Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-24
BUDGET .CHANGE
IS RECOMMENDED
Research Body Holds District
Finances Should Be Admin
istered Independently.
BY WILL p. KENNEDY.


and the proposed legislative council for
S.4e i.scxctlve formulation and approval
Cg -slGgeL estimates TO be presented to
CONGRESS" is one of the important rec
concentrations made by the Institute
for Government Research for reorgani-
cation of the government for the Na-
tional Capital.
had emphasized "the importance of
clearly distinguishing between the ad-
illustrative activities of the District of
Columbia ana those of the National
Government and of intrusting those
pertaining to the District of Columbia
to purely local agencies" One of the
greatest evils resulting from failure to
make such distinction and segregation,
the institute argues, lis the confusion
that is thereby introduced in the ad-
ministration of the finances of both the
National Government and the District
government.
so long as use is made of purely
Federal agencies for the performance of
District work it is impossible to secure
in proper form that information regard
ing financial conditions and operations
that must be had if effective control
and intelligent planning is to be exer-
cised" the report continues. This sit
uation is rendered still worse by the use
to a large extent of Federal agencies
for the administration of the financial
affairs of the District"
Treated as U. S. Department.
At the present time, the institute
points out. 1.-THE District of Columbia,
from the financial standpoint, is treated
practically as an administrative de-
partment of the General Government.
Its revenues are covered into the Fed
eral Treasury precisely as are other
Federal receipts and figure among the
receipts of the National Government.
It's expenditures, in like manner. are
treated as part of the national eX-
penditures. Though these receipts and
expenditures are segregated in the books
of accounts, they nevertheless appear
as part of the totals of national income
and expenditure in precisely the same
way as the income and expenditures of
purely Federal services
THE procedure employed in deter
-. mining and making provision for the
financial needs of the District govern
. ment is precisely the same as is used
IN determining the financial needs of
the Federal administrative services.
The Treasurer of the United States has
the custody of District funds in the
- same way that he has of Federal funds.
The accounts of the District are settled
and audited by the controller general
of the United States, as are the &C.
counts of the National Government. In
a word, there is complete commingling
of the administration of the financial
affairs of the two governments"
The institute issues that this system
does violence to correct principles of
public administration and is productive
of confusion in determining and max
ing provision for the financial needs of
! the two governments, and in stating
: the accounts in a manner in which
financial condition and operations may
be clearly known.
There are few changes affecting the
government of the District Of Column
bia that are of greater importance than
that of the correction of this condition
by giving to that government its own
distinct system of financial adminiStra-
! ton, ore in which its financial opera
lions are kept wholly distinct from
, those of the National Government"
Budget System First Step.
The first step toward effetcing this
change is to give the District its OWE
budget system, the institute reconIe
mends. Congress should make it part
IL charge of District government 10
submit to it an annual budget, cor
responding to the Federal budget, in
: which is set forth full report or
financial operations in the past. exist
ing financial conditions and an estl-
mate of future financial needs. This
document, completely separate from
mitted directly to Congress without
passing through the Bureau OF the
Budget, the institute advises, because
! the District is a district political SUBJ
division, analogous in all respects, ca
cept as pertains to its legislative sys-
: TEN, to the territories and dependencies
! The institute recommends that the
District budget should be prepared UNI
der the direction and be transmitted TIC
Congress by the executive head (wheth-
! err the Board of Commissioners or the
proposed city manager). There is nc
more reason in logic or exped1ency," the
institute says, lin having this budget
pass through and be revised by the Blu
reaV of the Budget than there is fol
having a similar requirement as TO Tine
budgets of Alaska or Hawaii.
80 long as the contribution OF the
National Government to the support Of
the District government was on per-
centage basis, it might be said that the
National Government was as dlrectlS
concerned in keeping down the expendi-
lures of the District as It was in keep
ing down those of the administrative
departments, and consequently was jus.
l1IlSQ III having lIS dBCII~I1lC oNAS
of the Budget-revise the requests 1ol
funds as formulated by the District
government. Now that the contributor
of the National Government is flXec
sum, the justification no longer exists
Opportunity for Control.
It calls attention that the Nationa
Government under the arrangement
proposed will still possess ample oppor
tunity to control the financial policie
of the District, through the fact tina
the budget as approved by the Dlstrlc
legislative body whether Commission
ers or the proposed legislative council
must be submitted to Congress ant
that that body alone has authority u
appropriate money for the District
Should this recommendation that tn
District budget be taken from the Jurls
diction of the Bureau of the Budget no
meet with approval, the institute fur
Their insists. provision should at leas
be made for a segregation OF the Dis
trict budget from that of the Nationa
Government, its preparation as a sep
arate document and its conslderatlol
by the Bureau of the Budget, and SUP
sequently by Congress as an independ
ent proposition.
moreover. since the Bureau OF tn
Budget is properly concerned only VII
fiscal control, its activities should nc
extend to the initiation OF matters
legislative policy"
AS a second step toward con1errin
fiancial autonomy upon the Dlstrlc
government, the institute reconmeno
the abolition of the present system, ur
der which the treasurer of the Unite
States acts as,rthe treasurer of tn
District of Columbia. THE Distrit
government has, in its collector {
taxes" the report says, IAN ofncer
whom could be given all Of the dutit
and responsibilities now possessed 9
the treasurer of the United States cor
cerned with the custody and disburst
,,Soyot ~ instruct funds The great bul