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funds, less such amounts that are attributed to debt 
service payments for which a separate reserve fund 
is already established under this Act.’’. 
(3) Paragraph (7) is amended to read as fol-
lows: 
‘‘(7) REPLENISHMENT.—The District of Co-
lumbia shall appropriate sufficient funds each fiscal 
year in the budget process to replenish any amounts 
allocated from the emergency reserve fund during 
the preceding fiscal years so that not less than 50 
percent of any amount allocated in the preceding fis-
cal year or the amount necessary to restore the 
emergency reserve fund to the 2 percent required 
balance, whichever is less, is replenished by the end 
of the current fiscal year and 100 percent of the 
amount allocated or the amount necessary to restore 
the emergency reserve fund to the 2 percent re-
quired balance, whichever is less, is replenished by 
the end of the second fiscal year following each such 
allocation.’’. 
(b) Section 450A(b) of such Act (sec. 1–204.50a(b), 
D.C. Official Code) is amended as follows: 
(1) Paragraph (1) is amended to read as fol-
lows:
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‘‘(1) IN GENERAL.—There is established a con-
tingency cash reserve fund (‘‘contingency reserve 
fund’’) as an interest-bearing account, separate from 
other accounts in the general fund, into which the 
Mayor shall make a deposit in cash each fiscal year 
of such amount as may be required to maintain a 
balance in the fund of at least 4 percent of the oper-
ating expenditures as defined in paragraph (2) of 
this subsection or such amount as may be required 
for deposit in a fiscal year in which the District is 
replenishing the emergency reserve fund pursuant to 
subsection (b)(6).’’. 
(2) Paragraph (2) is amended to read as fol-
lows: 
‘‘(2) OPERATING EXPENSES.—For the purpose 
of this subsection, operating expenditures is defined 
as the amount reported in the District of Columbia’s 
Comprehensive Annual Financial Report for the fis-
cal year immediately preceding the current fiscal 
year as the actual operating expenditure from local 
funds, less such amounts that are attributed to debt 
service payments for which a separate reserve fund 
is already established under this Act.’’. 
(3) Paragraph (6) is amended to read as fol-
lows:
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‘‘(6) REPLENISHMENT.—The District of Co-
lumbia shall appropriate sufficient funds each fiscal 
year in the budget process to replenish any amounts 
allocated from the contingency reserve fund during 
the preceding fiscal years so that not less than 50 
percent of any amount allocated in the preceding fis-
cal year or the amount necessary to restore the con-
tingency reserve fund to the 4 percent required bal-
ance, whichever is less, is replenished by the end of 
the current fiscal year and 100 percent of the 
amount allocated or the amount necessary to restore 
the contingency reserve fund to the 4 percent re-
quired balance, whichever is less, is replenished by 
the end of the second fiscal year following each such 
allocation.’’. 
SEC. 131. For fiscal year 2005, the Chief Financial 
Officer shall re-calculate the emergency and contingency 
cash reserve funds amount established by section 450A of 
the District of Columbia Home Rule Act (D.C. Official 
Code, sec. 1–204.50a), as amended by this Act, and is au-
thorized to transfer funds between the emergency and con-
tingency cash reserve funds to reach the required percent-
ages, and may transfer funds from the emergency and 
contingency cash reserve funds to the general fund of the 
District of Columbia to the extent that such funds are not