Evening star., 1960-09-12
Frenzied Finoncinq

Somewhat in the manner Of a re-
luctant tightrope walker, the District
Commissioners embarked the other day
on step-by-step budget program that
is likely to remain chaotic through
most of the next session of Congress.
If this is diSconcerting to Washington
citizens, it is no less so to the Commits
sioners, and there is little they can do
about it.
Attacking first things first, the Com
missioners last Friday decided to pro-
ceed at a slow and cautious pace with
an additional $7.5-million program of
urgently public works, to be
financed by city surplus Of $8.8 mil
lion. To assure this money is available
for public works, however, it will be
necessary for Congress in January to
cough up the remaining ST million of
the $32-million Federal payment au
thorized for this year, so that these
funds can finance the newly-granted
police-fireman- teacher pay raises.
This, to say the least, is reason
able request. The pay raises were thrust
on the city by Congress, with no addi-
tional means to meet the costs. Had
the full $32-million Federal payment
been voted in the first place, as 1t
should have been, both the works pro-
gram and the pay raises could have
been financed by a budget completely
in balance for the year ending next
June 80. Under the cold, hard facts of
budgetary life, however, the pay-raise
costs must come first. So If Congress
should fail once again to honor its
Federal payment obligation, drastic
revisions will have to be made next
spring not only in current public works
spending but in spending estimates now
being prepared for the 1862 fiscal year
starting next July /.
Even If the 81 million is granted,
however, the Commissioners have been
told by their staff that not enough
money will be in the 1862 budget going
to Congress in January to adequately
finance public works and other needs.
And to supplement this, the staff re-
next year both to increase local taxes
and the annual Federal payment.
These tentative proposals for 1862,
in our Judgment, should remain tenta-
tive until Congress firmly demonstrates
its willingness to increase the Federal
payment-both for this year and for
next Lamentable as it would be, we
see no alternative to a sharp and harm
full cutback in the public works program
unless Congress follows this course. For
certainly the District should not attempt
to carry the city improvement program
at its needed level solely with increased
local taxes-indeed, it Is doubtful this
would be possible.
Since the works program was set up
In 1854 as Joint local-Federal response
bility, Congress has failed by $29 million
to meet its authorized Federal pay
ments-a deficit which Congress morally
still owes the District and which,
ironically, would more than cover the
immediate needs ahead. City taxes, on
the other hand already are some $50
million higher than they were in 1854,
and the District additionally has obli-
gated itself to $75 million loan pro-
gram for public works
1t is this imbalance which over the
years has resulted in the present fiscal
dilemma, and in the unusual and nerve
racking financial maneuvers to which
the Commissioners have been forced to
resort. But whether these efforts really
will ease the situation or will compound
it still further will depend on one thing
whether Congress finally is willing to
participate in solution that will enable
the District to return to an orderly,
sensible system of fiscal planning.