Evening star., 1941-03-29
A Step Forward

In giving its approval to the Over
ton bill, providing an equitable and
workable formula for measuring the
Federal payment toward the main
tenanCe and development of the
Capital, the Fiscal Affairs Subcom-
mittee of the House District Commit
tee has taken a most important step
IN the direction of placing the fiscal
relations of the local and Federal
governments on footing which is
fair to both parties.
AS a result of the Subcommlttee'S
favorable action, the Overton bill,
which has been passed by the Senate,
will be taken up Monday by the full
District Committee, and it is to be
hoped that the full committee will
not hesitate to report the bill to the
House for final action.
The Overton bill, and the formula
for which it provides. involve no new
recognition of Federal responsibility
toward the District. On the con-
trary Congress, from the time of the
founding of the Capital, has recog-
nized the obligation of the National
Government to share in the Districts
expenses, and for nearly half CEN
tury after 1878 the obligation was
shared on a fifty-ffty basis. For
four years, beginning with 1920, Con-
greSS changed the ratio to 80 per
cent for the local partner and 40
per cent for the Nation, but in 1925
this wise and equitable principle of a
fixed proportional basis for sharing
expenses of the Capital was aban-
doned entirely. Since that time Con-
gress has avoided its obligation by
adhering to the practice of ap-
propriating annually an arbitrary
Iump-sum Federal payment, which
has resulted in an almost steady
shifting of the burden of maintaining
the city to the local community.
This, naturally enough, has been the
principal contributing factor to the
discord and dissension which have
entered into the fiscal relations
problem.
The injustice to the District which
has been worked by adherence to the
lump-sum practice is easily demon
strated From contributions of so
and then 40 per cent to local ex-
penseS, the Federal Government in
1925, with a lump-Sum appropriation
Of $9,0000O0, reduced its participation
IN District expenses to 1888 per
cent. With the lump sum standing
at $6,000000, however, the District
now is paying some 88 per cent of
the current expenses of the National
Capital. And it should be remem-
bered that the local community, pay
ing $20,192,784 in national taxes, or
more than each of twenty-one States,
Is also a heavy contributor to the II
per cent Of local expenses for which
Congress presently appropriates.
The Overton formula proposes to
eliminate the inequities and sources
OF discord inherent in the lump-sum
practice by basing the Federal con-
tribution to general fund expenses on
the ratio of Federal tax exempt
acreage to the total land area of the
District, after certain deductions.
This formula, as the Board of Trade
pointed out in its statement to the
subcommittee yesterday, would pro-
vide "a simple, equitable, certain and
satisfactory means" of arriving at
the amount of the annual Federal
payment. This formula cannot fail
to commend itself to the full District
Committee and to the House if the
members will approach the problem
Of their obligation to the residents of
the District, for whom they act in
the capacity of local legislature,
with a disposition to deal in facts
rather than prejudices.