Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-22
Hope for Our Fiscal Emergency

Light from two directions has been directed
on the Districts serious fiscal emergency
and rays of hope for prompt relief have been
reflected from the many-faceted problem Both
the administrations backed local budget and
President Eisenhowers accompanying message
to Congress stressed the shortage of funds for
maintaining and improving the Nations Capt.
tai. Especially welcome, therefore, was the
Presidents strong support for the $S00-million
public works program including its provisions
for more adequate Federal share in the cost
of running the city.
Although they go before Congress under
separate titles, the Districts budget for fiscal
1855 and the 1O-year public works program are
part and parcel of the same plan for meeting
the crisis confronting Washington. Unless the
trimmed-down budget, devoid as 1t is of any
capital improvement items for schools, welfare
and health, is bulwarked by enactment of the
public works program, the District will be in a
sorry plight With the budget in it's present
shrunken form, the balance is an unstable one
the general fund surplus being expected barely
to exceed $4,000 by July next. Only the High
way and Water Departments will be able to
schedule any construction, as they have their
own sources of revenue.
Against this dismal background, the presi-
dentially approved public works program stands
AS submitted to Congress, the plan calls for
overdue construction in varied fields, to be
financed by drasticaly revised Federal-Dis-
trict fiscal relationship Supplementing new local
taxes aggregating about $94 million in the next
fiscal year would be an increase of 50 million in
the Federal payment on its District obligations,
plus full" reimbursement of the District for
water and sewer services rendered the Federal
establishment. Under this arrangement. the
total Federal share of the local bill would
amount to about 500 million, including water
and sewer charges.
In connection with the water and sewer
payments, the Presidents budget message con-
tanned some unfortunately ambiguous wording.
The message said: "ThiS public works. legs-
lation would authorize an increase of 50 million
in the annual Federal payment to the general
fund of the District of Columbia, and an addi-
tional 81 million for full payment for all 1oater
and related SeruiceS" Presumably the ST mill
lion referred to was intended to be in addition
to the 81 million currently being appropriated
as flat-sum payment on the water bill The
legislation, as introduced with presidential bless
ing, makes 1t clear that the Federal Government
is to be charged in full for metered water and
for sewer service. The estimated total of these
extra charges is about 50 million. 1t is to be
hoped that when hearings on the public works
measure are held, administration officials will
make it clear that the President believes that
the Federal Government should pay for all the
water and sewer services it utilizes
Congress should consider the lean District
budget and the long-range public works pro-
gram as essential components of single legis-
lative package. The budget itself falls far short
of providing for normal increases in operating
costs of schools, the Police Department and
many other public services not to mention cap
ital improvements. The entire package is vital
to the orderly growth of Washington in the crit
ical period that lies ahead.