Evening star., 1953-08-01
u. 5. Payment
OF $40 Million
Urged
Budget Bureau Backs
Rise; House Gets
Public Works Bill
By Harriet Griffiths

The Budget Bureau has come
out for a yearly Federal pay
ment to the District of about
$40 million in the new munich
pal public works proposals at the
Capitol.
The bureaus suggestions ac-
companied submission of the
Commissioners revised $33l,810.-
900 eight-year improvement
program scheduled was intro
duced in the House today by
Chairman Simpson of the House
District Committee.
In it's first expression on the
United States obligation to the
District, the bureau declared an
increase sis overdue and can be
thoroughly justified at a figure
in the neighborhood of $40
million a year."
It cited this figure as the ap-
proximate amount of taxes that
the Commissioners estimate
would be levied on Federal prop
erty under existing rates if the
property were not tax exempt.
$12 Million Now.
The District could not hope
for a much stronger ally in it's
efforts to persuade Congress
that the Federal Government for
years has not paid it's share of
the cost of running the city.
The present budget carries $12
million. the present statutory
ceiling, including 81 million for
the cost of water furnished the
Federal Government.
Heretofore. the Budget Bureau
has taken no stand on the
amount of the Federal payment
in the annual city budget pro-
posals, merely carrying over the
figure approved by Congress in
the previous year.
Aside from the public works
program in connection with
which it was made, the bureaus
statement can be expected to
carry impressive weight when
the District goes to Congress
with it's future annual budget
proposals.
The Commissioners proposal
on public works carries a pro-
vision that the. ceiling on the
Federal contribution be lifted.
The city heads reasoned that
there are so many "unknowns"
in the future of the city govern
ment that the proper amount
could best be established on a
yearly basis.
500 Before 1921.
In their letter of transmittal,
the Commissioners recalled how
the Federal payment has dropped
from so per cent of the Dis
trict's costs before 1921 to the
point where now District resi-
dents bear directly OIL per
cent of them.
The major change in the pub
lie works program, as revised
from the original plan which
had been forwarded to Congress
in May and then was held up,
is that it no longer contemplates
interest-free Federal loans.
The Commissioners explained
in their letter that:
"In view of the urgency of
getting this most important
problem before the Congress, the
Commissioners have revised the
previously submitted bill only to
the extent of deleting items now
in the 1854 budget, providing
for payment of interest on Fed
eral loans and placing all pro-
grams on full eight-year basis.
Certain reviSions in the water
fund loan are agreed upon, but
require further study before
their accomplishment"
Financing the program, they
noted, poses a serious problem,
since District residents now bear
a tax load equal to that borne
by citizens of comparable cities,
and additional taxes would ag-
gravate the present situation by
accelerating the movement to
the Maryland and Virginia sub
urbs, resulting in a further loss
of revenue to the District"
They added that they and
(See PUBLIC WORKS, Pg. A-60