Evening star., 1953-05-19
The First Hurdle Was the Easiest

With the agreement by the Budget Bureau
"in principle" on the need for a comprehensive
public works program for Washington, the first
hurdle has been cleared without difficulty
Relatively, of course, it was an easy obstacle
to overcome. There never was much doubt
about administration approval of long-term
construction program, with special financing
arrangements, to enable the District to catch
up with tagging capital Improvements. The big
hurdle still in the path of realization of the
urgent program is the method of financing the
undertaking. The Budget Bureau has made it
plain that it is not sold on the Commissioners
financing planS-eSpecially in so far as they
entail Federal expenditures.
The Budget Bureaus letter to Commits
Sioner Spencer raised questions as to the esti-
mated 1886 million cost of the program, the
proposal under which the Federal Government
would share about one-third of the cost and
the detailed plans for raising the Districts two
thirds of the money. Similar questions are sure
to be raised at the Capitol. It is proper that
careful study should be given to the whole
financing plan. The Budget Bureaus request
for further consultations with the Commits
SionerS in this connection indicates praise
worthy desire to learn more about the fiscal
proposals. In other words, the bureau is MAIN
tanning an open mind toward this very difficult
phase of the program
In the meantime, the Commissioners were
advised to explore alternative plans of financ-
ing including bonds to be repaid through
subsequent tax collections and the possibility,
as Assistant Budget Director Hughes put it,
"of handling Federal contributions to any au-
thorized public works program through an in
crease in the size of the annual grants to the
District, the amount of such increases to be
proportionate to and contingent upon increased
tax collections in the District" AS to alterna-
tive methods Of financing the Districts share
of the program, whatever it may be, the Addi-
son committee and the Commissioners have
done some king-Size exploring already. Out of
these studies has come the plan for three
way financing arrangement. The Federal Gov
ernment would put up $108 million in grants,
would lend the District without interest an
additional $1O8 million and the remaining
$119 million would come from added local tax
revenues.
The bureaus suggestion that the Federal
contribution be covered by raising the annual
Federal appropriation for District expenses is
very interesting. The Federal contribution
should be increased whether there is to be a
big public works program or not. 1t should be
Increased to cover more equitably the Federal
Governments share Of running the Nations
Capital. The present contribution falls short
of meeting the Federal responsibility for nor
NAL costs. If the Budget Bureau knows of any
way to induce Congress to enlarge the Govern
ment'S share enough to take care of current
expenses and help to pay for the planned
public works, too, it will be doing Washington
a big favor by bringing it to public notice. But
any increase in the Federal share proportion
ate to and contingent upon increased tax COL
lections in the District" will not be enough to
meet the Federal obligation. Since the Federal
share has fallen to disproportionately low
level, an increase limited proportionately to
the proposed District tax increase would not
restore a proper balance in Federal-District
fiscal relations.