Evening star., 1939-01-06
D. G. Formula
Continued From First Page.)

library and other municipal func-
tionS
Meanwhile, Senator Overton, who
has shown keen interest in solv-
ing the fiscal relations problem since
his designation as new chairman of
the Senate Subcommittee on Dis
trict Appropriations, received late
yesterday from District Auditor D. j.
Donovan some data he had requested
on the subject. He did not make
it public Immediately, indicating
that ne plans to proceed gradually
with his study of the question.
Commenting on unofficial calcula-
tions yesterday, which showed that
application of the land-area yard
stick to the 1910 city budget of Sat-
100000 would call for ratio of 70
per cent from District taxpayers and
81 per cent from the Federal Gov-
ernment, Senator Overton said:
Il am not going to come out for
any percentage right away"
He added. however that he be-
lieved almost any definite formula
would result in some increase in the
present arrangement. The present
S5,000,O00 lump-sum payment is
equivalent to only los per cent of
the new budget total.
The estimate of a 81 per cent
Federal share under the suggested
formula was arrived at by in
cluding in the Government land
acreage only that part of the park
area representing the excess over
the average normal park area in
comparable cities instead of count
ing all park land in Washington.
The Louisiana Senator said he lis
not welded to that formula.
Separate Bill Likely.
Since any permanent solution Of
the fiscal relations problem prob
ably would be ruled out of order
on the appropriation bill as new
legislation, it is likely that any
definite plan growing out of the
current discussion would be consid-
cred as separate bill in the Dis
trict Committees Of the House and
Senate, where hearings could be
held on various phases of the prob
lem.
While the acreage basis would
make up for land revenues lost by
reason of the large areas needed
for governmental activities, it would
leave out of consideration loss of
revenue from taxable buildings that
might otherwise occupy the land.
Another angle to the question is
that the acreage basis would not
take into account the fact that a
large part of the Federally owned
property is in the high-value down.
town sections.
AS an offset against these draw
backs, 1t has been suggested that,
with acreage as the basis, the Fed
eral obligation would increase in
terms of percentage ratio when
ever it acquires more land in the
future. whereas the boundaries Of
the District for private ownership
are rigidly fixed.
But whether land area or assessed
value is to be used as basis for
determining the Federal obligation,
the record Of how revenue-produc-
ing property has gone off the tax
books through Government pur-
chase in recent years demonstrates
the urgent need for a new study
of the fiscal relations problem, such
as Senator Overton has undertaken.
The following figures show how
Uncle Sans tax-exempt holdings
have grown in 10 years:
Year 1929-30-Total value of United
States property, land and improve
ments, $478,7o6,21O, with the citys
total taxable property, land and i'm
provements amounting to $1,182,-
463, ,345.
Current year-value of United
States property, 1862 62,995,513, as
against taxable property valued at
$l,193 ,499 ,O86.
For this year the Federal Govern
ment's tax-exempt property amounts
to 1927 per cent Of the total, on the
appraised value basis; District Gov
ernment tax-exempt property is
$64, 069, or 80 per cent; other
governmental tax-exempt prop
erty, $104,507 ,022, or So per cent.
Wooe of Au+ho~ol u