URGENT: DC Appropriations Letter

      Tomorrow, the DC Appropriations bill will be marked up by the Senate Full
Committee. Therefore, we need your comments/clearance by lOam tomorrow
morning. Thanks.

The Honorable Ted Stevens
Chairman
Committee on Appropriations
United States Senate
Washington, DC 20510

Dear Mr. Chairman:

        The purpose of this letter is to provide the Administration's
views on the District of Columbia Appropriations Bill,  FY 1999, as
reported by the Subcommittee. As the Committee develops its version of
the bill, your consideration of the Administration's views would be
appreciated.

        While the Administration appreciates the support of the
Subcommittee in developing a bill that provides sufficient Federal funding
to implement successfully the National Capital Revitalization and
Self-Government and Improvement Act of 1997, we are deeply concerned about
a number of provisions of the Subcommittee bill, as described below. We
urge the Committee to approve a bill that addresses the AdministrationO,s
concerns.

Economic Development Initiative

        The Administration requested $100 million for an economic
development initiative for the District of Columbia. We appreciate the
SubcommitteeO,s action in providing $25 million to continue the
implementation of management reform initiatives in the District. However,
the Administration strongly opposes section 157 of the Subcommittee bill,
which would repeal D.C. Council legislation authorizing the establishment
of the National Capital Revitalization Corporation (NCRC). The
Administration believes that an independent economic development
corporation is essential in order to ensure effective management
coordination and oversight of projects in the District.  The
Administration strongly urges the Committee to strike section 157 and to
fully fund the request of the President and the District to capitalize the
NCRC with $50 million in FY 1999.  In addition, the Administration urges
the Committee to provide $25 million for transportation improvements
related to the Washington Convention Center project, which also will
foster economic development in the downtown area.

Abortion

        The Administration strongly opposes the abortion language of the
Subcommittee bill, which would prohibit the use of both Federal and
District funds to pay for abortions except in those cases where the life
of the mother is endangered or in situations involving rape or incest.


The Administration continues to view the prohibition on the use of local
funds as an unwarranted intrusion into the affairs of the District and
would support an amendment, if offered, to strike this prohibition.

Public Education System

        We are co~cerned that the bill does not provide enough funding to
support educational services for all the students who wish to attend D.C.
charter schools. We look forward to working with the Committee and with
the D.C. Public Schools to ensure that there is adaquate flexibility to
allow all eligible charter schools and their .students to receive
sufficient funding.

        The Administration is committed to working with the Senate to
produce a bill that will assist the District in its continued efforts
toward financial recovery. Welook forward to working with the Senate to
address our mutual concerns.

                                               .Sincerely,




                                               Jacob J. Lew
                                               Acting Director



Identical Letter Sent to The Honorable Ted Stevens,
The Honorable Robert C. Byrd, The Honorable Lauch Faircloth
and The Honorable Barbara Boxer