Evening star., 1933-04-02

preparation bills provisions with the
national economic situation Is natural
enough. Whatever savings are made in
this bill under last years expenditures
will be recorded in the Budget Bureaus
records as reductions In Federal expen-
ditures. The revenue for the support
OF the municipality is put down in the
national budget-as far as the casual
reader can discern-as on par with
the revenue needed to build warships
or aid the farmers.
| As a matter Of fact, the only Federal
expenditure proposed In this bill-the
only money to come from the Federal
Treasury from Federal revenues. which
Washingtonians, along with other citi-
zens, contribute through their Federal
taxes-is $5,700,000. The rest Of it is
raised from the separate and distinct
| municipal taxation of those who live
and own property in washington. In
all respects the local revenue Is on a
par with the city tax revenues OF
Baltimore, or Cleveland, or Los An
geles, or any other city in the country.
Another thing that will not be made
apparent to the members OF the House,
when they begin consideration of this
bill, is the fact that the local money,
expenditure Of which they are being
asked to approve, is going to be raised
by local taxes. established by previous
acts Of Congress passed at time when
there was no economic blight from the
depression calling extra sessions Of
Congress into feverish activity to pro-
vide relief to stricken citizens.
So, while expenditures are proposed
in this bill from local revenues.
amounting, roughly, to something more
than $24,50O,oo0 (not including certain
trust funds), the same taxes remain
In effect-unless they are revised down.
ward-and will yield, in addition to
these expenditures, money which IN all
will amount to something more than
100000.
All the additional revenue from the
local beer tax-which has been doomed
so nightly as q godsend to the strick-
en- taxpayer-will be added to this So
ooo, 900 or more and will be sent to the
Federal Treasury for boarding. AS 1t
belongs to the people Of the District,
it cannot be used for helping to finance
any Of the mighty national projects
now being rushed with such speed to
spend more money and aid employ
ment. And as this is the District OF
Columbia, over which Congress by con-
stitutional direction exercises supreme
and exclusive control, the local tax
PAYERS cannot make use Of that money
to help their own unemployed by CIV
ing them work or by giving them
bread.
Mistake Made Heretofore.
Previous sessions of Congress have
made the same mistake that Is threat
ening residents of the District now. One
administration of the Budget Bureau.
for instance, adopted the policy OF re-
fusing to approve estimates in excess OF
the previous years appropriations. And
at one time in the past when the Com
oissioners were summoned to the Capt.
tol to testify on their estimates, they
we're apparently fearful that If they ar
gued for or even called attention to the
items stricken out by the Budget Bureau,
such argument would be construed as
opposing the Presidents recommenda-
tions. This led to q ridiculous and I'M
possible situation. It built up unneces-
sary surpluses Of local revenues that lay
idle in the Treasury, instead OF being
spent on necessary projects.
Congress. however, recognized In the
appropriation bill for 1928 distinct
difference between the local municipal
budget and the budgets for national
expenditures.
One of the legislative provisions in
serted In that bill provided that:
a.. Hereafter the Commissioners
of the District Of Columbia shall not
be restricted in submitting to the
Bureau of the Budget their esti-
mates of the needs of the District,
but they shall, as near as may be,
bring them within the probable ag-
gregate Of the fixed appropriations
to be paid by the United States and
the District Of Columbia"
The clause has since been read to
mean that the Commissioners should
each year submit to the Budget Bu-
reau their estimates based on what will
be produced by local revenue and by
the Federal contribution, regardless Of
the size of last years appropriation.
When the Budget Bureau eliminates
proposed expenditures based on these
estimates of revenue, and Congress ac-
cepts Budget Bureau recommendations,
the result Is to pile up a surplus Of
unused money in the Treasury.
Now, il it is clear how and why ac-
ceptance of the Budget Bureau recon-
mendations by Congress means the &C
cumulation of surplus funds, which in
turn means boarding money that be-
longs to the local taxpayers, instead Of
putting this money to useful work, what
are the alternatives?
Three "Earmarked" Funds.
Included in this bill are three ear
marked" funds.
One is the water fund, which is pro-
duced by local water tax payments. The
Federal Government gets its water free.
and does not contribute single penny
to the water tax. A few years ago the
Army engineer detailed here as Com
missioner and his assistants presented