Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-15
Estimates. Revenues and Surplus.

The annual report of the District au-
ditor states that in all likelihood there
will be at the close of the present
fiscal year a considerable cash surplus
of District revenues in the Treasury
in excess of all appropriation ob1iga-
tons. This will result from tine failure
of Congress at the last session to COM
ply with the requirements of the act
OF 1875, known as the organic act,
which provides that in effect all of the
tax revenues of the District shall be
appropriated to meet the requirements
of the local municipality, accompanied
by an equal amount of federal money.
In theory, under the organic act, there
can be no surplus of District funds,
for that statute runs the revenues
are to be raised to meet the appro-
priations. In practice it has worked
out that the appropriations are made
in accordance with estimated revenues
and there has always been a margin
allowance for differences between the
actual and the estimated income of the
District. although under this practice
MP considerable surplus could ever &C
emulate.
The act of March 3. 1903. the ap-
pfopriation act of that year, provided
thereafter submit nor should the Sec
rotary of the Treasury transmit to
Congress estimates for District ex-
penses for any fiscal year exceeding in
the; aggregate a sum equal to twice
the amount of the total estimated
revenues" of the District for such
year. This was done to stop the highly
laudable. practice of the then Com
missioners of submitting estimates in
excess of the anticipated revenues in
the hope of securing from Congress
provision for financing the large per-
manent works a long-term basis
in order to give larger allotments OF
funds for current maintenance. The
practical effect of this enactment. in
con junction with the policy of Con-
gress in refusing to appropriate to
the full extent of the District reve-
nnes, has bAen not merely to accumu
late a surplus of District funds in the
Treasury, but to prevent the Com
missfoners from rendering their es-
Inmates on the basis of the regular
estimated revenues, plus such
If it Is maintained that surplus Dis
trict funds unappropriated in one fiscal
year cannot be regarded as revenues
for appropriation purposes in the next
fiscal year. 1t follows that the surplus
accumulation must go on as long as
Congress refuses to observe the terms
of the original act and appropriate up
to the limit of the District revenues,
or as long as the act of 1909 remains
unrepealed and the Commissioners are
estopped from estimating save in terms
Of actual new income.
The Districts surplus is an anomaly
In the nature OF things. and as the
law runs 1t Is totally useless. Congress
will not permit the District to spend
it on the basis of annual estimates
for current maintenance or for large
works. It remains constant temp
tation to Congress to apply the amount
purpose without an accompaniment of
an equal amount of federal money as
the organic act requires. Such things
have happened In the past and there
is no guarantee against recurrence.
The situation is obviously unjust. OF
course, the District is glad to have
paid off it's floating Indebtedness and
to be so prosperous-in appearance
as to have money in bank" But this
il only a mockery as long as the Local
taxes remain as high as they are while
a tax dodger, and as long AZ the District
is prevented from using its surplus
either upon much needed current mainte-
nance or upon vitality important projects
Of permanent improvements