Evening star., 1946-04-03
Budget Officer Asks
u. 5. 10 Increase Share
OF District Expenses
By John W. Thompson, Jr.

BY John W. Thompson, Jr.
The time for Congress to increase
Its annual payment to District ex-
penses from $6,OO0000 to $4,000 900
or S15,000,00O is now.
This was the testimony of Dis
tict Budget Officer Walter L.
Fowler to the House subcommittee
which today reported out 1947
District budget still calling for the
s6,000,000 share by the United
States.
The subcommittee. however. ex-
pressed concern over the adjust
ment of the financial relationship
between the District and its Fed
eral partner, citing 13 instances
when it appears the Federal Gov
ernment should bear a share" The
members indicated, however, that
fixing the Federal payment was a
legislative rather than appropria-
ton matter
District Expenses Extra.
The 13 cases referred to in the
subcommittee report of expenses
met by District taxpayers for Fed
eral purposes, not common to other
municipalities, were:
l. Water used by all Federal de-
partments and agencies in the Dis
trict of Columbia and adjoining
areas This alone costs some $4,000
2. Recording of discharge certifi-
Gates of all veterans regardless of
their place of domicile. 1t is esti-
mated that 35 per cent of all such
recordings are from outside the Dis
trict.
g. Maintenance Of the Soldiers
and Sailors Home, Federal activity
for persons who come to the District
to transact business with the Fed
eral Government.
4. Use of Metropolitan Police to
augment the Capitol Police Force in
guarding the Capitol.
S. Maintenance of Federal pris-
oners in local institutions. This is
estimated to cost $4,000 per annum.
Where such prisoners are kept in
other cities, the entire cost is borne
by the United States.
6. Snow removal from around
Federal buildings.
7. Construction Of cutters and
curbs in front of Federal property.
Charged With Trial Costs.
8. One-half the cost of the sedi-
ton trial If this trial had been
held in any other city, the entire
cost would have been borne by the
Federal Government.
9. Guarding the President and
policing crowds at public functions
where the President appears, and
functions around Government build
1ngS and at embassies. The request
for this service is made by the State
Department.
10. Maintaining schools for chill
oren of nonresidents.
II. Maintaining and policing fed
orally owned parks.
II. Expense of National Capitol
Park and Planning Commission.
l3. Operation, maintenance and
policing of National Geological Park
Paid Less Than Share.
Mr.. Fowler recited a brief history
Of Federal payments dating from
the organic act of 1878 which pro-
vided the Federal Government pay
80 per cent of the city expenses. In
1922, the proposition was changed
to 60-4O, he said, but ever since that
tlrst year the Government has paid
less than 40 per cent. Since 1925, it
has made a lump sum payment in
defiance of substantive law. he con-
t1nued, but all through the 192Os at
least 100000 was given annually
when the city expenses were far less
than they are today.
Although the 1889 Revenue Act
for the District authorizes a paw
ment of s6,000,000 by Congress. Mr..
Fowler said, Congress could ignore
this language just as easily as it did
the substantive proportionate share
law.
Mr.. Fowler looked on the 1899
authorization as Federal Govern
ment guarantee of a minimum of
e6,0Oo,0O0 rather than specification
Of maximum.
II the subcommittee approved
an increase" he said, 'I doubt that
you would have difficulty getting it
through"
Formulas Suggested.
The budget officer alluded to
pending formulas which would
handle the Government share once
more on a proportionate basis but
observed that lit might take long
time
Now is the time we need some
assistance" he said, land now in
my opinion is when it should be
adjusted"
Mr.. Fowler read into the record
a condensed version of a recent
speech by Representative Karl
Stefan, Republican, of Nebraska,
ranking minority member of the
subcommittee, pointing out the
large acquisition of taxable property
by the Federal Government and the
fact that revenues here are higher
per capita than in cities of COM
parable size.
Meanwhile, District officials also
told the subcommittee the city was
trying to work out a part of its
own financial salvation in a study
of new and increased taxes. A spe-
cial committee of officials and citi-
zens is at work on the matter and
soon will report to the Commits
sioners.
1915 File Income Taxes.
Tax data given the subcommittee
by Assessor Ed Dent included:
l. Only 85,755 persons are now
filing income tax returns with the
District out of $4,000 persons gain
fully employed here. In 1945, the
personal income tax brought in S3,-
100000. A change of the basis for
payment of this tax from "domicile"
or legal residence to actual resi-
dence would add 100000 and in
crease income to the city by $780,
900. Another $75O,000 would result
from taxing non-residents who earn
their income here.
2. A 2 per cent sales tax exempt
ing food and medicine would bring
in 100000.
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