Evening star., 1961-02-25
Wrong Approach

a,s Senator Morse Is understandable
concerned about the hundreds Of District
wage earners who are temporarily out
Of work and who have exhausted their
eligibility for unemployment compensa-
ton. But he Is nudging the Commis-
sioners down the wrong path In urging
that these needy families be helped
through the Department OF Public
Welfare.
u The proper approach, when and If
the need for action is clearly determined,
Us not through some hastily conceived
new form of public welfare, but through
the machinery Of the unemployment
compensation program ITSELF. As We'll
fare Director Shea points out, these
forms Of assistance, as a matter Of basic
public policy, are better kept apart. FOR
those who have used up their unemploy-
ment benefits are In quite q different
category from the ordinary recipients Of
public welfare. As rule, for example,
they do not need continuing social case
work services; their need Is purely
financial and-unIike that Of the well
fare recipients In the nature of q
shQrt-term, emergency hardship. The
e1E welfare department., furthermore,
already must find some $73O,OOO during
the next few months to meet its existing
cslief obligations. To unnecessarily add
Afurther burden to this load would be
e&tremely unwise.
~ On the other hand, the District now
nRs ample resources available to pay for
limited extension Of unemployment
beneflts from the District Unemploy-
ment Compensation Trust Fund. This
Nnd, built up over the years by District
Employer taxes substantially in excess
n the unemployment beneftc disbursed,
low stands at $61.8 million. It In
epeased last year by SIS million. This
money legally set aside to pay un-
employment Dement'S, and there is no
valid reason why Congress should not
authorize a limited amount to be used
when and If it is needed.
We think the growth and size OF
this trust fund also justifies excluding
the District Of Columbia from participa-
ton in the national legislation now being
drafted In Congress to extend unemploy-
ment benefits, and to finance this ex-
tension Through increased employer
taxes.
An essentially analogous situation
and certainly q precedent for this
exclusions occurred during the business
recession of 1858, when Congress ap-
propriated additional unemployment
benefits which were to be repaid by the
States and the District through in
creased employer taxes. In the closing
days Of the last session, however, rather
than impose a needless tax burden in
The District, Congress passed special
Jaw enabling the city to tap the trust
fund to repay the SIS million provided
In 1858. This course Of action should be
ano less applicable today than it was then.
I Rather than tramping up Capitol
Hill each time an emergency arises,
however, the Commissioners should con-
slider asking Congress now for permanent
Legislation to permit the Unemployment
Compensation Board automatically to
kdraw on the trust fund whenever un-
employment reaches specified rate in
kthe District t-subject, Of course, to main
staining a sound level Of reserves.
If care Is taken to limit the fund
Ito the purposes for which it was set up,
Eand not to weaken Its provisions, there
lis no necessity for the District to be
Viewed In the same light as those
sindustrial areas in the States which
Roften experience massive unemploy-
Sment, and which need special assistance
Ito bolster their unemployment benefit
sfunds.