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 1971;

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
1971; 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 1971. 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.

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.

1970 592,428,000 1971 Est. 720,769,000

387,429,247 70,000,000 437,934,909 89,365.000 488,259,000 104,169,000 1/ 615,769,000 105,000,000

Note: Prior to 1923 the percentage of the United States share was set at 50 percent. In 1956 a Federal payment of $20,000,000 was authorized. This authorization was increased to $23,000,000 in 1957, to $32,000,000 in 1959, and to $50,000,000 in 1963. Public Law 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 Law 90-450, August 2, 1968, increased the authorization to $90,000,000, and Public Law 91-106, October 31, 1969, increased the authorization to $105,000,000.