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

To the Congress of the United States:

I am transmitting to the Congress the budget for the District of Columbia for the fiscal year beginning July 1, 1970.

This budget represents the programs and policies of the government of the District of Columbia for providing the municipal services and for the local needs of our Nation's Capital City. It also reflects the financial contributions of the Federal Government in providing resources to help finance the local budget.

Washington, D.C., is a great city of monumental beauty, national history, and governmental activity vital to the Nation's domestic and international affairs. Washington is also the center city of one of the Nation's fastest growing metropolitan areas and as such is the hub of business and commercial activity and the home of 828,000 residents. To protect and promote the interests of the residents, visitors, employees in both the public and private sectors, national and international leaders, requires critical attention to the needs of the Capital City and the urban problems it shares with the other cities of our country. It also requires that the best and most effective use be made of the local and Federal tax dollars which are used to finance the District's budget.

This budget, as approved by the Mayor and the City Council, proposes prudent and realistic programs and means of financing to move toward our goal to establish a quality environment for Washington and make it the kind of city we all look for and want as a Nation's Capital.

This budget recommends appropriations of $881 million for the fiscal year 1971 and includes $654 million for operating programs and debt service and $227 million for local public works projects. The estimates for operating expenses and debt service, which cover the basic ongoing programs and provide for the city's services, represent an increase of $86 million or 15% above the amount estimated for the current fiscal year.

SOURCES OF FINANCING

The proposed $881 million in budget authority for fiscal 1971 will require total local expenditures of $647 million for operating and debt service expenses and $297 million for capital outlays. The operating and debt service requirements are to be financed by $488 million of local taxes from existing sources; $21.5 million from a proposed increase in individual income tax rates as contained in Section 301 of H.R. 15151; $1.5 million from a proposed 1-cent increase in the gasoline tax; and $136 million in Federal funds which includes $4 million for water and sewer services provided for Federal agencies and $132 million for the annual Federal payment to defray the operating expenses of the City Government on the basis of a proposed formula which would set the Federal payment authorization at 30% of local District revenues.

The proposed 30% Federal payment authorization would provide for an equitable sharing by the Federal Government in meeting the needs of the District Government including better law enforcement capability, strengthened crime prevention and control activities, health and welfare programs, and pay increases for District employees, including an increase for its teachers, policemen, and firemen which is now pending before the Congress.

These various local requirements make it imperative that the Congress promptly enact the proposed Federal payment and local income tax measures in order that they will become effective this fiscal year. If the Congress fails to take timely action on these financing proposals the city will lose an estimated $15 million in resources for fiscal year 1970 which are needed to fund programs both in the current year and in fiscal 1971.

NEW DIRECTIONS

As part of this administration's effort to shift priorities, turn toward new directions, and take stock of past practices-this budget for the District of Columbia proposes several changes in Federal financing and includes significant local initiatives.

CHANGES IN FEDERAL FINANCING--The budgets for the Federal and District Government are based on several new changes in Federal financing which are designed to strengthen the local government and reflect a proper balance between Federal and District responsibility. In addition to the proposed 30 percent Federal payment formula the budget proposals for fiscal year 1971 would--

• shift the direct responsibility for the city's public works loan financing from the U.S. Treasury to the private investment community by authorizing the city to issue its own local bonds. This will place the District's capital outlay program on a basis similar to that of other cities and will permit immediate savings to the U.S. taxpayer who must otherwise shoulder the immediate burden of direct Federal borrowing. Offsets accruing to the Federal budget are estimated at about $55 million for fiscal year 1971;

• provide direct Federal capital contributions, estimated at $20 million for 1971, for the permanent facilities for Federal City College and Washington Technical Institute;
• shift the responsibility from the District to the Federal Government for financing the operating expenses of the National Zoological Park which is a part of the Smithsonian Institution's national museum complex. This proposal reflects the Federal and metropolitan character of the National Zoo for which the District alone has been beating the burden of its operating expenses. The $3 million estimated for fiscal year 1971 has been included in Federal budget totals thus providing equivalent relief to the city government;

• reallocate parkland between the Federal and District Governments. Those local parks serving primarily the local community which do not have national historical or monumental significance are to be transferred directly to the District. This will eliminate the need for the city to continue to make reimbursements to the National Park Service which will assume full financial responsibility for the parks remaining under its jurisdiction. This measure represents a shift of about $7 million from the District to the Federal budget;

• freeze the level of reimbursements by the city to Saint Elizabeth's Hospital pending a determination of future arrangements for an appropriate relationship between the Federal and District Governments concerning the financing and administration of the Hospital;

LOCAL INITIATIVES.--The most significant local initiatives proposed in the District's budget are directed to establishing a Capital City with safe streets and a quality environment.

