Evening star., 1940-08-07
THREE CENTS.
NewD.C.Budqet
Plan Shifts Load
From Bureau
Commissioner
Responsibility for
Figures Increased
BACKGROUND

~~ S~SS~
BACKGROUND
Since creation OF Budget Bu-
reau 10 years ago and placing
District under bureau jurisdic-
ton, efforts made by District
officials to obtain separate con-
Sideration of District budget in
dependent of national budget
hare been tr,titless. Ofcials said
d. C. had been treated more as
Federal department than as
municipal government. Also re-
GREETED national policies being
applied to District budget.
The Budget Bureau today shat
tered a 19-year-old precedent with
the announcement that henceforth
it would confine its consideration of
the District budget and legislation
entirely to their effect on
the Federal Government. The move
will place full responsibility for the
administration within this
broad supervision upon the Commits
sioners.
Announcement of the bureaus
change of policy was made by Di-
rector Harold D. Smith in a letter
to Commissioner Melvin C. Hazen.
Mr.. Smith told Mr.. Hazen that
hereafter the Budget Bureau would
study the budget from the point of
view of balanced one. He said the
bureau would center its review on
revenue estimates, capital outlay,
of Federal loans to
the Treasury and the amount of
the Federal contribution.
Legislation Participation Limited.
In the matter of legislation, Di-
rector Smith said the bureau would
confine its participation to the pro-
lection of the interests of the Fed
eral Government and particularly
the effect which such proposed leg
islation might have on the opera
tions of the Federal Government
here.
The new policy will affect both
annual budget estimates and sup
Elemental. or deficiency, estimates.
Not since enactment of the Budget
and Account Act of June, 1921,
which placed the District under tho
supervision of the Budget Bureau,
has such responsibility for the oper-
alton of the municipal government
been placed on the Commissioners.
Mr.. Smith emphasized the action
was not to escape responsibilities i'm
posed by law, but in the interest
of sound municipal administration.
Bureau Consultation Available.
He stressed in his letter to Mr..
Hazen that the staff of the bureau
would continue to be available on
request to advise with the Com
missioners on any matters which
would now be outside the immedi-
ate responsibility, but added that
the final decision would rest with
the Commissioners.
The text of Director Smiths letter
follows:
MY dear Mr.. Hazen:
For several weeks we have been
reviewing the roll of the Bureau Of
the Budget with respect to District
of Columbia budgets estimates and
legislation. I am now prepared to
propose for your consideration a
procedure which will clarity and
facilitate our relationships.
I'm summary. the procedure is de-
signed to confine the Budget Bu-
reau's participation to broad
budgetary and legislative policies,
particularly as they affect the Fed
eral Government. or any of its
agencies. and to Ak upon the Dis
trict Commissioners the full re-
sponsibility for municipal admin
istration within the budgetary and
legislative policies.
Specific Proposals.
specifically, am proposing that:
81. The Budget Bureau in review
ing supplemental and annual esti-
mates for recommendation to the
President and transmission to Con-
gress, center its review upon the
revenue estimates, the ALLEGATION of
capital outlay monies, the reim-
bursement to the United States
Treasury of Federal loans. the
amount of Federal contribution and
the balancing of the budget.
20. The Bureau of the Budget con-
Germ itself with the relationship of
District legislation to the interests
of the Federal Government and
particularly the effect which such
legislation may have upon the oper-
alton of the Federal Government at
the seat of Government.
1T Is, of course, understood that
the staff of the Bureau of the
Budget, will be available, upon re-
quest, to advise with the District
Commissioners concerning any mat
ter outside the immediate respon-
sibility of the Bureau of the Budget,
with the understanding that the
final decision will rest with the
District Commissioners"
Il trust that this definition of
the responsibilities of the Bureau Of
the Budget and the District Com
missioners with respect to the Dis
trict Budget will tend to clarity the
situation.
Very truly yours,
HAROLD D. SMITH"
d. C. Recognized as Municipality.
The effect of the new policy will
probably be to cut from three or
four weeks to three or four DAYS the
time devoted by the bureau to the
consideration of the District Budget
and will place added emphasis upon
the hearings on the 1912 budget
scheduled before the Commissioners
August ~ and 20.
1t is understood that the bureau,
should an unbalanced budget be
sent to it, would return the budget
to the Commissioners for adjust
ment, rather than make slashes Of
its own in the estimates as it has in
the past.
In effect, it amounts to recogni-
ton Of the District as a municipal
ity.