Hearings, Reports and Prints of the Senate Committee on the District of Columbia

REVENUE INCREASE PROPOSALS

FOR FISCAL YEAR 1971

This budget is based on the following local tax measures--

a twenty-cent increase in the real and personal property tax rates from $3.10 to $3.30 per $100 of assessed valuation for the real estate rate and from $2.40 to $2.60 for the personal property rate to yield a combined total of $8.7 million for fiscal 1972; an increase in personal income tax rates and brackets which is now pending before the Congress and which would provide an additional $5.6 million for the current fiscal year and $21.5 million for fiscal 1977; and a l-cent increase in the gasoline tax from 7-cent to 8-cents per gallon to yield $1.5 million.

In addition to these local tax measures, the District's budget again proposes that the Federal payment be set at 30% of the District's general fund revenues. The request for the Federal payment formula authorization is not new, but it is highly important to the District Government's capability to close the gap between needs and resources. The 30% formula would authorize a Federal payment of $119.7 million for the current fiscal year and $132 million for fiscal 1977. In comparison to present authorization, this represents an increase of $9.7 million above the $110 million for fiscal 1970 and $27 million above the present $105 annual authorization for 1971. Enactment of the 30% Federal payment formula would--

provide the District Government with needed revenues on an expanding basis which will help defray built-in expenditure increases in subsequent years and establish a payment commensurate with the increasing burden being placed on the local taxpayer; establish a solid basis for sound financial planning by providing knowledge of our potential--both in terms of income and expenditures-in order to balance the policies of today in the context of tomorrow; recognize the Federal responsibility for the Nation's Capital and the Federal impact on the services of the District Government and on the local economy plus the absence of significant corporate income taxes, lost revenues due to the tax-exempt status of Federal property and the limited geographical tax base of the District as the seat of Government.

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2) Assumes 15% agency absorption. 3 Increase gasoline tax of $.01 per gallon. 4) Capital Outlay financing is not included in these cash flow projections. These programs are

financed from loans on an as needed basis. Funds for loan amortizations and interest are included in these projections.

B-2

Available

This provides surricient funding to provide for required
and staffing - the mandatory costs. This essentially is
what the House provided in its markup.

Additional $21.7 million
in 1971 from increase in
income tax

This provides essentially sufficient funding for the Police,
Firemen and Teachers pay raises.

Additional $8.7 million
from real estate and
personal property tax
increase

This provides the funding for the workload, improved and
new services requests that were contained in the budgets
submitted to the House and rejected by the House as the
House Appropriations Comittee report states:

"The Committee is fulfilling its expressed intention in re-
porting this bill at this time and has had to make severe
reductions to bring the budget into balance. Unfortunately,
it has had almost no flexibility in its actions. A high
proportion of the increases requested are to meet mandatory
and uncontrollable personnel costs and the staffing of new
facilities that will be ready for occupancy during the forth-
coming fiscal year. In most instances only these costs have
been allowed. It has not been possible to provide ior in-
creased workloads and the improvement of services. Requests
for new programs have had to be deferred.

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DUL PLEIT AND I RELATION TO T. XIRAL TUND

District of United U. S. Share

District of United U.S. Share
PLACA
Total
Columbia
States (Percent Fiscal

Total
Columbia

States

(Percent
Year Appropriations sbare
share of Total) Year Appropriations sbare

sbare of Total)
1924 $3,903,755 $24,463,330 $9,440,425 39.49 1947 $72,584,314 $64,584,314 $8,000,000 11.02
1925

31,175,672 22,030, U7 9,145,355 29.33 1948 81,744,086 70,744,086 11,000,000 13.46
1926

32,139,730 22,139,638 9,000,092 28.90 1949 86,017,985 75,017,985 11,000,000 12.79
1927
33,951,478 24,950, 987 9,000, 491 26.51

1950

98,331,275 87,331,275 11,000,000 11.19
1928
34,894,148
25,892,358 9,001,790

25.79 1951 103,924,822 94,124,822 9,800,000 9.43
1929

35,957,970 26,957,753 9,000,217 25.03 1952 121,265,978 110,865,978 10,400,000 8.58
1930

40,694,306 31,694, 306 9,000,000 22.12 1953 113,589,327 103,589, 327 10,000,000 8.80
1931 45,625, 286 36,125,252 9,500,034 20.82 1954 129,111,304 118,111,304 11,000,000 8.52
1932 43,840, 022 34,339,911 9,500,1 21.67 1955 139,578,760 119,578,760 20,000,000 14.33
1933

39,626,998 32,851,847 7,775,152 19.62 1956 143,179, 303 125,179,303 18,000,000 12.57
1934 29,700,737 24,000, 708 5,700,029 19.19 1957 155,579,025 135,579,025 20,000,000 12.86
1935

34,620,004 30,080,709 4,539,295 13.1 1958 166,096,999 146,096,999 20,000,000 12.04
1936
38,295,953 32,588, 424

5,707,529 14.90 1959 185,915,914 160,915,914 25,000,000 13.45
1937 40,182,768 35,177, 768 5,005,000 12.46 1960 199,806,074 174,806,074 25,000,000 12.51
1938

41,143,818 36,118,792 5,025,026 12.2 1961 223,086,004 198,086,004 25,000,000 11.20
1939 40,494,451 35,494,451 5,000,000 12.35 1962 233,626,683 203,626,683 30,000,000 12.84
1940

41, TT7,885 35,T7,768 6,000,01 14.36 1963 255,356,208 225,356,208 30,000,000 11.75
1941

43,136,909 37,136,909 6,000,000 13.91 1964 265,099,691 227,599,691 37,500,000 14.15
1942

447, 401,269 12,401, 269 6,000,000 12.66 1964) 298,147,563 260,647,563 37,500,000 12.57
1943 19,422,932 43,422,932 6,000,000 12.14 1966 326,017,382 281, 767,382 44,250,000 13.57
1944 54,642,247 48,642, 247 6,000,000 10.98 19 368,457,261 310,457,261 58,000,000 15.74
1945
62,599,125 56,599,125 6,000,000

9.58 1960 457,429,247 387,429,247 70,000,000 15.30
1946 64,728,423 58,728, 423 6,000,000 9.27

527,299,907 437,934,909 89,365.000 16.95
1970 592,428,000 488,259,000 104,169,000 /
1971 Est. 720, 769,000
615,769,000 105,000,000

17:5
1 Includes $5,000,000 as provided in Public Law 91-106 for law enforcement activities in fiscal year 1970 only.
Note: Prior to 1923 the percentage of the United States share wus set at 50 percent. In 1956 a Federal payment of $20,000,000 was

authorized. mis authorizatica vu lacrossed to $23,000,000 in 1957, to $32,000,000 in 1959, and to $50,000,000 in 1963.
Public Lav 89-610, September 30, 1966, increased the authorization to $60,000,000. Public Law 90-120, November 3, 1967,
Increased the authorization to $70,000,000. Public Lav 90-450, August 2, 1968, increased the authorization to $90,000,000,
and Public Lav 91-106, October 31, 1969, increased the authorization to $105,000,000.

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