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[Senate Report 109-281]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 517
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-281

======================================================================

 
             DISTRICT OF COLUMBIA APPROPRIATIONS BILL, 2007

                                _______
                                

                 July 13, 2006.--Ordered to be printed

                                _______
                                

         Mr. Brownback, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                    [To accompany S. 3660]

    The Committee on Appropriations, to which was referred the 
bill (H.R. 0000) making appropriations for the government of 
the District of Columbia and other activities chargeable in 
whole or in part against the revenues of said District for the 
fiscal year ending September 30, 2007, and for other purposes, 
reports the same to the Senate with amendments and recommends 
that the bill as amended do pass. deg.
    The Committee on Appropriations reports the bill (S. 3660) 
making appropriations for the government of the District of 
Columbia and other activities chargeable in whole or in part 
against the revenues of said District for the fiscal year 
ending September 30, 2007, and for other purposes, reports 
favorably thereon and recommends that the bill do pass.

Amounts of new budget (obligational) authority for fiscal year 2007

Total of bill as reported to the Senate.................    $597,000,000
Amount of 2006 appropriations...........................     596,970,000
Amount of 2007 budget estimate..........................     597,200,000
Amount of House allowance...............................     575,200,000
Bill as recommended to Senate compared to--
    2006 appropriations.................................         +30,000
    2007 budget estimate................................        -200,000
    House allowance.....................................     +21,800,000

                            C O N T E N T S

                              ----------                              
                                                                   Page
Summary of Bill..................................................     3
General Statement................................................     5
Federal Funds....................................................     8
General Provisions...............................................    42
Compliance With Paragraph 7, Rule XVI of the Standing Rules of 
  the Sen- 
  ate............................................................    44
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    44
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................    45
Budgetary Impact of Bill.........................................    46

                            SUMMARY OF BILL

    The following discussion of the bill includes general 
information on initiatives and concerns of the Committee and an 
analysis of the total resources estimated to be available to 
the District of Columbia in the coming fiscal year.
    The Committee recommendation contains items funded by the 
House in a different bill, H.R. 5576. The Committee believes 
that it is appropriate to fund these items in this bill. For 
ease of comparison, the Committee report sets forth a ``House 
allowance'' as if these items had been contained in this bill. 
These items were contained in the Transportation, Treasury, the 
Judiciary, Housing and Urban Development, and Related Agencies 
Appropriations Act, 2007 (H.R. 5576), as passed the House, but 
were not considered or contained in the Committee 
recommendation to the Senate on that bill.

                             Federal Funds

    The Committee considered requests from the President for 
Federal funds totaling $597,200,000 in budget authority for the 
District of Columbia appropriation. The Committee 
recommendation is $597,000,000 and is appropriated as follows: 
(1) $33,200,000 for District of Columbia resident tuition 
support; (2) $206,629,000 for the District of Columbia Courts; 
(3) $43,475,000 for Defender Services in the District of 
Columbia Courts; (4) $183,653,000 for the Court Services and 
Offender Supervision Agency for the District of Columbia; (5) 
$32,710,000 for the Public Defender Service in the District of 
Columbia; (6) $8,533,000 for security costs related to the 
presence of the Federal Government in the District of Columbia; 
(7) $1,000,000 for transportation assistance; (8) $7,000,000 
for the combined sewer overflow; (9) $5,000,000 for security, 
economic development, education and health projects; (10) 
$5,000,000 for support of the Anacostia Waterfront Initiative; 
(11) $40,000,000 for school improvement; (12) $2,000,000 for 
foster care improvements; (13) $4,500,000 for a new 
bioterrorism and forensics laboratory; (14) $4,000,000 for 
Marriage Development Accounts and marriage promotion; (15) 
$4,000,000 for improvements to the Navy Yard Metro Station; and 
(16) $15,000,000 for a new central library in the District of 
Columbia.

                       Total Resources Available

    Based on recommendations in the bill, a total of 
$9,057,361,000 will be available to the District of Columbia 
government during fiscal year 2007. Included in this figure are 
appropriations from local funds, Federal grants, Federal 
payments, and private and other funds. The financing of the 
appropriations from District funds are generated from revenues 
from various local taxes, fees, charges, and other collections 
received by the District government.

                           GENERAL STATEMENT

    The Committee has included funding for three new Federal-
local initiatives in the District of Columbia. These include: 
(1) promoting and sustaining healthy marriages; (2) encouraging 
literacy through the establishment of a new state-of-the-art 
central library; and (3) enhancing transitional housing 
opportunities for successful ex-offender reentry to the 
community.
Promoting Healthy Marriages
    The Committee understands that most children born and 
raised in households where their biological parents are married 
are more financially and emotionally stable. Given the enormous 
benefits that accrue to children who are raised by their 
married parents, the Committee believes that it is a moral and 
societal imperative that our nation esteem, support, foster, 
and encourage the institution of marriage.
    The Committee is pleased to announce that the Mayor of the 
District of Columbia will take important actions to encourage 
marriage in the District of Columbia. These actions include: 
(1) eliminating marriage penalties for low-income couples who 
decide to wed; (2) increasing the earned income tax credit for 
married couples in the District; and (3) assigning priority 
status to married couples and their families for low-income and 
federally funded housing. The Committee is also providing 
$1,000,000 to the District of Columbia Department of Human 
Services to support occupational training for married parents 
to improve their prospects for full-time employment.
    As a way to assist low-income married couples to save money 
to pay for job training or education, buy a home or start their 
own business, the Committee began providing funds to establish 
``Marriage Development Accounts'' [MDAs] in the District of 
Columbia last fiscal year. MDAs are available to married 
couples who are citizens or legal residents of the District of 
Columbia whose Federal adjusted gross income does not exceed 
300 percent of Federal poverty level and whose net worth is 
less than $10,000.
    Participating couples have a high incentive to save because 
their contributions will be matched at a ratio of 3:1 by the 
Federal Government and partnering private institutions. As a 
requirement of participation, couples receive training that 
helps them repair their credit, set a budget and savings 
schedule, and manage their money. The Committee is pleased with 
the interest in MDAs and is providing funds to continue the 
program during this fiscal year.
    Recognizing the importance of grassroots support to ensure 
the success of these efforts, the Committee is directing that 
grantees use a portion of these funds to expand their network 
of service providers by partnering with local churches, faith-
based organizations, and non-profit organizations. These 
service providers will offer life skills training and marital 
and pre-marital counseling.
Promoting Literacy
    The Committee is troubled that the adult illiteracy rate in 
the District of Columbia is 37 percent, and notes that the rate 
is much higher in predominantly lower-income communities.
    The Committee supports Mayor Anthony Williams' vision of a 
new state-of-the art central library in the District of 
Columbia. The Mayor has said that libraries are a key 
foundation of our communities. They are anchors for children 
who are learning to read; resource hubs for people wishing to 
complete an education or earn a GED; places of literary 
inspiration for future writers or those with a natural love for 
reading; places to access and explore the Internet; and 
knowledge centers for anyone wishing to pursue their hobbies or 
dreams.
    According to the Mayor, the District of Columbia central 
library has been neglected for decades and is now in a state of 
disrepair. Because of this, there is a significant and urgent 
need for a new library. Therefore, the Committee is providing 
$15,000,000 as a Federal contribution for a new library, 
recognizing that the lion's share of the funds--approximately 
$170,000,000 will come from local funds. The Committee is 
informed that the site of the new central library will be at 
the location of the old convention center.
    The Committee agrees with the Mayor that a new library 
system will serve as a gateway to learning and be a valuable 
asset for the city. The benefits are clear. A state-of-the-art 
library system would give all District residents access to the 
latest books and technology, meeting and quiet rooms, enhanced 
special collections, and valuable programming for adults and 
children, including literacy and lifelong learning workshops.
    By creating a 21st century library in the Nation's capital 
with innovative programming and state-of-the-art technology, 
the new central library will be recognized as a national model 
setting the standard for library systems around the country. 
The President agrees that a new central library is urgently 
needed and has requested funding for this effort.
Reducing Prisoner Recidivism
    The Committee is aware that every year 2,500 former 
prisoners return home to the District. These returning 
offenders are assigned to the Court Services and Offender 
Supervision Agency for release plan investigations during their 
parole or probation terms. Those who cannot identify a safe 
place to live are assigned to halfway houses where their stays 
are capped at 120 days.
    The Committee strongly believes that reducing the 
likelihood of homelessness for those exiting the halfway house 
system is critical to combating recidivism among returning 
prisoners. Therefore, the Committee has provided funds to 
increase the amount of transitional housing for returning 
offenders.
    The Committee also believes that mentors can help ex-
offenders better reintegrate into their communities by 
providing them with the emotional, psychological, spiritual, 
and motivational support they need. Mentors can help ex-
offenders find employment, make sure that they attend 
counseling sessions, and encourage them to reconcile with 
family members.
Financial Condition of the District of Columbia
    The Committee commends the Mayor, the City Council, and the 
Chief Financial Officer of the District of Columbia in 
improving its bond rating from the junk bond status of the mid-
1990's to investment grade status every year since February 
2001. The Committee notes that Wall Street bond rating agencies 
have upgraded the city's rating to A. This accomplishment is 
due in large part to three factors: (1) consistent trends of 
increased financial reserves, (2) stringent budget monitoring 
and controls in the 3 fiscal years following elimination of the 
control board, and (3) growth in taxable assessed values.
    D.C. Water and Sewer Authority [WASA].--The Congress is 
aware of a conflict between the statutes authorizing the 
independent financial oversight authority of the D.C. Chief 
Financial Officer [CFO] and the WASA Establishment and 
Reorganization Act of 1996 and is examining the necessary 
legislative actions. The Committee will work with the 
appropriate authorizing committees and the District to develop 
permanent legislation governing WASA's financial management and 
accountability.
    Kenilworth Park.--The Committee directs the Chief Financial 
Officer of the District of Columbia to provide quarterly 
financial reports on obligations and expenditures of all funds 
provided for improvements at Kenilworth Park in the District of 
Columbia in the District of Columbia Appropriations Act for 
fiscal year 2002 (Public Law 107-96; 115 Stat. 929) and the 
District of Columbia Appropriations Act for fiscal year 2003 
(Public Law 108-7; 117 Stat. 112). The Committee expects these 
funds to be used to create a regional youth recreation park and 
urges the Mayor to expedite improvements at the park to benefit 
the community.
Historic Preservation in the District of Columbia
    The Committee urges the District of Columbia Historic 
Preservation Office to consider funding applications for 
construction and renovation projects for non-governmental 
historic sites on the National Mall.

                          DISTRICT OF COLUMBIA

                             Federal Funds

    A total of $597,000,000 in Federal funds are estimated to 
be available to the District of Columbia government, the 
District of Columbia Courts, the District of Columbia Court 
Services and Offender Supervision Agency, and other D.C. 
entities. A total of $2,020,101,000 in Federal funds will be 
received by the District government from the various Federal 
grant programs. In addition, the District of Columbia receives 
Federal reimbursements from such programs as Medicaid and 
Medicare.
    The following table summarizes the various Federal funds 
estimated to be available to the District government during 
fiscal year 2007:

                              FEDERAL FUNDS
                        [In thousands of dollars]
------------------------------------------------------------------------
                         Item                             2007 estimate
------------------------------------------------------------------------
Federal Payment for Resident Tuition Support..........            33,200
Federal Payment for Emergency Planning and Security                8,533
 Costs................................................
Federal Payment to the District of Columbia Courts....           206,629
Federal Payment for Defender Services.................            43,475
Federal Payment to the Court Services and Offender               183,653
 Supervision Agency...................................
Federal Payment to the District of Columbia Water and              7,000
 Sewer Authority......................................
Federal Payment for the Anacostia Waterfront                       5,000
 Initiative...........................................
Federal Payment to the Criminal Justice Coordinating               1,300
 Council..............................................
Federal Payment for Transportation Assistance.........             1,000
Federal Payment for Foster Care and Adoption                       2,000
 Improvements.........................................
Federal Payment to the Chief Financial Officer........             5,000
Federal Payment for a Forensics Lab...................             4,500
Federal Payment for School Improvement................            40,000
Federal Payment for Marriage Development and                       4,000
 Improvement..........................................
                                                       -----------------
      Total, Federal funds in bill....................           597,000
Federal Grants........................................         2,020,101
                                                       -----------------
      Total, Federal Funds............................         2,617,101
------------------------------------------------------------------------

   FEDERAL PAYMENT FOR DISTRICT OF COLUMBIA RESIDENT TUITION SUPPORT

Appropriations, 2006....................................     $32,868,000
Budget estimate, 2007...................................      35,100,000
House allowance.........................................      35,100,000
Committee recommendation................................      33,200,000

    The Committee recommends $33,200,000 in Federal funds for 
the District of Columbia Tuition Assistance Program, an 
increase of $332,000 over the fiscal year 2006 enacted level 
and $1,900,000 below the President's budget request. On 
November 12, 1999, Public Law 106-98, the District of Columbia 
College Access Act of 1999, was signed into law. The Act 
established the Tuition Assistance Program, a grant program 
under the direction of the Mayor of the District of Columbia, 
in consultation with the Secretary of Education.
    Under the Act, grants are awarded to District residents for 
undergraduate education within 3 years of graduating or 
obtaining a graduate equivalent degree. The applicant must be a 
District resident for 12 consecutive months before the academic 
year of the award. Grants pay the difference between in-State 
and out-of-State tuition at public universities, with a cap of 
$10,000 per student per school year, and a total cap of 
$50,000. Grants may also be used for tuition at private 
colleges in the metropolitan area and at any private 
historically black college or university, with a cap of $2,500 
per student per year, and a total cap of $12,500. In addition, 
the District of Columbia College Access Improvement Act of 2001 
(Public Law 107-157) expanded the Tuition Assistance Program to 
individuals who enroll in an institution of higher education 
more than 3 years after graduating from a secondary school and 
to individuals who attend private, historically black colleges 
and universities nationwide.
    Every year since the inception of the tuition assistance 
grant program, the Federal Government has provided sufficient 
funds to allow all eligible participants to attend out-of-State 
colleges and universities at the in-State tuition rate. The 
Committee is pleased to note that 55 percent of all 
participants are the first members of their families to attend 
college and that 75 percent of students surveyed at one of the 
largest schools in the city said that the program influenced 
their decision to pursue postsecondary education. Clearly, the 
program is working well and more and more District students are 
gaining the opportunity to attend colleges and universities of 
their choice.
    The Committee recognizes that this program has enabled many 
District of Columbia residents to pursue post-secondary 
educational opportunities. The program allows the District to 
provide similar opportunities to D.C. residents that State-
level university systems provide in all States.
    The Committee remains concerned that the significant annual 
funding increases in a brief 2-year span signal that program 
costs have the potential of growing well beyond the level at 
which future Federal funding may be available and sustainable. 
To address this concern, the Committee directs the Mayor and 
the District's State Education Office officials to work closely 
with its Senate and House authorizing and appropriations 
Committees to immediately take steps to institute effective 
cost containment measures and regularly report to Congress 
about the effects of these efforts. The Committee further 
directs the District to fully explore non-Federal sources of 
additional funds to augment the Federal investment to meet 
program needs.

           FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

Appropriations, 2006....................................    $216,723,000
Budget estimate, 2007...................................     196,629,000
House allowance.........................................     219,629,000
Committee recommendation................................     206,629,000

    The Committee recommends $206,629,000 for the District of 
Columbia Courts. This is $10,094,000 less than the fiscal year 
2006 enacted level and $10,000,000 above the President's budget 
request. As part of the District of Columbia Revitalization Act 
of 1997, the Federal Government began to finance the D.C. 
Courts. This includes funding for the operations of the D.C. 
Court of Appeals, Superior Court, and the Court System. By law, 
the annual budget includes estimates of the expenditures for 
the operations of the Courts prepared by the Joint Committee on 
Judicial Administration and the President's recommendation for 
funding the Courts' operations.

Court Operations

    The Committee recommends $158,700,000 for the Courts' 
operations, $2,348,000 below the fiscal year 2006 enacted level 
and the same as the President's request.

Court Capital Expenditures

    The Committee recommends $60,929,000 for capital 
improvements, a total of $10,600,000 above the President's 
budget request and $19,800,000 below the fiscal year 2006 
level.
    The increased funds for capital expenditures will allow the 
Courts to continue to renovate, improve, and expand court 
facilities. The Committee recognizes that the relocation of the 
Court of Appeals from its existing location in the Moultrie 
Courthouse to the Old Courthouse at 451 Indiana Avenue is a 
critical step towards meeting the space needs of the D.C. Court 
of Appeals and providing critical additional space for Superior 
Court operations, including the newly formed Family Court in 
the Moultrie Building. The Committee understands that the 
readaptation of the Old Courthouse for modern day use as a 
functional courthouse includes the restoration of this national 
historic landmark, expansion of the courthouse, and 
construction of an underground parking garage west of the 
historic building.
    This increase will also enable the Courts to continue 
implementation of the Integrated Justice Information System 
[IJIS] and allow the Courts to upgrade fire and security alarm 
systems.

Transfer Authority

    The Committee authorizes the Courts to transfer up to 
$1,000,000 of the operations funds provided in the Federal 
Payment to the D.C. Courts among the accounts within the 
Federal Payment to the District of Columbia Courts 
appropriation. This flexibility will be especially important in 
implementing Family Court reforms. The Committee authorizes the 
Courts to transfer up to 4 percent of the capital funds 
provided. This flexibility will enable the Courts to prioritize 
renovations and construction projects.

Reporting Requirements

    The Courts are directed to submit monthly reports, through 
the General Services Administration, to the Senate and House 
Committees on Appropriations, within 15 calendar days after the 
end of each month, on the status of obligations by object class 
and a monthly personnel summary by position, full-time 
equivalent positions, and program/function. The obligation 
report should show, at a minimum, the original operating plan, 
current operating plan, obligations year to date, percent 
obligated, planned obligations year to date, percentage 
deviation from plan year to date, projected total obligations 
end of year, and projected surplus/deficit.
    In addition, the obligation report shall: (1) include a 
breakdown of expenditures for the Counsel for Child Abuse and 
Neglect Program and the program of representation of indigents 
in criminal cases; (2) include a monthly breakdown of 
expenditures for the D.C. Courts' capital improvements; and (3) 
where year-to-date obligations exceed or fall below the plan 
estimates by 1 percent or more, include an explanation of why a 
category is over- or under-budgeted.
    Financial Plan.--The Executive Officer of the District of 
Columbia Courts shall provide a financial plan of the fiscal 
year 2007 enacted level for operations and capital improvements 
of the D.C. Courts to the Committees on Appropriations of the 
House of Representatives and Senate no later than March 31, 
2007. The financial plan shall detail by object class the 
planned expenditure of the Courts' appropriation, describing 
any new initiatives or deviation from the conference report. 
The Committee shall provide a joint House-Senate letter of 
approval to the Courts after review of the financial plan. The 
Courts must provide 30 days notice to the Committee in order to 
deviate from the financial plan after approval of such plan by 
Congress.

            DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS

Appropriations, 2006....................................     $43,560,000
Budget estimate, 2007...................................      43,475,000
House allowance.........................................      43,475,000
Committee recommendation................................      43,475,000

    The Committee recommends $43,475,000 for Defender Services 
in the District of Columbia, which provides for attorneys for 
indigent defendants, child abuse and guardianship cases 
administered by the D.C. Courts. This is the same as the 
President's request and $85,000 below the fiscal year 2006 
enacted level. This funding will allow D.C. attorneys and 
investigators to receive the same hourly rate as their Federal 
counterparts.

 FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY 
                      FOR THE DISTRICT OF COLUMBIA

Appropriations, 2006....................................    $169,839,000
Budget estimate, 2007...................................     181,653,000
House allowance.........................................     181,653,000
Committee recommendation................................     183,653,000

    The Committee recommends $183,653,000 for the Court 
Services and Offender Supervision Agency [CSOSA]. This 
recommendation is $2,000,000 above the President's budget 
request and $13,814,000 more than the fiscal year 2006 enacted 
level.
    The District of Columbia Revitalization Act of 1997 
established CSOSA, assuming the functions of the District's 
pretrial services, adult probation, parole, and adult offender 
supervision functions. The mission of CSOSA for the District of 
Columbia is to increase public safety, prevent crime, reduce 
recidivism, and support the fair administration of justice in 
close collaboration with the community.
    The Revitalization Act relieved the District of Columbia of 
``state-level'' financial responsibilities and restructured a 
number of criminal justice functions, including pretrial 
services, parole, and adult probation. Following passage of the 
Revitalization Act, under the direction of a trustee appointed 
by the U.S. Attorney General, three separate and disparately 
functioning entities of the District of Columbia government 
were reorganized into one Federal agency. CSOSA assumed its 
probation function from the D.C. Superior Court and its parole 
function from the D.C. Board of Parole. The Revitalization Act 
transferred the parole supervision functions to CSOSA and the 
parole decisionmaking functions to the U.S. Parole Commission 
[USPC]. On August 5, 1998, the parole determination function 
was transferred to the USPC, and on August 4, 2000, the USPC 
assumed responsibility for parole revocation and modification 
with respect to felons. The CSOSA appropriation is comprised of 
three components: The Community Supervision Program [CSP], the 
District of Columbia Pretrial Services Agency [PSA], and the 
Public Defender Service [PDS] for the District of Columbia. PDS 
is a federally funded independent D.C. agency responsible for 
the defense of indigent individuals and receives funding by 
transfer from the CSOSA appropriation. The CSP is responsible 
for supervision of offenders (either on probation or parole), 
and the PSA is responsible for supervising pretrial defendants.
    The Committee understands that the majority of the 
additional funds it is providing will be used to increase the 
capacity of residential substance abuse treatment for offenders 
at Karrick Hall from 21 to 100 participants. These resources 
will fund the level of treatment slots at the fully authorized 
level. The Committee recognizes that most offenders have 
serious drug addiction problems and must receive treatment in 
order to lead productive, crime-free lives. The Committee is 
pleased that CSOSA has made such steady progress in increasing 
the drug treatment capacity for offenders.
    The funding provided will also enable CSOSA to enhance its 
community-based and sanctions-based supervision strategy and 
support the fair administration of justice by providing the 
courts and the U.S. Parole Commission with timely, accurate and 
complete information required in their decisionmaking process.

Prison Reentrant Housing Initiative

    The Committee believes strongly that reducing the 
likelihood of homelessness for returning offenders is critical 
to combating recidivism. Therefore, the Committee intends that 
the funds provided above the President's request be used to 
expand the availability of transitional housing for ex-
offenders. The Committee is aware that ex-offenders are faced 
with rebuilding their lives as they seek to join the workforce, 
support their families and become productive members of 
society. Despite successes in delivery of social and health 
care services, there is a very pressing need for affordable 
housing. Stable housing increases the likelihood that the 
offender will successfully complete his or her term of parole 
or supervised release, find and maintain employment, maintain 
family relationships, and access the programs and services that 
contribute to successful reentry. CSOSA originally brought this 
issue to the attention of the D.C. Department of Housing and 
Community Development [DHCD] in December 2004, noting the 
direct correlation between stable housing and offenders' 
compliance with the conditions of community supervision. An 
important aspect of supervision is the offender's growing 
awareness of, and participation in, community-based social 
services; this occurs during the term of supervision and 
constitutes a critical stage of the reentry process. Currently, 
the D.C. reentry initiative offers individuals exiting the 
criminal justice system direct services and access to 30 
community-based nonprofit organizations. Unity health care 
provides health services through a clinic designed specifically 
for reentrants. The Department of Employment Services provides 
job readiness and job placement services at its offices, and 
case workers assist reentrants in obtaining GED certification 
and enrollment in college courses at UDC.

    FEDERAL PAYMENT FOR PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF 
                                COLUMBIA

Appropriations, 2006....................................     $29,535,000
Budget estimate, 2007...................................      32,710,000
House allowance.........................................      32,710,000
Committee recommendation................................      32,710,000

    The Committee is providing $32,710,000 for the Public 
Defender Service in the District of Columbia, which is the same 
as the President's request and $3,175,000 more than the fiscal 
year 2006 enacted level.
    The mission of the Public Defender Service [PDS] is to 
provide and promote quality legal representation to indigent 
adults and children facing a loss of liberty in the District of 
Columbia and thereby protect society's interest in the fair 
administration of justice. The Public Defender Service for the 
District of Columbia enjoys a national reputation for 
excellence in the delivery of indigent defense services and is 
often cited as a model for other public defender agencies. 
Beginning in 1960 as the Legal Aid Agency, the agency was 
expanded and the name was changed to the Public Defender 
Service in 1970. PDS is a Federally funded, independent legal 
organization governed by an 11-member Board of Trustees. In 
previous years, the Committee has provided funds for PDS 
through the Court Services and Offender Supervision Agency. 
Beginning this year, the Committee is funding PDS as a separate 
line-item, recognizing its status as an independent agency.

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA FOR SECURITY COSTS RELATED 
               TO THE PRESENCE OF THE FEDERAL GOVERNMENT

Appropriations, 2006....................................     $13,365,000
Budget estimate, 2007...................................       8,533,000
House allowance.........................................       8,533,000
Committee recommendation................................       8,533,000

    The Committee is aware that the District police, fire, and 
emergency personnel have had to provide security for a number 
of events due to the fact that the District of Columbia is the 
seat of the Federal Government and headquarters of many 
international organizations. Recently, the need for the 
District of Columbia to provide security has increased, thereby 
increasing overtime costs for personnel and diverting police 
from neighborhood patrols. The President has supported 
reimbursing the District for these costs. The Committee 
recommends $8,533,000 for this purpose which is the same as the 
President's request and $4,832,000 below the fiscal year 2006 
level.

