Evening star., 1937-01-08

established and be charged with ~
examining into the administrative or
ganizntion, methods, and practices
and the effectiveness and economy OF
the District government in all its
branches; ~ installing integrated
departmental services and improved
methods and techniQues upon ap-
proual By proper authorities; ~
repie,cing periodically the contractual
provisions governing intergoUern-
mental services and recommending
changes il, the provisions Uhen neceS-
Sory or desirable; ~ formulating and
recommending contractual arrange
rents to coper Re1D intergoUernmental
services as they arise; and (5) making
the necessary comparative studies OF
the per capita costs OF local gouern-
mental services and the ertent OF local
taxation on the basis of data gathered
bu the Bureau of the Census ana IN
conformity ,pith procedures described
il, this report. AS long as the Bureau
of the Budget continues to pass upon
details of the District budget, the per-
n,anent surrey agency might properly
be operated as a section OF that
bureau.
In view of the third element in the
formula for future Federal-DiStrict
fiscal relations. the Federal Govern
ment has an equal interest with the
local taxpayers in the excellence OF
the organization and operation OF the
District government. Moreover, the
special status of the District suggests
that its local government should be
a model of municipal administration
with the highest standards OF service
and economy.
Successive recommendations OF past
surveys indicate, as is now urged, that
there is need of intensive, compre-
hensive, and continuous study OF the
organization and administration OF
the District government.
II is recommended ~ that an in
uestigation of the organization and
operation of the District Government
be authorized, to be made BY a stdt
familiar Uith modern practice in
municipal administration; (2) that
the permanent agency proposed abope
be established, and ~ that there be
authorized representative ADVISORY
council, consisting OF representatives
of the Federal and District GoDern-
ments and of District citizens ap-
pointed by the President as repre-
sentatiues of ciDic groups, to adUise in
the planning OF municipal services and
administration, the original prepdrd-
tion of the District budget, deter
n,ination of reDenue sources, and i'm
prouement of organization and PRO-
cedures.
Direct Federal
Financial Interest.
The Federal Government has a d.
rect financial interest in the local
revenue system of the District govern
ment, particularly if comparisons with
other communities are to be made in
terms of actual taxes paid. Compare
son of the existing revenue system of
the District with the prevailing system
in other cities, shows that the local
revenue system in the District Is
much less diversified. The absence
of overlapping governments and Of
constitutional restrictions affords q
unique opportunity for developing a
model system, both in the taxes in
cluded and in administrative pro-
cedures.
In order to insure 1Dtder and
more equitable distribution OF the tai
load, consideration should be g,Den to
reduction of the importance OF the
property tar as source OF District
reuenue. the adoption OF net income
tdE and an inheritance or estate tar,
increase of the gasoline tar, gradud-
tion of the motor pehicle tar upon
commercial uehicles .Dith reference tc
petght, and reerami,aation OF existing
business tares.
Under the existing system of District
government, authority IS dif1used and
responsibility decentralized. This
condition is evident particularly in
budgetary procedures. Neither the
District Commission nor the Bureau
of the Budget exercises the full and
complete control necessary to secure a
completely integrated budget for the
District.
Effective financial responsibility
should be concentrated in the heads
of the District government. This
might be achieved were the District
authorities charged with formulating