Evening star., 1939-06-04
Maj. Donovan Asks
Congress 10 Adopt
| 0verton Plan
Passage Would Correct
Need for Bosic Law,
He Tells Senators


Need for Bosic Law,
He Tells Senators
A strong argument in support of
an increase in the present IS 900 900
lump sum Federal payment toward
the constantly increasing cost of
government in the District of Co.
lumbia" was made by District Audi
tor Daniel j. Donovan in Senate
hearings on the 1910 local supply
bill, made public last night, after
the Appropriations Committee had
voted to raise the national share to
$7,750,0O0 toward a total bill OF
$49,522 1886.
Pointing out that for the first
time In 81 years Of fiscal relation
ship between the national and local
governments in upkeep of the Cap
ltal City, there is no basic or perma-
nent law today for determining the
Federal obligation. Maj. Donovan
said this situation could be cor
rected by passage of the Overton
bill.
He had reference to the separate
measure sponsored by Senator Over
ton, Democrat, of Louisiana, and
now awaiting action by the Senate
District Committee, which would
measure the Federal payment by
the percentage of the land acreage
OF Washington required for national
purposes. At the present time this
acreage would be 20 per cent. and
applying that ratio to the general
fund expenses of the city for the
coming year, would make the Fed
eral share 100000, or slightly
more than the lump sum figure the
Appropriations Committee has lust
approved.
Transfer Of Burden Traced.
After reviewing the earlier periods
OF fixed ratio. first $3.50 and later
60-4O, Maj. Donovan showed how
the burden of maintaining the city
has been transferred more and more
TO the local community during the
last IS years of lump-sum Federal
payment practice.
He testified that in 1925, the first
year OF lump-sum practice, the gen.
eral fund revenue of the District
amounted to $18,403 900, while in
1883 the same revenue amounted to
$35 ,A63 900. an increase in that pc
riod OF $1,000 900, or nearly 100 per
cent. During the same time. the
lump sum, which started in 1925 at
$1,000 600, has gone down to s5, ,OO0.-
oOO IN the current year.
Presented at the request of Sena-
tor Overton, who is chairman of the
District Appropriations Committee
MAI Donovans statement contin-
ued. in part, as follows:
1T is submitted that the present
Federal payment of 5000 900 does
not represent a fair and equitable
payment by the United States un-
der the present and constantly in
creasing cost Of government in the
District of Columbia and that some
definite basis should be adopted by
Congress for the purpose of meas
uring the fair share which the
Federal Government should paw
This. I believe, would be accom-
plished by the enactment of S. 1l9O
Seventy-sixth Congress, entitled. "A
bill to fix the amount of the an
nual payment by the United States
toward defraying the expenses of
the government Of the District of
Columbia This bill was intro
duced in the Senate by Senator
Overton of Louisiana, the chair
man OF this subcommittee.
Contains Formula.
This bill contains a formula
which, briefly stated, contemplates
using the land area in acres in the
District of Columbia, ascertainine
that part OF the area, with certain
exceptions, owned by the United
States, and. based on this conclu-
sion, establishing the proportionate
responsibility of the Federal Gov
eminent for appropriations from
the Federal Treasury for local pur-
poses.
This bill, in my opinion, proposes
fair and Just method of arriving
at a solution to this long discussed
and vexing subject of the fiscal
relations between the United States
and the District Of Columbia, which
as is well known has been a matter
OF consideration and investigation
by Congress for more than 100 years
The formula involves merely the
application Of simple mathematics
to certain factors susceptible OF
definite determination from officiaI
records. and in this way removes
the subject entirely from the field
OF conjecture, individual opinion
and arbitrary conclusion.
Another point in favor of this
formula is that it is flexible ano
readily adaptable to changing con-
ditions which may occur in the fu-
ture without the need of amenda-
tory legislation once the formula is
adopted into law.
"On the basis OF the foregoing
formula II enactedD the Federal pay
ment to the District in the fscaI
year 1910 woud be 1898 per cent OF
the appropriations made by Con-
gress for that year from the general
fund for expenses of the District
Assuming such appropriations would
amount to $4,000, 600, the Federal
payment next year would be nearly
$4,000. 900, as against the $4,000, ,OOO
contained in the District appropria-
ton bill as passed by the House.
Property Removed Continu ously.
Great concern has attached in re-
cent years to the narrowing of the
tax base in the District because of
the continuous removal of property
from the tax rolls to the category OF
that which is Federally exempt.
This situation naturally leads to
the demand that the Federal Gov
eminent should gear its annual pay
ment to the amount of the real es-
tate it holds and which Is thereby
removed from the tax rolls. 1t ap-
pears to be only fair and logical
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