Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-28
Commissioners Basing Hope
for Higher Lump Sum on
Increased D. C. Levy.
WILL BEND EVERY EFFORT
TO GET GREATER FUNDS
Belief Well Founded That Larger
Appropriation May Be Made
if Fight Is Waged.

Federal contribution of $4,000, 900
toward the operation of the District
government is to be the goal of the
Commissioners in their negotiations
with the Budget Bureau this Fall over
the 1882 budgetary estimates which ex-
coed q total of 5000, 900.
In fact, the 1882 budget is predicated
on a $10,000,000 contribution by the
United States--an increase of $500, 900
over the amount Congress allowed this
year after a vigorous battle over fiscal
relations and 100000 more than the
contributions since 1925, when the 60
40 principle, as provided in substantive
law, was discarded for the lump sum
policy. Coupled with the increase
which the Commissioners propose to
seek from the Federal Government
however, is Decent raise in the tax
rate, boosting the current levy to $1.sO.
Source of Idea Mystery.
Where the Commissioners got the
idea or intimation that Congress might
approve a $l0,000,00O contribution by
at the District Building-at least the
officials make it so by their reluctance
to discuss anything connected with the
budget estimates. Nevertheless, there
seems to be a well founded belief that
If the Commissioners ask for $4,000
600 from the United States, they may
get it next year IL they fight for 1t and
are willing to raise taxes in return.
Commissioner Luther H. Reichelder-
f-,4 III. .1r.~-a - It
missioners, who has supervision over
the finance departments of the munic-
ipal government, said the budget was
framed on its present basis, contem-
plating as 1t does $4,000, 900 from
the Federal Government, on a "hunch,"
that If the District raised its tax levy
as proposed In 1892, the United States
also might be willing, in spirit of
equity, to add to its contribution in
support of the increased budget.
A $1.S0 tax rate, it is estimated,
will produce. approximately $1,000, 600
more than the present $1.70 Is yield
ing. Thus 1t was pointed out, the
Commissioners are willing to raise an
additional $I,300,000 in taxation, in
return for 100000 more from the
United States.
Hold Increase Imperative.
1t also was explained that only by
the use Of the surplus revenues, ac-
cumulated by the District in the years
when the Budget Bureau and Con-
gress kept the appropriations below
revenues, has an increase in the tax
rate been avoided in the last three
years. The surplus has been virtually
exhausted, however, 1t was said, and the
District must support its budget next
year almost entirely on current reve-
A. 4 a.
hold that an increase in the tax rate.
coupled with a higher contribution by
the United States Government, is the
only means by which the District can
finance the budget proposed for the
coming fiscal year.
While the Senate was willing at the
last session to increase the Federal Gov
ernment's contribution to $4,000 900,
the Commissioners, 1t was explained
did not make this figure their goal, but
used $4,000, 900 on the theory Of "prac-
tical psychology" In other words, they
believed that both Congress and the
Budget Bureau would more likely agree
to a 100000 contribution than $12,-
100000, and that even this amount
would represent an increase over the
$4,000, 900 contributions from 1925 to
1929. and the s9,5o0,0o0 in the current
fiscal year.
Theory May Be Destroyed.
The Commissioners realize, however,
it was said, that their theory on which
they built the 1882 budget may be COM
pletely destroyed by the recommends
tons Of the special committee of the
House appointed to study the question
of fiscal relations between the United
States and District governments. 1t is
their contention, nevertheless, that
they had to use some definite formula
in determining a method of financing
the increased budget, and the 10-cent
increase in the tax rate, coupled with
a $500, 900 increase in the Federal Gov
ernment's share, seemed to them to
be fair one.
PREPARES BUDGET STATEMENTS.