Annual Message to the Congress on the District of Columbia Budget.

To the Congress of the United States:

I present the budget for the District of Columbia for the fiscal year beginning July 1, 1966.

The great domestic challenge of our time lies in our cities. Significant efforts are being undertaken to meet this challenge, and to make it possible for every citizen to lead a productive and satisfying life.
The Federal Government has a special responsibility for the Nation's Capital. We have long resolved that the District can and should be an example of the best among our urban communities, but in many ways the District continues to fall short of that goal.

Programs for the future must recognize that there is much room for improvement. Yet, even to avoid regression is both difficult and expensive. The District, as the central portion of a major metropolitan area, must cope with unusual demands.

The past decade, for example, has seen a substantial increase in the need for services to meet the requirements of a changing population. During that short span, while total population of the District remained virtually unchanged--
--School-age population (5-19) increased by 23,700 (15%).
--Actual school enrollments increased more than 37,000 (35%), due primarily to expanded kindergarten programs and a modestly successful program to reduce school dropouts.
--Working-age population (20-64) decreased 21,100 (4%).
-- The over-65 age group increased 14,000 (24%).

The student group certainly, and the older age group in many cases, require greater public services and public facilities. These needs cannot be ignored.

The District must also replace and modernize a physical plant that is aged and rapidly becoming obsolete. Of the public schools, for example-
--Over 38% were built totally or in part before 1920.
--Over 60% have some substandard classrooms.
Yet, the demands of the rapidly increasing school population, combined with limited appropriations for school construction, have made it impossible even to house new students, much less to modernize the existing school plant. Indeed, there is no fact of which we should be less proud than that in the Capital City of this great Nation there are some 2,100 children compelled by lack of classroom space to accept part-time education.

These and other program demands mean, therefore, that an increased level of appropriations will be required. To some extent that increase has been held in check by the cost reduction and management improvement program developed by the Commissioners. This program, similar to that required in each Federal department and agency, will continue to help in holding down the need for additional personnel and other resources despite the rapidly increasing program requirements. Moreover, to increase even further the productivity of District agencies, I have directed the Bureau of the Budget to work closely with the Commissioners in the development of-
• A planning, programing, and budgeting system.
• New management techniques.
• Improved methods and procedures.
• Intensified use of data processing equipment.

In addition, I have insisted that the increases in expenditures reflected in this budget be held to the minimum needed to--
• Assure continuation of essential services.
• Provide an adequate level of staffing to carry out essential services.
• Permit only such improvement in services as is required to assure an acceptable rate of progress toward our ultimate goals.

Revenues.--Increases in District resources must, as always, come largely from local taxes. Commensurate increases in support by the Federal Government are necessary. The Federal payment, which is now authorized at $50 million, should be authorized at a substantially higher level by approval of the formula contained in H.R. 6889, and appropriations should be increased accordingly. That formula provides a fair, equitable, and flexible measure of the amount of Federal support that should be provided the District government. The need for this type of flexible authorization and the inadequacy of the present laws are apparent. In 1965, the formula would have authorized only $4.8 million more than the present authorization of $50 million. In 1967, the formula indicates $61.9 million as the appropriate level of support--$11.9 million more than is now authorized. The propriety of thus measuring the appropriate level of Federal support to the District has twice had the approval of the Senate. I urgently commend it.

Increases in District taxes to accompany the larger Federal payment should be substantially greater than the $4 million provided for the general fund in H.R. 11487, the revenue bill which has been passed by the House of Representatives. While it is true that the contribution made by District taxpayers has substantially increased in the past year, both through larger receipts from existing taxes and from the increase of 20 cents per $100 of assessed valuation in the real estate tax, these increases fall far short of meeting the District's needs. I support, therefore, the recommendation of the Commissioners to the Congress of a tax package which will increase tax revenues in the general fund by $8.4 million annually beyond those provided in H.R. 11487.

