Evening star., 1946-06-30
Attitude at the Capitol
Menoces Young's Plan
Expansion Program Is Based
On Larger Federal Sum
By John w. THOMPSON, Jr.

| By John w. Thompson, Jr.
For all practical purposes the massive
| quarter of "a billion-dollar six-year ex-
pansion program developed by Engineer
Commissioner Gordon r. Young dur
ing the past four months to bring city
services abreast of the population war
| growth is, at least in its present form,
dead
1t died Thursday, before it even had
chance to obtain the official approval
OF the Commissioners and without any
consideration based on its own merits,
when the House by two-to-one vote
vetoed the $4000,000 increase approved
by the Senate to the usual 100000
annual Federal payment toward Dis
| trict expenses.
1t Is not just elimination Of that
amount that has necessarily doomed the
Young plan-although that in itself is
a serious blow to District financial sta
bility. 1t is that the program was predi-
| Gated on combination of fair Fed
eral share plus a reasonable increase in
taxes to produce $30000,0Oo year more
than the two are now producing This
| would require far larger Federal pay
ment than the $10000,OO0 proposed for
the coming fiscal year by the Senate.
The House decisively demonstrated last
week it recognizes no obligation Of the
Nation to share with District taxpayers
the cost Of developing and maintaining
a fit Capital of the postwar world.
Unless the Senate succeeds in restor-
ing the cut, enactment of Gen. Youngs
plan would mean raising the, full cost
out Of increased and new taxes. He ad-
mits himself this is impossible. But even
If the Senate wins out in this case, the
House has left little doubt OF what its
reaction will be toward the further in
creases necessary to finance the Young
plan.
Ironically, the failure of the program
Of Improvements will provide fruitful
source from which some of these same
House members can, year or so hence,
criticize the local administration for
the lack Of this or that facility which
they are making 1t impossible to obtain
1t is curious spectacle that is being
presented. On the one hand the House
is recognizing the increased cost of
living for District employees by raising
their pay. On the other hand, it is
reducing the ability of the District to
meet these new bills. Is this consistent?
Has not the cost of living gone up for
the city? Doesn't it deserve a raise?
True, the District will be able to sur
vive financially during the fiscal year
beginning tomorrow. But only by virtu-
ally exhausting the $10,000,000 labori-
ously saved throughout the war years
against the day when it could begin
again to build the necessary schools,
health and welfare institutions, police
and fire stations for which its citizens
clamor.
This building fund will pay the salary
increases this year but what of the
next? On the basis of the citys present
revenue sources, Washington is due
to go s2,0o0,0OO lin the red" by July,
l948, assuming no capital improvement
Whaterer. That's why the Young plan
for the 22S million dollars worth of
capital improvements during the next
six years is dead.
The core Of the Young plan is what
it does to the general fund. In the
scheme of local finance this fund is fed
by the various taxes, principally real
estate, and the Federal payment which
pay for your schools, police and fire
services, welfare and health, nourished
chiefly by the gasoline tax. and the
water fund which pays its bills out Of
rates charged to consumers.
With the present Federal payment.
the general fund produces little more
than s57,oo0,000. Gen. Young's recon-
mendations chargeable to this fund
alone requires the raising Of the extra
$30,000,000 a year. The percentage of
increase to local taxpayers Is obviously
enormous.
Nor does this $50,0O0,000 include re-
payment Of another $3o,ooooo0 which
the plan recommends that the District
reimburse the Federal Government over
a period of years for suggested Federal
advance of $60OO0,00o to build subway.
To meet these astronomical bills, what
Is in prospect for the city through in
creased taxes? A special Tax Commit
tee of officials and citizens studying the
problem has not yet disclosed the details
of its findings but is known to favor a
program to produce at the most $17,000,-
900 year. The committee relies on a
sales tax to produce at least half of
this and there is strong opposition at
the Capitol toward such levy. 1t was
turned down in 1899. Any proposal to
broaden the base of the income tax to
catch Federal employees who actually
live here but maintain domicile else
where is likely to fail as it did before.
Thus, if by raising this and that
minor tax and getting either better
income tax or a sales tax through, the
city Is able to raise an additional
$1O,oO0,00o it will be lucky. And this
would pay operating costs with about
seven or eight million for capital i'm
provements.
If taxes cannot finance the program,
then the only alternative is borrowing
an unprecedented amount such as
$120 1000 for all three funds-which
again would probably fail of Congress
sional approval. And even if approved,
Gen. Young's estimates indicated the
new buildings will boost operating costs
to about $7,500,000 a year, which in
itself would eat up all the increase re-
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