Evening star., 1939-01-03
Fixed Fiscal
Ratio Urged
By0verton
Lump Sum Declared
'Hophozord and
Arbitrary

A return to some definite, fixed
ratio of apportioning the cost ol
, running the National Capital be-
tween the Federal and District gov
ernments is favored by Senator John
H. Overton, Democrat, of Louisiana
new chairman of the Senate Sub
committee of District Appropria-
tions.
Describing the lump sum basis OF
Federal payment as "haphazard and
arbitrary" the Senator said he plans
to give the subject study, in the
hope of working out a satisfactory
solution.
1T is my feeling there should be
some sort of fixed and permanent
ratio, worked out on sound basis
that can be justified and defended >
the Senator stated.
The Senator emphasized he has
no set opinion as to any particular
formula, but suggested consideration
might be given to the ratio of Fed
eral to privately owned land in the
cltyNas one approach to the problem
Other Senators Favorable.
The. announcement of Senator
OvertOn, new chairman of the Dis
trlct Appropriations Subcommittee
That he would seek a more nearly
permanent solution of the problem
OF fiscal relations between the Fed
eral and District governments, met
with favorable response today
among other Senators.
Senator Capper of Kansas, rank
ing minority member of the Dis
trict Committee and member of
the appropriations Subcommittee
said he would cooperate with the
Louisiana Senator in trying to find
more satisfactory basis of pay
ment.
Il am glad Senator Overton is
going into the question, and I hope
he will be successful" he said.
Senator Austin, Republican. of
Vermont, also District committee
member, declared That problems
should be taken in hand and real
determination made. because the
present lump-sum practice is not
j. satisfactory
Senator McCarran. Democrat. of
Nevada, also a District committee
member, said he agreed the issue
might be settled by basing the Fed
eral payment on the amount of
property exempt from taxation of
Federal ownership.
Hailed by Officials.
Senator Overtons announcement
was hailed by District officials as
holding out new hope for a return
TO more equitable fiscal relations be-
tween the Federal and District gov
ernments.
. The fixed ratio basis prevailed for
nearly half century. until repeal
CT the 6040 substantive law last
lear, although Congress for 13 years
has been departing from that re-
cuirement through the annual lump
sum practice.
For. many years the ratio was
$3.50. In 1922 Congress drafted a
new organic act, and while it
changed the ratio to so per cent
from the District and 40 per cent
from the Federal partner the prin-
ciple of definite proportionate con-
trlbution was retained.
In 1924 the House succeeded in
turning for the first time from the
newly enacted fixed ratio to lump
sum Federal payment. written into
the annual appropriation act for
the fiscal year 1925.
S9,00O,0O0 for Six Years.
For six years the lump sum re-
\ manned at 100000. The Senate
made repeated efforts during that
period either to return to the fixed
ratio or to add something to the
lump sum as the city's expenses
increased, but the House stood out
against any change.
For two years-1931 and 1932-the
Genate was able temporarily to raise
the lump sum to $9,5O0,0 This was
followed, however, by a succession of
cuts that have brought the Federal
payment down from s7,775,0OO in
1888 to the present S5,0O0,O0O figure.
AS the total of the annual District
a.. supply bill has mounted steadily, the
effect of the lump sum practice has
been to reduce gradually the Fed
eral share, IN terms of percentage.
With the local budget now up to
approximately s5O,OOOOOO, the pres
ent s5,000,000 lump sum is only
about 10 per cent.
trict Auditor Donovan joined in
welcoming Senator Overton's sug-
gestion that basis for settlement
tof the fiscal relations issue be
sought.
Throughout the period of lump
sum payment organized Washing
ton, through the Citizens Joint
Committee on fiscal relations, has
continued to petition Congress to
return to a more equitable basis of
apportionment.
Civic Leaders in Favor.
Numerous civic leaders indorsed
the Overton plan, among them
Francis G. Addison. jr., president
OF the Board of Trade.
We are indeed pleased to hear
OF Senator Overton's proposals to
re-establish the Federal payment
to the District of Columbia on a
percentage basis said Mr.. Addison.
This is in line with ideas which
have been advanced by the Board of
Trade ever since the establishment
OF the lump-sum system. We will
be anxious to make available to Sen
ator Overton all of the data in our
flles bearing on this subject
Also in favor were Mrs. Ernest
Daniel, president, and Mrs. Ernest
w. Howard, chairman of legisla-
ton, of the District Federation of