Evening star., 1936-04-06

Following is the tert OF the
argument supporting the petition OF
the Citizens Joint Committee on
Fiscal Relations BetWeen the
limited States and the District OF
Columbia, submitted today to the
Vice President and the Speaker OF
the House.
We of Washington urge: l. That
existing substantive law authorizes
increase of the $2,700,0OO lump-Sum
payment up to an amount equal TO 4O
per cent of the total sum carried by
the 1887 estimate pending before the
Senate. 2. That the amount OF the
annual lump-sum payment should oe
increased in some roughly approx
mate relation to the increase OF the
District budget and certainly to the
"balanced budget" figure of $8,3l7.5 500,
recommended by the Commissioners
in submitting their estimates to the
Budget Bureau. If justice requires
the Nation to contribute so much
when the Districts annual budget Is
SO much, the same justice requires II
to contribute more when the District
budget is doubled. The practical Sug-
gestion is that the amount of the fixed
payment should be readjusted II there
is any notable increase IN the Ma
tional Capitals annual expenditure.
An immediate increase OF the basic
lump-sum appropriation (S5, 900
in the current years appropriation
for example, would be in just relation
to the increased estimates proposed
bv the Commissioners to care for the
minimum improvements and main
tenance funds required by the Capital.
In transmitting to the Congress the
estimates for the District for the fiscal
wear 1884, the President included in
his special message the recommends
ton from the Director of the Bureau
of the Budget to reduce the National
contribution to S5,700, 900, the Director
of the Bureau explaining in this con-
nection:
THE estimate of appropriations for
1884 for the Federal contribution to
the District of Columbia herewith SUBJ
mitted is S5, TOO. 900, which is reduc-
ton of approximately 26.8 per cent
from the Federal contribution for 1888
of Sits 900. This reduction is ap-
proximately the same percentage OF
reduction which the total of the esti-
mates herewith, both annual and per-
manent, for 1884 1882 ,999, ,70O) bear
to the total of the same appropriations
for 1888 ($45, ,122 ,622)."
1t is contended by your petitioners
that in reducing the Federal contri-
button by the same proportion that
the estimates for the District had been
reduced the Bureau of the Budget
established precedent which likewise
should be followed when the total OF
these estimates is increased. The total
estimates submitted by the Commits
sioners for the fiscal year 1887 have
increased heavily, as has the appro-
priation approved by the House. But
the Federal lump sum has been re-
duced under that appropriation by
S3,0OO,000. The result is that local
taxpayers, demonstrably heavily taxed
already in relation to the tax burdens
elsewhere, face the prospect of greatly
increased local taxes and no increase
in the revenue available for adequate
maintenance and improvement Of the
National Capital.
Increase Specifically Lump Sum.
3. The amount of annual payment
should be increased specifically in pro-
portion to National projects included
in the District appropriation bill.
In addition to substantial increase
of the basic lump-sum contribution
there should be specific increases in
that sum representing in each year
the placing in the District budget of
primarily National projects which it is
conceded should be paid for wholly or
in part from the National Treasury,
but which by inclusion in the District
bill and under the lump-sum payment
plan as practically applied are paid
solely by the District taxpayers from
current taxes.
A past Congress authorized the
Public Works Administration to lend
to the District of Columbia total of
S10,750,0O0 for the execution of certain
projects which are specified in the
act. Funds have been advanced or
tentatively allotted to the extent OF
q little over half that amount, but
participation by the United States
in repayment of 10 per cent of the
money borrowed is specifically pre-
vented by the requirement that 40
cents of the tax levied and collected
upon each $100 of the assessed valua-
tion of all real and tangible per-
sonal property subject to taxation
In the District of Columbia shall be
deposited in the Treasury of the United
States to the credit of special
account for such reimbursement to
the Federal Emergency Administra-
ton of Public Works and shall not
be available for any other purpose"
While the projects, as, for instance, the
sewage disposal plant, are distinctly
semi national in purpose and scope,
serving both the local community and
the United States Government, the
repayment of the loan is placed en-
tirely upon the local community.
There are several other national or