Evening star., 1920-06-04
The Appropriation Compromise.


In the last hours of the session OF
Congress a compromise has been eff
feeted between the House and Senate
Jon the District appropriation bill with
virtual assurance that the measure
will become law in season to pro-
vide for the maintenance of the Dis
triet for the next fiscal year. This
compromise changes the long estab-
Hshed ratio of fifty fifty federal-DiS-
triet contributions to sixty and forty,
the District paying the larger part.
1t provides also that if the estimated
net revenues for 1921 are not ade-
quate to make up the difference, up to
the cost the Commissioners shall in
crease the rates of taxation on realty
and tangible personal property, sufi-
cient to make up the difference, up to
a maximum of per cent. The prac-
teal effect of this change of ratio is
that instead of providing in an $lS,-
100000 budget $9,000,000 from local
revenues alon. the District must pro-
vide $10,s0o,0c0, while tie government
provides $7,oou,OC0. The addition of
$1,S00,000 to the Districts side of the
account is to. be provided for in such
increase of the tax rate, up to , per
cent, as may be required.
Inasmuch as the House proposition
abolished the fixed ratio principle and
proposed an increase of taxation up
to &C % per cent this compromise on
a 60-40 basis, with only permissive
tax rate increase up to but 33 Is per
cent advance, is to be regarded def
nitely as victory for the District. 1t
has been vitality important to hold to
a fixed ratio, and that has been accom-
plished in the adjustment just reached.
It has been also vitality important not
to increase the Districts tax rate posi-
lively and greatly as the House pro-
posed, as the effect of such an in
crease, on the present basis of assess
ment, would assuredly provide an
amount of local tax revenue which
would reduce to very low percentage
the federal contribution and put the
District practically on the basis Of
unaided self-support. 1t would at the
same time impose tax burden upon
the District heavier than that borne
by any other comparable American
municipality.
This bill is for only one year. The
appropriation act is not to be re-
garded as an organic enactment. The
present arrangement just effected need
not necessarily become a permanent
law. In the haste of shaping the ap-
preparation bill, to avoid the disaster
Of its complete failure and a continu-
ance of the inadequate current appro-
priation schedule, an adjustment has
been reached which, comparatively sat
isfactory as it is in regard to the es-
bCAtldi pi1ASlpiCo AAsOiSCO, ID Sct LII
some respects inequitable to the Dis
triet. The legislative propositions en-
bodying the issues are still pending
in conference between the houses and
at the next session may be worked out
to an agreement which will provide a
satisfactory new system of District de-
velopment and maintenance, equitable
to both of the National Capital part.
ners.
Apart from the fiscal relation and
taxation provisions the bill as it stands
is decidedly satisfactory. It provides
generously for District maintenance.
It carries a large sum, we'll distrib-
uted, and under it the District will
prosper. The sudden relief from the
menace of continuing resolution in
volved in the failure of the new ap-
preparation brings qualification to all
the District people.