Evening Star Newspaper, January 8, 1937, Page 17

» & D. C., FRIDAY, JA ARY 8, 193 SCHOOL BUILDING PROGRAM BLOCKED BY BUDGET & FISCAL RELATIONS SURVEY FINDINGS Full Text of COncIt.lsions‘ Reached by Jacobs and Advisers. ;(_C‘onti.nued From Sixteenth Page.) | rating State expenditures according to population. This is done by com- bining per capita expenditures. From the combined per capita ex- penditures of local and State govern- ments in cities comparable with the District, the following deductions must. be made: (1) Payments from the States to the local governments and from the local governments to the States, in order to eliminate double inclusion; (2) payments financed from Federal aid funds, and (3) payments for services not rendered in the Dis- trict. These deductions are explained in section 12. Further adjustments of cost data might be warranted if the quality and quantity of service rendered in the | District differed materiaily from the average for the other cities. Practical | overall measures of the extent of governmental services are not now available. It is to be hoped that the efforts of workers in the field of public administration will provide acceptable methods and standards of measure- ment in the not too distant future. A | number of measures reviewed in sec- | tion 13 of this report indicate that the District is now at about the average | level of 17 comparable cities in the extent of services. In view of these facts, no attempt need be made to adjust cost payments for variations between the District and the average of the comparable cities in the extent of service. Recommendation on cost compari- sons.—As a long-range program it is recommended (1) that the revenue system of the District be revised to ‘make it correspond to the more di-| versified State and local revenue systems of comparable communities; and (2) that when such a revenue system has been achieved, considera- tion be given to the equity and prac- f ticability of using effective taz rates | to measure the obligation of the Dis- trict to support local government. ART IV of the President’s bud- | get message, which relates to Message on Fiscal Relations Three-Point Formula Recommended to Guide Nec- essary Legislation for Establishing of Equitable Dealings Between Two Governments. the District of Columbia, fol- lows in full: The first section of the 1937 District of Columbia appropriation act, ap- proved June 23, 1936 (public, No. 762, Seventy-fourth Congress), contains the following provision: “Not to exceed $50,000 shall be available for expenditure, under the direction of the President, for making an independent study of the fiscal relations between the United States and the District of Columbia and enabling him to report to Congress at the begin- ning of the next regular session, what, in his judgment, is a fair and equitable amount to be paid by the United States as an annual con- tribution toward the expenses of the government of the District of Columbia; such sum shall be avail- able for personal services without regard to the civil service laws and the classification act of 1923, as amended, and for such other ex- penditures as may be necessary in connection with such study.” Pursuant to the above, I appointed a director and an advisory committee of three members to conduct an in- dependent study of the various ele- ments and conditions affecting the fiscal relations between the United States and the District of Columbia. The report contains detailed find- ings and recommendations with the supporting data and information col- | lected from the Federal and District governments in Washington and from 17 comparable American cities and the capital cities of 21 foreign coun- tries. The application of the basic prin- ciples and. recommendations as out- lined and detailed in the report is reflected in the following 3-point formula, which I recommended be carefully considered by the Congress | with & view to enacting such legisla- tion at this session as may be neces- sary to establish equitable fiscal re- lationships between the two govern- Recommendation for | Immediate Program. | As an immediate program, it is recommended (1) that the obligation of the District be measured by the average cost per capita of supplying mormal State and local services in a group of comparable American com- munities; (2) that the costs to be con- | sidered shall comprise payments for operation and maintenance of gen- eral departments, capital outlays of general departments, and interest upon funds borrowed to finance gen- eral departments; and (3) that com- | parabdility of reported cost data shall | be assured by treatment along the lines outlined above. It is recommended, further, that if the data show that general govern- mental cost payments per capita were - higher in the District than the av- + erage of the comparable cities in the latest fiscal year for which comparison can be made, the excess shall be paid | © Jrom the Federal Treasury. The actual amount to be appropriated for this purpose shall be determined by multiplying the excess over the av- erage cost per capita by the number representing the population of the District at the end of the fiscal year compared, the population to be de- termined from official census esti- - mates. It should be provided that as eomparative cost payments per capita Jor each fiscal year become availabdle, adjustments in the amount of Fed- eral reimbursements shall be taken up s-annually in the budget estimates in ! « course of preparation. It should be | » provided, further, that comparative . cost payments per capita for the years Yetween decennial censuses shall be - recalculated after each decennial ! . census, upon the basis of interpolated . or revised population estimates, and . that Federal reimbursements shall be adjusted in accordance with these re- | -ealculations. ernment constitutes the leading cate- | . gory of tax-exempt property in the | . District. It comprises approximately | . 