Mr. CRAIG. Now, the District has been unable to finance this acceleration of estimated needs for major capital highways. I think this is perhaps illustrated by the next graph (chart 2) which charts two lines the top line is the operating revenue of the District highway fund, and the bottom line is its annual operating expense.

The gap in between is what is available of District funds for major capital outlay.

This margin, due to gasoline tax increases in fiscal 1947, 1953, and 1955-grew to about $5 million or $6 million. But in recent years, their margin has practically disappeared, and one reason is that so much money was borrowed in this period, in order to construct more highways than the revenues provided, that the District is now saddled with a heavy debt service burden which continues right off the right of this map until after 1990.

If the gasoline tax is increased, the District will be able to service its existing $50 million debt, and have some money left over for major capital outlay.

If, however, the District borrows another $35 million, this added debt service requirement puts total operating expenses above the projected revenues, so that the District would have insufficient revenues to cover its operating expenses and debt service requirements of an $85 million debt.

(Chart 2 referred to follows:)

Mr. CRAIG. The next graph, chart 3, shows sources of funds which have been appropriated for the District's share of major highway projects.

The bars above the line are funds directly from the highway fund. The bars below the line are what I call in some oversimplified terms deficit financing.

The solid part of the bar above the line is from current highway fund revenues, and the dotted portion of the bar is from accumulated surplus.

As you can see right about 1964-65, which is where we are now, the dotted bars are very large, because the District highway fund has a very large surplus account at the present time in so-called E project

reserves.

The total length of the bar above and below the line indicates the total amount of money, District share only, appropriated for major capital outlay. You can see the bars get longer and longer until suddenly after 1954 they become in the neighborhood of $8 million, $10 million, or $12 million a year.

Because the revenue availability, that which is shown solid above the line, has declined to the point it has now disappeared, practically all of the funds needed for the District portion of highway projects have had to come from other sources.

The solid bars below the line show the portion borrowed under the existing $50 million loan authorization. That which you see in hash or slanted-marked bars below the solid bars is about $8 million taken from the general fund when during 3 successive years the District government saddled the general fund with the highway fund's obligation to pay for traffic police.

The criss-crossed portions below the line are funds taken from the motor vehicle parking. This was specifically authorized by legislation sponsored by this committee.

But commencing after fiscal 1966-and this assumes the gasoline tax increase, you have a substantial program of major capital outlay for which there are no funds in sight to cover. These bars and the total requirements would be larger if the $35 million loan authorization is granted.

(Chart 3 referred to follows:)