Borrowing.--The authority of the District to borrow for general fund purposes is now fixed at $225 million, of which $50 million is specifically allocated for the purposes of the National Capital Transportation Act of 1965. When this amount has been borrowed the authority will be exhausted, irrespective of repayments. This form of lump-sum authorization should be replaced by the provisions of H.R. 6889, which relate the maximum amount which the District may borrow from the Treasury to a percentage of the assessed value of real and personal property in the District. This would-
• Conform to debt limits generally used throughout the United States for local governments.
• Relate the debt limit more closely to ability to repay.
• Enable the District to incur new debt as repayments are made.

Since at current levels of annual borrowing the District will soon exhaust its present borrowing authorization for general public works purposes, this matter deserves prompt consideration by the Congress.

With the additional revenues now being proposed, the District will measurably advance toward the goals outlined in my message to the Congress of February 15, 1965. Some of the more significant recommendations are--

EDUCATION

Operation of the school system in 1967 will require $82.6 million, an increase of $6.9 million over 1966. These increased funds will provide-
• Additional classroom teachers needed to maintain the pupil-teacher ratios now in effect.
• Additional positions in special subject areas such as science, mathematics, and reading needed to enrich and strengthen the District's educational .program.
• Addition of 24 librarians to provide one in every school in which physical facilities exist to house a library.
• Additional counselors to achieve the Board of Education pupil-counselor ratios of 750:1 in elementary schools and 400:1 in secondary schools.

• Four pupil personnel service teams. Each team will be composed of psychiatrists, clinical and school psychologists, social workers and attendance officers. They will be able to meet acute needs of literally thousands of pupils whose opportunities to achieve the maximum of their potentialities are now impaired because the schools do not have adequate information on their abilities, achievements, and emotional stability.

REQUIREMENTS AND FINANCING OF THE GENERAL FUND, 1966-72

NEW OBLIGATIONAL AUTHORITY, ALL FUNDS
[ In thousands of dollars ]

There has already been a substantial increase in funds available to the District school system through the several national programs for aid to education. In 1967, these funds will approximate $14.5 million. This Federal assistance has properly been concentrated in low-income areas of the city, where the needs are the most severe and potential for accomplishment is the greatest. While these funds make possible many improvements, they cannot and should not be used as a substitute for the basic educational program financed directly by the community. Together, however, the two sources of funds make the opportunities for major educational progress in the District brighter than ever.

The budget also includes $32.9 million for various stages of construction of 35 school construction projects, including 7 new schools, 18 additions to existing schools, and 10 school replacements, including the critically needed Shaw Junior High School. When they are all completed, they will provide 19,550 additional pupil spaces. This will, at long last, eliminate foreseeable part-time classes; and permit in 1968 the beginning of a concerted program to replace obsolete school buildings.

PUBLIC SAFETY

The budget provides $85.8 million for operating expenses for the District agencies concerned with public safety--an increase of $5.7 million over fiscal 1966.

Budget proposals for District agencies concerned with crime are necessarily made without benefit of the recommendations by the Commission on Crime in the District of Columbia which I appointed last July. That Commission, I hope and expect, will point the way toward further improvement of the District's efforts to achieve effective and fair law enforcement. Budget amendments appropriate in the light of its recommendations will be transmitted to the Congress promptly. I am determined that both citizens and visitors in our National Capital shall be secure in their persons and their property.

Pending receipt of the Commission's recommendations, however, we can proceed with confidence on several items. The pistol registration bill, S. 1632 and H.R. 6745, should be promptly enacted. The Police Department has been encountering great difficulties in recruiting qualified candidates. An increase in the salaries of policemen is necessary to bring the police force to its currently authorized strength. Legislation to accomplish this will be proposed to the Congress. A decision on increasing the authorized strength can await the Commission's report.

