Evening star., 1936-10-12
Local Budget Analysis.

The District auditor, Maj. Donovan,
has given correct emphasis to two i'm
portant facts in relation to the 1898
budget, just sent to the Budget Bureau
by the Commissioners in the form Of
tentative estimates.
The first is the wide margin between
estimated expenditures-for normal
maintenance and minimum amount OF
needed improvements-and the revenues
anticipated under current rates Of taxa
ton and lump sum Of $5,000,000. This
difference amounts to about $1000o,0 900.
That amount must be raised. through
increase Of local taxation or increase Of
the Federal contribution or both, to give
the District balanced budget for the
next fiscal year.
The second demonstration OF MAJ.
Donovan's analysis is the fact that no
matter how rigidly economies are exer-
cised at the District Building. the saw
ings resulting are relatively small and
cannot be counted on to make any ap-
preciable dent in the revenue shortages
now confronting the District under the
present system Of financing.
This fact is of great importance now.
In the past sixteen years the expenses
of the District Government have been
mounting steadily at the rate of about
36 per cent year, so that in 1896 1t is
&o ~ in the
District and provide for some improve
ment than 1t did in 1920.
Where has the increase occurred? In
practically every department of the
municipal government, but principally in
the cost Of public welfare, the schools,
the Police Department, the Fire Depart
ment, general expenses" and the Water
Department. For other departments the
average increase has been about $4,000
per year. The Water Department is
self f-supporting: that is, it is being main
tanned separately through the water
taxes paid by property owners and may
be considered separately. But if all the
other departments Of the municipal gov
ernment, outside of public welfare,
schools. police and fire, were cut back
to the level of 1920 by annual reductions
corresponding to the annual increases
since 1920, the savings in the budget
would amount to only 100000 out Of
s47,ooo,o 900 budget.
As for the schools, the school popula-
tion has increased about so per cent in
the past IS years and the school authori-
ties estimate present teacher shortage
OF about 600, with building facilities far
behind demand. The increase In cost
Of public welfare Is correctly attributed
by Maj. Donovan to "a new concept of
the responsibility of the Government
toward less fortunate people in need Of
sustenance or disqualification" together
with the increase in population. The
needs Of the Police and Fire Departments
are, In large measure, due to the increased
population. But every increase, of course,
has been ordered by Congress.
Who has paid for the great increase
In cost of Capital City government? The
local taxpayers. While expenses have
continued to increase the national con-
tribution appropriated by the exclusively
controlling Congress has steadily di-
minished both in proportion to the total
and in total amount. No solution Of the
Districts fiscal problem is possible that
does not take into account the inescapable
fact that the Federal obligation to the
Capital increases along with the local
taxpayers obligation and must be met
accordingly.
.-ss