Evening star., 1939-06-04
A Balanced D. G. Bill

A Balanced D. G. Bill
BY increasing the Federal payment
$2,750,000 in the District appropria-
tlon bill reported yesterday, the Sem
ate Appropriations Committee puts
the lump sum back approximately
to the figure which prevailed in the
fiscal year 1888.
In that year the Federal payment
OF Sits 900 compared with general
revenue appropriations of about
$3e,700,000. The bill reported yester-
day recommends a Federal payment
OF $7,750,000, which compares with
general revenue appropriations of
about $42,oOO,OOO.
Thus the increase recommended by
the Senate committee, while it af-
fords great encouragement to the
people of the District of Columbia,
is not as great as it would be if it
matched-as in fairness it should
the increase which has taken place
In local taxes and in the cost of run
ming the Capital City.
Remember the conditions under
which the lump sum of $7,775,OOO of
1888 was reduced. The fiscal year
1884, in which it was reduced to
$5,700O00, was the year in which the
administration set out to apply
Is per cent reduction to all appro-
priations, The District appropriation
bill was reduced in accordance with
the 25 per cent principle, but the
Federal payment to the District was
one OF the few instances in which
the principle was in reality applied.
In this case it was exceeded.
Subsequently the economy theory
represented by the 25 per cent cut
was Abandoned and the District
appropriation bill increased steadily.
But the Federal payment was still
further reduced. All of the increases
came from increases in local taxes.
Despite these tax increases-and
only some OF them have gone to
finance the regular appropriation
bill charges-the appropriation bill
reported from the House a few
months ago exceeded by about s185,-
600 the Districts ability to pay.
What the Senate committee has done
Is to add to the total of the bill as
reported from the House and then
to increase the lump sum by the
amount which, with existing taxes
and continuation of the current SITS
real estate rate, will balance the local
budget for 1910.
The increases are accounted for by
practical necessities that are diff
flcult to eliminate without harmful
results. OF the additional funds
added, about $1,OOO,OOO goes for the
beginning of long delayed school
building program in which buildings
more than fifty years old are to be
replaced. Another 100000 goes to-
ward llberalizing the relief payments.
which were cut to the bone in the
House. Additional funds are provided
Tor beginning the armory construc-
ton, the need for which was ac
knoWledged in the House bill. These
additions account for most of the
total added by the Senate committee.
Ihus the lump sum increase is
based directly on the needed addi-
t1ons to the bill above and beyond
the amount which can be produced
by already heavily increased local
taxes. The increase does not raise
the Federal payment to the figure
which would be established by such
a formula, say, as the plan pro-
posed In the Overton bill. 1t does not
meet the real Federal obligation.
however measured. The $7,75O. 900
ngure Is applied to meet a specific
condition, in line with the theory
sometimes expressed that the lump
sum payment should represent the
balance between local tax revenues
and total needs.
The community's qualification over
the fairness and thoughtful con-
slderatlon shown by Senator Overton
ana his committe colleagues is in
creased by the fact that in recent
years the House has shown more
Willingness to approach the problem
without the animosity and rancor
Whlch marked the arbitrary reduc-
ton OF the Federal payment in the
past. A compromise at the Senate
figure this year would go far toward
bringing about, eventually, a fair
and equitable solution of the fiscal
relations issue.