Evening star., 1939-01-05
US. Sum toD.C.
Might Double
By New Plan !
21% of Capital Cost
Would Be Borne
Under Acre Rotio
(This is the first of a series OF
articles
By ], A. O'LEARY.

! Adoption of the Overton plan fol
settlement of the long pending ifs.
: cal relations problem would appor.
ton the cost of maintaining the Ma
tional Capital at ratio of approx
Smately 79 per cent from District
taxpayers and 81 per cent from the
Federal Government.
! This was the rough calculation
made by local officials on the basis
of the new District budget OF ap-
prcximately SAT 100000, transmitted
to Congress today.
If the present $5,0O0,O00 lump sum
Federal payment should be con-
stinued for another year and applied
Ito the new budget total, the Fed
eeral share would be only 10.5 per
cent, leaving District taxpayers to
meet nearly 80 per cent of bill, as in
sthe current year.
Fixed Formula Favored.
Shortly after his selection to be
new chairman of the Senate Sub
committee in Charge of District APP
preparations a few days ago, Sena-
tor John H. Overton, Democrat, OF
Louisiana, announced his desire to
.see the lump sum policy of the past
IA years abandoned for return to
ssome permanent fixed formula OF
SETTLING the fiscal relations problem
Although emphasizing that his
mind was not made up on any exact
formula, the Senator suggested a
new fixed percentage might be
adopted on the basis of the ratio of
the federally used land area to the
remaining acreage, with some ad-
justment made for excess park area
here over the average city.
District Budget Officer Daniel j.
! Donovan, it was learned, is at work
on a report asked for by Senator
! Overton to show possible results of
: the proposed new formula. The re-
port probably will be ready for Sem
ator Overton soon.
Donovan Impressed.
Without revealing what the report
would contain, Maj. Donovan made
known he was favorably impressed
by Senator Overton's suggestion for
land area basis. He pointed out it
would make possible cold mathe-
natical calculation" of the appor-
tionment and take it away from the
element of individual opinion In.
volved in appraisals when valua-
ton basis is used. He pointed out
also that ratio based on area could
be adjusted automatically whenever
the Federal Government adds to or
disposes of property.
The foregoing calculation of the
way the plan would apply to the
new 1910 budget starts out by using
44,317 acres as the total land area
of the city, not counting streets.
Although title to the streets of the
District is vested in the United
States, the street areas have been
eliminated in the above total, Sena-
tor Overton having indicated he
would take that view.
: Local officials also probably will
eliminate from their calculations
the area under water beneath the
streams within the District, esti-
mated at 5,9l0 acres.
$4,000 Acres Left.
7 This leaves total land area for
purposes of calculating the Overton
formula of 38,407 acres. The tota.
acreage of United States land is
ESTIMATED at 11,133 acres, but if the
Hormula is to make allowance only
sfor the excess of park area in Wash
slngton as compared with other COM
parable cities, as indicated by the
Senator, further adjustment is
necessary.
In previous Investigations the S..
1923 acres of park area in Washing
ton has been regarded as about twice
the average park area of group Of
sother cities where the unusual re-
9quirements of a National Capita
do not prevail.
Therefore, if only excess park area
Els to be considered, half the park
aacreage, or approximately 2,80(
sRcres, must be deducted. This woulo
fleave approximately 5000 acres o1
United States land against the ad.
I justed total land area of 33,407 acres
A ratio of meeting the expenses O.
the city on this basis would make
the Federal share fraction abov'
81 per cent.
I U. S. Sum Nearly Doubled.
: And 81 per cent of the SAT 10000
I budget just submitted for l94C
I would make the Federal paymen
S9,975, 900, instead of the curren
/ arbitrary lump sum of $5,0O0,O00.
: Senator Overton has explained
/. that his main purpose is to flint
!, some fair and satisfactory perma
I nent substitute for the lump sum
y which he regards as "haphazar'
\ and arbitrary" He also has indi
! Gated he may prepare separat
! bill and have the subject considere'
1 In the District Legislative Commit
tees rather than attempt to solv
! the problem by amending the ap
! preparation bill.
Z Meanwhile, it was learned toda,
Z that Senator Elmer Thomas, Demo
I crat, OF Oklahoma, whom Senate
Overton is succeeding as Distric
! Subcommittee chairman, plans II
! retain membership on the subcom
] mittee and continue actively to par
4 ticipate in its work, in addition t,
/ his new assignment as chairman
! of the Army Subcommittee.