The Washington times., 1925-01-29
only ITEM CUT BELOW
BUDGET IS SCHOOLS
CONTINUED from First Page.)

CONTINUED from First Page.I
be paid from the Federal Treasury
and a a increasing percentage 10 BE
paid .Iom the District revenues as
the grand total of the appropria-
tions increases year by year.
'"The permanent adoption Of the
lump-sum plan ultimately will IN
volve q determination Of what should
constitute q fair and just rate OF
taxat on and privileges enjoyed by
them contrasted with the rates OF
taxes paid by residents of CON-
parable cities.
'"The permanent adoption of the
loot. 200 plus the turning over to
the District by the United States
OF its share in the divisible Iniscel-
Ianeous revenue In effect would
make q contribution by the United
States OF $780, 900. Three factors
would then enter into the tax rate,
namely:
''The annual amount OF the in
crease In the appropriations for the
District of Columbia.
'"The increase In the total value
Of property subject to taxation.
"The increase in the revenue re-
ceived from miscellaneous sources.
eff the second and third factors
do not produce sufficient revenue
to keep pace with the Increase in
the first factor the inevitable result
must be q corresponding increase
In the tax rate.
Ultimately, II the lump sum be
not increased, this rate will assume
proportions more nearly comparable
with levies prevailing in other
municipalities.
When that time arrives Congress
may then go into the question of
fiscal relations with the view to
determining what changes, if any,
should be made in the manner and
amount of Federal aid.
Attitude of Committee.
Congress at the last session
adopted the lump-sum plan of con-
tribution by the United States and
the committee in reporting this bill
has followed that expression of
intent.
eft was unquestionably based
upon the opinion that the city's
growth and consequent need for
larger appropriations had reached
the stage where a line should be
drawn as to the expenses which
are equitably divisible
THE Committee, in the considera-
ton Of this bill, has had in mind
the fact that it could very well
be more liberal in providing certain
necessary facilities which the resi-
dents of the city seem to demand,
knowing that the burden upon the
United States would not go beyond
the fixed sum and the excess would
represent those additions which the
people Of the city should have il
they were willing to tax themselves
to procure them, being additions of
q character which will result IN
bringing into existence larger area
Of taxable property and increasing
the taxable value Of other property,
and consequently increasing the
revenues.
"As a matter of fact, the COM
mittee has gone beyond the budget
estimates, which, under the law,
were submitted on the 60-40 basis, by
approximately 5000, 900.
IL the lump sum plan should be-
come permanent law, SO that the
budget could be presented on that
basis, there is no reason why the
estimates submitted for the District
Of Columbia should not be present.
Cd to Congress in such a total
amount as the citizens are willing
to stand for by way OF taxation,
with due consideration being given
to the. relative importance and
merit or the various objects to be
appropriated for.
u. s. Should Hold Power.
"rhe Federal government should
not surrender careful supervision
ever the Districts finances.
at should require prudence and
moderation.
''It can, however, and should, when
the people are willing, permit them
20 tax themselves-with the APP
prevail Of Congress through the
making Of the appropriations-fof
the accomplishment Of municipal
purposes which would in no wise
be inconsistent or out OF harmony
with the control which a govern
fnent should keep over the develop
ment or a national city,
The committee declares that there
- no municipality in the country
in a healthier financial condition
today than the National Capital.
provision was made in the cur
rent appropriation act for complete.
~ liquidating the old 3.65 bonds
and the city is not now confronted
with any form of Indebtedness"
the committee reported.
'"foday there stands to- the credit
Of the District on the books of the
Il L.
1852, and by July I, 1927. this
amount Will have been augmented
out Of current revenues to the ex.
tent necessary to permit the Dis.
trtct TO operate on a cash basis
w'fh nut any advance of public funds
awaiting income from taxes to
say nothing of the credit of $4.43s,.
1882 w@i"h-has tust been voted.
Water Supply Reserve.
There is now drawing to COM
pletion a splendid auxiliary water
supply. which will cost above So
100000 and in which the Federal
government is participating and no
other stable projects are on the
horizon which would occasion an
exprns necessitating a tax rate
widely different from the relatively
low rate now operative that is
$40 per 800 OF assessed vaiua.
ton on real estate and tangible
personal property and five-tenths
OF per cent on intangible personal
property.
''Th~ situation should be most
gratifying to the local citizenry
and stands out in marked contrast
with the conditions in many of the
States and municipalities where re
ports indicate debts are mounting
up. some with ACCOMPANYING tax
increases and Soma RI aunid oddf