Evening star., 1947-02-08
Measuring an Obligation
How the Overton-O 'Mahoney Formula Would
Work in Deciding What the Nation Should Pay
By John ~. Thompson, Jr.
fThis Is the Concluding Article OF a Series.J

This was the high point in Federal
city relation-the best deal washington
ever got from Uncle Sam. 1t remained
effective until 1921 when Congress re-
duced the Federal share to 40 per cent.
Four years later hostile House showed
through the arbitrary ltlmp-sum payS
ment that now prevails regardless of
need or Of mounting city expenses. And
once again the city is rushing toward
q debt.
The principal factor in community
inability to pay-even if the moral obli-
cation were otherWiSe-iS the Federal
requirement of magnificence on the one
hand and the Federal withdrawal of
tax resources on the other. Land is
historically basic item in taxation.
Yet the Federal Government has fixed
the area of Washington beyond posi-
bility of extension and then grabbed A
per cent of it, including the parks, for
Federal purposes Diplomatic missions
here for purely Federal purpose retire
more land from taxation, so that today
less than half the city is available for
real estate levy.
When the city has tried to branch out
levies to compensate for this situation,
Congress in the exercise Of its exclusive
authority has either killed them or
mangled them in an effort to steer the
burden away from themselves and their
constituents.
A city in this predicament cannot af-
ford large park areas, or a fort drive.
1t cannot afford to build Federal
courthouse equal in magnif1cence to
the Supreme Court and more expensive.
1t cannot afford to pay for the millions
of gallons Of water used annually by the
Federal Government. Yet everything it
does must not only meet a need but
be upon scale of grandeur imposed by
the Federal pattern.
Thus practically and morally the
Federal Government should pay heavily
toward city expenses. That payment
should be proportional because it should
increase as expenses increase.
Even in the early stages of 'lump-sum
payment the District Jared better than
1t does now both in amount and pur-
chasing power of the Federal share.
From 1925 to 1880 the payment was at
least 100000 in prewar dollars and
in days when total District expenses
amounted to less than $50,000,00O In
1881 and 1882 1t reached an all-time
high of $9,500,000 and in 1887 low of
$4,000, 900 which was continued through
1899.
Today the District is receiving $8,000,-
600 against total expenses which will
exceed $85 100000 by June 80!
They Prefer the Overton Plan.
While District officials are 100 per
cent behind the O'Mahoney formula
and it has the Endorsement of the
White House, it is less advantageous
to the city than the old Overton plan
out of which 1t grew.
The earlier plan, developed by Sem
ator Overton, Democrat, Of Louisiana,
carried similar land-based formula
with these differences:
/. Only excess parkland over the nor
NAL in comparable cities was deducted
in figuring the percentage.
2. The percentage figure was to be
multiplied by general fund appropria-
tions, rather than the tax income of
the three funds. .. .-.
3. The total amount of Federal pay
ment was to go to the general fund.
Under the Overton formula the city
- would get some $14,854,780 from the
National Government this year on the
basis of budget expenses.
In general District fiscal officials
would rather have the money go entirely
to the general fund because they think
that is where it is really needed. It is
also where the present lump sum is
credited
The highway and water funds are
separate, self-sustaining funds, with
their own sources of income. The high
way fund especially has access to Fed
eral grants on matching basis similar
to the several States.
II the O'Mahoney plan is approved
District officials feel it will complicate
their efforts to have the Federal Gov
ernment pay the water fund for the
water it uses. They feel Congress will
look upon O'Mahoney money going to
the water fund as payment for the
water