29 per cent of the present land area of the District and represents approx- | - imately one-third of the value placed | .upon all taxable and exempt real | estate by the District assessor. Much . of the Federal property is used largely * and in some cases wholly by the gov- _ernment or people of the District. ‘The aggregate valuation of Federal | ' Foperty as reported by the District . assessor in 1936 is $648,791,000, com- prising $342,161,000 for land and $306,630,000 for improvements. This | Ancludes approximately $263,506,000 | for properties which are not used solely or primarily for the business of Federal Government. Property tised for Federal business is valued at . $385,285,000, of which $147,688,000 _represents land and $237,597,000 fFepresents improvements, Under Supreme Court decisions of _ long standing, instrumentalities of the Government may not be taxed by any State or other political subdivision without express consent by Congress. - Such consent has been given in the case of real estate ewned by various Federal credit agencies. In addition, provision has been made authorizing payment in leu of faxes in the case of certain revenue- » producing enterprises which are of a character ordinarily classified by the -=-courts as not essential governmental purposes. Property covered by these -provisions may be taxed in the Dis- = 4rict or subjected to payments in lieu of taxes, the same as in other jurisdic- sions. .. With adoption of the three-point- . formula for Federal-District fiscal re- .- lations recommended above, there will be no equitable basis for a claim that . the District should collect taxes on Federal property. At is therefore recommended, as a gorollary of the three-point formula, that Federal property in the District . #hall not be subject to the ad valorem »Property tax or any other tax, except- éng as similar property may be sub- . dested to State and local tazes gen- -Continuing Application - ©f the Formuls. Besides requiring consideration by “the Natlonal Capital Planning Com- mission of each capital improvement ~'pooject, the three-point formula out- *‘lined above will require cofitinuing “peview of intergovernmental services t4n the District and of comparative | ganization, and the effectiveness and economy of | | recommending contractual ments. 1. Intergovernmental contractual services. — Contractual — arrange= ments shall be established for the reimbursement of the cost of spe- cific intergovernmental services supplied either government by the other. Appropriations _ therefor * shall be included in the respective annual departmental budgets. 1I. Capital outlays of joint ine terest —The National Capital Plan= * ning Commission (proposed in the report) shall determine the extent of the respective Federal and Dis- trict interests in capital outlays and improvements to be included * in the District budget. 1II. Per capita governmental costs.—Pending the grant of broad- er powers of local control over purely local affairs, the excess of the District governmental costs per capita over the average of those in comparable cities shall be as- sumed by the Federal Government: Provided, however, that such ex- cess District governmental costs shall be assumed only after allow= ance has been made for reimburse= ments due to unusual costs occa= sioned by congressional enactments. I also recommended that, concur- rently with enactment of any legisla- tion which carries into effect the provisions of this continuing formula, the substantive law providing Ior‘i annual Federal contributions of a| fixed percentage of District appropria- tions be repealed and that the system | of annual Federal lump-sum con- | tributions be abandoned. The application of this formula to | the 1938 budget estimates would pro- vide for a net reimbursement by the Federal Government to the District of Columbia of $2,533,357, made up as follows: 1. Intergovernmental contractual services-_$1,996,407 II. Capital outlays. 536,950 III. Excess per capi District of Columbia governmental costs made by the departments of each gov- ernment for services rendered by agencies of the other government. (2) Division of appropriations for capital outlays of joint interest be- tween the Federal and District Gov- ernments in conformity with the pro- portionate allocation of costs deter- mined in each instance by the Na- tional Capital Planning Commission. (3) Discontinuance of the system of Federal lump-sum contributions |and replacement by (a) contributions representing the excess, if any, of District governmental costs per capita | over the average in comparable citles, this average to be determined by the method prescribed in this report; and (b) reimbursements for unusual costs occasioned by congressional enact- ments. (4) Preparation of a capital im- provement program and the annual capital outlays budget of the District by the National Capital Planning Commission, with the right reserved to the District authorities to omit spe- cific capital improvements from their regular budget estimates but not to modify the proportionate cost alloca= tions determined by the planning com- mission. (5) Clarification of the responsibil- ity of District authorities for the complete annual budget by including in the budget, as prepared by them, all appropriations from District funds for District purposes and complete and’ reliable estimates of revenues. (6) Review of the District budget estimates by a representative advisory council which will receive the com- ments and suggestions of residents and taxpayers and may append its own recommendations