Evening star., 1937-01-08

an obligation which it does not
have in the several States and local
communities. With control. the Ma
tional Government assumes respon-
sibility for filling the place filled in
other communities by State, county.
city. and other local governments and
for the form, scope, and efficiency OF
local government within the District.
This is. however, a responsibility
toward the Nation for which the Dis
trict is the seat of government. It
is not a special responsibility to the
residents of the District. Flowing as
they do from constitutional provisions,
the legal and political status of the
District and the consequent special
immunities and disabilities are an
condition of residence or
property ownership as much as the
climate or topography. The consti-
tutional provisions may be changed
but not by local action or by con-
gressional decision alone. Conse-
quently, it must be said that their
choice of residence gives inhabitants
of the District no claim for special
benefits or concessions from the Ma
tional Government. They stand en-
titled TO share equally with others the
benefits and costs of congressional
action.
If Congress has an obligation to
provide local governmental services at
the seat of government and to pro-
vide and control the machinery Of
administration it has an obligation
also to determine how the cost Of
local services shall be met. Legally.
Congress is authorized to place this
entire cost upon the national reve-
nues or upon distinctively local reve-
nues Of the District or it may adopt
some intermediate course. The par
ticular course to be adopted should
be determined by balancing OF the
equities between the population and
taxpayers of the District and those
of the Nation as a whole.
The special interests of the Nation
in its Capital require that local gov
ernmental services shall be at least
equivalent in scope and standards of
quality to those rendered in other
comparable American communities by
the State and local governments. In
ordinary cities these matters are SUBJ
ject to State and local determination.
and therefore the residents and tax
payers may be expected to pay the en-
tire cost of the services. Their obli-
CATION to pay is measured by the cost
of the services rendered In the Dis
trict. with the scope and character of
service subject to congressional con-
measure Of the amount which resi-
dentsand taxpayers may be expected
to pay for local governmental services.
1t is reasonable to assume that in the
absence of Federal control the resi-
dents of the District would choose to
have services equivalent to the average
in other comparable communities
They may be expected, therefore, to
provide revenues suf1icient for normal
local governmental purposes as do
citizens Of comparable cities.
Observations Suggest
Definite Principles.
Considered in the light OF expert
ence and practice in fiscal planning
and control in public agencies through
out Of the country and of the conclu-
sions presented in previous reports
upon Federal-District fiscal relations,
the foregoing observations suggest def
mite principles or guides for determin-
ing the equitable obligations of the
Federal and District governments.
These principles are stated in the
below.
The tolloDing principles are recon-
mended for adoption as the basis upon
Uhich reldtipe Federal and District
obligations shall be eQuitably deter
mined
N District residents and Taxpayers
should provide SUFFICIENT revenues for
normal local governmental purposes,
as do citizens of comparable cities.
~ Until District residents hare q
direct and formal part in determining
the character and eItent OF local
services and expenditures, they should
not be expected to bear costs in er-
cess of those borne normally by resi-
dents of other comparable communi-
ties for similar services.
~ As long as congressional control
is direct and exclusive, the National
Treasury should bear any costs in
ercess of those borne normally by tar
payers in communities comparable
,Uith the District.
Considered in the light of factual
findings detailed in later sections Of
this report, the foregoing guides lead
to a definite, workable formula for
future fiscal relationships OF the Fed
eral and District governments. This
formula has three elements, as follows:
ID Extension of the present system
of contractual reimbursement to cover
the entire field Of intergovernmental
operating services;
20 Establishment of q continuing
method for determining the extent Of
Federal and of District interest in each
public permanent improvement within
the District and for fixing the amount
to be paid by each government in each
instance; and
80 Comparison Of the average cost
per capita of supplying normal State
and local services in q group Of COM
parable communities with the cost per
capita Of supplying similar services in
the District. and payment of any ex-
cess from the Federal Treasury as long
as Congress exercises direct and posi-
tive control over the District govern
ment.
Provisions Urged
Enacted Into Law.
1t is recommended that the pro-
pisions OF this formula be embodied
in a bill or bills for enactment at the
present session of Congress. Provisions
should be made as tolloUs:
I. Intergovernmental contractual
services: Contractual arrangements
shall be established for the reimburse
ment of the cost of specific intergop-
ernmental services supplied either goU-