Safe streets.--This budget provides for strengthened law-enforcement capability, improved administration of justice, and augmented action measures to reverse the City's crime rate. The 1971 budget estimates include $130.5 million for operating expenses of police courts and corrections. This amount represents an increase of $46 million--or 55%---over the level for 1969 and would provide--
• increased street patrols by an actual police strength of 5,100 policemen on the force compared to an actual strength of 3,589 men as of June 30, 1969;

• increased police mobility and effectiveness through additional scout cars, patrol scooters, and communications equipment as well as more civilians to support police operations and relieve policemen from civilian duties;
• an augmented program of narcotics treatment and control, including centralized local responsibility under a new narcotics treatment agency;

• a roving leader corps of 282 to work with delinquent prone and other youth, compared to a staff of only 37 for fiscal 1969;
• a reserve of $4 million to provide for costs of additional judges and other expenses related to reorganization of the court system of the District of Columbia upon enactment of S. 2601;
• strengthened court support services through expansion of public defender services, the D.C. Bail Agency, and juvenile probation services;

• construction of police stations--to support consolidation of 14 police precincts into 6 police districts, and planning and construction of a new jail and a new courthouse; and
• an allowance for pending police pay raises which would increase starting salaries for new recruits from $8,000 to $8,500.

Quality environment.---New and increased efforts to improve the environment of the Nation's Capital include--
• $40 million for waste treatment facilities to reduce pollution in the Potomac River;
• development of additional facilities for recreation activity including a campsite in Scotland, Maryland, to provide about 3,000 inner city youth with summer camping opportunities, and construction of swimming pools and other recreation projects in Anacostia; and

Balanced transportation.--The budget continues the efforts to provide a balanced transportation system for the District. In particular, the long-awaited rail rapid transit system for the entire metropolitan region takes a major stride forward with the $34.2 million for the city's share of the rail rapid transit program. Contracts for over 16 miles of subway within the District will be let during the fiscal year, giving tangible evidence of a program which truly designed to unify the central with the surrounding suburban ties. Increased employment, reduced pollution, and reduced congestion some of the benefits residents and visitors in the area can look forward to as this dynamic project moves ahead. Other elements in the city's transportation program include $12 million for the District local matching share for previously authorized highway construction and funding of local street improvement projects.

Better education.--Improved education is not only a national goal, but one which must be carried out at the local levels. This budget takes important steps in improving educational opportunity for one of the city's most precious resources--its youth.
• For the first time in the District's history per pupil expenditures will be over $1,000.
• In order to encourage students to stay in school, a dramatic new systemwide career development program will be initiated. The resources of private industry, colleges, and government will be marshalled in a cooperative effort to insure that students remain in school and are able to realize their full potential in choosing and working toward their employment goal

• Over 12,000 students will be able to continue their education at the District's institutions of higher learning.
• A new means of financing the permanent facilities of Washington Technical Institute and the Federal City College is anticipated as part of a master plan for higher education to be developed by the affected institutions. The plan will provide the basis for the coordinated long-range growth and development of higher education in the District.
• For the first time, the Board of Education is provided with appropriate staff assistance. The $100 thousand requested in the budget will help to increase the Board's ability to analyze the complex educational problems of a large city school system and increase the Board's ability to respond to community desires and interests.

This is only a summary, of course, of the most significant budget initiatives. A further indication of the directions for fiscal 1971 is contained in the Mayor's transmittal letter. These recommendations have been carefully sifted and weighed, first by the Mayor and his departments and agencies within the executive branch of the District Government, then by the public and community organizations, and finally by the City Council. The result of this thorough examination of programs and priorities is a sound and prudent budget based on a minimum of new revenue measures. I again urge the Congress to take early action on the pending local income tax and Federal payment authorization proposals.

None of our aspirations for our Capital City can be achieved, including augmented police protection, improved system of courts and offender rehabilitation, reduced pollution and congestion, and better education--unless the District is given the resources to do the job. At the same time, however, money alone can not achieve the objectives the city officials have set for themselves. I am proud, as is the Congress, of the dedicated and judicious manner in which the recently reorganized Government of the District of Columbia has proceeded forward with the tasks it faces. In fulfilling the expectations of the Reorganization Plan of 1967, the Mayor is continuing to further improve and streamline the internal organization of the City Government. Most noticeable among these efforts is the establishment of a new Department of Economic Development, an Office of Budget and Executive Management, a new Department of Human Resources, an Office of Community Services, and most recently-an Office of Youth Opportunity Services to strengthen the coordination of the city's various youth activities, including planning responsibility for juvenile delinquency prevention and control programs.

None of the tasks with which the City is faced can be completed tomorrow. Significant progress can be made with strong leadership, adequate resources, and sound programs to achieve a viable urban environment. I ask the Congress to continue its support for the Capital City through its budget and financing proposals. I recommend approval of the District of Columbia Budget for fiscal 1971.

RICHARD NIXON
March 31, 1970