Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-13

Publication OF the District budget
and revenue estimates shows the neces-
sitv for drastic economy and a severe
reduction in the amount OF money
available fer permanent improvements
With the advice Of the citizens, the
Commissioners will doubtless decide to
begin their looping of process by cur
failing capital expenditures in order
that adequate maintenance OF sucn
essentials as the schools, libraries
streets, etc, will be the least affected
One Of the most interesting OF the
DEVELOPMENTS concerning the Districts
threatened pauperism is the fact that
appropriations for the next fiscal year,
already made, will reduce by an esti-
mated Sl,7OO,00O the cash operating
fund Of 100000 which the city by
law Is required to maintain. That
means that the $1,7O0,000 deficit in
the cash operating fund must be made
I'D by savings In the estimates now IN
the hands Of the Commissioners. 1t
means that the work on needed i'm
provementS must be curtailed by nearly
$4,000 900 for the sake of bookkeeping
transaction that is as expensive as 1t
Is unnecessary.
Congress, in 1925, enacted a law as
part Of the appropriation bill requiring
that at the end Of five years the District
should have accumulated q cash OPP
Grating surplus Of $3,00o,J0o. The cash
operating fund was designed to place
actual cash in the Treasury to the
credit Of the District at the beginning
Of each fiscal year in order to meet ap-
preparation demands during the inter-
walls between the Districts receipts
from taxation. At the same time the
tax collection months were changed.
Before this practice was inaugurated,
ehe Treasury merely advanced the
paoney needed by the District to meet
appropriations and got it back when the
District collected its tax money. BY
having q cash operating fund available,
IsniS would not be necessary. The book
s1reping might be simpliIied and some
members Of Congress would be spared
the painful spectacle Of witnessing the
Treasury meet District expenses before
che District collected its own tax reve-
hue-a matter Of a few months. Since
chen the District has been forced to
keep three million dollars idle in the
Treasury. Now that appropriations have
eaten into this fund, 1t will be required
% raise 81, 7O0,o0O to make up the re-
Suired balance at the expense, Of course.
q needed projects.
other cities have felt the depression
snId have economical in expenditures
end the District can do likewise. In
Gs1e respect, the anticipated lack Of
finds with which to carry forward
Aeeded programs will emphasize the
1aadequate Federal contribution toward
District expenses. 1t will reduce to It's
~. light the picture Of the FEDERAL
District financial relationship.
BY reason of q former budget policy
which In effect restricted District esti-
mates to the amount Of the previous
years appropriations, together with
legislative restrictions against tax rate
reductions, the District accumulated q
large surplus which at the end OF the
hscal year 1880 amounted to more than
$4,000 900 over and above the $1,000
900 cash operating fund. The accumu-
lation Of the surplus merely meant that
certain needs had gone unmet. But
the surplus was used IS an effective
argument in the House TO show that
the lump sum appropriation was larger
than was needed. The argument was
fallacioCn, OF course, but the busy mem
bers Of the House were not moved to
examine 1t.
The surplus has gone, for the most
part, into the Municipal Center de-
velopment, eventually to cost between
$40 900, 900 and $30,OOo,Ooo. The Dis
trict Is down to bed rock. The fact
that with a high tax rate it cannot
raise all the money required for the
magnificent development Of the Federal
city along the lines specified by Con-
gress again shows the necessity for
return TO the lawful system Of hxec
ratio in appropriations. or q generous
Il -. 1,wa