Evening star., 1941-03-24
Plan Provides
ForS3,389,940
Boost This Year
Formula Measures
District Share by
Land Percentage

The Senate passed without a
dissenting vote this afternoon
the Overton plan for settlement
of the long standing controversy
over fiscal relations between the
Federal and District govern
ments.
The bill, by Senator Overton.
Democrat, of Louisiana. which now
goes to the House for action, would
measure the Federal share of the
City's budget each year by the per-
centage of the lapd area of the city
required for national purposes. This
formula, easily adjustable from year
to year with mathematical accur-
acy would replace the arbitrary
annual lump-sum payment of the
last II years.
Would Mean Big Increase.
For the current year the lump
sum was fixed at S6,000000. Under
the Overton formula. the present
acreage of the District required for
national purposes is 81 per cent.
Applying that percentage to the
estimated general fund expenses of
S44,714000. would make the Federal
share for the next year s9,389940.
No one arose in opposition to the
bill in the Senate this afternoon.
Senator Ellender, Democrat, of
Louisiana asked his colleague few
questions about the operation of the
formula. but did not oppose it's pas
sage.
When Senator Overton first pre-
pared his formula in 1889 the
House refused to accept it, but COM
promised on a $1,000 900 increase in
the lump-Sum payment. which pre-
vlouSly had been only S5000,000 1t
was the understanding at that time
that the issue would not be re-
opened in 1870
The S6,000,000 compromise. how
ever, was merely another temporary
solution of problem which has
gone unsettled since 1925, when Con-
gress first abandoned the definite
ratio principle that had prevailed
for nearly half century.
In reviving his formula this year,
Senator Overton has the co-opera-
ton of Representative Hunter of
Ohio. chairman of a subcommittee
on taxation and fiscal affairs of the
House District Committee, who be-
came co-author of the bill in the
House.
Senator Overton today gave the
Senate brief resume of the history
Of fiscal relations. recalling that
from 1878 to 1924 Congress adhered
to a definite proportion principle, for
many years on $3.50 basis. and
later at 40 per cent by the United
States and so per cent by District
taxpayers.
Although the Overton plan has
not been put forward as an emer-
gency measure, the need for its
adoption has been rendered more
urgent by the task now confronting
the municipal government of pro-
viding greatly enlarged public serv-
ices for expanded Government ac-
tivities and the influx of national
defense workers.
Senator Ellender wanted to know
before the bill passed how much
additional it would require from the
Federal Government and whether
1t was in the nature of an assess
ment on Federal property like the
Capitol Building.
Less Than 1881 Figure.
Senator Overton explained ii
would raise the Federal share bv
approximately S3,3O0,0OO for the
coming year, but pointed out this
would still be less than the peak
lump sum figure of SO, 500, ,OOO. which
the Federal Government put up in
1881. A few years later. however.
Congress began process of whit
tling down the lump sum payment.
Senator Ellender said the Federal
Government spent between S16OO0.-
900 and $18,000,000 in the past few
years on development of the new
airport at Gravelly Point, and that
plans are now being discussed in
the House for elevated highways or
subWays to solve the traffic problem.
He wanted to know whether adop-
ton of this formula would settle the
question of how much the Federal
Government should pay toward such
Senator Overton replied that it
was entirely up 20 Congress to de-
ternine how such projects are to be
financed when it authorizes them.
Senator Overton also emphasized
that his formula is not an assess
menU on Government property and
that Ii does not take into account
in any way the value of Government
1t merely uses the land
acreage of the city devoted to ma
tionai purposes. ne said, as a means
Of measuring that national obliga-
ton to the city.