene Kinlow, 1998–2001
- Andrew BrimmerAndrew BrimmerAndrew Felton Brimmer is a noted economist, academic, and business leader who was the first African American to have served as a governor of the Federal Reserve System.- Early life and education :...
, chair, 1995–98 - Stephen Harlan, 1995–98
- Joyce LadnerJoyce LadnerJoyce Ann Ladner is a former United States civil rights activist, author, civil servant and sociologist who was born in Waynesboro, Mississippi on October 12, 1943 and who grew up in Hattiesburg, Mississippi. She was raised with four brothers and four sisters. Ladner began school at the age of...
, 1995–98 - Edward Singletary, 1995–98
- Darius Mans, 1998–2000