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42 UNIVERSITY OF THE DISTRICf OF COLUMBIA LAW REVIEWsame conclusion. 360 A lump-sum payment system was made permanent by theDistrict of Columbia Revenue Act of 1939 and used until 1973, when the multiyear,lump-sum system was established as part of the Home Rule Act. 361 Thatscheme remained until 1998, when Congress eliminated the federal payment. 362The financial implications of achieving Statehood for the District are admittedlycomplex. As Senator Mary Landrieu (D-LA) stated, "The District faceseconomic challenges that no other city in the country has to meet.,,363 The Districtis caught in limbo between being a state and a city.364 Even so, numerousexperts conclude that any foreseeable negative results of Statehood are moderate,while the possible benefits are immense. 365 The National Capital Revitalizationand Self-Government Improvement Act of 1997 gave certain benefits to theDistrict. 366 Dr. Alice Rivlin estimates that the loss of those benefits could costthe District roughly one billion dollars. 367 At the same time, New Columbiawould gain roughly $2.26 billion from personal income tax,368 earmarks,369 in-receive some contribution from its major property owner. Such a decline in the quality of lifein the nation's capital is not likely to be acceptable to the federal interest.Id.360 The Economic and Financial Impact of DC Statehood: Public Oversight Hearing Before theSpecial Comm. on Statehood and Self-Determination, D.C. Council (July 2(09) (statement of Dr. AndrewBrimmer, Former Chair, Dist. of Columbia Fin. Resp. and Mgmt. Asst. Auth.). "A review of thehistory of the federal payment and an examination of its logical and practical basis suggests that thestate of New Columbia would probably receive some form of federal payment." Id.361 Subcomm. Consideration and Mark-up of H.R. 2637 Before the H. Comm. on the Dist. ofColumbia, 98th Congo (1983) (statement of Congressman Walter E. Fauntroy, Chairman, Subcomm .. on Fiscal Affairs and Health). Following enactment of the Home Rule Act, the payment experienceda steady decline; from 27.3 percent in 1975 to well below 20 percent in the years that followed. Id.362 Balanced Budget Act of 1997, Pub. L. No.105-33, 111 Stat. 251 (1997) [hereinafter BalancedBudget Act].363 Press Release, Sen. Mary Landrieu, Report Confirms Fiscal Imbalance in D.C.: Identifyingthe Problem is First Step in Reaching a Solution (Jun. 5, 2(03), available at http://www.dcwatch.com/governlbudget030605.htm. See also U.S. Gov'T. ACCOUNTABILITY OFF.RPT. NO. 03-666, DISTRICT OFCOLUMBIA: STRUCTURAL IMBALANCE AND MANAGEMENT ISSUES (May 2(03), available at http://www.gao.gov/new.itemsld03666.pdf. (last visited Nov. 8,2(09).364 Home Rule Act, Pub. L. No. 93-198, 87 Stat. 774 (1973) (codified as D.C. Code §§ 1-201.01-207.71 (2001». Under this Act, the District must bear the burden of state-like responsibilitieswhile relying on Congress to agree to its budgetary and legislative decisions, a process that can takeup to eighteen months. Id.365 The Economic and Financial Impact of DC Statehood: Public Oversight Hearing Before theSpecial Comm. on Statehood and Self-Determination, D.C. Council (July 2(09) [hereinafter Economicand Financial Impact].366 See Balanced Budget Act, Pub. L. No. 105-33, 111 Stat. 251 (1997).367 See supra note 365, (statement of Alice Rivlin, Former Chair, Dist. of Columbia Fin. Resp.and Mgmt. Asst. Auth.).368 See supra note 365. (statement of Robert Ebel, Deputy Chief Fin. Off., Dist. of Columbia).369 Id. (statement of Robert Ebel, Deputy Chief Fm. Off., Dist. of Columbia and Walter Smith,Exec. Dir., D.C. Appleseed Ctr.).