Evening star., 1937-01-08
FISCAL RELATIONS
SURVEY FINDINGS
Full Text of Conclusions
Reached by Jacobs
and Advisers.
Continued From Sixteenth Page.)

rating State expenditures according
to population. This is done by COM
hining per capita expenditures.
From the combined per capita ex-
penditures Of local and State govern
ments in cities comparable with the
District, the following deductions must
be made: % Payments from the
States to the local governments and
from the local governments to the
States, in order to eliminate double
inclusion; (2) payments financed from
Federal aid funds, and (3) payments
for services not rendered in the Dis
trict. These deductions are explained
In section IL.
Further adjustments of cost data
might be warranted if the quality and
quantity Of service rendered in the
District differed materially from the
average for the other cities. Practical
overall measures Of the extent of
governmental services are not now
available 1t is to be hoped that the
efforts Of workers in the field Of public
administration will provide acceptable
methods and standards of measure
ment in the not too distant future. A
number of measures reviewed in sec
ton 13 Of this report indicate that the
District is now at about the average
level Of II comparable cities in the
extent OF services. In view Of these
facts, no attempt need be made to
adjust cost payments for variations
between the District and the average
Of the comparable cities in the extent
Of service.
Recommendation on cost COMPARE
sons.-As long-range program it is
recommended ~ that the reuenue
system of the District be revised to
make 1t correspond to the more di-
Oersifed State and local reuenue
systems OF comparable communities;
and f2) that Uhen such a repenue
system has been achieued, considera-
ton be giuen to the equity and prac-
to measure the obligation OF the Dis
trict to support local government.
Recommendation for
Immediate Program.
As an immediate program, 1t is
recommended ~ that the obligation
OF the District be measured by the
average cost per capita of supplying
normal State and local services in q
group OF comparable American COM
nsunities; f2) that the costs to be con-
sidered shall comprise payments for
operation and maintenance OF gen.
srdl departments, capital outlayS OF
general departments, and interest
upon funds borrowed to finance gen.
erdl departments; and 80 that COM
pdrability of reported cost data shall
be assured by treatment along the
lines outlined aboue
. 1t is recommended, further, that if
the data shoD that general gouern-
mental cost payments per capita Uere
higher In the District than the au-
: erdge of the comparable cities in the
latest fiscal year for Which comparison
can be made, the ercesS shall be paid
from the Federal Treasury. The
actual amount to be appropriated for
this purpose shall be determined by
multiplying the excess ouer the at
erdge cost per capita by the number
representing the population of the
: District at the end OF the fiscal year
compared, the population to be de-
termined from Official census eSti-
mates. 1t should be provided that as
comparative cost payments per capita
for each fiscal year become available,
adjustments in the amount of Fed
eral reimburSementS shall be taken up
annually in the budget estimates in
. course of preparation. 1t should be
, prouided, further, that comparative
. cost payments per capita for the gears
betDeen decennidl cenSuses shall be
recdlcnlated after each decennial
census, upon the basis of interpolated
or repised population estimates, and
that Federal reimburSements shall be
adjusted In accordance tUith these re-
calculations.
Property owned by the Federal Gov
ernment constitutes the leading cate
CORY Of tax-exempt property in the
District. It comprises approximately
- per cent of the present land area
Of the District and represents approx
1mately one-third Of the value placed
upon all taxable and exempt real
estate by the District assessor. Much
Of the Federal property is used largely
and in some cases wholly by the gov
eminent or people of the District.
The aggregate valuation of Federal
property as reported by the District
Assessor in 1896 is $648, 791 600. COM
prising $342, 900 for land and
1906, ,630, 900 for improvements. This
includes approximately 1858 ,506,000
for properties which are not used
solely or primarily for the business of
the Federal Government. Property
used for Federal business is valued at
1886, ,285 900, Of which $147,688, 900
represents land and $237 ,597, 900
represents improvements
Under Supreme Court decisions Of
long standing, instrumentalities of the
Federal Government may not be
taxed by any State or other political
subdivision without express consent by
Congress. Such consent has been
given in the case Of real estate owned
BY various Federal credit agencies.
T., In addition, provision has been
made authorizing payment in lieu of
taxes In the case of certain revenue
. producing enterprises which are Of a
character ordinarily classified by the
: courts as not essential governmental
purposes. Property covered by these
provisions may be taxed in the Dis
. trict or subjected to payments in lieu
Of taxes, the same as in other jurisdic-
tions.
< With adoption of the three-point
. formula for Federal-District fiscal re-
,lations recommended shove, there will
be no equitable basis for claim that
. the District should collect taxes on
Federal property.
:. 1t Is therefore recommended, as q
. eorollary of the three-point formula,
r that Federal property in the District
staH not be subject to the ad ualorem
> property tar or any other tar, except