Evening star., 1927-11-21
Lump.Sum Inequity.

Lump.Ouul AuCQuIIy'
After a careful study of the matter,
the Detroit Bureau of Governmental
Research, an independent body of
municipal finance experts, has reached
the conclusion that the city of Wash
ington is unfairly taxed and will lend
its aid to the movement in progress
here to secure from Congress at the
coming session an equitable readjust-
ment of the fiscal relations between
the District and the Federal Govern
ment. The conclusions of the bureau
are that the Government is not bear.
ing it's fair and equitable proportion
of the cost of maintaining and devel-
oping the National Capital and that
there is ample evidence that the tax
payers of the District are carrying an
undue burden in meeting the require.
ments of appropriations made on the
Jumps sum basis.
A striking fact of the situation is
that until a delegation representing
the Washington Board of Trade ex-
plained the matter to the Detroit bu-
reau the officials and experts OF that
organization were under the impress
sion that the United States was con-
tinuing to pay at a fixed ratio of forty
per cent of the total District costs.
The fact that without any repeal of
the substantive law to that effect Con-
= eress has been for several years
limiting the Federal contribution to
= So, 900, 900 has not been appreciated by
the country. When it is made known
there is protest against this inequita-
BILE change.
In virtually every instance that the
situation regarding the fiscal relations
between the Government and the Dis
trict has been fully set forth to resi-
dents of the States the response
has been identical With that of the
Detroit bureau. For many years there
was, it is assured, a feeling in some
parts of the country that Washington
was unduly favored by equal-propor-
ton contributions to it's maintenance
by the Federal Government. But as
the peculiar situation of the District
has been understood, its limitation of
area, its denial of industrial develop
ment, its dependence upon the activ-
tiles Of the Government for the great
er part of it's actual employment. and
especially the extent and character OF
its municipal equipment required by
the fact of being the seat Of Govern
ment, this feeling has changed to one
OF sympathy with and support of the
arrangement originally made in 1878
and later changed in detail, whereby
the Government shares in the cost.
The change from the fixed ratio to
q lump sum coincided with a period
of expensive and important develop
ments In Washington. Larger annual
appropriations were necessary. Ger.
tain items of municipal improvement
and expansion, delayed by the war.
were at last being authorized by con-
gressional enactment. program OF
school constructions, rendered impera-
lively necessary by the growth of the
community and the tardiness of pro-
visions, was adopted. For the first
time in many years the appropriations
were approximately adequate for the
annual necessities and provisions for
Immediately prospective needs. The
departure from the substantive law
1teI xx,;4l,
peal of that law, was not justified.
The result was to throw an excessive
burden Of taxation upon the shoulders
of the property owners of the District.
The restraint of the ratio upon too
liberal appropriations was removed.
and although the Bureau of the Bud
get has held down the estimates some
what-in some cases severely-during
this period, the net result of the
change has been to put an annual
load upon Washington that it is not
prepared to carry.
The peril to Washington in the lump
sum lies particularly in the fact that
there is no guarantee of it's mainte-
nance, even at the disproportionate
figure now set. 1t may be reduced at
any time. Bearing no relation what
ever to the total of the appropriations,
it is an arbitrary approximation of the
Governments liability. 1t leaves wide
open the possibility of excessive ex-
penditures and at the same time it
discourages the District in seeking inn
provements.
The Districts case for a return to
the fixed ratio principle is strong and
is we'll fortified by public opinion out
side of Washington. This testimony
of the Detroit Bureau of Governmental
Research is a valua BILE addition 10 the
plea for equity which the citizens Of
the Capital will present to Congress
when it convenes next month.
A loss to human progress will be