Evening star., 1953-11-06
Support for Public Works

Without Budget Bureau support, the pro-
posed public works program for Washington
would be dead duck. That support has now
been reaf1rmed by the Budget Bureau. 1t
provides a firm foundation for the legislation
that Congress will be asked to approve early
in the next session.
This support is significant for other reasons.
1t means that the administration is convinced
of the need for a public works program in
Washington and that the National Government
has a financial obligation to meet a part of
its costs.
AS measured by the Budget Bureau, this
obligation is to increase the annual Federal
payment from the prevailing $11 million to
$40 million for the next 10 years at least to
commit the Federal Government to the practice
of paying for the water and sewer services it
receives from the District at the same rates
charged private consumers, and to authorize
Federal loans at prevailing interest rates when
and as requested by the District Commissioners.
At the same time, the public works pro-
gram will require additional taxes from the
District. The Commissioners are expected to
announce within few days the methods by
which they propose to raise $4.5 million addi-
tional tax revenue annually, without increasing
real estate and sales taxes. In addition,
water rates would be increased by as much as
q third, and a new tax would be levied on sewer
service amounting possibly to so per cent of
the water bills. The total tax increase per
year. including the water and sewer taxes,
therefore, may run as high as $40 million. That
is substantialincrease in the local tax burden.
In appraising this proposition, Washington
residents will have to weigh the alternatives
Without the program recommended by the
Budget Bureau, Washington will not be able
o.
imposing list of needed construction projects
The pending budget for example, could support
no new capital expenditures. Local tax
increases, however would become inevitable,
and without such financing program as the
Budget Bureau has agreed to support, those
higher taxes will be coming from real estate,
and in degree that will injure the city
The great advantages of the program should
be kept in mind For the first time in nearly
80 years, such program would commit Con-
gresS to fixed financial policy in respect to
the DiStrict-in SO far, of course, as Congress
can be committed to anything A program
of public works will enable the authorities to
plan and construct according to schedule of
priortieS based on public need, with definite
knowledge in advance of the revenue avail
ability. When current revenues are not suffi-
cient to pay for such undertakings, the Com
missionerS would be able to borrow what they
need without going back to Congress for fresh
approval of each loan.
The Commissioners and the Riley COM
mittee of citizens who have served as consult
ants during Budget Bureau negotiations, should
have public support when they go to Congress
in January Approval of the public works pro-
gram will by no means mark the end OF the
Districts financial problems and may create
some new ones. 1t is, however the most prac-
tical and least burdenSome plan that has been
devised to meet existing needs without some
such plan, the District is going to be in bad
way indeed.