Source: Table 6, City Government Finances in 1964 (G-CF64-No. 1), Bureau of the Census. Senator TYDINGS. I would think it would be interesting to know. It is my understanding that the philosophy of local and State government in the 19th century was you pay everything on a pay-as-you-go basis but that modern government realized that in the area of capital expenditures, roads, schools, buildings, since they are going to be used by several generations they should be paid for by several generations, and certainly if every family in the United States had to pay for its home the year they moved into it, there would not be many homes in the United States and they would not be the type of homes we live in today. I would think that any information you could add to the record that would buttress this would give support to attempts to amend the revenue act along the lines you suggested, which I feel have great merit. I think it is absolutely ridiculous that the Capital of the United States is required to finance its public school outlay project on a pay-as-you-go basis. It is just incredibly backward. Dr. HAWORTH. I will make every effort to supply that information. (Supplementary information as requested from the Department of General Administration of the government of the District of Columbia follows:) GOVERNMENT OF THE DISTRICT OF COLUMBIA, Mr. CHESTER H. SMITH, Senate District Committee, Washington, D.C., DEAR CHET: At the close of the hearings on the District of Columbia revenue bill, H.R. 11487, as amended, Dr. Ellis Haworth, chairman of the Legislative Committee of the District of Columbia Congress of Parents & Teachers, presented a statement to the committee which concerned financing of public school construction, the National Zoological Park, and the National Capital Region of the National Park Service. Senator Bible requested us to submit supplementary information concerning these comments. If there are any further questions, please let me know. Sincerely, SCHUYLER Lowe, Director of General Administration. SUPPLEMENTARY INFORMATION CONCERNING LONG-TERM FINANCING FOR CAPITAL IMPROVEMENTS PAYABLE FROM THE GENERAL FUND On June 6, 1958, Public Law 85-451 was approved authorizing the Commissioners of the District of Columbia to borrow funds totaling $75 million to meet capital needs of the public in the fields of education, health, welfare, public safety, recreation, and other general government activities. This was the first time borrowing had been authorized to pay for facilities whose useful life extends well into the future. This marked the beginning of the Commissioners' program to finance public works projects chargeable to the general fund from a prudent combination of borrowing and current revenues. This authorization of $75 million was appropriated as follows: On August 27, 1963, Public Law 88-104 was approved which amended Public Law 85-451 by increasing the borrowing authority by $100 million or a total of $175 million. In justification of additional borrowing authority, the late President Kennedy in his District budget message for fiscal year 1964 stated: "*** Because of lack of sufficient borrowing authority in the past, a serious backlog of capital outlay needs has developed, which within reasonable limits should be financed by long-term debt." This additional authorization of $100 million was appropriated as follows: Amount (millions) $11.3 20. 0 22. 4 17. 2 29. 1 1967 (estimate). 1968 (estimate). The following tables indicate for the years 1960 through 1968 total capital outlay chargeable to the general fund and the portion of each year's total financed from loan and current revenues. In addition, the amount and percentage of each year's total devoted to public schools has also been shown. Because of these varying needs for the entire city, the Commissioners have expressed opposition to a separate taxing authority for the school administration or borrowing earmarked specifically for school construction. All funds made available to the general fund should remain unrestricted in order that they may be applied each year to the most urgent needs. As indicated previously, borrowing or long-term financing is quite necessary for the construction of facilities which will be used well into the future but a reasonable "mix" with current revenues must be maintained. In addition, total indebtedness must be kept to a level which the city can afford to repay. At the current interest rate of 421⁄2 percent, for each $1 million borrowed, $1.8 million must be repaid over a period of 30 years which emphasizes the necessity for prudent and cautious use of borrowing. The long-term requirements for the next 6 years, 1967-72, include an estimate of $300.9 million for capital improvements needed during this period of time. It is proposed that $134.5 million of this amount will be financed with loans and the balance of $166.4 million with current revenues. The public schools portion of the total program is $125 million or 41.5 percent. If the Congress approves the total program requested for school construction in the fiscal year 1967 and fiscal year 1968 estimates, there will be a small surplus of seats in fiscal year 1970 at all three levels based upon current school administration enrollment projections. Once this achievement is realized more concerted effort can be directed toward replacement of older schools on a 1-for-1 basis. SUPPLEMENTARY INFORMATION CONCERNING THE FINANCING OF THE NATIONAL ZOOLOGICAL PARK For many years the total cost of operation and capital improvements of the zoo was paid from the general fund of the District of Columbia. Although this installation is under the direct control of the Smithsonian Institution, Department of the Interior, it is nonetheless a source of constant recreation and education to the entire populace of this city. After many surveys to attempt to determine the percentage of District residents enjoying these facilities in contrast to purely "out of town" or tourist visitors, it was determined that an equitable division could be made by the District continuing to pay for operating expenses and the Federal Government assuming the burden of a very ambitious capital improvements program. Since this agreement was reached, the following amounts have been appropriated for capital improvements: The 1967 estimates for the Smithsonian Institution include $1,589,000 for capital outlay for the zoo. It is further estimated that approximately $1.5 million will be requested each year for the period 1968-72. SUPPLEMENTARY INFORMATION CONCERNING THE OPERATION OF THE NATIONAL CAPITAL REGION OF THE NATIONAL PARK SERVICE The National Capital region is responsible for the administration, development, protection, and operation of the National Capital Park System comprising approximately 7,726 acres made up by 753 reservations within the District of Columbia. The program includes management, protection, maintenance, and operating facilities which make up the System. The protective force safeguards visitors and property and regulates traffic and use of parks. The maintenance and operating force provides services in connection with special