Evening star., 1963-01-19
Return to the Formula

In his unprecedented special mes
sage to Congress on the District of Co
lumbia budget, President Kennedy has
outlined hopeful and thoroughly equi-
table new revenue formula. 1t is designed
to revive the concept Of joint RESPONSE
bility between the Federal Government
and District taxpayers for the stability
and well-being Of the Nations Capital
And If adopted, 1t would provide not
only reasonable level of funds next
year for the most urgent city needs, but,
more Importantly, sound basis for
long-range fiscal planning.
This gratifying first step, however,
is not enough. There is more that the
President should do. For while the final
authority to act rests solely with Con-
gress, the success of the new proposal
almost certainly will depend upon the
extent to which the administration uses
its influence throughout the current ses-
sion to impress two facts upon members
Of the House and Senate: First, that the
serious deterioration Of Washington is
truly matter for grave national con-
Germ. And, second, that the increased
financial participation by the Federal
Government as proposed in the new
formula represents just and fair pay
ment Of an obligation.
This latter point, of course, is the
crucial one, for which there is ample
historical precedent. Many members of
Congress realize this, including, fortu-
nately Chairman Bible of the Senate
District Committee, who proposed SIM
liar formula last year. Unfortunately,
however, many other members are not
even aware that, until well after World
War l, Congress actually split the costs
OF local government with District tax
payers on $3.50 basis. This simple
formula, moreover, was followed with
out question for nearly half century,
not as a congressional handout, but in
recognition of the need to maintain the
Federal district at level necessary to
fulfill its functions as the seat Of ma
tional Government.
The increase in Federal participa-
ton being sought today is modest by
comparison. In essence, the President
proposes merely that the Federal share
OF the cost of operating the District of
Columbia be appropriated annually on
the basis of the real estate and other
taxes to (which the District (or any
other large city, would normally be en-
titled If the Federal Government we're,
as Commissioner Tobriner puts it, a, "pri-
vate community business" The Presi-
dent proposes that District residents, for
their part, pay substantially higher
taxes, and that flexible debt limit be
established at level sufficiently high to
permit the city to borrowsmoney as nee
essary. Thus, the local community would
continue to carry the lions share of the
burden.
Unless Congress actually is willing
to abide by formula which clearly fixes
its share, however, this well-tailored
package will have no stability. The ex-
perience of the last several years clearly
demonstrates the futility of budgetary
planning without predictable Federal
payment. Lacking this, the long-range
public works program, begun so hope
fully as Joint Federal-District effort a
decade ago, has become miserable flop.
Without 1t, the District has been reduced
to an annual hand-to-mouth existence,
more inadequate year by year. The un-
met needs continue to mount. And the
dilemma has been infinitely worsened
by ever-decreasing revenues and ever
increasing demands for service-the re-
suit, as the President points out In his
message, of the changing character Of
the city.
President Kennedy hopefully sug-
gests that these trends may be slowed,
and ultimately reversed" and that the
District then will be in better position
to close the gap between revenues and
expenditures. But that day is not now
in sight.
Indeed, the two part" budget sub
mitted to Congress for the next fiscal
year is a lamentable illustration OF the
problem. The first part-including only
those expenditures financed from cur
rent revenues-is a bare bones affair,
inadequate even to maintain municipal
services at their existing levels. Addi-
tional revenues are essential to progress
beyond this point. The legislation rec
commended by the President to provide
these revenues-and 10 pave the way for
sensible, orderly budgeting in the fu-
ture-deserves early and sympathetic
consideration In both the House and
the Senate.
IL c d.