Evening star., 1933-08-23
The Sewer Fund ALLEGATION.

The Sewer Fund ALLEGATION.
The uncertainty of the terms uno-r
which the Public Works Administration
has made an initial ALLEGATION OF
81 75e 500 to the District for sewer
work imposes upon the local author
ities the unpleasant task OF looking
gift horse in the mouth-and making
q very minute examination, at that.
The announcement OF this aLocauon
contains the following paragraph:
Congress will determine the division
of this fund as to the revenues OF the
District of Columbia and the Federal
Government.
The District Commissioners are about
to undertake the preparation OF their
1885 budget. That budget will be very
slim. In the past year the District has
lost S3,8O0;O00 of annual revenue be-
cause of the Federal Governments
shrinking contribution. Tax reduction
will account for another loss in revenue
of about s2,500,00o. The reassessment
of real property is expected to take of
another million dollars, and tax collec-
tions are falling off to serious extent.
Now, Congress does not meet until
January Is. Some time thereafter 1t
will presumably decide what proper
ton OF the Sl,759,500 Of public works
money. allocated yesterday for sewer
work in the District, will come from
local revenues and what part OF 1t will
represent Federal assistance as pro-
vided in the recovery act. How are the
Commissioners to know what to count
on? 1t is obvious that there should be
further conferences between the munic-
ipal authorities and the Public Works
Administration to find out more about
this ALLEGATION of funds, whether it Is
being construed as loan. partial
grant or an outright contribution from
the Federal Government to bolster en-
ployment through the medium Of pro-
viding for necessary public improve
ment.
Thus far the only grant. outside the
FGQSIdl 4lSSIA, L41AC Ny tAiO
Public Works Administration is one OF
S7.2OO0O0 which represents about thirty
per cent of the cost of labor and ma
terials for the Triborough Bridge, con-
Meeting the boroughs of Manhattan,
Bronx and Queens. This grant accom-
panied a loan for the. same purpose OF
1000. 900. which is to be repaid by
the Triborough Bridge Authority OF
New York with four per cent interest in
twenty years. Other allocations from the
Public Works Administration so far
projects in as many municipalities and
outright grants for purely Federal
work which account for most OF the
sl,19S,OOO 600 so far allocated from the
$4,000, 900 900 available.
The law gives the Public Works Ad-
ministration authority either to lend
or to grant money to States, counties
and municipalities for public works.
If. in the process Of allocating the
balance of the 3,3OO.OO0,oO0 public
works money, outright grants are made
to the States or to municipalities for
public works, it is obvious that the
sewer money for the District, and other
ALLEGATIONS for the District in line with
the Commissioners recommendations,
should be classified as grants If they
are advances, to be divided between the
Federal Government and the District
as Congress ordains, local budget
making may be considerably confused.
The reason for this is that the Dis
trict's budgets have been pared SO
dangerously low that little has been
provided this year for anything but
maintenance. There has not been
enough money for Capital improve
mentS on a scale commensurate with
adequate development. Now, If the
Public Works Administration obligaAs
the District to an uncertain amount OF
expenditure for Capital outlays, the
question rises as to the method OF pay
ing for them While the improvements
to the sewer system are necessary and
imperative, such needs perforce must
be considered relatively. There are
other capital expenditures which may
be even more pressing than those pro-
vided for sewer work. 1t IS certain that
before the District is obligated to
borrowing program Of uncertain pro-
portions, it should be permitted to
spend its own funds, already collected
from the taxpayers. The situation Is
thus made more confused by reason of
the Budget Bureaus inactivity in the
matter of releasing local tax funds,
already available and expendable for
nothing else, for needed street and
water system improvement.
Unless this ALLEGATION fer sewers is
to be properly construed as a grant
to which the District is entitled-there
is the prospect that the Public Works
Administration will act as legislative
body for the District Of Columbia by
alIocating an undetermined amount of
local revenues for certain projects. the
relative necessity for which has not
been agreed upon either by the Com
nxssioners or by the exclusively-legis-
lating Congress.
E.n,l,~s Eirc$