but will have no power to amend the budget. Sharper definition of the budgetary responsibilities of the District author- ities, supplemented by review by the | advisory council, should assist and expedite the work of the Bureau of the Budget in the formulation of the District budget. The principles and formula rec- ommended in this report carry fore trines and suggestions embodied in earlier reports on the subject of Fed- | eral-District fiscal relations. Despite differences in specific recommenda- tions, former reports over a period of many years have agreed generally upon the following more important doctrines. $2,533,357 | After the application of the formula { (1) That property of the United States can not be taxed and should there will still be a deficit in the gen- | not be taxed by any regular taxing eral revenue account of the District of Columbia of zbout $9,800,000, which | will make it necessary, of course, to provide additional revenue. Sources | | method. (2) That the United States has a | special obligation to improve the Dis- trict in accordance with its special of additional revenue are indicated in | status as Capital. the report. | | established and be charged with (1) | examining into the administrative or- methods, and practices the District government in all its branches: (2) installing integrated departmental services and improved methods and techniques upon eaGp=- proval by proper authorities; (3) reviewing periodically the contractual provisions governing intergovern- mental services and recommending | changes in the provisions when neces- sary or desirable; (4) formulating and arrange- ments to cover new intergovernmental services as they arise; and (5) making the necessary comparative studies of the per capita costs of local govern- mental services and the extent of local tazation on the basis of data gathered by the Bureau of the Census and in comformity with procedures described in this report. As long as the Bureau of the Budget continues to pass upon details of the District budget, the per- manent survey agency might properly | be operated as a section of that bureat. i In view of the third element in the | formula for future Federal-District 'were the budget reviewed by the pro- posed advisory council before -going | |to the Bureau of the Budget. | Questipns of local control over pure- |ly local affairs are interwoven with | questions of the fiscal relations of the Federal and District Governments. Federal responsibility. for supporting the local government could be re- | duced by conferring upon the residents broad powers over purely local affairs, | with Congress reserving only those powers posscssed elsewhere by State | legislatures. When this has been done, | Federal payments occasioned by em- | ployment policies and standards and by governmental costs higher than those in comparable cities should | cease, and responsibility for admin- |istration and fiscal policies and for the level of local expenditures should | be borne by the people of the District. | Pending such local control, the ad- ivisory council proposed above will af- {ford an enlarged measure of popular | representation. Organizational Changes Are Recommended. | The recommendations in this re- | | port contemplate the following or- | (3) That the District may fairly be taxed for local purposes about the same as other communities and that the Federal Government, in view of |its close control of the District gov- | ernment, may be expected to defray | local expenses not covered by such | taxation. | Findings Based On Foreign Experience. | Review of the practices of foreign nations indicates that few countries | make special grants to their capitals, | unless for special municipal services. | The survey of foreign practices leads to. the following findings of special | relevance to Federal-District fiscal | relations: | (1) Nearly all capitals are subject | to supervision by the National Gove ernment, at least with respect to municipal finance. (2) In all capitals, excepting the | District of Columbia and capitals | under dictatorship, residents have some participation in municipal affairs. (3) National government property in capital cities is taxable for local purposes only if similar taxation of government property, is permitted in all other cities, and usually such tax- ation, where permitted, is restricted ! fiscal relations, the Federal Govern- | ganizational changes in the District | ¢, revenue-producing property. ! ment has an equal interest with the ! local taxpayers in the excellence of the organization and operation of the District government. Moreover, the special status of the District suggests that its local government should be a model of municipal administration with the highest standards of service and economy. Successive recommendations of past surveys indicate, as is now urged, that there is need of intensive, compre- hensive, and continuous study of the Property owned by the Federal Gov- gorganization and administration of | termine the relative quotas. of the the District government. It is recommended (1) that an in< vestigation of the organization and operation of the District Government be authorized, to be made by a staff familiar with modern practice -in ‘municipal administration; (2) that the permanent agency proposed above be established, and (3) that there be authorized a representative advisory council, consisting of representatives of the Federal and District Govern- ments and of District citizens ap- pointed by the President as repre- sentatives of civic groups, to advise in the planning of municipal services and administration, the original prepara- tion of the District budget, deter- mination of revenue sources, and im- provement of ‘organization and pro- cedures. Direct