   FEDERAL PAYMENT TO THE CHIEF FINANCIAL OFFICER OF THE DISTRICT OF 
                                COLUMBIA

Appropriations, 2006....................................     $28,908,000
Budget estimate, 2007...................................................
House allowance.........................................       5,000,000
Committee recommendation................................       5,000,000

    The Committee is providing $5,000,000 to the Chief 
Financial Officer of the District of Columbia for education, 
job-training, security, economic development, and health 
projects in the District of Columbia. The Committee is 
providing funds for the following projects in the following 
amounts:

------------------------------------------------------------------------
                         Project                              Amount
------------------------------------------------------------------------
Children's National Medical Center for facilities.......        $500,000
Children's National Medical Center for African-American          250,000
 cord-blood bank........................................
D.C. Poison Control Center..............................         250,000
Unity Healthcare for medical care tracking technology...         250,000
Boys and Girls Clubs of D.C. for facilities repairs.....         200,000
Father McKenna Homeless Shelter.........................         100,000
East of the River Police-Clergy Partnership.............         200,000
Youth Leadership Foundation.............................         200,000
National Council of La Raza in the District of Columbia.         350,000
Mary's Center...........................................         200,000
Gospel Rescue Mission...................................         100,000
Center for Inspired Teaching for teacher training.......          50,000
CentroNia to expand academic enrichment model for early          100,000
 childhood education....................................
Discovery Creek Children's Museum of Washington for Its          100,000
 Wise to Immunize Project...............................
Girl Scout Council of the Nation's Capital for Young             100,000
 Leaders Program........................................
Historic building restoration and renovation............         500,000
Green Door for the Homeless-to-Workplace Initiative.....         100,000
Kidsave DC Weekend Miracles for a program to support             100,000
 older foster youth.....................................
KIPP DC: Will Academy Partnership with Scott Montgomery          400,000
 Elementary to support the first charter-DCPS
 partnership............................................
National Campaign to Prevent Teen Pregnancy for a                100,000
 continuing initiative with UCAN........................
Southeastern University for facilities capital                   100,000
 improvements...........................................
Youth baseball partnership with Payne Elementary School.          50,000
Washington Area Women's Foundation Stepping Stones               500,000
 Initiative for low-income families.....................
Whitman-Walker Clinic for facility planning and                  100,000
 development............................................
Washington Latin Public Charter School for a summer               50,000
 enrichment program.....................................
Washington National Opera for education programs only in          50,000
 D.C....................................................
------------------------------------------------------------------------

FEDERAL PAYMENT FOR THE ANACOSTIA WATERFRONT INITIATIVE IN THE DISTRICT 
                              OF COLUMBIA

Appropriations, 2006....................................      $2,970,000
Budget estimate, 2007...................................................
House allowance.........................................................
Committee recommendation................................       5,000,000

    The Committee recommends $5,000,000 to continue to 
implement the Anacostia Waterfront Initiative, which is 
$2,030,000 above the fiscal year 2006 enacted level. The 
President did not request any funds for this initiative. These 
funds will support the construction of a multi-use hiker and 
biker trail system along both sides of the Anacostia River in 
the District of Columbia. This recreational amenity and 
transportation alternative will help connect neighborhoods and 
transform the Anacostia River into a great civic center for the 
city. The Committee understands that the 20-mile interconnected 
trail network will provide pedestrian and bicycle-friendly 
access to the shores of the Anacostia River and will serve to 
connect the regional trail system in Maryland to the National 
Mall. With alternative corridors and loops to choose from, 
users of the trail will find a variety of experiences and 
connections to other regional and national trails, including 
Fort Circle Trail, Bladensburg Trail, the East Coast Greenway 
and the Potomac Heritage Scenic Trail.
    The Committee continues to support the use of innovative 
bridges along the Anacostia bike trail and urges the District's 
Department of Transportation to consider using this new 
technology in other road projects throughout the city.
    The Committee also intends that $2,000,000 of the funds 
provided will be used for infrastructure upgrades to revitalize 
and increase access to the area.

 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

Appropriations, 2006....................................      $6,930,000
Budget estimate, 2007...................................       7,000,000
House allowance.........................................       7,000,000
Committee recommendation................................       7,000,000

    The Committee is providing $7,000,000, to be matched 100 
percent with local funds, for the Water and Sewer Authority 
[WASA] to implement the Combined Sewer Overflow Program. This 
is $70,000 more than the amount appropriated in fiscal year 
2006 and the same as the President's request. The Committee 
notes that this funding will assist WASA in designing a new 
system to address combined sewer overflows. The combined sewer 
system, which serves 33 percent of the District, was 
constructed in 1890 by the Federal Government. Because of its 
age and capacity contraints, the system discharges sanitary 
waste and storm-water into the surrounding rivers approximately 
60-75 times per year during heavy rains.

     FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA FOR TRANSPORTATION

Appropriations, 2006....................................        $990,000
Budget estimate, 2007...................................................
House allowance.........................................................
Committee recommendation................................       1,000,000

    The Committee recommends $1,000,000 for transportation 
assistance in the District of Columbia, which is $10,000 above 
the fiscal year 2006 enacted level. The President did not 
request funds for this purpose.
    The Committee intends that these resources be used for 
expenses related to phase II implementation of the District's 
downtown circulator transit system. This new surface 
transportation service is providing high-frequency, high-
quality, and low-cost service to connect the east and west 
sides of downtown, the White House, the National Mall and 
monuments area, the Capitol Complex, Union Station, and 
Georgetown. The Committee understands that these funds will be 
matched 100 percent by the District of Columbia and by the 
private sector (led by the Downtown Business Improvement 
District group). The Committee understands that Phase I of the 
Circulator is now operating and will include the following 
routes: (1) north-south along 7th Street, NW, between the 
Convention Center and the SW Waterfront; and (2) east-west 
between Georgetown and Union Station. The Committee directs the 
District of Columbia Department of Transportation to report on 
progress to minimize idling of buses and traffic congestion.

 FEDERAL PAYMENT FOR FOSTER CARE IMPROVEMENT AND POST-ADOPTIVE SERVICES

Appropriations, 2006....................................      $1,980,000
Budget estimate, 2007...................................................
House allowance.........................................................
Committee recommendation................................       2,000,000

    The Committee understands that in the District of Columbia, 
the Child and Family Services Agency [CFSA] is responsible for 
protecting approximately 3,000 children in ``out-of-home'' 
placements, and another 5,000 children in ``in-home'' 
placements. During its history, many children in CFSA's care 
have languished for extended periods of time due to managerial 
shortcomings and long-standing organizational divisiveness in 
the city. As a result, the agency was placed in receivership in 
1995. In June 2001, the court removed CFSA from receivership 
and put the agency under probation. That probationary period 
ended in January 2003.
    Concerned about CFSA's troubled history, the Committee 
began a Federal foster care initiative in fiscal year 2004 
which focused on improving several critical areas. These 
critical needs are: (1) intensive, early intervention when 
children enter care; (2) early mental health assessments and 
mental health services for all children in foster care; (3) 
recruitment and retention of qualified social workers; (4) 
recruitment and retention of foster parents; and (5) improved 
computer tracking of all children in foster care.

Loan Repayment for Social Workers

    The Committee is providing $1,000,000 for the repayment of 
student loans for social workers at CFSA. The Committee 
understands that the higher the caseload per social worker, the 
lower the quality of service to each of the caseworker's 
children. The District, like many cities, suffers from a high 
turnover rate of social workers. In fact, the national turnover 
rate has doubled since 1991. Clearly, the relatively low pay 
and difficult working conditions of social workers has resulted 
in a child welfare workforce crisis.
    The Committee recognizes that steps must be taken to 
encourage more workers to enter the child welfare workforce and 
improve the salaries, working conditions, and training of 
workers. Student loan repayment is aiding in the retention and 
improvement of conditions for the District's social workers.

Post Adoptive Services

    The Committee is providing $750,000 to assist CFSA in 
providing post permanency services to adoptive parents and 
guardians to ensure that children remain in stable homes. These 
resources will fund mental health services, respite support, 
training seminars, one-on-one counseling support, and a post-
permanency resource center.

Recruitment and Retention of Foster Parents

    The Committee is providing $250,000 to recruit and retain 
foster parents. The Committee recognizes that CFSA has 
experienced difficulties recruiting and retaining an adequate 
number of appropriate, qualified foster parents. This lack of 
sufficient numbers of foster homes has given rise to so-called 
group homes in the District.
    One reason for the shortage of foster parents is the lack 
of availability of respite care in the District. The Committee 
has been informed that foster parents do not have the same 
opportunities for respite as biological parents. Foster parents 
cannot merely send their children to spend the weekend with a 
relative or family friend, or to visit with a classmate at his 
or her home. Foster parents must seek out persons who have met 
many agency-established criteria. Therefore, foster parents 
often care for their children--many of whom have special 
needs--without significant breaks.
    Of the funds provided, the Committee intends that the 
Washington Council of Governments, which has years of 
experience with the D.C. foster care system, provide the direct 
service implementation of this respite proposal and that the 
Foster and Adoptive Parents Advocacy Center provide the 
oversight, quality control, and evaluation of the program. The 
Committee intends that resources shall provide: (1) emergency 
respite, which would be provided with less than 1 month's 
notice; (2) planned respite, which would be planned at least 1 
month in advance; and (3) ongoing respite, which would be at 
pre-established meeting times and places, e.g., Saturday 
programs, enrichment programs, and field trips.

   FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT IN THE DISTRICT OF COLUMBIA

Appropriations, 2006....................................     $39,600,000
Budget estimate, 2007...................................      40,800,000
House allowance.........................................      40,800,000
Committee recommendation................................      40,000,000

    The Committee has included $40,000,000 to augment and 
improve educational opportunities for all students in the 
District of Columbia. This is $400,000 above the fiscal year 
2006 enacted level and $800,000 below the President's budget 
request. This initiative is comprised of three interrelated 
components: investing in excellence in traditional public 
schools; expanding choice through high quality public charter 
schools; and offering opportunity scholarships for low-income 
students in under-performing schools. Therefore, of the funds 
provided, $13,000,000 is to provide a scholarship program for 
low-income children in under-performing schools; $13,000,000 is 
for the development of quality public charter schools; 
$13,000,000 is to strengthen leadership and instructional 
excellence and increase student achievement at District of 
Columbia Public Schools in accordance with the No Child Left 
Behind Act; and $1,000,000 is for administrative expenses.

Improving Public Education

    The Committee notes that the Department of Education has 
informed the Superintendent of DCPS that the Department has 
serious and continuing concerns with DCPS' administration of 
federally funded education programs. As a result of the 
problems identified in several audits and reviews, the 
Department has designated DCPS a ``high-risk'' grantee for all 
the grants it receives from the Department.
    For a number of years, independent single audit findings 
and Department program reviews have identified significant 
problems that DCPS has had in meeting some of the most 
fundamental program accountability requirements, including 
implementing appropriate financial, recordkeeping, and internal 
control systems and procedures. Many of the problems identified 
affect the delivery of services to students. In fact, DCPS is 
currently at the lowest levels of state educational agency 
performance as measured by National Assessment of Educational 
Progress scores. DCPS's average scores in the 2005 Trial Urban 
District Assessment (for reading and for math at both tested 
levels) were lower than every other participating city school 
district.
    The most significant findings from these audits and reviews 
are:
  --Fiscal management weaknesses, including:
    --Lack of timely allocation and use of Federal funds
    --Expenditures for salaries without appropriate 
            documentation
    --Lack of proper controls for management of property and 
            equipment
    --Lack of proper procurement controls
    --Lack of record keeping for and funding to charter schools
  --Inadequate monitoring of subgrantees
  --Repeated material findings in single audits
  --Management information systems inadequate to meet Federal 
        reporting requirements
  --Continuing noncompliance with IDEA program requirements.
    The Committee recognizes that the ``high-risk designation 
is a very serious matter, and it expects that DCPS will take 
immediate steps to correct these problems and to demonstrate 
significant improvements. In light of this designation, the 
Committee is not confident in DCPS' ability to expend Federal 
resources provided by this Committee. As a result, the 
Committee is appropriating $13,000,000 directly to the District 
of Columbia State Education Office to be used for the following 
purposes: (1) $5,000,000 to hire, place, and train highly 
qualified teachers and principals in District of Columbia 
public schools; (2) $5,500,000 for training and materials to 
expand the availability of advanced placement courses and for 
subsequent testing, and to expand vocational and technical 
programs which enhance postsecondary opportunities for 
students; (3) $500,000 to support the Superintendent's Master 
Education Plan; and (4) $2,000,000 for the High Performing 
Incentive Award program. The Committee believes that 
expenditures for these specific purposes can be directly linked 
to classroom conditions, can be readily tracked, and whose 
impact can be measured in terms of student performance. The 
Committee intends that in order to be meaningful, the High 
Performing Incentive Awards be at least $200,000 to each 
selected entity.
    Improving Facilities and Efficiency.--The Committee has 
raised concerns with the District in public hearings in 2005 
and prior, about the inefficiency of maintaining at least 5 
million square feet of underutilized or unused space in DCPS 
facilities, identified by independent entities. The Committee 
supports the Superintendent and the D.C. Board of Education 
[BOE] goal to consolidate underutilized space in D.C. Public 
School facilities, specifically the BOE decision to consolidate 
1 million square feet of space by the school year 2006-2007 and 
consolidate an additional 2 million square feet of space by 
school year 2007-2008.
    The Committee is encouraged by the BOE and the 
Superintendent's decision for the first round of school 
consolidations including closing five public school facilities 
and leasing space in eight additional public schools for co-
location with public charter schools. The Committee strongly 
supports more efficient use of public school facilities and the 
lease of unused space to public charter schools. The District 
has estimated $8,000,000 in revenue in fiscal year 2007 from 
leases of unused space. The Committee supports DCPS efforts to 
generate additional revenue and more effectively target 
resources to expanding quality educational opportunities and to 
improving facilities.
    The Committee supports the Superintendent's proposal to 
establish a dual language expansion and replication of Oyster 
Elementary School with Adams Elementary School, creating the 
first pre-kindergarten through eighth grade program at the two 
schools. This replication model will also establish a 
demonstration site for principals and families to learn about 
the highly effective program. The Committee is committed to 
establishing this model in school year 2007-2008 and expects 
DCPS to work with the Oyster community in developing this 
replication model to ensure it supports this excellent program.
    In addition to the necessary school consolidations, the 
Council of the District of Columbia committed to better 
facilities in the School Modernization Financing Act of 2006. 
The legislation launches a $2,500,000,000, 10-year school 
modernization program where priority is given to public school 
facilities which engage in partnerships with public charter 
schools and other District agencies. The Committee commends 
this action and supports this type of leveraging of public 
funds to maximize the benefit in the community. The Committee 
believes that any facilities modernization plan must continue 
to place a high priority eliminating excess capacity.
    Oversight Structure.--The Committee notes for the record 
that the current management and accountability structure in the 
District of Columbia Public School system commingles the 
functions of the local education agency [LEA] and State 
education agency [SEA] and vests both in the D.C. Board of 
Education [BOE]. Under this structure, there are no clear 
delineations in funding, reporting, accounting, or staffing. 
Recently, the U.S. Department of Education designated DCPS a 
``high risk grantee'' for Federal funding and this structure is 
a contributing factor in the Department's lack of confidence.
    In almost every other jurisdiction, the LEA is directly 
accountable to the SEA and the SEA is responsible for providing 
independent oversight accountability and support to the LEA. 
This is not so in the District. In the District, the State 
Education Office manages some Federal funding and programs, but 
has no authority over public schools. This single tiered system 
continues to frustrate the District's efforts to comply with 
Federal accountability standards set by the No Child Left 
Behind Act [NCLB]. Specifically, the District's accountability 
system lacks sufficient measures and interventions for schools 
failing to make ``adequate yearly progress'' as defined by the 
NCLB. In addition, the current structure poses additional 
accountability issues for public charter schools, who are 
monitored by the SEA in the District, instead of the LEA as in 
other jurisdictions.
    The Committee directs the D.C. Board of Education to 
contract with an independent entity to develop legislation to 
separate the D.C. local education agency functions from the 
State education agency functions by establishing or designating 
a State-level entity to assume all State-level education 
functions and the SEA authority, separate from all LEAs. The 
independent entity, in consultation with the BOE, the Mayor, 
the Council of the District of Columbia, the Superintendent of 
DCPS, the State Education Office, and the D.C. Public Charter 
School Board shall develop legislation that is consistent with 
the following: implementing the State planning and 
accountability requirements of NCLB; best practices for State 
agency organization and functions; and Federal requirements for 
State roles and responsibilities. This proposed legislation 
shall be submitted to the Congress no later than 120 days after 
enactment of this act to inform congressional actions to 
clarify State-level functions.
    Evaluation of D.C. Public School System.--The Committee 
directs the Government Accountability Office [GAO] to conduct a 
comprehensive review of the District of Columbia Public School 
System's personnel, management, and systems management. The 
review should assess DCPS's financial management and 
accounting, information technology systems, Federal grants 
management, and reporting processes. The Committee directs GAO 
to work with the Department of Education to determine what 
improvements DCPS needs to make to eliminate its ``high risk'' 
designation. The Committee directs GAO to report on these 
findings by May 1, 2007.