Funds are also appropriate, and are included in the budget, for several improvements that will enable the force to operate more effectively-
--Civilian employees will be used to fill 31 administrative positions now filled by uniformed personnel who will be freed to utilize their training to greater advantage.
--Closed-circuit, department wide television will be installed to increase the effectiveness of lineups and the efficiency of training programs.
--A planning and development unit will be established to improve the utilization of computers and other technological advances in the field of crime prevention and control.

I am also recommending that the roving tactical force be continued in 1967. That force, the one-man scout cars, and the additional two-way radios for foot patrolmen, all provided last year, have contributed in a major way to the hopeful change in the trend of serious offenses reported in recent months.

Finally, there are funds for the more active recruitment that is needed to bring the police force to its authorized strength and for an increase from 25 to 60 trainees in the highly successful police cadet program.

Also, salary increases for firemen are proposed for later transmittal.

PARKS AND RECREATION

The budget provides those agencies concerned with parks and recreation with an increase of $1.3 million over the 1966 level of $11 million. Recreation facilities in the District remain well below needs and accepted standards. This is particularly unfortunate in areas where low incomes make it difficult for the residents to take advantage of facilities not in their immediate neighborhoods. Until these deficiencies can be remedied, maximum utilization must be made of existing facilities. This can be done only through the extension of hours during which facilities are open, and expansion of programs to enlarge the opportunity for participation by various age groups. The budget provides funds for these purposes, as well as $1.9 million for new facilities and expansion and improvement of those already in existence.

Funds are provided for an expansion of the Roving Leader program which has had a record of success with hard-to-reach delinquent and potentially delinquent youth. The budget also provides funds to enable the Recreation Department and the National Park Service to continue, in cooperation with the many nongovernmental efforts, to beautify the city, particularly through improved landscaping and planting. The needs of the Park Police for a larger force, and the National Zoological Park for increases in operating and maintenance staff, are likewise met.

HEALTH AND WELFARE

For health, welfare, and vocational rehabilitation programs for 1967, the budget proposes funds of $90.5 million, an increase of $9.6 .million over 1966. These funds, together with the expanding levels of grants to the District for participation in Federal programs in these fields, will maintain the momentum already achieved in the District's public health and vocational rehabilitation efforts, substantially reduce the present deficiencies in the welfare program, and permit the District's full participation in the programs made possible by recent amendments in the Social Security Act.

In the field of public health the District is moving forward rapidly in the prevention and treatment of mental illness. Funds are provided to complete the staffing of the first of four Community Mental Health Centers, begun two years ago at D.C. General Hospital and operated during the past year with the aid of a grant from the National Institute of Mental Health. The second center, to be located in the northwest section of the District, will be a part of the Northwest Community Health Center for which site funds are requested. Funds are also requested for a demonstration project for the treatment of alcoholics on a volunteer basis. It is hoped that this program will reduce the burden now imposed on the police, the courts, and the correctional system by the chronic alcoholic.

Two demonstration projects heretofore operated with funds granted by the Department of Health, Education, and Welfare the Nursing Home Improvement program and the Rheumatic Fever Prophylaxis program--have fully proven their usefulness, and are now proposed for partial financing by the District itself.

The welfare program must continue to meet the basic needs of the poor, the aged, and the disabled. This program has increasingly emphasized rehabilitation services which encourage and assist families in achievement of independence and self-sufficiency. This budget continues that emphasis.

Funds contained in this budget will permit the District to participate more fully in Federal programs. Maximum attention is paid to the needs of children. This is as it should be. Under this budget--

Additional staff will be provided to bring the number of social workers closer to the national standard of 60 cases per worker, particularly for families with dependent children, and to expedite the current welfare eligibility review.
Special programs will be continued and expanded to provide immediate help for families not eligible for regular welfare services but who face crises which might result in family breakup.

Needy children of the unemployed will be assisted through an improved program, which will provide training and job placement assistance for their parents. This program will be closely related to Title V of the Economic Opportunity Act and will be designed to reduce relief rolls by equipping parents for productive employment.
An enlarged child welfare staff will be provided.