Federal Financial Interest. The Federal Government has a di- rect financial interest in the local revenue system of the District govern- ment, particularly if comparisons with other communities are to be made in terms of actual taxes paid. Compari- son of the existing revenue system of the District with the prevailing system in other cities, shows that the local revenue system in the District is much less diversified. The absence of overlapping governments and of constitutional restrictions affords a unique opportunity for developing a model system, both in the taxes in- cluded and in administrative pro- cedures. In order to insure a wider and more equitable distribution of the tax load, consideration should be given to reduction of the- importance of the property taz as a source of District revenue, the adoption of a net income taz and an inheritance or estate tax, increase of the gasoline tax, gradua- tion of the motor vehicle taz upon commercial vehicles with reference to weight, and reezamination of eristing business tazes. Under the existing system of District government, authority is diffused and responsibility ~decentralized. - This condition is evident- particularly in budgetary procedures. ' Neither the District Commission nor the .Bureau of the Budget exercises the full and complete control necesasry.to secure a completely integrated budget for the District. Effective financial responsibility should be concentrated in the heads of the District government. This ~cost payments. 708 is recommended -that & per-: manent municipal survey agency might be achieved were the District authorities charged with formulating the budget estimates completely gnd 1 nd Federal Governments: | 1. Changes in the present National | | Capital Park and Planning Commis- sion, to make it the one agency re- }sponsible for physical planning and{ | development of the District. With its |name changed to National Capital ‘Plnnning Commission, and its mem- jbcrshlp modified to represent both | | governments and to include citizens | qualified in planning and engineer- | ng, the commission would analyze | ! all proposed capital improvements, de- al | Federal and District Governments in meesting the costs of each such capi- tal improvement, and prepare the capital budget estimates of the Dis- trict. It should be relieved of present administrative duties. With the or- ganization of the capital improvement program, the commission might also be charged with the duties of the ad- visory council recommended below. 2. Establishment of an advisory | council consisting of representatives | of the Federal and District Govern- ments and of District citizens ap- pointed by the President as represen- tatives of civic groups. This council would advise upon budgetary and other fiscal matters, and in the plan- ning and organization of municipal services and administration. It would | afford an enlarged measure of local | representation pending the grant of | broader powers of local control over | purely local affairs. | 3. Establishment of a permanent municipal survey agency, to be oper- ated as a section of the Bureau of the Budget as long as that bureau continues to examine into and pass upon details of the District budget. This agency would be charged with | making continuing analyses of the organization and operation of the | District government, with a view to making it a model of mumicipal ad- ministration, and with making the periodic reports required for contin- uing application of the three-point formula recommended above. In addition, the recommended so- lution of problems relating to inter- governmental services includes pro- posals for the following.transfers of control over institutions: Freedmen’s Hospital from the De- | partment of the Interior to the Dis- | trict ‘Board of Public Welfare; ~ ° The Temporary Home for Ex- Soldiers, Sailors, and Marines, from the District Board of Public Welfare to the United States Veterans’ Ad- ministration; The House of Detention, from the metropolitan police to the District Board of Public Welfare. * Likewise it is ‘proposed that the United” States District Court and the Court of Appeals of the District be included in the budget of the Depart- ment of Justice, rather than that of the District. o 2 contemplate the following changes in budgetary practices and » (1) Inclusion of items annual Federal and District departmental ap- propriations to cover paymepts to be (4) Capital cities are not specially favored by national subsidies unless they are cities in initial stages of de- velopment or rendering specific serv- 1ces for the national government in return. (5) Apart from Aubtralia, where there are special arrangements, no government recognizes a legal obli- gation to develop or maintain its cap- ital; but all governments expend na- tional funds upon national property and works in the capital. (6) In capital cities generally, the attitude of local interests toward the national government indicates that indirect advantages derived from be- ing the seat of government more thein balance any special financial burdens which might be imposed by the pres- ence of government offices. The application of the recommend- ed three-point formula is illustrated below in terms of financial operations | of the current fiscal year, ending June 30, 1937. The amounts are estimated on the basis of the best information available at the date of this report, but they are necessarily subject to re- vision in the light of the operating experience of the entire fiscal year. In the case of capital outlays of joint interest, the estimated amounts rep- resent averages of the three fiscal years, 1934 through 1936, derived from appendix C, tables IX, X and XL Estimates of 1937 Are Determined by Formula. In summary, the