Evening star., 1951-02-25
Pays More,
Gets Less Than
\
Most Of States
Senute Study Shows
Ratio Of Revenue to
Federal Grants Low

4Coos LII 81 dL4to Ill dAO 1Aldl1 dIlAOS
any of them.
This was brought out yesterda.
in a statistical survey report b.
the Senate Committee on Expendi.
lures in Executive Departments.
The report, based on a subcom.
mittee study directed by Senator
Humphrey, Democrat. of Mime
sofa, showed that the District il
the 1850 fiscal year got back II
grants approximately 2 per cen
OF the sums it gave Uncle Sam II
taxes.
The figures were $6,947. 1858 II
grants in aid to the District. in.
Guiding Federal aid highway funds
aid to dependent children ane
other social security grants, a.
against a District revenue con.
tribution to the United States O.
$338.476, ,408.
In this percent class as tx
grants, the District was lined ur
with New York State which con.
tributed $7.2 billion in taxes anc
got grants of STAT million.
Delaware is Lowest.
Delaware had the lowest ratio
Of returns in grants in aid against
Delaware tax payments to the
United States-1 per cent.
Leaving aside Hawaii, Alaska
the Virgin Islands and Puerto
Rico. the report shows that Mis-
sissippi received the highest ratio
of grants to taxes-38 per cent
1t received last fiscal year $33 mil
lion in grants against an $88 mil
lion contribution to Federal rev.
enueS.
Virginia and Maryland were
low in the list but both received
higher grants than the District II
both amount and percentage.
Virginia contributed $744 mil.
lion to the Federal treasury ane
got in grants $26 million, or 4
per cent. Maryland contributed
$790 million and received grants
amounting to s21 million or 3 pc,
cent.
The District calculations die
not include the $12 million it re-
ceiyed last year as the Federal
contribution toward National
Capital costs since this is a ques-
ton separate from grants in aid
and relates to the services rem
dered the United States by the
District and to extra costs borne
by the District by reason of the
fact it is the seat of the Federal
Government. s
Tendencies Revealed.
The Humphrey Subcommittee
study revealed an increasing tend.
ency of the Federal government tt
collect more taxes and then hane
part of the funds back to tht
States in grants.
The report showed that in tht
past fiscal year, Federal aid to thu
States and territories under II
different programs amounted tt
$G.152.312,143. This is compared
with $18 billion in the 1949 fsca
year and with $2.2 billion allocatee
for the present year ending JUNE
80.
The position of the Federal ane
local governments has beer
reversed in less than 40 years. II
1916, the report brought out, tht
local governments collected abou
65 per cent of all taxes, the State
governments about IL per cent ane
the United States % per cent.
Today, the report showed, tht
Federal government takes 72 pc,
cent of all tax funds and the loca
and State governments IA PEE
cent each.
Big as the grants in aid program
is, however, the committee said
it never amounted to more thai
6 per cent of the national budget
that before the present nationa
defense program it was less thai
5 per cent: and today has dropped
to 4 per cent.
Sharp Criticisms Voiced.
Some sharp criticisms of tn
Federal aid programs were voices
in reports of the Hoover Com
mission on government organiza
tion, especially on points that tn
programs were unrelated, unco
ordinated" and have "removet
large areas of discretionary power
from State officials" The Senat
Committee agreed with some o
the Hoover Commission criticism
but questioned others.
The Expenditures Committe'
report, for instance, agreed tina
the charge that Federal grants il
aid resist budgetary control can
not be completely refuted." I
agreed also that there was SOM
basis in fact for the statemen
that Federal aid has a tendenc.
to shift State and local fiscal re
sponsibilities to the United States
But it found no justification il
this for a general sales tax which
the committee held. would onl,
serve to aggravate the situation.
The committee report conclude,
that while the Federal Govern
ment currently is securing in ex
cess of 70 per cent of all govern
mental revenue. as against % pc
cent in 1916. "It is fallacious II
conclude that this domination o
governmental revenue is a resul
of Federal grants in aid.'
Actually, it said, World War I
expenditures and postwar cost
were almost completely responsible
for this situation.