Evening star., 1933-06-07
DONOVAN ASKS j. s.
.TOSURRENDER RULE
over D. c. FINANCES
Proposes Joint Congressional
Committee to Handle All
of City's Affairs.
ADVANCED AS SOLUTION
OF FISCAL CONTROVERSY
Budget Officer Writes Mrs. Norton
in Response to Letter Seek
ing His Views.

Complete enforcement of the financial
administration of the District from the
Federal Government and the creation
VI a joint congressional committee to
handle all District affairs in Congress
we're advocated today by Maj. Daniel
J. Donovan, auditor and budget officer,
n letter to Chairman Norton of the
House District Committee.
The changes, Maj. Donovan declared.
would go far toward removing the pres
mt annual agitation over fiscal relations
between the Federal and District gov
,rnmentS and prevent the Budget Bu-
tick to measure the budget estimates
If the municipal government, which
,ften operates detrimentally to the best
interests OF the District.
Maj. Donovan wrote to Chairman
Norton in response to her letter of May
Is, in which she asked for his views
egarding elimination of the Budget Bu-
eau in handling the estimates Of ap-
for the District. With the
-eply he attached copy Of a report he
submitted to the Budget Bureau on the
;ame subject April Is, which was not
made public at that time.
More Efficiency Seen.
Mrs. Norton feels that the Districts
budget problems could be taken care of
more expeditiously and efficiently II
the Commissioners are permitted to
submit their estimates directly to Con-
gress, thereby doing away with the
which vests in the Budget Bureau au-
thority to revise the estimates of the
District. This practice. she pointed
out, has been continued. although the
liability of the United States to Dis
trict appropriations, beginning with
the fiscal year 1925, when the fixed
ratio of 60-40 was dropped and the
Federal contribution has since been
determined annually in a lump SUM
MY views regarding the handling Of
the District budget" said Maj. Don
ovan, coincide with the suggestion
contained In the publication of the In.
stitute for Government Research Of the
Brookings Institution. entitled The
Government and Administration Of the
District of Columbia
I'm this work 1t is stated that an
essential feature Of the grant of ad-
economy to the govern
ment Of the District Of Columbia is the
complete divorce of its system of f1nan-
cial administration from that of the
National Government At the present
the financial standpoint, Is treated
as an administrative de-
partment Of the general Government.
Its revenues are covered into the Fed
eral Treasury precisely as are other
Federal receipts and figures among the
receipts Of the National Government.
Its expenditures in like manner are
treated as part of the totals of ma
tional income and expenditure in pre-
c1sely the same way as the income and
of purely Federal services.
Production Of Confusion"
1T is submitted that this system is
one which in most respects does violence
% correct principles of public admins
ration and is productive of confusion
n determining and making provision
or the financial needs of the two gov
and in stating the accounts
n a manner in which financial condi-
ion and operations may be clearly
shown. There are few changes af-
IT Columbia that are of greater i'm
,ortance than that of the correction of
his condition by giving to that govern
nent its own distinct system of finan-
'ial administration, one in which its
lnancal operations are kept wholly dis
,inct from those of the National Gov
I'm putting into execution this change
he rrSt step to be taken Is to give
he District government its own budget
system. Congress, having set up a
ocal government and placed at its head
ertain officers, should make it a part
" the duties of those officers to SUBJ
nit to it an annual budget correspond
ng to the Federal budget, in which Is
et forth full report of financial oper-
ltions in the past, existing financial
conditions and an estimate of future
financial needs. This should be a docu-
nent completely separate from the Fed
raj budget and should be transmitted
llrectly to Congress without passing
through the Bureau of the Budget.
Arguments Advanced.
"The arguments in favor of this
Iction are: That G) it lays the basis
or the segregation of the finances of
he District OF Columbia from those
vill simplify and improve the national
udget and the whole reporting and
ccounting system of the national Gov
rnment by removing from them items
lot constituting part Of the receipts
nd expenditures proper of the national
government, which now improperly swell
9th sides OF the accounts, and CD it
11ll concentrate responsibility for for
1ulating an expenditure and work pro-
ram In single municipal body, where
properly belongs, instead of having
ne responsibility divided, as it now is,
etween the Commissioners and the
'ureau OF the Budget, one local and
ne other a Federal agency.
Should the suggestion that the Dis
net budget be taken from under the
lrisdlct1on OF the Bureau of the Budget
OF meet With approval, provision should
least be made for segregation of the
district budget from that of the ma
onal Government, its preparation as
separate document and its considera-
on py the Bureau of the Budget and
losequently by Congress as an inde-
endent proposition"
Annual Agitation Cited.
Maj. Donovan also called attention to
ne fact that four committees in Con-
ress, the Legislative and Appropria-
ons Committees of the House and Sen.
te, are now dealing with District af-
airs. For obvious reasons" he said.
It would seem that the business of the
overnment Of the District of Columbia,
9th as to legislation and appropria-
ons, would be more expeditiously and
fectively handled in Congress, through
lie creation of joint committee Of
9TH houses having jurisdiction over all
atters now handled by the four pres
It comnttees. believe that such an
would, among other things,
D far toward removing the present
anual agitation on the subject Of Fed
al payment toward District Of Co,
!mhia approprtAtions,.