Strengthening Charter Schools

    The Committee recommends $13,000,000 for public charter 
schools in the District of Columbia, directed to specific 
initiatives which will strengthen schools, enhance capacity, 
improve academic quality, and create a network of integrated 
services. The Committee recommends the following allocation of 
resources: $6,000,000 for the Direct Loan Fund for Charter 
Schools; $3,500,000 for continuation of the City Build Charter 
School Program; $1,000,000 for the Public Education Improvement 
Incentive Award program; $1,050,000 for grants to public 
charter schools for co-location with DCPS buildings; $1,000,000 
for a quality initiative; and $450,000 for administration 
within the State Education Office.
    The Committee has played a significant role in the 
development of public charter schools in the District of 
Columbia. In school year 2006-2007, there will be 58 public 
charter schools educating 25 percent of the student population, 
giving the District the distinction of having more charter 
schools per capital than any other city or State in the Nation.
    The Committee received requests from several public charter 
schools in the District for capital improvements or 
construction funding. Instead of earmarking these funds, the 
Committee is providing $6,000,000 for D.C. government programs 
to provide financing for public charter schools to improve 
facilities. The Committee has reviewed proposals for funding 
and recommends that the Office of Public Charter School 
Financing and Support give particular consideration to 
proposals submitted by the following schools: E.L. Haynes 
Public Charter School; Friendship Tech Prep Academy in 
Anacostia; KIPP DC preschool through grade 12 Campus; and 
Washington Latin School.
    The Committee recommends that the Mayor conduct an 
assessment of the current open enrollment and lottery system 
for public charter schools in the District. This assessment 
should identify and recommend a solution to challenges in the 
open enrollment system, including supporting neighborhood 
schools, partnerships, or dual-language programs.
    The Committee directs the Mayor to provide a quarterly 
financial report to the Committees on Appropriations on the 
performance of the Direct Loan Fund and Credit Enhancement for 
Public Charter Schools. The report shall include: (1) a summary 
of obligations, expenditures, and the purpose therefore; (2) 
the public charter schools benefiting from such funds and their 
expenditures; and (3) the investment of all funds, both local 
and Federal, and interest earnings from such investments.
    The Committee is informed that the Securities and Exchange 
Commission [SEC] has frozen all assets of a certain business 
entity that the District had selected to conduct the banking 
transactions necessary to run the Charter School Revolving Loan 
and Credit Enhancement Programs. Assets held by this business 
entity include $9,600,000 in Federal funds appropriated to the 
District of Columbia. Consequently, while the investigation is 
ongoing, these funds are not available to the District. In 
addition to the SEC's investigation, the U.S. Attorney's Office 
is conducting its own investigation. Further, the D.C. Office 
of the Inspector General, the Office of the Chief Financial 
Officer and the D.C. Office of the Attorney General are all 
coordinating various investigations into this matter. Whether 
and when the $9,600,000 in funds will be made available to the 
District must be determined by the SEC.
    The Committee understands that the District has agreed to 
take steps to ensure that the credit enhancement and direct 
loan programs are provided with the resources necessary to 
continue operations as though not affected by the freezing of 
funds by the SEC. In addition, the District has undertaken 
substantial reform of the programs since the Office of Public 
Charter School Financing and Support was placed within the 
State Education Office in fiscal year 2005. The State Education 
Office is instituting new processes and protections for the 
program and is working with the Office of the Chief Financial 
Officer to restructure its investment strategy.
    The Committee encourages the Mayor to ensure that there is 
no disruption in the program to provide financing to qualified 
public charter schools and directs the Mayor to replenish funds 
if disruptions seem likely.
    Quality.--The D.C. Board of Education voted in June 2006 to 
impose a moratorium on issuing additional charters in order to 
evaluate the BOE's desire to continue authorizing public 
charter schools. The BOE has authorized 25 schools and 
currently oversees 17 public charter schools in the District of 
Columbia.
    Congress authorized, in the D.C. School Reform Act of 1995, 
the BOE and an independent entity, the D.C. Public Charter 
School Board [DCPCSB], as eligible chartering authorities (or 
authorizers) to authorize and oversee public charter schools in 
the District. Congress also allowed the Council of the District 
of Columbia to designate a third eligible chartering authority 
through legislation and for several Federal agencies to explore 
the feasibility of authorizing public charter schools in the 
District.
    The Committee supports the benefits of inherent competition 
among multiple chartering authorities and recognizes that the 
District is only the second jurisdiction nationwide to have 
this structure. However, the Committee has raised concern with 
the quality of oversight performed on public charter schools 
and questioned if the BOE would be more efficient focusing only 
on DCPS. The Committee welcomes the current examination of the 
chartering authority structure and strongly urges the BOE, 
Mayor, Council and charter school community to make the goal of 
quality public charter schools the highest priority in 
considering any legislative action. The Committee would 
consider, with the appropriate authorizing committees of 
Congress, legislation to modify the chartering authority 
structure, including amending the D.C. School Reform Act to 
designate another authorizer.
    The Committee directs the U.S. Government Accountability 
Office [GAO] to assess, as part of the biannual report to the 
Congress on the D.C. public charter school authorizers, the BOE 
moratorium and to make recommendations on what entity should 
assume responsibility for existing BOE public charter schools.
    Consistent with Committee direction in 2005, the D.C. 
charter school authorizing boards, the BOE and the DCPCSB, have 
taken necessary steps to ensure that each authorized public 
charter school has an annual financial audit consistent with 
standards set by the D.C. Chief Financial Officer. The 
Committee encourages oversight of the financial accountability 
and transparency of the authorizing boards.
    The Committee noted in the fiscal year 2006 report concern 
that the current law prohibits authorizers from revoking a 
charter at any time for failure to meet the public charter 
school's academic performance goals, authorizers may only 
revoke charters for financial or management concerns. The law 
governing charter school authorization and oversight should 
make academic achievement paramount.
    Facilities.--Access to appropriate facilities is a major 
challenge of public charter schools. The Committee is 
encouraged that public charter schools will receive equal 
access to public facilities and financing. The following are 
specific areas of concern for the Committee.
    The Superintendent's recommendation for the first phase of 
school consolidations or rightsizing proposed that unused 
public school space be leased to public charter schools and the 
revenue be used to improve the facilities in D.C. Public 
Schools. The Committee strongly supports this effort and has 
dedicated $1,050,000 of the $13,000,000 for public charter 
schools to support improving facilities occupied by public 
charter schools. The Committee strongly encourages the 
Superintendent to use a transparent process for leasing unused 
DCPS facilities to public charter schools consistent with the 
right of first refusal in the 1995 D.C. School Reform Act (D.C. 
Code 38-1802.09).
    The Committee supports DCPS efforts to facilitate co-
location of public charter schools and DCPS facilities to 
enable the District to better utilize its school facilities in 
a cost efficient manner. The Superintendent's recommendation 
for school consolidations or rightsizing proposes seven DCPS 
schools for co-location with a public charter school. The 
Committee was disappointed that a proposal in 2005 to make 
space in 10 DCPS schools available to public charter schools 
resulted in only two co-locations of public charter schools and 
DCPS. The Committee strongly supports partnerships and co-
locations which maximize the benefit of public funds, and will 
look favorably upon such partnerships to further leverage local 
funding provided through the D.C. School Modernization 
Financing Act of 2006. The District requires that rental 
payments from a charter school be for the use of the host 
school, which provides a strong incentive to lease 
underutilized space (D.C. Code Sec. 38-1831.01(b)(2)) because 
rental payments from charter schools provide a reliable revenue 
source for host schools.
    Surplus Public School Facilities.--In March 2000 the 
District of Columbia Financial Responsibility and Management 
Assistance Authority transferred jurisdiction of 38 public 
school properties to the control of the Mayor of the District 
of Columbia.
    The School Reform Act of 1995 provided a preference for 
charter schools to obtain surplus property to alleviate 
identified lack of appropriate school space. The Committee 
strongly supported the legal preference in its fiscal year 2003 
and 2004 Committee reports. In addition, Public Law 108-335, 
section 342(c) requires that charter schools are provided a 
right of first offer on the disposition of any property. The 
Committee is disappointed that the Mayor and the Council of the 
District of Columbia were unable to make more than two 
additional surplus former public school buildings available to 
public charter schools in the last year.
    The Committee report 109-106 requested a report from the 
Mayor of the District of Columbia, in consultation with the 
Chairman of the Council of the District of Columbia, on the 
current use of all 38 original surplus properties, the market 
rate value of each property, and the profit generated from any 
prior sales to more fully understand the benefit to the city. 
This report was not submitted.
    The Committee strongly believes that proceeds from sales or 
leases of surplus public school property should be deposited 
into a segregated account for school facilities improvement to 
enable the Superintendent to improve the entire system at a 
time when facilities funding is limited.
    This year public charter schools spent $16,000,000 on the 
private real estate market to renovate facilities for 
educational use. The Committee remains concerned about the lack 
of appropriate educational space for public charter schools 
while former public school facilities are used for other 
purposes. The Committee expects that additional surplus public 
school facilities will be made available expeditiously to 
charter schools, consistent with the right of first offer 
required under Section 342(c) of Public Law 108-335.
    City Build Charter School Program.--The Committee 
recommendation includes $3,500,000 to continue the City Build 
Charter School Program consistent with an independent study 
conducted in 2006. The program shall first identify communities 
which have the greatest near term potential of attracting or 
retaining residents as ``City Build Communities''; then the 
Mayor may solicit proposals from public charter schools to 
locate in City Build Communities. The Committee believes that 
public charter schools which demonstrate community service 
activities, such as family literacy programs, should receive 
priority in future grants. In addition, the Committee continues 
to strongly encourage the Mayor of the District of Columbia and 
the Deputy Mayor for Planning and Economic Development to give 
priority and to highly leverage public funds to projects which 
include charter schools or other educational space in future 
development in the District. The Committee is reviewing the 
management of the City Build Program and may change the current 
structure to strengthen the program and improve its benefits to 
the community.

Improving Opportunities for School Choice

    The Committee recommendation includes $13,000,000 to 
continue a scholarship program to allow low-income students 
attending consistently under-performing public schools to 
choose to attend private schools within the District. The 
Committee believes that this program is improving the academic 
prospects of students receiving scholarships and is stimulating 
improvement within the public school system.
    The Committee is providing funds for scholarships that will 
be available to low-income District students in grades 
kindergarten through 12 who are attending consistently low 
performing public schools. The scholarships are for the 
tuition, transportation, and fees at participating private 
schools within the District and cannot exceed $7,500 per 
elementary, middle school, or high school student. If the funds 
provided are not sufficient to serve all the eligible 
applicants, scholarships will be awarded through random 
selection.

