Evening star., 1932-03-27
D. C. Budget Balancing in 1888.

The complexities of budget balancing
for the District in 1888 are indicated
by the transcript of testimony thus far
made public of hearings on the District
appropriation bill. 1t is shown that soon
after the hearings began attention of
the subcommittee on District appropri-
ations turned to the effect on local rev.
enues of the Mapes tax bills. Mr.. Dono-
van showed the committee how the Dis
trict appropriations for the fiscal years
1891 and 1882 had exceeded revenues by
$500 900, the excess being furnished
from the now dwindled surplus and
even from the s3,000,000 cash operat-
ing fund. Estimates for the year 1888
call for SAL, ,727 900, which will exactly
match revenues of the District if the
Federal lump sum of ss,50O 900 is in
eluded.
But Chairman Cannon indicated ac-
ings by asking this question: IF it be-
came necessary for the District to raise
an additional $3,o0O,00o in revenue and
provision was not made to do it by in
rs imposing more gas tax, automobile
tax or income tax, where would the bulk
Of the increase come from?"
From real estate" answered Mr.
Richards, responding to his cue and
showing how the District is placed be-
tween the devil (higher real estate
taxes and the deep, blue sea (the
Mapes tax bills it may be as
suned, was the purpose Of the ques-
tion.
Auditor Donovan then outlined the
prospects of revenue from the Mapes
bills. In return for paying higher
taxes totaling s4,100, ,000-which takes
into account the elimination of $500 900
IN personal property taxes on automo-
biles, for which the weight tax bill
would be substituted-the District
would receive a net increase in rev.
enues of 81 100, 900. Six hundred thou
sand dollars Of this increase would be
applied to the streets, under the gas tax
law, and the remaining $500,0O0 in
crease would 60 to the general fund
Questions from members of the COM
nafttee indicated the belief that gaso-
line funds should be applied to other
uses than the highways-bridge con-
struction, for instance, and sidewalks.
But these estimates were made on
the basis of the Mapes Committee fig
ures, which will be altered in amount
and in application if the Bureau of Eff
cheney recommendations are adopted
And Auditor Donovan made the state
ment that even if we take the full
amount estimated under the Mapes
bills, when you take s3,000,00O away
from the Federal contribution we will
still be confronted with the necessity of
providing more revenues to meet addi-
tional appropriations or remain sta
tionary, as far as properly developing
the District is concerned. To provide
the additional revenue would mean
that we would still have to increase the
tax rate on real estate and tangible per-
bcnal property"
:, Thus the District Is shown to be
Ydaced not merely between the alterna-
Sives of accepting the Mapes tax meas
s1res or Of accepting an increase in the
real estate tax-when the real estate
tax levy, according to Mr.. Donovan,
has increased practically 10C per cent
aince 19Z5-but is threatened with an
ehcrease from both directions.
And these threats are imposed when
ehe taxpayers here are shown, by any
fair comparison, to be bearing an ade-
euate tax burden already.
From the point of view of practical
budget balancing, the acceptance. in
advance of complete congressional con-
sideration, of the Mapes recommended
lions by the House committee is shown
to have been grave error.
From the point of view of justice and
fair dealing to the District, the accept
ance Of the Mapes Committee theories
Is out of the question.