Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-03
The Diminishing Surplus.

The fact that during the last two
fiscal years-the year 1929 and the cur
rent year 1e3o-the District has been
able to show a healthy cash balance
after meeting running expenses and
financing a number of Improvements
has constituted one argument in sup
port of the theory that the Govern
ment's 100000 lump sum contribu-
ton, plus the local revenues from the
existing tax rate of $40, is adequate
Last March, in fact, Auditor Donovan
prepared a proposed five-year financial
program for the years 1930-1934, in
elusive, in which the possible expendi-
ture of S230,616,0O0 during this period
was itemized en- the bases of the exist
ing lump sum and the existing tax
rate. The auditor also included in the
program separate list Of projects that
could not be taken care Of under this
hve-year program.
But the District appropriation bill
for the year 1881, as passed by the
House, and the introduction of other
legislation, have knocked the flve-year
program into a cooked hat; eliminated
the Districts surplus of revenues avail
able for general expenditure and made
probable a drastic increase in the local
tax rate for 1882, unless the Senate
committees recommendations for an
increase in the lump sum are upheld
by the Senate and, later, by the con-
ferees.
The Districts surplus at the end OF
this fiscal year will amount to $7,l79,-
666. Deducting the S3,000,000 needed
for the Districts cash operating fund
there is left a surplus of S4,1796 66. This
money was accumulated by reason OF
the Budget Bureaus former policy
wisely changed this year-of requiring
the Commissioners to keep their esti-
mates below an arbitrarily fixed maxi
mum, regardless of revenue availability.
Thus the surplus, representing the re-
suit of careful parings on needed local
projects, has been dumped, for the. most
part, into financing the semi-national
Municipal Center. What remains OF 1t
will probably be exhausted, or nearly ex-
hausted, by the desirable increase in pay
for firemen and policemen. If it had
not been for the surplus the tax rate for
1881 would be nearer So than $1.7O. Mr..
Donovan points out that there is small
chance of the budget in 1882 being less
than the budget for 1881, Unless the
lump sum is increased, the tax rate will
probably have to be increased for 1882.
In considering the 1929 bill Repre-
sentative Simmons suggested that the
Districts cash operating fund, used to
enable the District to meet its bills
pending the receipt of tax revenues,
should be $4,000, 900 instead of S3,0o0,000
If that is so, the action Of the House
this year has prevented it, for the cash
fund remains 100000 AS matter
of fact, the imposition upon the Dis
trict of the necessity for raising and
maintaining from year to year this bal
ance of three or four million dollars is
another indication of inconsistent and
unfair treatment of local taxpayers.
Congress ordered the District to accu-
mulate this cash balance as part and
parcel accompaniment of the 60-40 sys-
TEN of appropriating. Two years later
it evaded its own part of the bargain,
but the District has been forced to
raise and to carry this sum OF idle
money for the sake of bookkeeping
transaction that is Of doubtful prac-
teal necessity.
The Senate should increase the lump
sum as recommended by its appropria-
tions committee and fight to maintain
its decision in conference, to the end of
preventing the placing of another
burden on the shoulders of the silent
partner in Capital financing.