Evening star., 1954-01-03
The Background

What has caused the present
financial plight Of the District?
Why is it that even without a
single construction item in the
D. C. budget bill. Q 81 million
shortage to meet stan, operating
and maintenance costs Is ex-
pected? @
Only six years ago an $18
million increase in local taxes
went into. effect to Offset an
earlier deficit. At the time that
budget bill was passed. legislators
were announcing publicly that
there would be no need Of further
tax hikes for years to come.
The years to come" have come.
They were accompanied by:
/. Imitation - Prices on ma
terials and equipment have con-
tinued to rise.
2. Expansion - The Districts
population has continued its in
crease-437 500 in 1920 to 5000
In 1910, to an estimated 831 900
in 1858. To meet the needs OF a
bigger population. public facil-
tiles have increased. Population
shifts within the city itself are
another factor. AS new sections
are built up, old sections are
abandoned or turned over to dif-
ferent uses. different population
makeup. This m cans new
public construction. such as
schools, to accommodate the
newly developed areas, and the
abandonment or readjustment
of facilities left in old areas.
3. Dwindling reconnaissance
1949, when the $18 million tax
increase program took effect.
Washington has realized mod
crate budget surpluses. But, as
has been repeatedly predicted
by budget officials, the time has
come when revenues have begun
to level off" The various tax
sources simply will not produce
in fiscal 1855 what they have
produced in past years. The full
impact of this will be felt in
the 1855 fiscal year.
4. Pay increases-The pay OF
District government workers
has followed that Of Federal
Government employees. In the
last 10 years there have been
numerous special and general
wage increases. To the District
this has meant a total payroll
of about $75 million as of now
more than half the total budget
for the city in the current
(1954 fiscal year.
All these factors = plus the
fact that the city's physical
plant has been steadily wearing
out-necessitate not only a spe-
cial public works improvement
program but a program that will
permit the Capital to function at
q level at least as normal as
presently.
A recent congressional order
decreed that the 1855 budget
be separated from the $306 mil
lion 10-year works program for
purposes of legislative action.
Generally, the separation is
viewed as a blessing. Now,
budget officials reason, the 1855
budget stands alone, stripped of
virtually all capital improve
ments, inadequate to meet even
operating costs.
The main fact, as the Com
miSSioners and their aides see it,
is that even without the pro-
posed public works bill the Ma
tion's Capital needs the financial
support Of its Federal Govern
ment-and badly.
Washington's financial setup,
for regular operating budget
purposes, is divided four ways:
The highway fund, into which
the gasoline and other taxes,
pour. The water fund, supported
by consumers payments for
water used. The motor vehicle
parking fund. fllled with the
nickels of parking meters. The
general fund, which is supplied
by miscellaneous taxes and the
Federal payment to the District.
All but the general fund are,
tor the most part. self-support-