Evening star., 1918-12-02
The District Surplus.

The District Surplus.
In their annual report to Congress
the District Commissioners call atten;
tion to the fact that owing to the fail
ure of Congress to appropriate to the
full measure of the local revenues, on
the half and half basis, there remains
in the federal Treasury .. surplus OF
unexpended District tax reve9ues
amounting, through the aceumulations
of three fiscal years, to $3.50, ,6S5.46
They note Furthermore that this sur
plus will undoubtedly be. increased
during the present and succeeding fis-
cal years. They attribute the surplus
to the continuance of the tax rate OF
$1.50 and the addition Of the new tax
upon intangibles and recommend con-
sideration of a readjustment Of the
tax rate and the repeal Of the intan-
gibles tax.
Under the organic act there should
be no such thing as a surplus of Dis
trict revenues. If that statute is strict
1y carried into effect every dollar of
District tax money will be expended,
matched by a federal dollar. Owing to
repeated refusals by Congress to ap-
propriate to the full extent of the
local revenues, on the half and half
basis, despite the demand for large i'm
provements and for additions to the
maintenance outlay, surplus has been
nccumulating and, as the Commission
ers note, threatens to continue to ac-
cumulate indefinitely, as long as the
present policy of inadequate appro-
priations prevails.
But the surplus is not, except in
cidentally, due to the continuance of
a large tax rate, nor even to the i'm
position of new and unnecessary taxes.
1t is due, primarily. to the failure of
Congress to permit the District to ex-
pend its tax money on the half-and-
half basis to the full of the revenues
and to the limit of its needs. Contin-
ued refusal to do so will necessarily
add to the improperly accumulated ex-
cess of revenues, lying idle in the
Treasury.
Under the law the Commissioners
nre restricted in their estimates to the
extent of the local revenues, matched
by federal money. They may not es-
innate beyond the prospective income.
But they can recommend the inaugu-
ration of works of permanent char
acter beyond that limitation if they
desire. If they fail to recommend
large improvements and allow the es-
Inmates to fall below tho range of the
prospective revenues they invite Con-
gress to pruno the appropriations be-
low the revenue point and thus add to
the swelling surplus.
There assuredly should be no Dis
trict surplus while the District is suf-
fering from lack of provision for its
health, it's safety, the education of the
children and the natural expansion of
its population.
Washington's remedy for surplus is
~ in the repeal of the law of 1909
which restricts the Commissioners esti-
mates to twice the amount of the Dis
trict's estimated revenues; and (2)
legislation which shall cause any
surplus of District revenue arising in
any year from the enforcement of the
half lf-and-half law to be held in the
Treasury as trust fund for the bene-
fit of the District to meet its needs in
some future year.
Repeal of the law limiting the Com
missioners' estimates will permit Con-
gress to consider in appropriations the
full needs of the District, and the sur
plus in any year of unexpended Dis
trict tar money will thus be reduced
to a minimum. But any surpluses,
even though large, which under the
proposed legislation will 60 into the
Districts trust fund will clearly be
needed in the future as reserve fund
~ to pay District indebtedness, fcti-
tious or genuine; including the alleged
ancient resurrected debts, based on
the blunders Of neglects of govern
ment officials in the seventies Of the
last century, which have been eonjured
up in the House; (2) to be accumulated
and later wisely utilized to meet the
possible emergency Of District short
age in some year in necessary tax rev.
enue under the organic act; and % to
meet the Districts share Of the cost
ef great permanent public improve
ments which will call for the imme-
diate expenditure Of more money than
can be spared from current revenues.
A nun Der Of the unofficial delega-
tions to Paris are likely to be clsssi.