Program Is Succeeding

    The Committee is very pleased with the first 2 academic 
years of the D.C. Opportunity Scholarship Program. In the 
program's first 2 years, the Washington Scholarship Fund [WSF], 
the grantee administering the program, accepted nearly 6,000 
applications for approximately 2,400 available scholarships. 
The Committee understands the challenges that WSF has met, 
particularly given the short amount of time that the 
organization had to design, launch and recruit for this 
historic demonstration project in school choice.
    In the ``Evaluation of the D.C. Opportunity Scholarship 
Program: Second Year Report on Participation,'' the Institute 
for Education Sciences at the U.S. Department of Education 
noted that:
  --44 percent of all eligible applicants entering grades 1 
        through 12 came from a public school designated as ``in 
        need of improvement'' under the No Child Left Behind 
        Act between 2003 and 2005. (When eligible applicants 
        entering Kindergarten are added, that percentage rises 
        to 65 percent).
  --The average household income of the new 2005-2006 
        scholarship recipients was $16,651, far below the 
        statutory requirement of 185 percent of the poverty 
        level.
  --The number of scholarships awarded in the program's first 2 
        years is high enough to create a robust ``treatment'' 
        group across all 13 grades (K-12) for the rigorous, 
        federally mandated evaluation of the program. The 
        evaluation's ``control'' group is also sufficient 
        across all grades.
    In the ``Evaluation of the D.C. Opportunity Scholarship 
Program: First Year Report on Participation,'' the Institute 
for Education Sciences at the U.S. Department of Education 
noted that:
  --Compared to other scholarship programs across the Nation, 
        this program has a more diverse group of participating 
        schools, including 28 percent of schools that are not 
        religiously affiliated.
    In addition to these conclusions from the Department of 
Education's reports, the Committee notes that last fall, 1,630 
students entered D.C. non-public schools using Opportunity 
Scholarships. The second year of the program offered 
scholarship recipients a choice of 68 participating schools. 
The Committee is pleased that the treatment and control groups 
are sufficient for the federally mandated evaluation, including 
students in all 13 grades, K-12.

Preventing Families From Earning Out of the Program

    Against the backdrop of this very promising start, the 
Committee is concerned that too many students will lose their 
scholarships because their household incomes are rising 
slightly. Once a student has been in the program for a year, 
the household income eligibility threshold rises from 185 
percent of the poverty level to 200 percent of the poverty 
level. The Committee understands that for various reasons, 
nearly 650 students will lose their scholarships over the next 
3 years if the 200 percent threshold is not raised. As a 
result, these students will be forced to leave their current, 
non-public schools and return to public schools. These students 
will remain in the Federal evaluation's ``treatment'' group 
even though they are no longer being ``treated.'' This, along 
with very limited high school capacity, will jeopardize the 
Federal evaluation, which will be rendered inconclusive if less 
than 50 percent of the students in the ``treatment'' group are 
using their scholarships. In most cases, families are ``earning 
out'' of the program by a few hundred dollars. For instance, a 
parent gets a slight raise, a promotion, or a higher-paying 
job, or parents that were separated reconcile.
    For this reason, the Committee has included language to 
allow children already in the program to stay in the program if 
their families' incomes are below 300 percent of Federal 
poverty level.
    Evaluation of D.C. School Choice Incentive Act.--The 
Committee directs the Government Accountability Office [GAO] to 
conduct a comprehensive review of the Opportunity Scholarship 
Program. Not later than April 1, 2007, the GAO shall report on 
the methodologies for conducting the program evaluation and 
shall assess and analyze the demographic and other 
characteristics of the students participating in and leaving 
the program; the selection criteria for schools wishing to 
participate and the methods used to select students who receive 
an offer to participate in the program; and an analysis of the 
administration of the program and use of Federal funds.
    In addition, this GAO review shall assess the 
administration of testing or other measurements to compare the 
academic achievement and rates of retention, drop-out, 
graduation, and college admission of the students in the 
program with comparable students enrolled in the District of 
Columbia public school system. The report should also include 
information from parents of scholarship students as well as 
parents of the District of Columbia public school students 
about how satisfied they are with the quality of their child's 
education. This information should be presented by income 
level.
    The GAO shall also report on the challenges facing the 
Washington Scholarship Fund as it administers the program. 
These challenges include outreach to low-income parents, the 
need for additional academic remediation for children who enter 
private school below grade level, and the oversight of the 
program participants. The study should also provide information 
on the challenges that schools who educate scholarship students 
face and the additional costs they bear to accept these 
students.

       FEDERAL PAYMENT FOR FORENSICS AND BIOTERRORISM LABORATORY

Appropriations, 2006....................................      $4,950,000
Budget estimate, 2007...................................................
House allowance.........................................................
Committee recommendation................................       4,500,000

    The Committee recommends $4,500,000 for costs associated 
with the construction of a new bioterrorism and forensics 
laboratory in the District of Columbia. This is $450,000 less 
than the fiscal year 2006 enacted level. The President did not 
request funds for this activity. The District's laboratory 
capacity has not kept pace with the innovations in the field 
and is therefore unable to meet the demands of the current 
workload. Because of this lack of capacity, the District is 
forced to seek help from the FBI crime laboratory in Quantico, 
Virginia. The FBI has its own workload capacity and therefore 
limits the evidence it will process for the District to four 
pieces of forensic evidence for violent crimes. This lack of 
capacity and the limitations of old technology have led to many 
so-called ``cold'' or unsolved crime cases in the District. A 
new laboratory will not only allow the District to more 
effectively and efficiently process crime cases, but it will be 
an essential element in processing evidence associated with 
potential bioterrorism attacks.

    FEDERAL PAYMENT FOR MARRIAGE DEVELOPMENT ACCOUNTS AND MARRIAGE 
                               PROMOTION

Appropriations, 2006....................................      $2,970,000
Budget estimate, 2007...................................................
House allowance.........................................................
Committee recommendation................................       4,000,000

    The Committee is providing $4,000,000 for marriage 
promotion and to continue Marriage Development accounts.

Children Raised by Married Parents Usually Have Brighter Futures

    The Committee notes that the family is the very foundation 
and building block of a society. When families thrive, 
communities thrive, and society thrives. Marriage is the 
essence of family formation and our most important social 
institution. It is the place from which healthy children and, 
ultimately, a healthy society are born.
    The Committee is aware that almost all available research 
shows--and social policy experts agree--that children do best 
when they grow up in homes with their married, biological 
parents. They are generally healthier, happier, and have 
brighter futures than children who grow up with only one 
parent. Statistics tell a compelling story: children raised by 
only 1 parent are three times more likely to repeat a grade in 
school; five times more likely to have behavioral problems; 
twice as likely to be depressed; three times more likely to use 
illicit drugs; twice as likely to become sexually active as 
teenagers; and are seven times more likely to live in poverty. 
In fact, children born to unmarried mothers are likely to live 
in poverty and require support from the welfare system.
    Given the enormous benefits that accrue to children who are 
raised by their married parents, the Committee believes that it 
is a moral and societal imperative that our nation esteem, 
support, foster, and encourage the institution of marriage.
    The Committee is pleased to announce that the Mayor of the 
District of Columbia will take important actions to encourage 
marriage in the District of Columbia. These actions include: 
(1) eliminating marriage penalties for low-income couples who 
decide to wed; (2) increasing the earned income tax credit for 
married couples in the District; and (3) assigning priority 
status to married couples and their families for low-income and 
federally funded housing. The Committee is also providing 
$1,000,000 to the District of Columbia Department of Human 
Services to support occupational training for married parents 
to improve their prospects for full-time employment.

Low-Income Couples Face Significant Marriage Penalties

    Through Committee hearings, briefings, and research, the 
Committee has learned that governmental policies have often 
worked to discourage marriage. In May witnesses testified 
before the Committee that government policies have served to 
weaken marriage over the past 40 years. Certain programs 
created in the 1960's had the unintended consequence of 
discouraging marriage by providing financial incentives for 
low-income parents to never get married. These policies have 
made--and continue to make--it economically irrational for a 
poor mother to get married.
    Four decades of these incentives have wrought a significant 
and tragic result for our children: fully 35 percent of all 
babies are born to single mothers. This compares to just 4 
percent in 1960. And the picture is nothing short of 
devastating for African-American families: 70 percent of all 
children are born to single mothers.
    The Committee has been informed that the lower the parents' 
income, the greater the likelihood that he or she will be 
raising children alone. According to the Congressional Research 
Service, 55 percent of all families with children whose incomes 
are below $30,000 are headed by an unmarried parent. Families 
in this income range make up over one-third of all families 
with children in the United States.
    Although the 1996 Welfare Reform Act attempted to remove 
the incentives for parents to remain unmarried, unwed 
birthrates have continued to increase. In fact, government 
policies often continue to penalize low-income couples with 
children who decide to get married.
    During a recent hearing before this Committee, Dr. Eugene 
Steuerle of the Urban Institute testified about his work with 
Adam Carasso on what they call ``the hefty tax on marriage 
facing many low-income households with children.'' Dr. Steuerle 
pointed out that most households with children whose parents 
earn low or moderate incomes (under $40,000) are significantly 
penalized for getting married. Essentially, a couple will fall 
off the ``benefits cliff'' when they take their wedding vows 
because even small increases in income result in thousands of 
dollars of lost benefits. Dr. Steuerle's research has led him 
to make a very troubling observation. He testified before the 
Committee that ``in aggregate, couples today face hundreds of 
billions of dollars in increased taxes or reduced benefits if 
they marry. Cohabitation or not getting married has become the 
tax shelter for the poor.''
    At first this statement is a shocking one, but upon further 
consideration, it is quite understandable because it makes 
little economic sense for low-income couples to get married. If 
a low-income mother is faced with losing the ability to feed 
and clothe her children when she takes a wedding vow, why would 
she choose to do so?
    The Committee also heard testimony from a mother of four 
who just recently married the father of her children. She 
testified that ``a reality that contributed to our delay in 
getting married was fear over what would happen to the public 
benefits we need to support our family.'' She went on to say 
that ``it is the experience of people in my community that if a 
woman gets married her income from TANF (Temporary Assistance 
to Needy Families) and other benefits will decrease. This is a 
disincentive to marriage and I understand why. As a mother of 
four, the possibility of losing income I desperately needed to 
support my children altered my own judgment about marriage for 
so long.''
    The decision for this couple to marry was economically 
irrational because it means that every month they have to get 
by on less than they used to before they got married. They are 
being financially penalized for taking a wedding vow. It is not 
surprising that in many low-income communities marriage is 
disappearing and children are growing up without the love and 
nurturing of both parents. For four decades we have essentially 
been taxing low-income marriage and subsidizing single 
parenthood. It is no wonder, then, that we have less marriage 
and more single parents in low-income communities.
    The Committee is aware that there are many single mothers 
who are heroically and successfully raising children on their 
own. They deserve our respect and support. But it is an 
indisputable fact that a father and a mother, bound together in 
marriage, provide the best environment in which to raise 
healthy children. As a society, we should strive to foster what 
is the very best for our children.

The Mayor Will Work to Eliminate Marriage Penalties in the District of 
        Columbia

    The Mayor of the District of Columbia has agreed to partner 
with this Committee to increase marriage rates in a number of 
ways. First, the District will begin using some of its TANF 
funds to provide additional cash supplements to couples who 
would otherwise have lost benefits by getting married. The 
District will determine the potential loss of benefits and will 
then provide monthly cash payments to replace those lost 
benefits. The District has agreed to provide these benefits for 
the first 2 years of the couples' marriage. This will 
effectively eliminate the ``marriage penalty'' and will ``hold 
couples harmless'' for their decision to wed. The Committee 
believes that in the long run eliminating marriage penalties 
will actually save money because fewer children will be raised 
by single parents in poverty and these children will, in turn, 
be less likely to rely on public assistance. But more 
importantly, eliminating marriage penalties for low-income 
families will encourage marriage and enable more children to 
grow up in the very best environment possible--with their 
married biological mother and father.
    The Committee lauds the Mayor for taking this important 
step to eliminate marriage penalties and believes that all 
States should take aggressive measures to eliminate marriage 
penalties for low-income couples.

The Mayor Will Increase Earned Income Tax Credit for Married Couples in 
        the District of Columbia

    The Committee notes that the Mayor of the District of 
Columbia has also agreed to increase the Earned Income Tax 
Credit [EITC] for married coupled in the District of Columbia.
    The Committee is informed that when a low-income working 
woman and a low-income working man decide to marry, they face 
reductions in their EITC benefits. This is because benefits are 
based on household income, rather than individual income. 
Unfortunately, this situation encourages couples to cohabit or 
never marry in order to preserve their EITC benefits.
    One way to eliminate this penalty is to simply base the 
credit on individual income rather than family income. Another 
option is to extend the maximum benefit for married couples, 
while leaving it unchanged for single parents. The Committee 
understands that the Mayor has agreed to increase EITC benefits 
by using whichever method is easiest to administer.

The Mayor Will Assign Priority Status to Married Couples for Access to 
        Low-income and Federally-funded Housing

    The Committee is pleased that the Mayor has decided to give 
priority to married couples who are seeking low-income housing. 
The Committee understands that one obstacle to marriage for 
low-income single mothers is the loss of housing benefits if 
they decide to marry. When public-housing subsidies are 
withdrawn or substantially reduced following the marriage of a 
welfare recipient, the essential message this sends to single 
mothers is: If you want your welfare benefits to continue, 
avoid marrying an employed man.
    Given the important stability that affordable housing 
provides to families, the Committee is pleased that the Mayor 
has decided to give married couples priority access to low-
income housing. The Committee believes that other States should 
considering following the Mayor's example.

