THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, March 30, 1995 TAG: 9503300406
SECTION: FRONT PAGE: A2 EDITION: FINAL
SOURCE: THE NEW YORK TIMES
DATELINE: WASHINGTON LENGTH: Short : 40 lines
A House subcommittee on Wednesday voted unanimously to establish a board that essentially would take over the financial management of the District of Columbia. The city, which is on the verge of bankruptcy, faces a deficit of about $400 million.
The legislation would create a five-member board modeled after the financial bailout agencies used for New York and Philadelphia. It was described by staff members who worked on the bill as ``the strongest ever created'' for any American city. The board will control the city's spending and will set up an annual balanced budget, as well as a four-year financial plan for the city.
The bill retains some degree of home rule for the mayor and the 11-member council. Mayor Marion S. Barry Jr. will be able to select two new officials provided for in the bill - the chief financial officer and the inspector general. But his choices must be approved by the board, and only the board can dismiss them.
The board will control the finances until the city balances four budgets in a row and repays any money borrowed with the board's cooperation.
The bill is expected to be taken up by the full House next week, where few difficulties are expected. To go into effect, it would have to be approved by the Senate and President Clinton, who has said he supports such an authority.
House Republicans said their goal was to have the board in operation overseeing the city's finances by the end of April.
``This is a major bipartisan effort,'' said Rep. Thomas M. Davis III, the Virginia Republican who is chairman of the subcommittee. ``This bill does not abolish home rule. It is not designed to micromanage.'' by CNB