Evening star., 1937-09-12
Finances and Fiscal Equity
Continue a Ma jor Problem.

Continue MAJOR Problem.
1T is indeed doubtful if the
budget hearing by the Commits
sioners will contribute substantially
to the solution OF the difficult prob
lem of District finances. Spokes-
men for some of the groups were
very insistent on the inclusion of
costly items, regardless of financial
conditions Others, alarmed at the
outlook. advised caution in budget
making and the possible avoidance
of further increased taxation.
Estimates submitted to the Com
missioners for the fiscal year end
ing June 30, 1899. aggregate $685.
100000 This is sll 100000 above
the estimate a year ago and 500
100000 higher than the amount
carried by the current appropria-
tions act.
Some civic leaders are much
annoyed at this high figure,
but no one conversant with local
affairs believes there is real danger
of an appropriation anywhere ap-
preaching such an amount. 1t is
expected that when the Commits
sioners, the Bureau of the Budget
and the House Appropriations Sub
committee get through with the
budget it will more nearly ap-
proach the amount carried by the
t,1 al
bility 1t will be larger
The problem of budget making
in the District is always difficult;
first, because the voteless and un-
represented people who have to
pay the bulk of the cost have no
real part in determining the items
or the aggregate. And. secondly,
because it is impossible to arrive
with any reasonable degree of cer-
tainty at an estimate of available
receipts. The reason for this last
mentioned difficulty is twofold:
There is no way of knowing in ad-
vance what, if any. part of the
money required will be paid by
the Districts principal industry,
the Federal Government, and that
principal industry, and not the
District taxpayers, has complete
control of the finances, both as to
taxation and appropriation.
There has been an inclination
in some quarters to regard as futile
any discussion of an increased
payment by the United States
toward the maintenance, operation
and development of its National
Capital. While the outlook for a
more favorable attitude by Con-
gress is none too bright, there is
no reason for accepting the s5,000,-
900 lump sums for each of the last
two fiscal years as anything more
than temporary settlement of the
fiscal relations between the Fed
eral Government and the District.
The fact remains that the unre-
pealed substantive law still pro-
vides for a division of the annual
expenses of the District at a ratio
Of so per cent by the District and
40 per cent by the Federal Govern
ment.
For years civic groups urged the
appointment of a competent COM
mission to formulate a plan for
an equitable division of expenses
between these two partners. The
utterly impossible inquiry and re-
port by the so-called Jacobs Com
mittee was not the kind of body
which the District citizens had
been requesting. What they wanted
was group of which competent,
bona fide, civic-minded residents
Of the District would be a part.
In addition to this question of the
equitable share to be paid by the
Federal Government there is in
volved another of equal impor-
tance-that of how to meet the
large expenditures needed for
capital projects. Among such
projects are accommodations for
the Police Department, schools,
jails, hospitals. recorder of deeds
Office, Juvenile and Municipal
Courts, major highway improve
ments, bridges and other prof.
ects representing an accumula-
lation through long years of neg
lect, as we'll as due to the growth
of the District. Just how the
District is to catch up in this
building program without an sd-
vance Of funds from the Fed
eral Government or from some
other source is difficult to see.
The highway, bridge and traffic
programs are in more favorable
position than other projects. New
taxes substantially increase the
earmarked funds available for such
purposes. The general verdict that
all money available in this fund
should be appropriated rather than
remain accumulating in the Treas
ury.
All of these matters are a part
Of most intricate problem which
will have close study by commit
tees of the Federation of Citi-
zens' Associa tions, Board of
Trade, Voteless D. C. League of
Women Voters and other groups.
The Citizens Joint Committee .on
Fiscal Relations Between the
United States and the District of
Columbia is also expected to take
an active part regarding the re-
lations between the Federal and
District governments.
Montgomery Civic Federation