Likewise, other program requirements of the District are increasing more rapidly than available revenues. (Exhibit B.) In fiscal 1967, it is estimated that local revenues, the presently authorized Federal payment and the normal use of loan authority will produce only $346.7 million of the $371 million of the budgeted requirements to be financed from the General Fund. (Exhibit C.) There will be a deficit of at least $24.3 million which will be increased by pending changes in salary scales beyond those contemplated in the budget submission and by budget amendments and other legislative action involving the need for additional funds. For example, teacher, police and firemen salary increases significantly higher than those recommended by the Commissioners could increase the planned spending requirements by $4 to $5 million or more.

The District is experiencing the same increased costs as other state and local governments. (Exhibit L.) One of the major reasons for these accelerated costs is the necessity to increase salaries and provide other benefits. However, there are additional demands for better services and facilities in our expanding economic climate. Although the over-all population of the District has remained fairly stable, significant increases in the school population and the aged have placed heavy demands on the school system and the health and welfare programs.

EXHIBIT L

REVENUE AND HIGHWAY PROGRAM

EXHIBIT L--Continued

Increased operating cost of D.C. government, 1960–1966—Continued

13

-177.4

-0.2

1, 434. 4
583.8

1.3

0.6

98.2

0.1

878.7

0.8

-22.3

0.0

237.8

0.2

22.7

0.0

3,055.9

2.8

Public Safety:

Office of Corporation Counsel..

Metropolitan Police..

Fire Department.

Office of Civil Defense..

For example, to interpolate, Mr. Chairman, the school population in 1955 was 105,000. In 1965 it is 146,700. The overage population in 1955 was 56,687. In 1964, the latest date at which there is a figure, it has grown to 73,400.

65-205-66- 2

The budget requirements for 1967 continue this trend. (Exhibit M.) For instance, an additional $6.9 million will be necessary to make adequate progress in improving the school system. Rising demands in public health, welfare and vocational rehabilitation will require almost $9 million more and $6.7 million more will be needed for public safety. The capital outlay program for 1967 alone amounts to $62 million. (Exhibit N.) An equally necessary long range capital program would enable the District to eliminate plant deficiencies and provide facilities for new requirements.

Mr. Chairman, it should be noted that-in addition to the annual Federal payment-the District expects to receive about $118 million in Federal grants during the forthcoming fiscal year. (Exhibit 0.)