More Job Training and Employment Opportunities Will Help Stabilize 
        Marriages

    According to the Congressional Research Service, more than 
one-third of all unmarried parents in the District of Columbia 
have household incomes that are less than $10,000 per year, 
making them the city's largest single income grouping of 
unmarried parents. Nearly 86 percent of all families with 
children having income less than $10,000 per year are headed by 
a single parent. These are the parents that require direct 
assistance because most do not have full-time, full-year 
employment and therefore count on public benefits to sustain 
them.
    According to District of Columbia officials, the 
disproportionately low levels of functional literacy of TANF 
recipients creates a serious challenge to moving persons into 
higher paying jobs that lead to long-term self-sufficiency and 
marital stability. With little formal education and low 
functional literacy rates, many single parents simply are not 
well-positioned to advance beyond entry level jobs and ill-
prepared to pursue formal education that will lead to higher 
paying jobs.
    Research shows that most low-income parents want jobs and 
are interested in formal education to the extent it quickly 
leads to employment. Also, noncustodial male parents are 
frequently interested in obtaining employment as a means of 
being responsible fathers. However, these men have consistently 
been unable to access traditional workforce development 
programs because they cannot meet the program requirements of a 
high school diploma or 8th grade reading and math proficiency.
    The Committee recognizes that many low-income parents are 
functionally illiterate and lack occupational skills and it is 
therefore providing resources to the District of Columbia 
Department of Human Services for occupational skills training 
and developmental education programs. These programs will be 
available to married men and women. They will include:
    (1) Developmental education that teaches basic reading, 
writing, math, and/or English language skills in the context of 
a specific occupation, helping the participant quickly enter 
and succeed in the workforce or other training programs; and
    (2) Occupational skills training which leads to employment 
and prepares the participant for more advanced training and a 
higher skill position.
    The Committee believes that these programs are attractive 
because they are generally shorter in length and more intensive 
than other adult courses, and are often linked to a specific 
employer. Given these characteristics, many programs are 
employer-sponsored or linked to providers of technical 
education. The funds included will support courses including 
remedial math and reading which are taught in a manner that 
incorporates material specific to the occupation for which the 
individual is being trained, and incorporate teaching methods 
that are more appealing to adult learners with limited basic 
skills such as projects, simulations, and experiential 
learning.
    In the District, many employers cannot hire many of the 
city's low income parents because they do not have necessary 
job skills. It is no surprise, then, that the District of 
Columbia Chamber of Commerce has specifically called for the 
creation of bridge training programs to address employment 
needs. This demonstration project will be linked to ongoing 
D.C. marriage and fatherhood promotion efforts. Services will 
be provided through contracts to community providers to develop 
community based bridge programs as part of a partnership with 
the Department of Human Services, the State Education Office, 
and the Office of the Deputy Mayor for Children, Youth and 
Families and Elders.

Continuing Marriage Development Accounts

    The Committee believes that Federal, State and local 
leaders must act as quickly as possible to stop the erosion of 
marriage in our Nation. Millions of children are suffering the 
consequences of growing up without both of their parents. We 
must act aggressively to encourage marriage--not penalize it.
    Rather than economically penalizing low-income couples who 
decide to marry, the Committee believes we should help these 
couples gain stronger financial security. The promise of 
financial security can help promote and sustain healthy 
marriages, just as financial penalties can discourage and harm 
marriages.
    As a way to help low-income married couples gain 
appreciable assets here in the District of Columbia, the 
Committee is providing $1,500,000 to continue to pilot new 
federally funded ``Marriage Development Accounts.'' These MDAs 
are available to low-income married couples who are citizens or 
legal residents of the District and who have very low net 
worth. Couples can save money to buy a home, pay for job 
training or education for themselves or their children, or 
start their own businesses. Couples who open an MDA will have a 
high incentive to save because their contributions will be 
matched at a ratio of 3:1 by the Federal Government and 
partnering private institutions. As a requirement of 
participation, couples are receiving training to help them 
repair their credit, set a budget and savings schedule, and 
manage their money. Couples will also receive bonuses in their 
MDA accounts for receiving marriage counseling.
    On April 27, 2006, leaders from the District of Columbia 
government, the faith community, nonprofit organizations and 
more than 350 District residents launched the ``Together is 
Better'' campaign to strengthen marriages, with MDAs offered as 
an important tool to help low-income married and engaged 
couples put their lives on firm financial ground.
    The Committee has included funds in this bill to continue 
MDAs as a way to help low-income couples get and stay married 
so that husbands and wives and their children can have a 
brighter future. By itself it cannot cancel out the hefty 
marriage penalties that are levied on so many low-income 
couples who decide to marry, but it is a start. The Committee 
believes that MDAs, the elimination of marriage penalties, an 
increase in EITC for married couples, and job training for 
enhanced employability will all work in concert to encourage 
marriage, which has been discouraged for low-income couples 
over the past 40 years.

Promoting Successful Marriages and Encouraging Positive Life Decisions

    The Committee is providing $750,000 for the East Capitol 
Center for Change [ECCC] and $750,000 for the National Center 
for Fathering [NCF] to work with local churches and other 
faith-based organizations to provide marriage counseling, 
couples mentoring, couples coaching, marriage retreats, ``Dad 
training,'' and community outreach. Both ECCC and NCF are 
working with CAAB and its participating service providers to 
provide account holders with life skills counseling, couples 
mentoring, and youth mentoring (which will include relationship 
counseling and abstinence counseling). ECCC and NCF are working 
with the faith community to provide pre-marital and marital 
counseling and relationship mentors and coaches for 
participating couples.
    Recognizing the importance of grassroots support to ensure 
the success of these efforts, the Committee directs ECCC and 
NCF to expand their network of service providers by developing 
partnership with local churches, faith-based organizations, and 
other non-profit organizations. The Committee expects that ECCC 
and NCF will provide technical assistance and training to their 
partners in order to replicate the successful models which they 
are currently using.
    The Committee has included bill language requiring CAAB, 
ECCC, and NCF to submit detailed expenditure plans within 30 
days of enactment of the bill. In addition, the Committee is 
directing CAAB to provide detailed program requirements 
governing MDAs and pMDAs that comport with the above report 
language with 30 days of enactment of the bill.

    FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA FOR NAVY YARD METRO

    The Committee is providing $4,000,000 to improve and 
upgrade the Washington Metropolitan Area Transit Authority's 
Navy Yard Metro station. The President's budget includes 
$20,000,000 in funding for this purpose. This investment is 
modeled on other transit investments the Federal Government has 
made in the District and it will help improve capacity for 
expanded Federal workforce needs at the new U.S. Department of 
Transportation headquarters and the Southeast Federal Center. 
The Committee also recognizes the importance of improving 
public access to the tremendous natural amenities along the 
Anacostia River, which the expansion of this Metro station will 
provide.

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA FOR A NEW STATE-OF-THE-ART 
                            CENTRAL LIBRARY

    The Committee is providing $15,000,000 as a Federal 
contribution for a new central library. The Committee 
recognizes that the District's adult illiteracy rate is 37 
percent and notes that in many major metropolitan areas around 
the country, new libraries have revitalized many distressed 
neighborhoods. For this reason, the Mayor established a Blue 
Ribbon Task Force comprised of local and national experts. The 
Blue Ribbon Task Force recommended the creation of a state-of-
the-art library system to add multi-lingual support, add 
hundreds of new computers with broadband technology, and add 
deep reference materials and childrens' programs. The Mayor 
believes, and the Committee agrees, that this new central 
library will help create brighter futures for District of 
Columbia residents.
    The Committee notes that the estimated cost of building the 
District's central library and refurbishing satellite libraries 
will be approximately $450,000,000. The Committee recognizes 
that the lion's share of funding for the library project will 
be borne by District residents.

              DISTRICT OF COLUMBIA LOCAL OPERATING BUDGET

    The Committee recommends a total of $9,057,361,000 for the 
operating expenses of the District of Columbia as contained in 
the fiscal year 2007 budget submitted to the Congress by the 
Government of the District of Columbia on June 6, 2005. Of the 
total, $5,271,162,000 is from local funds, $2,020,101,000 is 
from Federal grant funds, $1,758,214,000 is from other funds, 
and $7,885,000 is from private funds. The Committee directs 
that any changes to the financial plan as submitted by the 
District must follow the reprogramming guidelines.
    The following tables detail the revenue and expenses plan 
of the District for fiscal year 2007:

                                         FISCAL YEAR 2007 FINANCIAL PLAN
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                    Grants and
                                                                    Local Funds    other revenue    Gross funds
----------------------------------------------------------------------------------------------------------------
                            Revenues

Local Sources:
    Property Taxes..............................................       1,345,111  ..............       1,345,111
    Sales Taxes.................................................         815,498  ..............         815,498
    Income Taxes................................................       1,576,071  ..............       1,576,071
    Gross Receipts..............................................         261,186  ..............         261,186
    Other Taxes.................................................         314,733  ..............         314,733
    Licenses and Permits........................................          70,845  ..............          70,845
    Fines and Forfeitures.......................................         107,336  ..............         107,336
    Charges/Services............................................          53,218  ..............          53,218
    Miscellaneous...............................................         550,990  ..............         550,990
    Fund Balance Use............................................         284,287  ..............         284,287
    Revenue Proposals/Onetime Revenues..........................         113,268  ..............         113,268
                                                                 -----------------------------------------------
      Subtotal, Local Revenues..................................       5,492,543  ..............       5,492,543
                                                                 ===============================================
Federal and Other Sources:
    Federal Payments............................................  ..............          36,400          36,400
    Federal Grants..............................................  ..............       2,001,522       2,001,522
    Private Grants..............................................  ..............           6,850           6,850
                                                                 -----------------------------------------------
      Subtotal, Federal Sources Revenues........................  ..............       2,044,772       2,044,772
                                                                 ===============================================
Other Financing Sources: Lottery Transfer.......................          72,100  ..............          72,100
                                                                 ===============================================
      Total General Operating Fund Revenues.....................       5,564,643       2,044,772       7,609,415

                          Expenditures

Current Operating:
    Governmental Direction and Support..........................         384,759         157,746         542,505
    Economic Development and Regulation.........................         409,392         133,742         543,134
    Public Safety and Justice...................................         943,295           7,398         950,693
    Public Education System.....................................       1,223,971         226,462       1,450,433
    Human Support Services......................................       1,423,138       1,500,033       2,923,171
    Public Works................................................         405,318          19,391         424,709
    Financing and Other.........................................         586,296  ..............         586,296
    Cash Reserve (Budgeted Contingency).........................          50,000  ..............          50,000
    Lease Purchase Costs........................................          43,955  ..............          43,955
                                                                 -----------------------------------------------
      Subtotal, Operating Expenditures..........................       5,470,124       2,044,772       7,514,896
                                                                 ===============================================
    Paygo Capital...............................................          87,987  ..............          87,987
    Transfer to Trust Fund for Post-Employment Benefits.........           4,700  ..............           4,700
                                                                 -----------------------------------------------
      Total General Operating Fund Expenditures.................       5,562,811       2,044,772       7,607,583
                                                                 ===============================================
    Operating Margin, Budget Basis..............................           1,832  ..............           1,832
----------------------------------------------------------------------------------------------------------------

