Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-04-19
Balancing the Local Budget.

Senator Copeland, always friendly and
sympathetically inclined toward WASH
ington, has with persistent regularity
asked witnesses appearing before the
subcommittee on District appropriations
the following question:
Do you favor tax reduction or improve
ments?
The question suggests there Is some
issue which is to be met either Cd by
tax reduction or CD by local improve
ments; that there Is choice between
two alternatives, but the choice OF one
precludes the acceptance of the other.
As a matter of fact, what most OF the
citizens have asked for is not tax re-
duction that would preclude improve
ments. nor improvements that would
shut out the opportunity for tax reduc-
ton. They have asked appropriations
that will represent local balanced
budget. And a local balanced budget
that provides improvements as well as
tax reduction, by avoiding unnecessary
surpluses of local revenue, Is entirely
practical, as the Senators who have
spent weary days studying the pro-
posed expenditures must now fully
understand.
Let us get the picture clearly. As the
House passed the District bill, there
would remain at the end OF the next
fiscal year, ON the basis Of present esti-
mates. three surplus funds.
After permitting expenditures in the
discretion of the President up to ST.
100000 lover and above those specif-
ically provided for), from the gasoline
tax money, there would remain an un-
used surplus Of about 100000.
After permitting expenditures in the
discretion of the President up to
$685. 900 lover and above those specif-
ically provided for), from the water
fund. there would remain an unused
surplus of about $765 900.
And after the Commissioners lowered
the real estate tax rate from $40 to
$3.50, as suggested in the House-al-
though the amount Of tax rate reduc-
ton at this time is purely matter of
speculation-there would remain sur
plus of general revenues amounting to
about $3400,000. not including the
revenues from beer, which are to be
added to this surplus.
Senator Copeland may have in mind
the fact that Improvements" such as
school buildings-for the bill as passed
by the House allows none-would have
to come out of the $3,4O0.000 general
revenue surplus. In connection with
this surplus, the fiscal officers Of the
District realize that an additional
million may have to be appropriated in
the next fiscal year for relief; that the
high level of real estate assessments may
automatically be lowered, by falling
values, by as much as 100000 900,
which would reduce revenues by an
other million, and that there are con-
tingenc:es to be anticipated. such as
q shrinkage of revenues by more than
q million by failures to collect local
taxes.
It is to be remembered, however, that
one of the most alarming features of
the local appropriation bill is the whole
sale cutting Of personnel salary items,
which means that teachers, Librarians
f1remen, policemen, must be discharged,
retired or indefinitely furlouged. leaving
the institutions they serve under-man-
ned. The amount necessary to restore
these items and to prevent outright dis
mixsals and resultant Gripping Of i'm
portant municipal services is relatively
small. In the case of the scllooA Ii
braries, Police and Fire Departments, it
Is less than a quarter Of million dol
lars. There are other departments, OF
course, where additional funds should
be made available to prevent dismissal
of personnel. But the amount for all OF
them is not large
In addition, the District auditor, Mr..
Donovan, has made two highly valuable
suggestions. One is that something
more than a million dollars, approori-
ated in the past for the Municipal Gen.
ter, earmarked in the Treasury, but I'M
spent because of the general realization
that it will be years before that rosy
dream can be realized. should be made
available for school construction. where
the need is immediate and pressing. An
other is that as the Federal Govern
ment has already relieved itself of an
nual advances under the Capper-Cram-
ton park legislation, the Districts re-
payment Of these advances, amounting
to a million dollars a year, be for the
time being postponed, or reduced IN
proportion as the Federal advances have
been reduced. Both of these are fair
and practical considerations that would
add two millions to general revenues
available for construction.
That is the situation. in round num-
bers and in general terms. The task
facing the Senators is to restore to the
District bill those Items necessary lor
the basic and nor-extravagant main
tenance of the municipalities important
functions and the utilization CT avail
able revenues for employment-giving
construction. If this is done there VIII
be a surplus which can be utilized in
reducing the heavy real estate tax bur-
den, by reducing the assessments in line
with deprecated values, as has been
done everywhere else, and by the i'm
mediate reduction in the tax rate to
whatever figure is justified by the out
look at the beginning of the next fiscal
year.
Tax2 reduction and a local slanced
hai6rkf which preserves standards of