Evening star., 1948-11-21
Great Public
Works Jobs
AheadofU.S.
Big Question Is How
to Raise Hundred
Billion for 1t
By Wiliiom J. Convoy

~ w VSsOVS - NO"W~y
CHICAGO.-Cities and States
like the Federal Government-are
taking . postelection look at their
problems.
Many Of them involve money. and
lots OF it. Costs of mindine the
citizens business are high. A big
backlog Of needed construction has
been piling up for years.
Federal agencies estimated re-
Gently that 100000, ,o0o,o could be
spent for needed public works by
national, State and local govern
ments. These projects include high
ways, sewer and water systems,
schools, hospitals and other insti-
tutions, conservation and Develop
ment programs.
Such projects are being completed
now at the rate Of about $4,000. .000,-
600 = year. Cities and States, as
we'll as Uncle Sam, will have to put
up billions for construction still on
the future books.
Way Behind in Building
"The most immediate question is
where are we going to get the money
to do the job we have to do?"
That's the way Carl Chatters, ex-
ecutive director Of the American
Municipal Association, phrased IT.
He spoke about cities. But Frank
Bane, executive director Of the
Council of State Governments, re-
ported it also was . moot question
in State capitals. Then, In separate
interviews, they outlined the main
problems OF the men who run the
governments outside Of Washington
Cities are as much as 10 years
behind in construction. Plans were
pushed aside first by the depression
and then by the war. Should they
build the sewage plants, schools and
modern high-speed urban highways
they need-or delay them until
prices drop?
If they choose to build now, they
will have to have cash. The pri-
mary source OF their revenue is the
old property tax. That is relatively
static.
"The larger cities must have some
independent sources Of revenue
which can be collected and admin
istered at the local level" Mr.. Chat
ters said. In addition, they ought
to have a more adequate share OF
State collected taxes"
In Middle on Taxes
Half of the people in the United
States live in cities. A lot Of them
need homes. That brings up an
other question. What is the respon-
I sibility, II any, OF the city? Should
the city sit back and wait for the
State and Federal Governments to
do something? Or should the city
take the lead-as . small minority
Of them have?
The States are smack in the mid
die of the tax ug-of-war. The
Federal Government takes taxes out
Of the States, and the cities want
a bigger share Of State tax moneys.
Congress and the 4s Legislatures
will have 4 chance to make some
changes in that system.
The proposed solution is this: The
Federal Government should get out
of certain tax fields and leave them
to the States. In return, the Fed
eral Government should reduce
grants in aid to the States. Then
the States should make = similar
readjustment with the cities.
Governors and representatives Of
both houses Of Congress have been
studying steps to develop co-or-
Tdinated Federal-State fiscal pro-
gram for more than 4 year. They
got together last August and rec
commended:
That grants-in- aid from the Fed
erar Government to the States for
continuing activities be reduced by
not less than 40 per cent for the
fiscal year 1850 and that the Fed
eral Government withdraw from Or
reduce rates in connection with cer-
tain tax fields that can best be used
by State and local governments. y
Closer Coordination Needed
These grants-in-a the conferees
noted, had increased in four years
from about $3.50, o,o0o, 900 annually to
81, ,s50, ,00o, 900.
They also proposed that spokes-
men for the State and Federal Gov
ernments meet again soon after the
Eghty-first Congress convenes in
January to see what can be done
to push the proposals.
"A large number Of new, produc-
tive local taxes-the payroll tax,
admissions tax. hotel tax, sales tax,
cigarette tax and liquor tax-have
developed and expanded in Use in
the last five years." Mr.. Chatters
said
IA these new local taxes become
more widespread, the need for CO.
ordination Of Federal, State and
local levies increases.
1.-THE Federal Government should
consider abandonment OF the ad-
missions tax. utility excise tax, tax
on local phone calls and excise taxes
whose yields are low compared to
collection costs and which can be
administered well at the local level
Such = move. with only the local
governments and States taxing these
sources, would simplify the tax
structure, reduce Federal expendi-
lures and permit localities which