On November 25, 2003, a House and Senate conference committee reported H.R. 2673 ( H.Rept. 108-401 ), the Consolidated Appropriations Act for FY2004. It combined sixappropriations bills that Congress was unable to complete before the close of the first session of the108th Congress, including H.R. 2765 , the District of ColumbiaAppropriations Act forFY2004, which became Division C of H.R. 2673. The House agreed to the conferencereport on December 8, 2003, while the Senate postponed final consideration of the measure untilCongress reconvenes in January 2004. On November 18, 2003, the Senate passed its version of H.R.2765. On September 9, 2003, the House approved its version of H.R. 2765 bya vote of 210 to 206 (Roll Call Vote 491). During consideration of the bill, the House approved aschool voucher program for the District of Columbia ( H.Amdt. 368 , Roll Call Vote No.490). On September 4, 2003, the Senate Appropriations Committee reported S. 1583 ( S.Rept. 108-142 ; later substituted as the text for the Senate version of H.R. 2765). TheHouse Appropriations Committee reported H.R. 2765 ( H.Rept. 108-214 ) on July 17, 2004. As passed by the House, H.R. 2765 recommended $466 million in special federalpayments, while the Senate and conference bills recommend $545 million. The conference version of the District of Columbia Appropriations Act for FY2004 includes special federal payments for several education initiatives, including $17 million for the District'sCollege Tuition Assistance Program, $13 million for a school voucher program, $13 million forpublic schools, $13 million for public charter schools, $4.5 million for public school facilities forplayground and window repair and replacement, 10.75 million appropriated to the CFO andearmarked for various education and related activities to be administered by organizations identifiedin the conference report, and $2 million for the Family Literacy Program, which would be match bythe District on a dollar for dollar basis. In addition, the conference bill recommends $373.1 millionfor criminal justice and court-related activities. Table 1. Status of District of Columbia Appropriations:FY2004 (1) The Senate substituted the language of S. 1583 for the text of H.R. 2765before it began consideration of the bill. On February 3, 2003, the Bush Administration released its FY2004 budget recommendations. The Administration's proposed budget included $420.5 millionin federal payments to the District of Columbia. (1) A major portion of the President'sproposed federal payments and assistance to the District involve the courts andcriminal justice system. This included $166.5 million for the Court Services andOffender Supervision Agency for the District of Columbia, an independent federalagency that has assumed management responsibility for the District's pretrialservices, adult probation, and parole supervision functions. In addition, theAdministration requested $163.8 million in support of court operations, and $32million for Defender Services. These three functions (court operations, defenderservices, and offender supervision) represent $362.3 million, or 86.3% of thePresident's proposed $420.5 million in federal payments to the District of Columbia(see Table 2 ). On June 3, 2003, District officials transmitted the city's $5.7 billion budget for FY2004 to the President for review and approval. The proposed budget included arequest for $915.9 million in special federal payments. On July 9, 2003, the BushAdministration transmitted the city's budget to Congress for its review and approval.The city's proposed operating budget of $5.7 billion includes a $50 million cashreserve fund. In addition, the District's budget would decrease local funding forpublic education by $48 million, while seeking $23.2 million in special federalpayments for charter school financing, early childhood education, and specialeducation activities. It would also decrease funding for general government supportby $19 million and human support services by $92 million, while requesting $18million in special federal payments for human support services targeted toimprovements at the St. Elizabeth Hospital and substance abuse facilities. TheDistrict also requested special federal payments of $159 million for emergencypreparedness assistance, $75 million for public safety, and $42 million for publiceducation. Section 302(a) of the Congressional Budget Act requires that the House and Senate pass a concurrent budget resolution establishing an aggregate spending ceiling(budget authority and outlays) for each fiscal year. These ceilings are used by Houseand Senate appropriators as a blueprint for allocating funds. Section 302(b) of theCongressional Budget Act of 1974 requires appropriations committees