Evening star., 1947-02-03
Living Beyond Our Income
Why Districts Housekeeping Costs Have Gone Up
and How 1t Is Planned to Meet Them
By John ". Thompson, T.

fCOngTeSS U1t SOON 0egtn cOHS1G.
GRAFTON of the Districts acute fnan-
ctal tangle. The tollo,oing series OF
articles toill try to explain the tangle,
lo1D the District tpdnts to deal iDith
it, the reasoning back OF the city
program and some inkling OF i1fat
might be expected at the Capitol.)
The District government today is not
living on income. It is dipping into and
rapidly exhausting its wartime savings
This is the outward and visible sign
of money problem soon to be subject
of joint House-Senate committee
hearing at the Capitol.
But the root of it is the city's attempt
to maintain standards of living at post
war prices with tax structure geared
to prewar needs and an annual Federal
payment geared to nothing but the whim
Of Congress
Last summer Congress approved a
District appropriation bill Of $77,241,-
854.9l for the current fiscal year. This,
by dint of boost in the Federal pay
ment from the usual $6,000,000 to $8,-
100000, by some carryovers from the
previous year, and slight underestima-
ton of tax income, could have been met
with little tapping of the savings.
Between the passage of the budget
and adjournment, however, the men,
bers put through three pay increase
bills for classified employees, teachers,
police and firemen of the District gov
ernment, due to add 5000 900 to its ex-
penses before June 30. This covered
some $4,000 employees.
Fairness then compelled the District
Commissioners to make similar adjust
ments for the 5000 per diem workers,
increasing the overall salary bill $724,-
900.
st.. Elizabeth's Hospital raised its
charge per patient per day from $3.50
to 1856 and the District, supporting
nearly 5000 mental patients there,
found itself saddled with another $2,-
100000.
The pay increase bill for police and
fremen also boosted benefits Of retired
police and f1remen. Thus another $780,
600 Of city money was obligated.
Beyond the City's Control.
All of these items are cost-of living
obligations, certainly desirable, prob
ably necessary. But they have put an
additional 100000 burden on the
District government, wholly without ref
erence to its ability to pay.
All of them, too, will continue auto
matically into future years and are
even due to be increased further. Dur
ing the year beginning July /, for
instance, $1,098,000 must be added to
the teachers retirement fund under
conditions similar to police and fire
increases this year. Daily charges at
or tn on
higher.
It is this situation which is forcing
the Commissioners to sell this year
more than $1,000 900 worth of invested
savings from the general and water
funds This savings, earmarked from
the beginning for the new construction
prevented by the war, is being dis
sipated to meet the cost of living.
A private individual, finding himself
exhausting savings in mere .day-to-day
living, can do three things: Reduce his
standard of living; ask the boss for
raise, and borrow as long as his credit
is good. The District now has these
same choices in theory.
Yes, the Commissioners could try to
cut back salaries to prewar levels and
thus reduce the standard OF living of
their employees, along with that of the
government. Perhaps they could cut
down the size Of the police force in the
face OF q rising crime wave or reduce
relief grants that are already too low.
Or they could reduce the number Of
teachers in the face Of all too many
double-shift classes. They might, theo-
retically, try these measures. They won't,
because they don't want to and because
they know the community itself would
not stand for it.
They certainly cannot reduce cost of
supplies and equipment below the mar
ket price, so no saving Is possible here
until it becomes general everywhere.
Thus, for all practical purposes, the
District cannot reduce its standard of
living. 1t may fight further increases
until it can pay for them. But it simply
cannot afford to lower what are already