Evening star., 1941-04-08
Overton

Federal Government should meet the
cost of all capital expenditures, with
the District meeting maintenance
costs.
Close students of the fiscal rela-
tions problem saw several practical
difficulties in using capital improve
ments alone as the measure OF the
Federal payment but felt it would
be possible to tie the Presidents
suggestion into the Overton formula
in a Wav to overcome these Difficult
ties. Some of those who attended
Yesterdays conference gained the
impression the President would give
svmpathetic consideration to a COM
bination of the two ideas.
The Overton bill, under which the
Federal Government would pay
toward the general fund expenses a
percentage equal to the land acreage
of the city required for national pur-
poses, has already received unan-
imous approval by the Senate and
is awaiting House Committee action.
In support of his proposed amend
ment, Senator Overton pointed out
that the percentage principle en-
bodied in his formula would act as
limitation on the amount the
Federal Government would put up
each year.
No Settlement in Presidents Plan.
If, on the other hand. the Federal
Government were to assume reSpon-
sibility for all capital improvements
without the percentage formula,
Senator Overton pointed out the
problem would still be subject to
annual controversy, depending on
the views of each house as to how
large or small the capital improve
ment program should be.
One of the principal detectives
in working out the formula was to
end a long era of controversy which
grew out of conflicting viewpoints in
the two houses as to the extent OF
the national obligation
Senator Overton also called at
tention to the fact that if the Fed
eral share were devoted entirely to
capital outlays without any accom-
panying formula, liberal Congress
might authorize new improvements
far in excess of the sum called for
under the Overton formula, and on
a scale in excess of the Districts
ability to furnish the ensuing main
tenance funds.
One of the First Difficulties.
One of the first difficulties that
would arise in attempting to conf1ne
the annual Federal payment to the
amount required for capital i'm
provements is the fact that the
Water and Highway Departments
two of the largest agencies making
out of local water rents and motor
vehicle taxes.
If these large items of capital out
lay continued to be financed entirely
out of local earmarked revenues, the
residue of other capital improve
mentS financed by the Federal Gov
ernment might represent a smaller
amount than the present $4,000 900
lump sum Federal payment.
For example, in the District budget
estimates for the next fiscal year the
capital outlays to be met out of the
general fund amount to only S.
596,5O8. In addition to this total,
however, the estimates call for So
218,500 for the highway system, pay
able directly out of motor vehicle
taxes, and s1,789 200 for water facil-
tiles, payable directly out of local
water rents. In all, the estimates
carry S10,604, SOB for capital outlays,
but nearly half of that total is
financed wholly and directly out of
the water and highway taxes.
Overton Formula for 1912.
AS the Overton Bill left the Senate
it would fix the Federal share of the
general fund requirements at 81 per
cent, for the next fiscal year, that
being the proportion of the city's
acreage required for national pur-
poses. Applying that percentage to
the total estimated general fund
appropriations of $44,714,000 would
make the Federal share for 1912
under the Overton formula, So
389, 9,940.
Under present conditions the Dis
trict could probably use all of that
SO ,389 $40 on capital Improvements
because of the urgent need for more
schools, police, fire protection and
other municipal services growing
out of the expansion of Govern
ment activities to meet the defense
emergency.
Perhaps for several years the city
could use that amount annually to
advantage on capital improvements.
But if the principle should be adopt
ed of applying the Federal payment
to capital outlays only it would