in the Houseand Senate to subdivide their Section 302(a) allocation of budget authority andoutlays among the 13 appropriations subcommittees. The House AppropriationsCommittee approved a Section 302(b) suballocation of $466 million in budgetauthority for FY2004 for the District of Columbia -- about half the amount requestedby the District. The Senate Appropriations Committee approved a Section 302(b)suballocation of $545 million in budget authority for FY2004 for the District ofColumbia. This is $370 million less than requested by the city. Congress not only appropriates federal payments to the District to fund certain activities but also reviews the District's entire budget, including the expenditure oflocal funds. The District subcommittees of both the House and Senate AppropriationsCommittees must approve -- and may modify -- the District's budget. House andSenate versions of the District budget are reconciled in a joint conference committeeand must be agreed to by the House and the Senate. After this final action, theDistrict's budget is forwarded to the President, who can sign it into law or veto it. House Version (H.R. 2765). On September 9, 2003, H.R. 2765 ,the District of Columbia Appropriations Act for FY2004, was approved by the Houseby a vote of 210 to 206 (Roll Call Vote No. 491). During its consideration of the bill,the House approved a controversial school voucher program. The HouseAppropriations Committee reported H.R. 2765 ( H.Rept. 108-214 ) on July17. In line with the Committee's recommendation, the House approved $466 millionin special federal payments for the District of Columbia. The bill included $17million for a college tuition assistance plan, $15 million for security planning, and$163.1 million for court services and offender supervision. H.R. 2765 alsoincluded $10 million in special federal payments for a school choice programdesigned to provide financial assistance to families of District school-age studentsattending private and parochial schools. The $10 million special federal paymentwas contingent on the passage of authorizing legislation. The bill also included $4.5million for public school facilities for playground enhancements and windowreplacements. The bill did not include $48.7 million in funding for public educationrequested by the District, including $6 million for charter schools and $20 million forspecial education students, facilities, and transportation. House Bill General Provisions. During the September 5, 2003, House floor debate on H.R. 2765 , theHouse rejected an amendment ( H.Amdt. 367 ) that would have deletedthe proposed $10 million special federal payment for a school voucher program. OnSeptember 9, 2003, the House approved an amendment ( H.Amdt. 368 ),introduced by Rep. Tom Davis, that would have authorized a school voucherprogram in the District of Columbia. In addition, as approved by the House, H.R.2765 included a provision that would have removed the prohibition on theuse of District funds for costs associated with implementing the District's HealthCare Benefits Expansion Act of 1992 (domestic partners program). The House billretained a number of provisions that District officials want to eliminate or modify,including those related to medical marijuana, abortion, and needle exchangeprograms. The bill also included a provision that would have prohibited the cityfrom using of federal and local funds appropriated in FY2004 in support of a lawsuitintended to enforce the District of Columbia Assault Weapons Manufacturing StrictLiability Act of 1990. For a summary and analysis of the general provisionscontained in H.R. 2765, see CRS Report RL32045(pdf) , District of ColumbiaAppropriations Act for FY2004: Comparison of General Provisions ofP.L. 108-7 and the House and Senate Versions of H.R. 2765 . Senate Version of H.R. 2765 (formerly S. 1583). On September 24, 2003, the Senate began floorconsideration of its version of H.R. 2765 , the District of ColumbiaAppropriations Act for FY2004. The Senate Appropriations Committee reported itsversion of the act ( S.Rept. 108-142 ) on September 4. The Committee recommended$545 million in special federal payments for the District of Columbia. The billincluded $17 million for a college tuition assistance plan, $15 million for securityplanning, and $173.4 million for court services and offender supervision. The Senatebill also includes $40 million in special federal payments for elementary andsecondary education, including $13 million for a school choice program designed toprovide financial assistance to families of District school-age students attendingprivate and parochial schools. The bill also proposed $13 million for the District'spublic schools, and $13 million for the city's public charter schools.