Why cant the District of Columbia pay for the rebuilding of its own schools?
The GAO has recently issued a report (May 2003) to members of Congress entitled, “District of Columbia: Structural Imbalance and Management Issues,” which, among other things, outlines why the District of Columbia is unable to issue its own bonds or otherwise finance this billion dollar rebuilding program. The reports speaks to the City’s statutory borrowing limits, its credit rating, and the need to pay for all other capital needs, including safety and security within a system that is structurally imbalanced: the District of Columbias large percentage of federal land and buildings generate zero tax revenue and the City government lacks the legal authority to tax commuters or otherwise raise the funds. Thus, the City does not have the tax base or legal structure to raise revenue to pay for the requirements of a comprehensive school modernization program.
