Our tax increase recommendations have been carefully developed to guard against any adverse effects on the local economy. They encompass tax measures which keep the District tax rates and tax burdens at a level comparable with suburban jurisdictions and other large cities. We sincerely hope that they will be the subject of a hearing at a later date. There are those who have questioned the advisability of advocating a rise in local revenues at a time when the President is recommending a cut in Federal taxes. It is, I'm sure, evident to you who exercise nationwide responsibilities, that local government finance bears little if any direct relationship to Federal Government finances. The Federal Government exercises responsibility on a far broader basis than the District government. Federal revenue and expenditure policy is used to influence the national economy. The Federal Government is not bound by the mandate of a balanced budget. In fact, its mandate is to achieve full employment and the fiscal lever of deficit financing has been used when it will help. The District, in contrast, operates in a very limited geographical area, largely with local tax dollars to provide local services and facilities within a balanced budget. A financial program consisting of the formula-based Federal payment and borrowing authorizations and local tax increases is, in our considered judgment, the best means of resolving the District's immediate and long-range financial plight. In your deliberations of the alternatives, we believe you will find that the bills merely to increase existing lump-sum authorizations for the Federal payment and borrowing will not provide the longrange solution we all sincerely desire. We recommend the formula approach for the Federal payment, and borrowing will not provide the long-range solution we all sincerely desire. We recommend the formula approach for the Federal payment and borrowing authorization as a more adaptable and flexible alternative in the interest of sound fiscal planning for the Nation's Capital. We conclude that the three-phase program just cited will produce the following major benefits: The Congress can reasonably expect to have resolved the District's general fund financial problems for some years in the future; the Commissioners will be able to predict financial resources with a greater degree of assurance; there will be a built-in incentive to look for additional revenues from local tax sources because of the nature of the proposed formula for the Federal payment; the Congress, the executive branch, and the Commissioners will have time to examine long-range needs and resources; and the Commissioners will be able to formulate well-considered proposals for constructive future action. In summary, the critical general government needs of the District can be met on an orderly planned basis. In view of the foregoing, the Commissioners most strongly urge, as their preference, enactment of H.R. 4592, S. 871, or one of the identical bills introduced in the House. The Commissioners have been informed by the Bureau of the Budget that this would be in accord with the President's program. Gentlemen, that concludes my statement. Senator BIBLE. Thank you very much, Mr. Tobriner. I think it would be helpful to our consideration of all the bills that are before the joint committees if we had somewhat more detail as to these critical needs. You are completely out of borrowing authority. You have listed the five schools. But what are the critical needs, and will you draw our attention to the page number of this loan termination program? You made a very detailed Mr. LowE. Page B-3 states one of the listings. Senator BIBLE. B-what? Mr. LowE. B-3. That is the beginning of some of the listings. The public works, in summary form, is shown on page B-5. Senator BIBLE. B-3 and the summary is on B-5? Mr. Lowe. Of public works. Senator BIBLE. Of public works? Now, these are the critical needs that must be met out of borrowing or out of borrowing plus increased revenue? Mr. TOBRINER. That is correct. Senator BIBLE. Now, I think it would be helpful for the record, and I want to revise my earlier statement because need is most important. We will incorporate, and have made a part of the record, pages B-2 through B-7. Would that give a picture of the critical needs with which the District is faced as of today? Mr. Lowe. In highlight form, it does that for the general fund. Now, we have supplied the committee staffs a detailed projection of both the general fund operating increases and the 6-year public works program and the later lists, project by project, the present thinking for the next 6 years. Senator BIBLE. Well, I would think Mr. Lowe. But this gives you the summary, Mr. Chairman. Senator BIBLE. This gives us the summary, and if we want the detail we can go to reference material which is in the hands of the staff? Mr. TOBRINER. That is correct. Senator BIBLE. I think those page numbers should be incorporated in the actual record, and without objection that will be done. (The material referred to is as follows:) Increases by categories-1964 general fund [In thousands of dollars. Numbers in parentheses indicate new positions requested] The plan includes equipment for the District of Columbia General Hospital consolidation, the second phase of utility modifications to the hospital, a fence to surround the entire hospital grounds, two new neighborhood health centers, and replacement of the dog pound. DEPARTMENT OF CORRECTIONS A new X-type dormitory at the Youth Center is to be provided. Other projects programed are the restoration of the fire-destroyed laundry at the Reformatory Division; an annex to the furniture repair facility; an industrial arts building at the Youth Center; sprinkler system and fireproofing, District of Columbia jail, replacement of the administration building at the Women's Reformatory; a storage building at the jail; a chapel at the Youth Center; and two new dormitories at the Reformatory to relieve overcrowding. DEPARTMENT OF PUBLIC WELFARE Forty-four projects are programed. The program places continued emphasis upon permanent improvements at the various welfare institutions. New construction also is planned, however: a 20-room cottage at Children's Center; funds for planning for a new school at Junior Village; an addition to Washington Cottage at Maple Glen School; a storage building at Junior Village; a shop building at Cedar Knoll School; a new cottage at Maple Glen School; replacement of the farm cottage at District Training School; replacement of three cottages at Junior Village; an addition to Cedar Knoll School building; an administration building adjacent to the District Training School building; four cottages at District Training School; and an addition to the administration building at Cedar Knoll School. ADMINISTRATION AND OTHER BUILDINGS The most significant project scheduled is the West Administration Building which is estimated to cost $23 million. There is also included the project for a juvenile facility similar to the Federal National Training School for Boys (location and jurisdiction over this facility has not yet been determined). Other items include pointing and resetting stonework on various District buildings and converting elevators from manual to automatic operation. |