Evening star., 1935-03-11
The Senate and the District Bill.

The Senate and the District Bill.
The 1886 District appropriation bill
as passed by the House should be
changed by the Senate Subcommittee
on District Appropriations which be-
gins its consideration tomorrow, to
provide:
/. A substantial increase in the ma
tional lump-sum contribution to
finance a few of the more important
local needs now being neglected and
to anticipate additional revenue de-
mandS contained in pending local leg
islation.
2. Increased expenditures of gaso-
line and water tax revenues 10 absorb
tax collections made under these spe-
cial taxes and to prevent the accumu-
lation in the Treasury of earmarked
surpluses, unavailable for anything
else.
While the House committee cut
about a million dollars from the Dis
trict estimates, as forwarded by the
Budget Bureau, the bill still contains
q net increase of almost million
dollars above current appropriations.
This increase will doubtless be made
larger by Senate additions to the
bill. AS demands on local reve-
nues are increased, the lump sum
should be increased in some proper
ton. Certainly the Senate cannot
consistently permit the continued
whiting down Of the Federal lump
sum at the expense Of local needs and
remain true to its traditional stand
In favor of fiscal equity for the un-
represented District of Columbia.
The reductions made by the House
In the budget estimates represent saw
ings on paper, offering an apparent
surplus Of local revenues after the
needs carried In the bill have been
met. But even casual analysis dem
onstrates the fictitious nature Of the
savings. Almost half results from dis
allowance of proposed expenditures OF
gasoline tax and water fund reve-
nues-and as there is no reduction in
these taxes resulting from such dis
allowances, the idle surplus thus
created benefits no one. Either the
money should be spent, or it should
not be collected through taxation.
The remainder of the cuts made by
the House come from the general
revenues and are made chiefly at the
expense of the schools and public well
fare. In school items alone more than
q quarter of million dollars was cut
from budget estimates which, in turn.
had reduced school items to a point
little above maintenance. Part OF
these reductions were accomplished
by abandonment of the character edu-
cation project, undertaken last year
ut the direction of the Senate, and
another large part was made by dis
allowing already meager funds for
school construction.
Should the Senate allow even the
minimum needs presented by the Bu-
reau Of the Budget, revenues Of the
District considering a $5,70o,00o
lump sum-would be almost wholly
expended at the end Of the next fiscal
year. Yet the needs as submitted BY
the Bureau of the Budget, predicated
as they were on continuation Of
that inadequate lump sum, are not
representative Of the real needs which
the Commissioners outlined.
This situation becomes more Sc
rious in view of additional tax bur-
dens which may be imposed through
enactment of pending social security
legislation-desirable in its objectives,
but which may prove in total effect
excessively burdensome in forms now
being proposed.
The point has been reached where
q determined fight by the Senate to
increase the Federal lump sum and to
make provision for some of the &C
cumulating and neglected needs of
the District is essential, from the
viewpoint Of equity and of practical
necessities Of Capital upkeep and de-
ve1orroept