A 2003 report from the Government Accountability Office (GAO) found that the District of Columbia faces a large structural budget imbalance—that is, a persistent gap between its ability to raise revenues and the cost of providing basic services. DC's imbalance stems largely from its being a "city without a state" and from revenue limitations caused by the federal presence. The most logical solution to this problem would be an annual contribution from the federal government to help address the challenges that arise from DC's unique status as the nation's capital.
Topic:
Civil Society, Development, Economics, and Government