The 'A-' rating on District of Columbia's GO bonds reflects: A diversifying regional employment center anchored by the federal government, services, and tourism; Improved financial management as evidenced by six consecutive years of operating surpluses (through fiscal 2002) and the balancing of the fiscal 2003 budget through both expenditure cuts and revenue enhancements; Strong liquidity maintained during a period of economic uncertainties; and An enhanced debt position. Offsetting these factors are the structural limitations of the district's revenue-raising flexibility because of its unique status as the nation's capital, and the U.S. Congress' exclusive legislative authority over the district's powers, including its ability to levy taxes. For example, the district is not able to tax the majority of the district workforce,