events, maintains and operates approximately 1,700 acres of horticultural features, buildings, structures, roads, utilities, and other inanimate features. The financing of these programs within the District of Columbia under the present satisfactory financial relationship dates back to 1933. Funds are secured from two sources, the District budget for municipal-type functions, and the Federal budget (Department of Interior) for functions which resemble more closely the National Park Service in other areas. The Total funds required for these programs are in excess of $12 million. Federal Government appropriates all funds required for construction of roads and trails, parkways, buildings and utilities, and land acquisition as well as 50 percent of operating expenses or a grand total approximating two-thirds of the funds required. Insofar as Park Police are concerned, the current budget (fiscal year 1966) includes 282 positions of which 91 are paid from the District of Columbia funds and 191 from Federal funds. The CHAIRMAN. Our next witness is Mrs. Eleanor Smollar, vice president of District of Columbia Citizens for Better Public Education. STATEMENT OF MRS. ELEANOR SMOLLAR, VICE PRESIDENT, DISTRICT OF COLUMBIA CITIZENS FOR BETTER PUBLIC EDUCATION Mrs. SMOLLAR. My name is Eleanor Smollar and I am vice presi dent of the District of Columbia Citizens for Better Public Education. Thank you, Senator Bible, for giving me the opportunity to state the position of District of Columbia Citizens for Better Public Education on this legislation. We consider it of the greatest importance to our children and young people in the public schools. This organization, composed of leaders and citizens from all segments of the Greater Washington community, is nonpartisan and nonpolitical. We believe children seldom get the schools they deserve, but that communities (almost) always do. We are helping to develop a massive and continuing effort to make our schools in this Capital of the richest nation on earth, equal to the best, anywhereand we need your help. We know citizens of the District of Columbia will support adequate school budgets and the development and proper financing of public colleges, technical and vocational schools. We know we must create a school system geared to meet the needs of all our children. We also know only the Congress can give us the power to secure revenue to pay the cost. We are here today to support the proposed legislation designed to produce additional revenue for the District of Columbia general fund. At the same time we urge the exploration of all possible fiscal sources which might enable the District government to pay for services needed by those of us who live here. Dr. Ellis Haworth, legislation chairman of this organization as well as the District of Columbia Congress of Parents & Teachers, proposes legislative action which would free almost $53 million. This would take care of all items in the fiscal 1967 budget, plus approximately $21 million for school capital outlay projects. We petition the committee to consider these suggestions carefully. I think in answer to Senator Tydings' comments on "pay as you go," most of us grew up in a "pay as you go" philosophy, but deficit financing is the world our children are going to live in in the future and many of us could not survive without it, and I think our tax situation is on that basis, and our school situation certainly should not be on a "pay as you go" basis. We urge an increase in the Federal payment to approximate a fair share of responsibility on the part of the Congress which exercises ultimate authority over us. Dr. Hansen has provided these details. I do not need to detail them for you. We have begged the Commissioners to take the lead in changing the defeatist approach to our problems which has actually resulted in human sacrifices to inertia and greed. We want to plan, budget, and raise revenue on the basis of predictable need. We are tired of jaundiced, petulant estimates of what we think out critics will let us have. We say again, if the government we have under congressional direction is as ideal as those who oppose home rule insist, let it pay the bills for a decent school system. Let us offer our children knowledge and skills so that all of us can participate in the benefits we are supposed to be enjoying. Today, because of our failures, we are wasting human lives, for we all know that lost educational opportunities can never be regained. The approximately 2,000 children who are on part-time classes in the District of Columbia, and an unknown number who are unable to attend kindergarten, are being lost to us every day. This is a destructive approach. We are convinced that the country is on the verge of an educational renaissance. You will agree that the District of Columbia has a right to participate in it. Our needs are great, and they will not be diminished by ignoring the fact that they are there and they are growing. Throughout the country and the world, the necessity for investment in education, in human capital as it has been called, is being recognized. As a mother and a teacher I know these educational needs. But no businessman today can deny the urgency of giving our children access to the knowledge and skills they must have to become selfrespecting useful members of our technological society. Without these tools they can only become a continual drain on our resources and on social progress. Without adequately developed manpower and womanpower to fill jobs and provide leadership there can be no progress, and Washington, D.C., will bring up the rear, after other cities where public education is properly performing its role. We are intensely aware of the fact that the District of Columbia belongs to all the citizens of this country and the taxpayers of all the States have a great financial as well as personal interest in their National Capital. As local residents, also classified, I believe, as citizens of the United States, we are asking the Congress to give us the right to insure the future of this city as a vital, healthy, growing symbol of our country's wonderful variety and promise. We should also like to make it a city in which every citizen in the United States would be pleased to live. Thank you for your interest, concern, and sympathy. The CHAIRMAN. That is a very, very, fine statement Mrs. Smollar. I commend you and the association that you represent for presenting it so very ably. Mrs. SMOLLAR. I would like to say that on the impacted aid, our executive subcommittee has already taken a stand favoring the retention of the impacted aid. The CHAIRMAN. I am sure Senator Morse as well as the rest of us are happy to hear about it. This is a nationwide fight and we realize the impact on the District of Columbia. I know the impact in my own State, and I think many of the Senators and Congressmen recognize the same thing. I am hopeful we can reverse this trend and cut it out. Thank you. This has been a very fine hearing. It will stand concluded. The record will be kept open for I think, let us say St. Patrick's Day— that is a day very easy to remember-it will be kept open until |