estimates for the fiscal year 1937 indicate that under the three-point formula the District would have received net payments of $2,072,037, instead of the $5,000,000 lump-sum contribution actually re- ¢éeived. /The net amount is derived as shown in table 3A. ‘The net amount comprises payments 31,465,000 ASKED FOR D. C. JOBLESS Budget Bureau Proposes Sum for Continuing Re- lief in 1937-1938. Appropriation of $1,465,000 for con- tinuation of relief to the unemployed during the next fiscal year is pro- posed by the Budget Bureau. ‘While this is a reduction of $135,000 below the current appropriation, it is offset by an increase for old-age pen- sions of $144,000, to cover the transfer of such cases from relief to the old- sge program. At the same time the pension fund for the needy blind was reduced by $9,000. Meanwhile the Commissioners are considering an urgent request from the Board of Public Welfare for a sup- plemental direct relief appropriation by the District for the remainder of this fiscal year amounting to $830,000. The board declares this is needed to prevent hardship for some 3,000 cases dropped from the direct relief rolls because they contain “employable” persons, but who are said to be un- able to find work. The bureau allowed an increase of $67,430 over the existing appropria- tion for Gallinger Municipal Hospital. The budget shows a reduction from $75,000 to $40,000 for Children’s Hos- pital for medical charities and the current appropriation of $40,000 for care of indigent patients at Casualty H?‘s&u‘ was dropped entirely. reductiins at Children’s and Casualty Hospitals “are offset by a correspond= ing increase in such services at Gal- ward to a logical conclusion the doce | —m« mated amount for water consumed by Federal agencies, and the operating cost of services chargeable to private individuals. Details are as follows: which reimbursement is recommended, other than water service: Services of the Federal ernment— Actually reimbursed by District Govern. men s Not reimbursed by District Govern- Total - Bervices of the Distric Government— Actually reimbursed by | Pederal Govern- | ament =l oinc o | Not reimbursed ~ by Federal Govern- ment Total .. Net _difference. nonreim- bursed services—excess of District over Federal $808.214 leaves in excess usually provided in comparable size 425,000 Water consumed by Federal Government 250,090 of those clties of | Overating _services of the Di trict _Government pavable through charges to private individuals (see sec. 8): ee education of certain nonresident _children Health services in_schools for non-resident children Extension of library facili- ties to non-Tesidents—__ ‘Total chargeable to individuals . Total amount payable to District Govern- ment for reimburs- able operating serv- $1,848.014 $250,000 2.800 | 22,000 Over Federal Outlays. The net amount of $224,023 shown in table 3A for capital outlays not now reimbursed comprises the net ex- cess of District over Federal capital outlays of joint interest, and the amount of District outlays reimburs- able through charges to individuals. The charges to individuals include (1) allocated portions of capital out- lay expenditures in connection with operating services rendered to these individuals, and (2) the deficiency in special assessments for water main extensions charged for at a statutory rate which covers only 50 per cent of the cost of extensions. Excepting for the water main assessments, the amounts estimated for capital outlays are based upon three-year averages, computed from data in appendix C, tables IX, X and XI. Items making up the total of $224,023 ‘are as follows: Clglnl.\:g:h:el %elo:nt |B"r!l'i. slfl\lflvl rvice (average of 3 year 103436, inelusiver: T ‘Outlays b{_flaa Federal Gov- ernmen Actuallv reimbursed by Not reimbused by Dis- Y. Dis- ‘rict Government. $600 122,802 Outlays by the District ernment— Actually reimbursed by deral Government_$770,635 Not_reimbursed by Fed- eral Government . Net difference, nonreimbursed outlays—excess of District over Federal costs. Dayabl by Pederal Government.__ Capital outlays reimbursable by Drivate individuals: Increased rate of assessment for water service mains, now under - assessed at statutory rates $150,000 Capital outlays for operating servicec rendered non-resi- - dents average of 3 years, 1 srusa«h inclusive)— ools ___ Library facill Total chargeable to individuals_ 3 ‘Total amount payable to District Gove ment for reimbi able capital outla: 224,023 budget message states that the | Interzovernmental contractual services for | |now borne by the Budget Bureauy, | With enactment by Congress of the ‘TABLE 3A.—Estimated Net Effect of 3-Point Formula—Fiscal Year 1937, Total reim- bursable amount Division of formula Net amount im. rel bursatle Additional amount reimbursable ment I Intergovernmental con- . Capital outlays__. K’ III. Excess per-capita District of Columbfill 0 $2.859,050 ($1,978,416 |$130,402 | $1,848,014 771,235 $ 346,885 | 122,862 224,023 | 0 o 0 [ 1$6.208.850 $3,630,285! ,2.325.301"268.204 $2,072.037. ¥ T under the first two divisions of the formula. Comparative cost payments for the District and the average of other comparable cities, for the latest year reported, indicate that there would be in 1937 no payment by the Federal Government to the District for excess governmental costs per capita. The recommendations provide that an adjustment shall be made, if necessary, when comparative data for the fiscal year 1937 become available. ‘The net amount of $1,848,014 shown in table 3A for intergovernmental contractual services comprises the ot excess of District over Faderal costs for operation and maintenance of services not now an esti- recommendations provide that e parative data for the fiscal year 1937 . if necessary, Sy s = provisions in the three-point formula, the making of estimates of specific amounts to be pald by each govern- ment to the other for special inter- governmental operating services will be & matter of routine in the prepara- tion of the annual departmental budget estimates. Accordingly, esti- mates for the fiscal year 1938 are not included here pending completion by the Bureau of the Budget of the 1938 departmental budget estimates. for the District and the Federal Gov- ernments. Under the proposed pro-. cedure, estimates for capital outlays for 1939 and future years will be prepared by the National Planning Commission. * 19 Laws to End Between D. C., @ Free Services U. S. Proposed Changes in Jurisdiction Over Certain Agencies Maintained Here Recom- mended by Fiscal Committee. Nineteen new laws to put an end to free services performed by the District for the Federal Government and by the United States for the District Government were recom- mended to the President by the Jacobs Fiscal Relations Committee. The same recommendations also urged changes in the jurisdiction over certain agencles maintained here, ranging from a transfer of the Na- tional Zoological Park from the Smithsonian Institution to the District Commissioners to transfer of the House of Detention from the Police Department to the Board of Public Welfare. Free tuition for non-resident pupils in the public schools and free library service to non-residents would be ended. Tuition would be charged ele- mentary deaf pupils now being trained by the Columbia Institute for the Deaf. The District would be required to pay the Budget Bureau for handling its budget, the Treasury for handling its accounts, and the controller general for audits. Likewise the Dis- trict would be made to pay the sal- aries of the engineer Commissioner and his three assistants, now paid by the War Department. The report proposed that the Dis- trict reimburse the controller general for controlling accounts and per- forming audits, the sum to be deter- mined by cost records of the actual services performed. Freedman's Hospital. Preedman's Hospital would be taken from the jurisdiction of the Interior | Department and placed under the| jurisdiction of the Board of Public Welfare of the District. The hospital | at present is operated primarily for | District patients and the national | need for the hospital has pracucal]yi‘ disappeared, the report stated. The | transfer would partially relieve crowd- | | ed conditions at Gallinger Hospital. | ‘Tuition for deaf children, now in- structed by the Columbia Institute | for the Deaf for the Board of Edu- cation, should be increased in the ele- | mentary section to cover all operat- | ing expenses. It was also recom- | mended that the District be permitted to send its students to the collegiate | section, Gallaudet College, on a schol- | arship basis, as do States and Terri- | tories. The latter has been proposed | to Congress. | Waiver of interest for three years | on P. W. A. loans to the District for | construction projects would be dis- | allowed, and the 4 per cent rate| charged States and municipalities would be applied here. The report recommended that the District share the cost of the United States Employment Service main- | tained here by the Department of Labor, on the same basis as States | now share the cost of such agencies | under the Wagner-Peyser act. Cost of the review, control and compilation of the District budget, | would be transferred to the District, the cost to be based upon the per- | sonnel assignments within the Budget | Bureau and the proportional share | of the cost of printing the budget. Accounts and Deposits. A similar arrangements would be made for the supervision and main- | tenance of accounts, now handled by | the Division of Accounts and Deposits of the Treasury Department, except | that a fixed sum reimbursement would | be paid. The estimated cost would be | examined every five years to fix the amount the District should pay. Payment of an annual ground rent or outright sale to the District of prop- erty owned by the Federal Govern- ment but used by the District, was| recommended. The report urged a survey of each separate parcel of Fed- eral land now used by the District rent free to determine if the Federal Government ever expects to use the property. If it does, the rental ar- rangement was recommended; if not, lin the States, since the District has | | tion to the District Commissioners and purchase by the District was pre- ferred. The same procedure was proposed in connection with District land now being used by the Federal Govern- ment, permitting the United States either to rent or purchase the prop- erty involved from the District. Reimbursement of the War Depart- ment for the services of the Engineer Commissioner and his three assistants also was recommended. The District now applys only about $4,000 of their salaries and allowances, the balance being paid by the United States en- gineer office of the War Department. An amendment to the traffic act was proposed to compel the Federal Government to pay the same rates as private citizens for automobile permits, tags and title certificates, and also to have the Federal Government pay for tags and permits issued gratis to foreign embassies and legations. The Federal Government also should pay on a per diem basis for the de- tention of female witnesses and prisoners committed by the Depart- ment of Justice to the House of De- tention. At the same time, the report urged that the House of Detention be | transferred from jurisdiction of the Police Department to the Board of Public Welfare, which has supervision of other correctional institutions, Ex-Service Men’s Home. It was recommended that the Vet- erans’ Administration take over and maintain