Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-01-18

Congress-to redouble its I'M
derstanding of the interest in
It's Capital city.
Because Washington is the
Nations Capital, the National
Government has, and must
continue TO have, a special re-
,sponsibility and a special re-
lAtionship to the District of
Columbia.
In evaluating the Districts
financial needs, understanding
Of the unique but changing
character Of the District Is
basic. It's government exercises
responsibilities not unlike those
Of q State and county as well
as those Of a city. Yet since
It's boundaries are, for practical
purposes, Interchangeable. it has
become no more than the GEN.
trail portion of a large Metro
politan Area, most Of which is
beyond its limits.
Within those boundaries, the
character Of the population has
undergone a change as rapid as
the growth of the Metropolitan
Area itself-and the National
Capital region has been the
most rapidly growing large ur-
ban area east Of the Mississippi
River.
From 1850 to 1860. the total
population of the District
dropped from S00,s30 to 1884,
956. During the same period,
the number of school-age chill
dren rose by 10000, an increase
Of % per cent. Older citizens,
over SIS, increased by 12,500,
or % per cent. Thus the age
groups requiring heavy public
expenditures for such services
as education, welfare, health
and recreation continued to in
crease, while the wage-earning
group which requires a mini
mum Of these public services
and provides a solid source OF
tax revenues decreased by is
per cent.
Finally, while the percentage
Of Negro persons in the whole
Metropolitan Area has re-
NAMED essentially the same as
IL was in 1850, and is substan-
tally below what it was at the
turn Of the century, artificial
barriers have required most OF
the normal increase in Negro
population to concentrate in
the District.
AS a result, the Negro popu-
lation in the District has risen
from IS per cent to 81 per
cent. Since the economic and
social resources Of the Negro
population, taken as a whole,
remain below those of the
white population which has
moved beyond the District
boundaries, the relative pros
perity Of the Districts taxpay-
ers has suffered at the same
time the Districts services are
in increased demand. While
there is reason to hope that
these trends can be slowed and
ultimately reversed. the indica-
tons are that present condi-
lions will continue through the
decade Of the l960s.
Because of these changing
characteristics in the Districts
population, there will be a
continuing increase in the cost
of its government until there
is a change in the present
trends. On the average, ordi-
nary general fund operating
expenses Of the District have !
risen at the rate Of S per cent
annually, while revenues from
the. Districts general fund tax
base have risen at the rate OF
about 3.5 per cent, exclusive OF
changes in tax rates.
When major pay raises occur,
as authorized by the last Con-
Rress, this gap widens. Hence,
because Of this condition and
the need to continue the public
works program, the total APP
propriations Of $32o.2 million
recommended for the fiscal
year 1864 require general fund
revenues Of approximately 1881
million from new sources. OF
the latter amount $28.l mil
lion require legislative author
ization before the appropria-
tons can be made.
There Is need, however, TO
look beyond fiscal 1864. Order
ly and efficient solutions TO
problems in the District cannot
be achieved by viewing District
programs and needs from the
perspective Of one fiscal year
at q time. I am, therefore.
proposing that the Congress
make the necessary adjust
ments now In the three basic
resources Of the Districts gen.
eral fund-local taxes. Federal
payment, and borrowing au-
thority. This plan, will permit
the Commissioners TO carry out
long-term commitments within
the framework Of sound fiscal
policy.
, Local Taxes