Evening star., 1941-04-08
"A Friend in Need .


There will be general satisfaction
In the District over the Presidents
obvious desire that some fair and
workable solution of the Capitals
fiscal problem be found. In the brief
conference at the White House yes
terday there was no time for any
discussion beyond the broadest of
principles. But on these there was
no difference of opinion and those
who talked with him left the White
House with the comforting assurance
of the Presidents understanding of
the nature of the problem now con-
fronting the District and of his de-
sire for satisfactory and equitable
settlement.
Whether this settlement will be
worked out along the lines of Sena-
tor Overton's suggestion for combin-
ing the Overton formula with the
Presidents thought that the Federal
Government should assume the bur-
den in the District of capital outlays
will, of course, be left for later eX-
animation. There was no doubt in
the minds of his audience, however,
of the Presidents belief that there
should be substantial national par
ticipation in Capital City expenses
and that such participation has be-
come more necessary because of the
defense emergency, whatever the
method chosen for measuring its
extent.
Capital outlays in the District,
from year to year, are fluctuating
and uncertain quantity depending.
essentially, on the amount of revenue
available after the Districts rapidly
growing maintenance costs are met.
They are not fixed and certain, a fact
that has baffled attempts at wise and
consistent city planning ever since
abandonment of the fiXed-ratio sys-
tenn of appropriating. Such capital
outlays are not. measured by the
need. They represent a balance,
sometimes large and sometimes nom
inal, that can be spared for new con-
struction after maintenance costs.
If the National Government as
sumed the cost of capital outlayS,
with the District providing main
tenance from local tax revenues,
Congress might earmark anything
from million to ten million or more
dollars annually as the amount it was
willing to appropriate. And the same
disagreement that has cursed the
lump-sum system of appropriation
would be perpetuated in the choice or
disregard of projects recommended
for capital outlay at the Federal
Governments expense
Should a liberal Congress appro-
pirate heavily for capital improve
ments over a few years, the District
would soon lack the revenue sources
to maintain them. Should parsi-
monious Congress make the decision,
the District soon would be left with
out the facilities which the rapidly
expanding population of the Nations
Capital demands-the identical sit
uation which it faces today. Since
1920, appropriations for capital out
lays have varied sharply, reaching a
high of $13,610,478 (from the general
fund.- In 1881 and low of $1,881,916
In 1889. The amount appropriated
has never borne any logical relation
to the need for capital improvements.
The amount has depended entirely
upon the money available after meet
ing maintenance costs on a pay-as-
you-go basis.
Taking the current budget as an
example, application of the Overton
formula would call for Federal pay
ment of something in excess of So
000,00O-as against the $6,000,000
lump sum. While all recommended
capital outlays, including highway
expenditures from the gasoline tax
fund and water plant Improvements
from the water tax, would total $10,-
S04,2O8, it is to be assumed that only
general fund outlays-the only out
lays in which the National Govern
ment participates-Would be taken
into account. These, for the current
year, are estimated at $5 5,596,508, al
though capital outlays made urgent
by the defense program are far in
excess of that amount.
Coupled with the Presidents sug-
gestion that the National Govern
ment assume cost of capital outlays,
1t Is necessary to find some method
of making this obligation fixed and
certain, protecting the taxpayer
against the fruits of extravagant
spending and protecting the Nations
Capital against the fruits of neglect.
Senator Overton suggests that a
combination of his formula with the
Presidents plan be effected by pro-
viding that the Federal payment be
used primarily" for capital outlays,
with the balance going toward main
tepopno Toot m oethod IIr-rIoI1htedlv