the temporary home for ex- Soldiers and ex-sailors now maintained by the Board of Public Welfare. Most of the residents of the home, it was pointed out, come here in con- nection with pension, bonus and other claims against the Federal Govern- ment. Tuition charges for non-resident | pupils in the public schools also was urged. The rate would be based on the actual cost of educating the chil- dren. Free tuition, the report said, should be allowed for the children of Government employes, citizens em- ployed in the District and residing | elsewhere, or children residing in em- | bassies. | It was recommended that the cost | of health work for non-resident pupils | in the public schools, now performed free by the Health Department, be considered in fixing the rate of tui- tion to be charged non-residents. A statute to charge lirary fees for | non-resident borrowers was recom- mended to help meet the cost of op- eration of the free public library system. ! An amendment to the Haden-Cart- | wright act to permit the District to re- | ceive the benefits of Federal aid for | highways on the same basis as States | are heiped was recommended. The | report recommended, however, | the basis of allocation of funds be | changed from the mileage of rural delivery and star mail routes, as apply | no rural roads. Excess Park Maintenance. It was recommended that the Dis- | trict reimburse the KWational Capital | Parks Office of the National Park Service for the maintenance of the | excess park areas of the city. | “Analysis of the comparative im- portance of local and national use‘ of each park area has indicated an | allocation of 30 per cent Federal bene- fit,” the report said. ‘“Because of inadequate factual data the above | percentage of reimbursement is rec- ommended.” Transfer of the National Zoological Park from the Smithsonian Institu- | the creation by statute of a board of trustees for the Zoological Park to have control of its operation also | was recommended. | “There is no specific administra= tive reason for retaining the Zoo | under direction of the Smithsonian | Institution,” the report said. The new set-up would subject the Zoo budget to the review of the Com- | missioners. PUBLIC LIBRARY GETS $8.000 MORE Budget Recommendation De- nies More Personnel and New Buildings, However. A net increase of $8,000 in the 1938 appropriation for the free Public Library was recommended by the Budget Bureau, but nothing was allowed for additional personnel or pew buildings, as requested by the Board of Library Trustees. The only addition made in the pro- posed new budget was an increase of $10,000 for new books, periodicals and newspapers, making the total for this purpose $70,000, as against the current appropriation of $60,000. Of the new sum, however, $30,000 was earmarked to stock the new Petworth Branch Library, to be erected this year at Kansas and Iowa avenues. The total appropriation approved by the Budget Bureau for 1938 is $555,- 840, the same amount approved by the District Commissioners. The trustees had sought $695,802. Personnel Need Cited. Perhaps the hardest blow delivered to the libary system was the denial of additional funds for new personnel. Citing the increase in hook circula- tion and in the number of book bor- rowers,the trustees asked for four ad- ditional library assistants, four junior messengers, one junior librarian for school service, six new workers for technical departmenis, two for ad- ministrative departments, five for cus- todial service, five to permit the cen- tral libary to remain open 72 hours per week, and 20 to staff the new Pet- worth branch of the last six and one-half months of the year. The total allowed for personal serv- ices for 1938 was set at $352,020, the same amount provided in the current appropriations. For binding, the current fund of | $20,000 was recommended for 1938, although an increase of $10,000 was ! asked. For maintenance, alterations | and repairs the fupd was reduced from 436,500 to $34,500. For renting quar- ters for the Chevy Chase and Wood- ridge branches the fund was kept at the current figure of $4,320, although $4,800 was requested. $75,000 for Petworth Branch. An appropriation of $75,000 was recommended for the completion of the new Petworth Branch. The proposed budget leaves out a request for $125,000 to build and equip a new branch library in Aracostia and another for $27,500 to replace the 60-year-old structure now housing the Conduit Road sub-branch, both of which had previously been eliminated by the District Commissioners. In ear-marking $30,000 for hooks and periodicals for the Petworth | branch only $40,000 is left for the balance of the library system. The | current appropriation allows $60,000 for the entire group of 12 buildings. The personnel of the 12 probably will have to be reduced, instead of increased, to take care of the staff for the new branch, since no provision was made for Petworth's personnel. U. S. MAY LOSE MILLION IN JIG SAW RULING Appeal From Decision Holding They Were Not Games Is Held Unlikely. By the Associated Press. . BOSTON, January 8. — United States District Attorney Francis ‘J. W. Ford said last night the Govern- ment probably would have to get along without revenue from taxes on jig- saw puzzles, doubting, he said, an appeal to the United States Supreme Court could be taken from the Cir- cuit Court of Appeals’ ruling that they were not games. The Associated Press erroneously reported Wednesday the Circuit Court of Appeals ruled the jig- saw puzzles were games and not a sport. The Government anticipated one or two million dollars of revenue an- nually before the appeals court set a District Court ruling that he the puzzles taxable as games. appeals court said they were Yot games because they weer not played