New-York tribune., 1920-10-12
$3433, 33,894,O49
Tentative City
Budget Passed
Board of Estimate Meets
Minute Past Midnight and
Adopts Measure After
a Spirited Discussion
Tax Rate Is About 2.85
Debt Limit Exceeded, Fig
ures Dishonest and De-
ceive Public, Curran Says

carly last night to consider the adop-
the required number OF votes was
lacking. 1t was necessary to adjourn
until 1901 o'clock this morning to pass
the measure Twelve votes out Of the
total of sixteen in the board are re
CURED under the charter to adopt at
the first consideration. Only nine votes,
or majority, are required at the sec
ond consideration, and this was ac-
complished by adjourning until an
other day.
Borough President Henry H. Curran
of Manhattan, with two votes, and Al
dermanic President +. H. La Guardia,
with three votes. voted against the
proposed document upon first consider
alton. Curran had presented q resolu-
ton, which was defeated in which he
declared that the budget as proposed
was a dishonest and misleading docu-
ment, figured essentially for the pur.
pose of keeping down the tax rate, and
that s3s,305. 5si should be added to the
proposed figures for educational pur-
poses. Major La Guardia, the other
Republican member of the board,
agreed with him. The budget as finally
adopted on strictly party lines amount
ed to s343, ,S94,0 This was about $4,-
100000 less than the figures announced
by the Comptroller Saturday.
Put Up to Legislature
The $38 100000 which the Borough
President intended rightfully be-
longed in the budget represented the
difference between the S82 ,026. .462 re-
quested by the Board of Education for
1921-outside Of its building program
and the $43 100 $50 that the budget
committee determined Saturday was
all that the city could contribute for
the constitutional limitation of the
taxing powers Of the city. The com
mittee decided to let the Legi gislature
make up the difference.
The Borough President further held
that the $i4 0O0, 900 Of tax notes and
special revenue bonds. that must be
redeemed next year, come under debt
service and are not properly included
in the constitutional tax limit on the
assessed valuation Of property in the
city. Mr.. Curran argued that the sec
tion of the constitution which fixes
this limit to the city's taxing power
did not include. and he did not be-
lieve the Legislature intended to in
clude, principal and interest of money
already borrowed and expended.
Therefore. the city was in q position
to raise S44.0000O0 more by taxation,
of which $38 10000 could be added to
the requirements of the Department of
Education.
"To offer the people a budget such
as proposei," said Curran," IS to offer
a dishonest one, designed 10 show a
lower tax rate of approximately 2.S5,
whereas the rate really would run to
about 3.45. The taxpayers should know
at this time approximately what the
city expenses for 1921 are going to be.
The proposed tentative budget does
not truthfully indicate this. The city
is protected against any unscrupulous
Board of Estimate trying to bankrupt
it by the indiscriminate issue of spe-
cial revenue bonds and tax notes by
the statutory limitation of its borrow
ing capacity. The Comptroller should
admit that the city to-day is we'll over
the debt limit and face the situation
squarely."
Comptroller Craig disagreed with
Curran's understanding Of the law. He
declared it was only honest to submit
R budget which all the members Of the
committee knew they could meet. He
referred to the proposed amendment to
the Constitution, which will be con-
sidered by the next Legislature, de-
signed to take all levies for school pur-
poses outside of the per cent tax levy
limit. He said the Legislature had de-
clared education to be state function
and had passed laws laying a heavy
burden on New York City in further
ance of this declaration. Mayor Hylan
interrupted to say that this burden
amounted to some $40,0O0,000 and ac-
cused Curran of dishonest motive
and playing cheap politics in raising
the questions in regard to the tenta-
tive budget.
The Comptroller declared that the
proposal Of the Manhattan Borough
President, if carried out, would shoot
the Constitution to pieces and utterly
destroy the pay-as~ you-go act" A
substitute resolution offered by the
Comptroller that we adopt q budget
which we can finance within the tax
limit" was passed. On the roll call
Aldermanic President La Guardia voted
against the substitution resolution, ex-
planning that he agreed with Borough
President Curran on the propriety Of
adding the $3S COO 900 to the Board of
Education estimates at this time, but
did not agree on the legality of ex-
cludlng debt accounts from the 2 per
cent tax levy limit. In voting no. Mr..
Curran explained that he intended no
personal slant in saying he believed to
submit tentative budget of the kind
proposed was dishonest, but that il
would delude the public, and he op-
posed it. W
The members Of the committee ther
adjourned to the City Hall to meet AS
the Board of Estimate and adopt the
tentative budget. The preliminsries
rehearsed In committee were repeated
again, with the exception that two
votes were lacking on first considera
uon TO carry the Comptroller's motion
and adopt the budget The board how-
eyer unanimously adopted a resolu-
uon offered by the Comptroller re-
questIng an opinion from the Cornora-
Non Counsel upon the legal question
raised by Borough President Curran
Hylan Wants Curtailment
The Comptroller also suggested that
special counsel be requested to render
opinions on the legal questions raised
naming former justices Ceorpr T.
lngraham, Francis NJ. Scott and Clar-
ence Shearn, but q motion to this cf-
feet was defeated
Mayor Ryian offered resolutior
which was adopted. that in order to
enable the city 70 meet the enormous
mandatory obligation imposed by the
Legislature and construct new schools
all OF the city departments should cur
tail their requests Immediately and re-
wise downward the tentative budget for
every department.
'Bc it further resolved" the Mavor's
resolution stated, that the Board of