Evening star., 1946-09-18
First Things First

January Will not be a balanced
budget. 1t will propose the ex-
penditure Of upward of $10.000,0OO
more than existing revenue sources
will provide.
This is not an unusual situation
In Federal financing, which has
dealt in deficits for SO long that a
balanced budget is only an illuSory
theory. 1t is most unusual, how
ever, for the pay-aS-you-go munich
pal government.
AS the budget is delivered to
Congress in January, and as it is
highly unlikely that Congress will
meet before January, the apparent
deficit in the District budget will
have to be met on paper by antici-
pating new revenue legislation.
The Commissioners will be doing
the right thing if they persuade the
President and the Budget Bureau
to recommend the type of legislation
which should overcome the deficit,
but leave the details to Congress.
They will be doing the unwise thing
If they attempt to lOrite local tax
legislation themselves, sending it to
Congress with the unbalanced
District budget.
The type of legislation that should
be recommended is legislation which
directly couples any local tax in
crease with the O'Mahoney formula
for raising the lump sum. If the
Budget Bureau should take the posi-
tion that it cannot recommend any
increase in the lump sum, the Com
missionerS should take an equally
firm position that they cannot
recommend any local tax increase.
The Commissioners will make a
mistake if they content themselves
with presenting local tax boosting
program to Congress, adding some
pious hope regarding the need for
increasing the lump sum. The result,
in that case as in the past, will be
that Congress will accept what it
chooses regarding local tax increases
and will then argue that the addi-
tional funds from local taxes elimi-
nate the need for larger lump sum
? This matter of the increased
lump sum is not a narrow or selfish
attempt to get more money from the
National Government, in order to
escape local taxes. 1t is vital. With
out it a local tax increase becomes
futile, as far as meeting expenses,
in addition to becoming burdensome
The cost of running the local gov
ernment is increasing so rapidly,
with remaining tax resources SO
limited, that dependence on local
taxes alone is dangerous as we'll as
futile and burdensome. There has
got to be a definite and fixed policy
by the National Government in
contributing to expenses Of the
American Capital. That policy must
be made part and parcel of any
local taX-boosting program.
In 1888, when the Commissioners
were last engaged in volunteering
a tax program for the District, the
late D. j. Donovan, District auditor,
was explaining that by the fiscal
year 1947 (which is the current fiscal
year. the District would need
$44,500,000 for maintenance and
operation, about 100000 more
than available revenues. He was
$22,000,000 shy in his estimate.
The maintenance and operation
appropriations for this fiscal year
exceed $66,000,000 General David
McCoach, who was Commissioner
in 1888, testified Monday as chair
man Of the Municipal Finance Com
mittee Of the Board of Trade that
for the fiscal year 1855 the District
will need s72,000,0O0 for operation
and maintenance alone. And If the
local taxpayer is to finance General
YoungS Six-year construction pro-
gram out of annual tax revenue the
result would be, in General Nc
Coach'S words, "a detriment to the
economy of the District"
In 1888 the Commissioners were
motivated by the belief that if the
local, nonvoting citizens presented
an equitable" tax program to Con-
gress, Congress would accept it, But
nothing in past experience has indi-
Gated any disposition in Congress
to be guided by how the local tax
payer prefers to be taxed. Congress
has followed in the past its own
inclinationS, conscious of the polit-
ical expediency involved in local tax
legislation. The equitable" tax
program drawn up for Congress in
1888 was so torn to pieces before
enactment that it turned out to be
unique in this country, so cynical
is its discrimination in favor of the
voting as against the nonvoting
citizens of Washington
The fundamental reform needed
in our fiscal relations with Congress
is legislation which commits the
controlling National Government to
some fixed plan of meeting it's Just
share of the cost of running this
expensive city and which definitely
relates the Federal share with the
local share. A tax program initiated
by the Commissioners will make II