Higher rates of payment will be made to foster parents and group foster homes.
Homemaker and day care services will be expanded.

The favorable results of special efforts which have contributed to a marked reduction in the population of Junior Village during 1965--from over 900 in February to 630 at the end of the year--make it the more imperative that these efforts be further intensified.

TRANSPORTATION

The Congress, at its last session, took a major step toward resolving one of the significant transportation problems of the National Capital Region by authorizing construction within the District of the rail rapid transit system. The budget provides for the appropriation of a loan in the amount of $8.5 million to the District to enable it to meet its share of the cost of this project during 1967.

Problems remain, however, in connection with the highway portion of the District's transportation system. One is the urgent need for additional resources for the Highway Fund if any highway program at all is to continue. The Commissioner's requests for a 1-cent increase in the gasoline tax and for an increase in the Highway Fund's borrowing authority are included in H.R. 11487, which has been approved by the House of Representatives. I commend these proposals to the Senate as well.

Another problem which should be promptly resolved concerns the dimensions and locations of the interstate freeway system within the District. The report of the District of Columbia Committee of the House of Representatives on H.R. 11487 requests a further review and appraisal of some of the present plans. The Highway Department has already taken some steps in this direction, and a possible relocation of a portion of the inner loop is now under active consideration by the Policy Advisory Committee.

The magnitude of these projects, however, makes it important that both the Federal Government and the Washington community have full assurance that there will be no needless expenditures of moneys or dislocations of persons and businesses. Accordingly, I am requesting the Policy Advisory Committee to consider whether it should secure, in conjunction with the National Capital Planning Commission's work on the 1985 comprehensive plan, a review of present highway plans. This review would examine not only methodology but also the basic assumptions regarding dislocation of families and businesses, real costs, Federal needs, and other community values on the basis of the most recent data available.

In order that the highway program not be delayed, and in order also that the Congress may have as much information as possible before completing its consideration of the District's 1967 highway budget, I am requesting the Committee to complete both its current studies and any further reviews it may consider appropriate by April 1, 1966. The Commissioners have advised me that the status of the most controversial items-the north leg of the inner loop and the northcentral freeway--is such that in the next few months there would be no major expenditures on these projects in any event except for planning.

I am encouraged by the close cooperation which has been evident among the Federal and District agencies with responsibilities for developing the District's transportation system. Continued cooperation will insure a coordinated and efficient transportation network--one which will best serve the needs of the Nation's Capital.

MUNICIPAL CENTER

During the past few years the District government has not been provided with additional government-owned office space for new or expanding programs. Rental space, at high cost in both dollars and efficiency, has been required. I am recommending an increase of $1 million for additional rental space as a temporary relief of overcrowding.

In this budget, a small but critical item of $75,000 is sought to finance the first step toward a permanent solution. These funds will enable the District to prepare floor plan layouts and budget estimates for two buildings in the Municipal Center area to house education, recreation and technical services. These buildings, which help to fulfill the long-range plans for Pennsylvania Avenue, not only will permit consolidation of scattered fragments of several departments and relief from outmoded, inadequate and overcrowded space, but will also be of definite economic advantage to the District.

CONCLUSION

In addition to this expenditure program, and the revenue measures which I am recommending, there are a number of other measures of importance to the District of Columbia that are already before the Congress.

Of preeminent importance is the passage of a Home Rule bill. I urge the House of Representatives to complete action on the bill already approved by the Senate. My views on the need for this legislation are well known to the Congress. There is no reason to repeat them here.

Among the other important District measures pending in both houses are A bill to authorize in the District of Columbia a community college and a college of arts and sciences under a Board of Higher Education.

• A bill to create a Pennsylvania Avenue Commission.

• A bill to establish an international center.

The House has already passed H.R. 8126, which would extend the coverage of the District of Columbia minimum wage law to inert.

Enactment of these measures would make the 89th Congress as memorable for the District as it is already for the Nation.

LYNDON B. JOHNSON
January 25, 1966