                                                                    ENTERPRISE FUNDS
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER AUTHORITY...      295,710      311,642  ...........      311,642        311,642   ............        311,642       +15,932  ...........
WASHINGTON AQUEDUCT.........       50,512      143,174  ...........      143,174        143,174   ............        143,174       +92,662  ...........
STORM WATER.................        6,673        7,000  ...........        7,000          7,000   ............          7,000          +327  ...........
D.C. LOTTERY AND CHARITABLE       251,000      256,000  ...........      256,000        256,000   ............        256,000        +5,000  ...........
 GAMES CONTROL BOARD........
SPORTS AND ENTERTAINMENT          339,630      195,314  ...........      195,314        195,314   ............        195,314      -144,316  ...........
 COMMISSION.................
D.C. RETIREMENT BOARD.......       30,078       34,423  ...........       34,423         34,423   ............         34,423        +4,345  ...........
CORRECTIONAL INDUSTRIES.....  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
WASHINGTON CONVENTION CENTER       78,900       80,238  ...........       80,238         80,238   ............         80,238        +1,338  ...........
 AUTHORITY..................
NATIONAL CAPITAL                   52,731       51,592  ...........       51,592         51,592   ............         51,592        -1,139  ...........
 REVITALIZATION CORPORATION.
UNIVERSITY OF THE DISTRICT        102,200      110,259       10,163      100,095        110,259       (10,163)        100,095        +8,058  ...........
 OF COLUMBIA................
D.C. OFFICE OF PERSONAL             1,100        1,265  ...........        1,265          1,265   ............          1,265          +165  ...........
 AGENCY TRUST FUND..........
D.C. PUBLIC LIBRARY TRUST              17           17  ...........           17             17   ............             17   ...........  ...........
 FUNDS......................
UNEMPLOYMENT COMPENSATION         180,000      180,000  ...........      180,000        180,000   ............        180,000   ...........  ...........
 FUND.......................
ANACOSTIA WATERFRONT                8,200        5,000  ...........        5,000          5,000   ............          5,000        -3,200  ...........
 CORPORATION................
HOUSING PRODUCTION TRUST      ...........      120,418  ...........      120,418        120,418   ............        120,418      +120,418  ...........
 FUND.......................
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Enterprise and     1,396,751    1,496,341       10,163    1,486,178      1,496,341       (10,163)      1,486,178       +99,591  ...........
       Other Funds..........
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                   FINANCING AND OTHER
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
RESERVE.....................  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
REPAYMENT OF LOANS AND            370,778      405,114  ...........      405,114        405,114   ............        405,114       +34,336  ...........
 INTEREST...................
REPAYMENT OF GENERAL FUND     ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 DEFICIT....................
SHORT-TERM BORROWINGS.......        5,500        8,000  ...........        8,000          8,000   ............          8,000        +2,500  ...........
INAUGURAL EXPENSES..........  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
CERTIFICATES OF                    15,000       33,225        2,000       31,225         33,225        (2,000)         31,225       +18,225  ...........
 PARTICIPATION..............
SETTLEMENTS AND JUDGMENTS...       20,655       15,655  ...........       15,655         15,655   ............         15,655        -5,000  ...........
WILSON BUILDING.............        3,740        4,211  ...........        4,211          4,211   ............          4,211          +471  ...........
WORKFORCE INVESTMENTS.......       61,110       38,500  ...........       38,500         38,500   ............         38,500       -22,610  ...........
TOBACCO TRUST FUND..........  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
NON-DEPARTMENTAL............       37,286       45,942  ...........       45,942         45,942   ............         45,942        +8,656  ...........
EMERGENCY PLANNING AND        ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 SECURITY FUND..............
ONE-TIME EXPENDITURES.......  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
TAX INCREMENT FINANCING       ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 (TIF) PROGRAM..............
CASH RESERVE................       50,000       50,000  ...........       50,000         50,000   ............         50,000   ...........  ...........
GRANT DISALLOWANCE..........  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........
EQUIPMENT LEASE OPERATING...       35,441       48,635        4,680       43,955         48,635        (4,680)         43,955       +13,194  ...........
EMERGENCY AND CONTINGENCY     ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 RESERVE FUNDS..............
PAY-GO CONTINGENCY..........  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
PAY-GO CAPITAL..............      262,323       87,987  ...........       87,987         87,987   ............         87,987      -174,336  ...........
DEBT SERVICE--ISSUANCE COSTS       40,000       30,000  ...........       30,000         30,000   ............         30,000       -10,000  ...........
SCHOOLS MODERNIZATION FUND..       12,208        1,650  ...........        1,650          1,650   ............          1,650       -10,558  ...........
DISTRICT RETIREE HEALTH           138,000        4,700  ...........        4,700          4,700   ............          4,700      -133,300  ...........
 CONTRIBUTION...............
BASEBALL....................  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
REPAYMENT OF REVENUE BONDS..  ...........        6,000  ...........        6,000          6,000   ............          6,000        +6,000  ...........
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Financing and      1,052,040      779,618        6,680      772,938        779,618        (6,680)        772,938      -272,422  ...........
       Other................
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      PUBLIC WORKS
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OF PUBLIC WORKS..      115,530      136,012       26,896      109,115        136,012       (26,896)        109,115       +20,481  ...........
DEPARTMENT OF TRANSPORTATION       39,995       42,300          235       42,066         42,300          (235)         42,066        +2,305  ...........
DEPARTMENT OF MOTOR VEHICLES       46,530       42,931  ...........       42,931         42,931   ............         42,931        -3,599  ...........
DISTRICT DEPARTMENT OF        ...........       25,771          457       25,314         25,771          (457)         25,314       +25,771  ...........
 ENVIRONMENT................
D.C. TAXI CAB COMMISSION....        1,362        1,516  ...........        1,516          1,516   ............          1,516          +154  ...........
WASHINGTON METRO AREA                 110          110  ...........          110            110   ............            110   ...........  ...........
 TRANSIT COMMISSION.........
WASHINGTON METRO AREA             187,632      198,487  ...........      198,487        198,487   ............        198,487       +10,855  ...........
 TRANSIT AUTHORITY..........
SCHOOL TRANSIT SUBSIDY......        5,169        5,169  ...........        5,169          5,169   ............          5,169   ...........  ...........
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Public Works...      396,329      452,296       27,588      424,708        452,296       (27,588)        424,708       +55,968  ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                 HUMAN SUPPORT SERVICES
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OF HUMAN SERVICES      414,015      452,322        8,755      443,567        452,322        (8,755)        443,567       +38,306  ...........
CHILD AND FAMILY SERVICES         238,495      257,406       49,466      207,940        257,406       (49,466)        207,940       +18,911  ...........
 AGENCY.....................
DEPARTMENT OF MENTAL HEALTH.      229,545      220,863       39,045      181,818        220,863       (39,045)        181,818        -8,682  ...........
DEPARTMENT OF HEALTH........    1,731,976    1,884,580        4,822    1,879,758      1,884,580        (4,822)      1,879,758      +152,604  ...........
DEPT OF PARKS AND RECREATION       51,340       52,302        7,584       44,718         52,302        (7,584)         44,718          +962  ...........
OFFICE ON AGING.............       21,415       23,470          250       23,220         23,470          (250)         23,220        +2,054  ...........
PBC TRANSITION..............  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
UNEMPLOYMENT COMPENSATION           7,124        5,800  ...........        5,800          5,800   ............          5,800        -1,324  ...........
 FUND.......................
DISABILITY COMPENSATION FUND       30,281       30,280  ...........       30,280         30,280   ............         30,280            -1  ...........
OFFICE OF HUMAN RIGHTS......        5,032        2,725  ...........        2,725          2,725   ............          2,725        -2,307  ...........
OFFICE ON LATINO AFFAIRS....        4,485        4,247  ...........        4,247          4,247   ............          4,247          -238  ...........
D.C. ENERGY OFFICE..........       21,147       27,548        6,000       21,548         27,548        (6,000)         21,548        +6,401  ...........
CHILDREN AND YOUTH                  8,068        8,507  ...........        8,507          8,507   ............          8,507          +439  ...........
 INVESTMENT FUND............
BROWNFIELD REMEDIATION......  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
ASIAN AND PACIFIC ISLANDER            540          813  ...........          813            813   ............            813          +274  ...........
 AFFAIRS....................
OFFICE OF VETERANS AFFAIRS..          251          302  ...........          302            302   ............            302           +51  ...........
MEDICAID RESERVE............  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
INCENTIVES FOR ADOPTION OF    ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 CHILDREN...................
DEPARTMENT OF YOUTH                61,327       68,584          655       67,929         68,584          (655)         67,929        +7,257  ...........
 REHABILITATION SERVICES....
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Human Support      2,825,040    3,039,748      116,576    2,923,171      3,039,748      (116,576)      2,923,171      +214,708  ...........
       Services.............
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                 PUBLIC EDUCATION SYSTEM
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
D.C. PUBLIC SCHOOLS.........    1,046,064    1,031,339       52,239      979,100      1,031,339       (52,239)        979,100       -14,725  ...........
TEACHERS' RETIREMENT FUND...       15,500       14,600  ...........       14,600         14,600   ............         14,600          -900  ...........
STATE EDUCATION OFFICE......       90,987       54,023  ...........       54,023         54,023   ............         54,023       -36,964  ...........
D.C. PUBLIC CHARTER SCHOOLS.      239,284      266,066  ...........      266,066        266,066   ............        266,066       +26,781  ...........
UNIVERSITY OF THE DISTRICT    ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 OF COLUMBIA................
UNIVERSITY OF THE DISTRICT         57,873       59,546  ...........       59,546         59,546   ............         59,546        +1,673  ...........
 OF COLUMBIA SUBSIDY........
D.C. PUBLIC LIBRARY.........       34,473       42,297          299       41,998         42,297          (299)         41,998        +7,824  ...........
COMMISSION ON ARTS AND        ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 HUMANITIES.................
DISTRICT OF COLUMBIA               21,000  ...........  ...........  ...........  ..............  ............  ..............      -21,000  ...........
 EDUCATIONAL INVESTMENT FUND
DISTRICT OF COLUMBIA CHARTER        4,200  ...........  ...........  ...........  ..............  ............  ..............       -4,200  ...........
 SCHOOLS INVESTMENT FUND....
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Public             1,509,381    1,467,871       52,538    1,415,333      1,467,871       (52,538)      1,415,333       -41,510  ...........
       Education System.....
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                PUBLIC SAFETY AND JUSTICE
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
METROPOLITAN POLICE               377,488      437,129        2,566      434,562        437,129        (2,566)        434,562       +59,641  ...........
 DEPARTMENT.................
FIRE AND EMERGENCY SERVICES       156,268      169,790          559      169,231        169,790          (559)        169,231       +13,522  ...........
 DEPARTMENT.................
POLICE OFFICERS' AND FIRE         117,500      140,100  ...........      140,100        140,100   ............        140,100       +22,600  ...........
 FIGHTERS' RETIREMENT SYSTEM
DEPARTMENT OF CORRECTIONS...      132,686      137,590          442      137,148        137,590          (442)        137,148        +4,905  ...........
NATIONAL GUARD..............        3,428        4,493  ...........        4,493          4,493   ............          4,493        +1,065  ...........
D.C. EMERGENCY MANAGEMENT           5,495        6,695  ...........        6,695          6,695   ............          6,695        +1,201  ...........
 AGENCY.....................
COMMISSION ON JUDICIAL                218          233  ...........          233            233   ............            233           +15  ...........
 DISABILITIES AND TENURE....
JUDICIAL NOMINATION                   126          131  ...........          131            131   ............            131            +5  ...........
 COMMISSION.................
OFFICE OF POLICE COMPLAINTS.        2,095        2,312  ...........        2,312          2,312   ............          2,312          +217  ...........
D.C. SENTENCING COMMISSION..          662          700  ...........          700            700   ............            700           +38  ...........
OFFICE OF THE CHIEF MEDICAL         9,265        8,989  ...........        8,989          8,989   ............          8,989          -276  ...........
 EXAMINER...................
OFFICE OF ADMINISTRATIVE            7,057        7,335        1,164        6,171          7,335        (1,164)          6,171          +278  ...........
 HEARINGS...................
CORRECTIONS INFORMATION               155          118  ...........          118            118   ............            118           -37  ...........
 COUNCIL....................
CRIMINAL JUSTICE                    1,563          289  ...........          289            289   ............            289        -1,274  ...........
 COORDINATING COUNCIL.......
FORENSICS LABORATORY                  800        1,238  ...........        1,238          1,238   ............          1,238          +438  ...........
 TECHNICIAN TRAINING PROGRAM
OFFICE OF UNIFIED                  31,662       36,982  ...........       36,982         36,982   ............         36,982        +5,320  ...........
 COMMUNICATIONS.............
EMERGENCY AND DISASTER        ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 RESPONSE...................
HOMELAND SECURITY GRANTS....  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Public Safety        846,466      954,124        4,731      949,393        954,124        (4,731)        949,393      +107,657
       and Justice..........
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                           ECONOMIC DEVELOPMENT AND REGULATION
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
OFFICE OF THE DEPUTY MAYOR         37,980       85,661  ...........       85,661         85,661   ............         85,661       +47,681  ...........
 OF PLANNING................
OFFICE OF PLANNING..........        6,673        7,168           80        7,088          7,168           (80)          7,088          +494  ...........
OFFICE OF LOCAL BUSINESS            1,438        2,662  ...........        2,662          2,662   ............          2,662        +1,225  ...........
 DEVELOPMENT................
OFFICE OF MOTION PICTURES             579          594  ...........          594            594   ............            594           +15  ...........
 AND TELEVISION.............
OFFICE OF ZONING............        2,902        2,998  ...........        2,998          2,998   ............          2,998           +96  ...........
DEPARTMENT OF HOUSING AND         210,710      108,712  ...........      108,712        108,712   ............        108,712      -101,998  ...........
 COMMUNITY DEVELOPMENT......
DEPARTMENT OF EMPLOYMENT           93,048       99,016          577       98,439         99,016          (577)         98,439        +5,968  ...........
 SERVICES...................
BOARD OF APPEALS AND REVIEW.  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
BOARD OF REAL PROPERTY                431          563  ...........          563            563   ............            563          +132  ...........
 ASSES. AND APPEALS.........
DEPT CONSUMER AND REGULATORY       40,251       38,693  ...........       38,693         38,693   ............         38,693        -1,558  ...........
 AFFAIRS....................
COMMISSION ON ARTS AND              9,918       10,717           20       10,697         10,717           (20)         10,697          +799  ...........
 HUMANITIES.................
ALCOHOL BEVERAGE REGULATION         4,702        4,533  ...........        4,533          4,533   ............          4,533          -168  ...........
 ADMINISTRATION.............
DEPT. OF BANKING AND          ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
 FINANCIAL INSTITUTIONS.....
PUBLIC SERVICE COMMISSION...        7,976        8,001  ...........        8,001          8,001   ............          8,001           +25  ...........
OFFICE OF THE PEOPLE'S              4,306        4,596  ...........        4,596          4,596   ............          4,596          +290  ...........
 COUNSEL....................
DEPT. OF INSURANCE,                14,158       16,184  ...........       16,184         16,184   ............         16,184        +2,025  ...........
 SECURITIES AND BANKING.....
OFFICE OF CABLE TELEVISION          5,054        5,566  ...........        5,566          5,566   ............          5,566          +512  ...........
 AND TELECOMMUNICATIONS.....
HOUSING AUTHORITY SUBSIDY...        4,003       22,730  ...........       22,730         22,730   ............         22,730       +18,727  ...........
ANACOSTIA WATERFRONT CORP.          8,200        5,000  ...........        5,000          5,000   ............          5,000        -3,200  ...........
 SUBSIDY....................
HOUSING PRODUCTION TRUST      ...........      120,418  ...........      120,418        120,418   ............        120,418      +120,418  ...........
 FUND SUBSIDY...............
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Economic             452,328      543,812          677      543,135        543,812          (677)        543,135       +91,484  ...........
       Development and
       Regulation...........
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                           GOVERNMENTAL DIRECTION AND SUPPORT
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Bill compared with--
                                Approved   Fiscal year               Fiscal year                                               -------------------------
       Agency/activity        fiscal year      2007        Intra-     2007 less      Committee       Intra-        Committee    Fiscal year  Fiscal year
                                  2006       request      District      Intra-    recommendation    District    recommendation      2006         2007
                                                                       district                                                   approved     request
--------------------------------------------------------------------------------------------------------------------------------------------------------
COUNCIL OF THE DISTRICT OF         14,038       14,667  ...........       14,667         14,667   ............         14,667          +629  ...........
 COLUMBIA...................
OFFICE OF THE D.C. AUDITOR..        2,008        2,178  ...........        2,178          2,178   ............          2,178          +170  ...........
ADVISORY NEIGHBORHOOD                 976          994  ...........          994            994   ............            994           +18  ...........
 COMMISSIONS................
OFFICE OF THE MAYOR.........       13,454       14,615          114       14,501         14,615          (114)         14,501        +1,162  ...........
OFFICE OF SECRETARY.........        4,241        4,294  ...........        4,294          4,294   ............          4,294           +53  ...........
CUSTOMER SERVICE OPERATIONS.        1,048        1,058          695          363          1,058          (695)            363            +9  ...........
OFFICE OF CITY ADMINISTRATOR      173,880      152,221          672      151,550        152,221          (672)        151,550       -21,659  ...........
OFFICE OF RISK MANAGEMENT...        2,365        2,067          500        1,567          2,067          (500)          1,567          -298  ...........
OFFICE OF PERSONNEL.........       13,544       14,622        3,014       11,608         14,622        (3,014)         11,608        +1,077  ...........
HUMAN RESOURCES DEVELOPMENT.        2,000        2,073  ...........        2,073          2,073   ............          2,073           +73  ...........
OFFICE OF FINANCE AND             200,888      242,654      231,567       11,087        242,654      (231,567)         11,087       +41,765  ...........
 RESOURCE MANAGEMENT........
OFFICE OF CONTRACTING AND          14,642       14,004        1,783       12,221         14,004        (1,783)         12,221          -638  ...........
 PROCUREMENT................
OFFICE OF THE CHIEF                43,474       47,860        9,845       38,015         47,860        (9,845)         38,015        +4,386  ...........
 TECHNOLOGY OFFICER.........
OFFICE OF PROPERTY                 69,346       84,113       59,727       24,386         84,113       (59,727)         24,386       +14,768  ...........
 MANAGEMENT.................
CONTRACT APPEALS BOARD......          806          849  ...........          849            849   ............            849           +44  ...........
BOARD OF ELECTION AND ETHICS        5,042        5,210  ...........        5,210          5,210   ............          5,210          +167  ...........
OFFICE OF CAMPAIGN FINANCE..        1,374        1,502  ...........        1,502          1,502   ............          1,502          +127  ...........
PUBLIC EMPLOYEE RELATIONS             801          881  ...........          881            881   ............            881           +80  ...........
 BOARD......................
OFFICE OF EMPLOYEE APPEALS..        1,589        1,677  ...........        1,677          1,677   ............          1,677           +88  ...........
METROPOLITAN WASHINGTON               440          421  ...........          421            421   ............            421           -19  ...........
 COUNCIL OF GOVERNMENTS.....
OFFICE OF THE ATTORNEY             66,275       86,787        8,924       77,863         86,787        (8,924)         77,863       +20,512  ...........
 GENERAL FOR THE DISTRICT OF
 COLUMBIA...................
OFFICE OF THE INSPECTOR            12,942       13,727  ...........       13,727         13,727   ............         13,727          +785  ...........
 GENERAL....................
OFFICE OF THE CHIEF               124,242      154,822        3,951      150,871        154,822        (3,951)        150,871       +30,580  ...........
 FINANCIAL OFFICER..........
EMERGENCY PURCHASE CARDS....  ...........  ...........  ...........  ...........  ..............  ............  ..............  ...........  ...........
                             ---------------------------------------------------------------------------------------------------------------------------
      Total, Governmental         769,418      863,297      320,792      542,505        863,297      (320,792)        542,505       +93,878  ...........
       Direction and Support
--------------------------------------------------------------------------------------------------------------------------------------------------------