by more than one person at & fime and required ingenuity rather maenual skill. ). T0TAL 155144000 OVER THS YEAR 1938 Budget Allowance of $12,637,980 Is $4,887,- 639 Below Needs. Virtually eliminating the proposed five-year building program for the public schools, the Budget Bureau ap= proved a total appropriation for school purposes of $12,637,980 for 1938, a net increase of oniy $143,960 over the current appropriations. The approved total is $4,887,639 less than the sum requested by the Board of Education and is $833,270 below the sum approved by the District Come missioners. The chief reduction came in the proposed new building program to run to 1942. The Board of Educa- tion sought $5,492,000 for 1938, which was figured as the year’s share in a program to total approxifnately $30,- 000,000. The remainder \was taken from the fund for teacher gersonnel. With the shortage of chers and buildings rated as the greatest needs of the school system on)¥ three new buildings and three dditions were approved by the Budget Bureau. An increase of 93 teachers was approved. Dr. Frank W. Ballou, superintendent of schools, had asked for 185 more for 1938, at the same time explaining that the school system actually needs 563 additional teachers. A total of $425,000 was authorized for the purchase of new land for byilding sites and playgrounds. Dennison School Item. In addition, $180,000 was authorized to complete the new Dennison Voca= tional School at Thirteenth and Up- shur streets, which was begun under the 1937 budget with an appropria- tion of $100,000. The total cost will be $280,000. Funds appropriated in the 1932 budget for a new Jefferson Junior High School in Southwest Washing= ton would be diverted to the purchase of a new site for the proposed build- ing, to replace the present structure in Southwest. The 1932 appropriation was for $200,000. New building approved by the Budget Bureau included the following: For .a new senior high school for North Washington, to be erected at Fifth and Sheridan streets, $350,000. The total cost authorized would be $1,250,000. The District already owns the land. For a new junior high school on the present Banneker Playground, Ben- ning road near Twenty-fourth street northeast, $200,000; the total cost to be $450,000. For a new school to replace the present Lenox Vocational School, to be erected at Potomac avenue between Thirteenth and Fourteenth streets southeast, $100,000; the total cost to be $300,000. For the addition of eight rooms and an assembly hall-gymnasium at the Bundy School, $125,000. For a third-story addition of six rooms to the Cleveland School, Eighth and T streets, $95,000. For completion of four rooms on the second floor of the Shepherd School, Fourteenth and Kalmia streets, $25,000. Additional Property. This program calls for the expendi= ture of $1,075000. In addition the bureau approved the purchase of five additional pieces of property, to cost $425,000, as follows: Additional land for the Banneker Playground, subject to approval of the National Capital Park and Plane ning Commission, of the use of such portion of the existing playground site as may be necessary for the approved new junior high school. A site for a new elementary school in the vicinity of Third street and Concord avenue. Additional land for an extension to the Margaret Murray Washington Vo= cational School on O street between North Capitol and First streets. Additional land on Potomac street, between Thirteenth and Fourteenth streets southeast, joining property now owned by the District, to be used for the new Lenox Vocational School. ‘This school would replace the struc- ture at Fifth street, between G street and Virginia avenue southeast. Additional land adjacent to the ite of the old Dennison Vocational School, on S street between Thirteenth and Fourteenth streets, to be used ultimately as a site for an elementary school. An increase of $212,380 for teachers and librarians was approved, making the 1938 appropriation $7,223,220 a2 compared with the current appropria- tion of $7,010,840. This additional fund would provide for one new librarian at $2,041 per year; 38 class 1A teachers at $2,106 per year; Sl Class 3A teachers at $2,616; 16 Clast 2A teachers at $2,221 per year, and seven Class 2C teachers at $2,635. The salaries cited are the average for the classifications rather than the actual amount paid each individual teacher. Teacher Increase Represented. This added staff, if eventually ap- proved by Congress, will give the school system 3,111 teachers and librarians as compared to 3,018 af present, and 2,985 in 1936. In an explanatory statement ac. companying the recommendations of the Budget Bureau, a net increase ol $210,520 for operation and maine tenance is pointed out. This is ac+ counted for by an additional $14,30¢ for eight junior clerk-stenographers two under clerk-typists and one mes- senger; $4,235 for vocational educa- tion which will be matched by th¢ Federal Government under an act of June 8, 1936; an increase of $3,00( for transportation and $300 for pro- visions for crippled and tuberculal children, $2,000 for colored dea! mutes, $11,700 increase for the cary of buildings and grounds, $25,000 in. crease for fuel, light and power; $26,100 increase for contingent ex- penses, $1,400 increase for laboratory supplies and equipment, $3,600 fo1 school gardens and the $212,380 fal teachers and librarians. From these sums are subtracted thy following items reduced from the cur- rept budget: Attendance department furniture and equipment and repairs and improve: ments, $48,500. The Board of Education already & making plans to seek the enactmen| of a separate bill authorizing the five. year building program, instead @ looking to the annual appropriations bill for its approval.