Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-15
DISTRICT
BY HECTOR MCLEAN

The District apparently is in for
its almost customary raw deal from
Congress on the Federal payment
toward local government.
Only weeks after Congress had
voted to raise local taxes by $40
million a year and authorized a
So million increase in the Federal
Governments share Of the annual
cost of governing the Capital City,
the House Appropriations Commit
tee refused to provide the extra SO
million.
Refusal to provide the funds, if
it sticks, would reduce the Federal
share Of meeting expenses of
schools. police, fire. health, hos
pitfalls and other General Fund items
to less than Is per cent. District
taxpayers foot the rest of the bill.
Twice within two years. Congress
has boosted local taxes and agreed
to raise its own payment. Each
time, the deal has been almost i'm
mediately repudiated-as others
have been in the past.
Commissioner David B. Karrick
pointed out after the House COM
mittee action that although the
Federal payment increase might
not be paid. District taxpayers will
have to come through with their
increases.
Next time. perhaps. he will be
ready to suggest that tax increases
90 into effect only if-and to the
eXtent-the Federal payment in
crease is actually appropriated.
If such a formula existed now,
assuming Congress goes along with
the House committee, it would mean
10 per cent cut in taxes, even
though they have Just been raised.
The idea is probably politically
impossible, and involves horrifying
uncertainties for the city's budget
makers, but it illustrates the in
equities of present Federal payment
practices.
Sees No Legal Obstacle
Ofhand, says Vernon E. West,
the Districts veteran corporation
counsel who is retiring at the end of
this month, he can see no reason
why such an idea wouldn't be legal.
And, he adds precedent might
be found in the Virginia law which
compelled tax rebates whenever
budgetary surpluses exceeded GER
tain figure.
Still another approach is being
sought by Engineer Commissioner
Thomas A. Lane. He wants the
lawyers to find way TO take the
Federal payment out of the "au-
thorization - appropriation" cate
CORY and get it set up as manda-
tory obligation which would have
to be met, subject to annual or
biennial review.
The Is per cent taX-cut figure is
arrived at this way. This year the
Federal payment authorization was
increased from $40 million to S23
million. While the revenue increase
bill was still going through the
legislative process. Congress APP
propriated the $40 million without
much argument
After the authorization was
boosted. the House Appropriations
Committee took over and blew the
whistle on it,
While all or part Of this increase
could be restored by other congress
sional action, appropriation of only
the $50 million would amount to
less than 81 per cent of the author
lied Federal payment-about 10 per
cent shy of the full amount
Although a tax cut of similar
percentage would wreck the city's
program of municipal services, it
would be consistent with the for
mula Congress set UP when it wiped
out local self-goyernment and all
voting rights here more than 80
years ago,
Rotio Started OF So so
Then Congress agreed it would
split the costs of such municipal
services $3.50 with local taxpayers.
Strange as it may seem today
CONGRESS lived up to that deal for
so years, until 1924.
From that time until 1899, Con-
gress shifted to a 6O-40 ratio, with
itself on the short end which was
more honored in the breach than