                           GENERAL PROVISIONS

    The Committee has modified section 104 and section 114 to 
allow the District to use locally generated funds for lobbying 
purposes. The Committee has included language to maintain a 
complete prohibition on the use of Federal funds for this 
purpose.
    The Committee has modified section 115 to allow the 
District to use locally generated revenues to support programs 
that provide individuals with sterile needles and syringes. 
This is consistent with a provision approved by the Senate and 
included in the Senate bill since fiscal year 2003. The 
Committee has included language that maintains a complete 
prohibition on the use of Federal funds for this purpose.
    The Committee has included language in section 127 designed 
to preserve the status quo with respect to the OCFO's current 
procurement process. The OCFO currently maintains independent 
procurement authority from the District of Columbia's 
Procurement Practices Act and from the Mayor's Procurement 
Office.
    The Committee has included language in section 130 to 
clarify that Federal appropriations provided for the credit 
enhancement fund and direct loan fund for public charter 
schools do not require District of Columbia Council approval 
for the granting of loans pursuant to congressional intent. The 
funding and purpose for which the direct loan and credit 
enhancement funds are to be used was established pursuant to 
prior year Federal Appropriations Acts (Acts). These acts gave 
the Mayor of the District of Columbia the authority through the 
Office of Public Charter School Financing and Support to 
administer all aspects of the direct loan and credit 
enhancement funds.
    The Committee has included language in section 131 to allow 
children to continue using their private school scholarships, 
despite small changes in family income. By increasing the 
income threshold from 200 percent of Federal poverty level to 
300 percent of Federal poverty level, students already using 
scholarships will be able to remain in the program, despite 
minor changes to their families' income. The retention of these 
children will be important to ensure that the program 
evaluation will not be compromised.
    The Committee has included bill language in section 133 
designed to restore, during a noncontrol year, the authority 
exercised by the Office of the Chief Financial Officer during a 
control year with respect to determining the resources 
necessary to effectively perform its duties. This authority was 
granted to the OCFO in the District of Columbia Appropriations 
Act, 1997 during the District's Control Board period (see 
Public Law 104-194; 110 Stat. 2375). The authority is also the 
same authority currently held by the D.C. Inspector General. 
Specifically, the language will require congressional oversight 
prior to any reductions in the OCFO's annual budget. The 
language would restore for all years, the requirement that the 
Mayor and Council may recommend reductions, but all reductions 
must be approved by Congress. This language also clarifies that 
the Congress must enact an express exemption through an 
amendment to the District of Columbia Home Rule Act to grant 
independence to any agency or entity within the District 
government from OCFO oversight. This change would forestall any 
future attempt by an agency to seek to remove itself from OCFO 
oversight through statutory interpretation.
    The Committee has included language in section 134 to 
acknowledge that the D.C. CFO compensation is inconsistent with 
compensation packages received by other District Officials. 
Currently, the D.C. CFO is compensated at a rate that is 
roughly 36 percent lower than the highest paid executive within 
the District. The D.C. CFO is compensated at a rate lower than 
the heads of DCPS, UDC and the Sports Commission, all of whom 
have compensation packages approved by the District's Mayor and 
Council. The language in the bill amends the District of 
Columbia Home Rule Act to allow the CFO's compensation to be 
1.50 times the current rate.
    Committee is including bill language in section 135 to 
extend the OCFO's service 1 year beyond the election of a Mayor 
in order to maintain stable fiscal oversight during the 
transition to new elected leadership. Currently the OCFO's term 
expires on June 30, 2007 which does not provide the 1-year 
overlap which Congress originally intended.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    Items providing funding for fiscal year 2007 which lack 
authorization are as follows:

------------------------------------------------------------------------

------------------------------------------------------------------------
Federal payment for emergency planning and security costs     $8,533,000
 in the District of Columbia...............................
Federal payment for the Water and Sewer Authority..........    7,000,000
Federal payment for the Anacostia Waterfront Initiative....    5,000,000
Federal payment for transportation.........................    1,000,000
Federal payment for foster care improvements...............    2,000,000
Federal payment for the Office of the Chief Financial          5,000,000
 Officer...................................................
Federal payment for bioterrorism and forensics lab.........    4,500,000
Federal payment for marriage development...................    4,000,000
Federal payment for a new central library..................   15,000,000
Federal payment for Navy Yard Metro improvements...........    4,000,000
------------------------------------------------------------------------

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on July 13, 2006, 
the Committee ordered reported, en bloc: H.R. 5672, making 
appropriations for the Departments of Commerce and Justice, 
Science, and related agencies for the fiscal year ending 
September 30, 2007, and for other purposes, with an amendment 
in the nature of a substitute and an amendment to the title; 
and S. 3660, an original bill making appropriations for the 
government of the District of Columbia and other activities 
chargeable in whole or in part against the revenues of said 
District for the fiscal year ending September 30, 2007, and for 
other purposes; with each bill subject to further amendment and 
each subject to the budget allocation, by a recorded vote of 
27-0, a quorum being present. The vote was as follows:
        Yeas                          Nays
Chairman Cochran
Mr. Stevens
Mr. Specter deg.
Mr. Domenici
Mr. Bond
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Craig
Mrs. Hutchison
Mr. DeWine
Mr. Brownback
Mr. Allard
Mr. Byrd
Mr. Inouye
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Ms. Landrieu

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the Committee.''
    In compliance with this rule, the following changes in 
existing law proposed to be made by this bill are shown as 
follows: existing law to be omitted is enclosed in black 
brackets; new matter is printed in italic; and existing law in 
which no change is proposed is shown in roman.

TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY, 
THE DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 
2006, PUBLIC LAW 109-115

           *       *       *       *       *       *       *

       DIVISION B--DISTRICT OF COLUMBIA APPROPRIATIONS ACT, 2007

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the District of 
Columbia and related agencies for the fiscal year ending 
September 30, 2007, and for other purposes, namely:

                          DISTRICT OF COLUMBIA

Federal Funds

           *       *       *       *       *       *       *

                 FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT

    For a Federal payment for a school improvement program in 
the District of Columbia, $40,000,000, to be allocated as 
follows: for the District of Columbia Public Schools, 
$13,000,000 to improve public school education in the District 
of Columbia; for the State Education Office, [$13,000,000 to 
expand quality public charter schools in the District of 
Columbia, to remain available until September 30, 2007;] 
$13,000,000 to expand quality public charter schools in the 
District of Columbia, of which $7,000,000, to remain available 
until September 30, 2007, and $4,000,000, which shall be for 
the direct loan fund, and $2,000,000, which shall be for credit 
enhancement, shall remain available until expended; for the 
Secretary of the Department of Education, $14,000,000 to 
provide opportunity scholarships for students in the District 
of Columbia in accordance with division C, title III of the 
District of Columbia Appropriations Act, 2004 (Public Law 108-
199; 118 Stat. 126), of which up to $1,000,000 may be used to 
administer and fund assessments.

                                            BUDGETARY IMPACT OF BILL
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays
                                                             ---------------------------------------------------
                                                               Committee    Amount  of   Committee    Amount  of
                                                               allocation      bill      allocation      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of budget totals for 2007:
 Subcommittee on the District of Columbia:
    Discretionary...........................................          597          597           NA      \1\ 578
Projections of outlays associated with the recommendation:
    2007....................................................  ...........  ...........  ...........      \2\ 511
    2008....................................................  ...........  ...........  ...........           55
    2009....................................................  ...........  ...........  ...........           19
    2010....................................................  ...........  ...........  ...........           12
    2011 and future years...................................  ...........  ...........  ...........  ...........
Financial assistance to State and local governments for                NA          381           NA          356
 2007.......................................................
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.
\2\ Excludes outlays from prior-year budget authority.

NA: Not applicable.

  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2006 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2007
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Senate Committee recommendation compared with  (+
                                                                                                                             or -)
               Item                      2006       Budget estimate  House allowance     Committee    --------------------------------------------------
                                    appropriation                                      recommendation        2006
                                                                                                        appropriation   Budget estimate  House allowance
--------------------------------------------------------------------------------------------------------------------------------------------------------

             TITLE I

          FEDERAL FUNDS

Federal payment for Resident               32,868           35,100           35,100           33,200             +332           -1,900           -1,900
 Tuition Support.................
Federal payment for Emergency              13,365            8,533            8,533            8,533           -4,832   ...............  ...............
 Planning and Security Costs in
 the District of Columbia........
Federal payment to the District           216,723          196,629          219,629          206,629          -10,094          +10,000          -13,000
 of Columbia Courts..............
Defender Services in District of           43,560           43,475           43,475           43,475              -85   ...............  ...............
 Columbia Courts.................
Federal payment to the Court              169,839          181,653          181,653          183,653          +13,814           +2,000           +2,000
 Services and Offender
 Supervision Agency for the
 District of Columbia............
Federal payment to the Public              29,535           32,710           32,710           32,710           +3,175   ...............  ...............
 Defender Service for the
 District of Columbia............
Federal payment to the District             6,930            7,000            7,000            7,000              +70   ...............  ...............
 of Columbia Water and Sewer
 Authority.......................
Federal payment for the Anacostia           2,970   ...............  ...............           5,000           +2,030           +5,000           +5,000
 Waterfront Initiative...........
Federal payment to the Criminal             1,287            1,300            1,300            1,300              +13   ...............  ...............
 Justice Coordinating Council....
Federal payment for                           990   ...............  ...............           1,000              +10           +1,000           +1,000
 Transportation Assistance.......
Federal payment for Foster Care             1,980   ...............  ...............           2,000              +20           +2,000           +2,000
 Improvements....................
Federal payment to the Office of           28,908   ...............           5,000            5,000          -23,908           +5,000   ...............
 the Chief Financial Officer of
 the District of Columbia........
Federal payment for School                 39,600           40,800           40,800           40,000             +400             -800             -800
 Improvement.....................
Federal payment for Bioterrorism            4,950   ...............  ...............           4,500             -450           +4,500           +4,500
 and Forensics Labs..............
Federal payment for the National              495   ...............  ...............  ...............            -495   ...............  ...............
 Guard Youth Challenge in the
 District of Columbia............
Federal payment for Marriage                2,970   ...............  ...............           4,000           +1,030           +4,000           +4,000
 Development Accounts............
Federal payment for Navy Yard      ...............          20,000   ...............           4,000           +4,000          -16,000           +4,000
 Metro Station...................
Federal payment for Central        ...............          30,000   ...............          15,000          +15,000          -15,000          +15,000
 Library/branch locations........
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Federal funds to the         596,970          597,200          575,200          597,000              +30             -200          +21,800
       District of Columbia......
--------------------------------------------------------------------------------------------------------------------------------------------------------

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