Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-29
Proposed Swear Extension
Program May Become
Conference Issue.
INCREASED TAX LEVY
IN 1882 HELD POSSIBLE
Committee Recommendations Must
Be Adopted and Approved to Bar
Advance, Experts Believe.

The increased water rates for Wash
ington consumers, ordered by the House,
have been stricken out of the District
appropriation bill as reported by the
Senate appropriations committee, it was
disclosed today. Assuming that the
Senate sustains the action of its COM
mittee, the question of the best method
Of providing for the proposed five-year
Water Department extension program
will become one of the more important
issues to be settled in conference.
This and other recommendations Of
the Senate committee in the bill were
looked upon by municipal government
officials today as a boon to the tax
payers of the District.
The increase in the Federal contribu-
ton from 100000 to $12,0oo,0oo
which the committee urged, coupled
with the reduction of $1,422,000 it or
dered in the 1881 appropriation, it was
pointed out, will set up a surplus of
nearly 100000, probably forestalling
the predicted increase in the tax rate
in the 1881 fiscal year and permitting
the development of the Municipal Cen
ter without borrowing funds from the
United States Treasury, as proposed.
20-Cent Raise Possible.
Unless the recommendations of the
Senate committee are adopted by the
Senate and approved in conference,
however, the District will be faced with
- ~ fV1 a
20-cent increase over the present rate,
according to the careful calculations
of those charged with the Districts
finances.
The 1881 appropriation bill as passed
by the House, together with the salary
increases proposed for police and fire.
men, would completely wipe out the
surplus revenues to the credit of the
District in the Federal Treasury and
throw the municipality on its own re-
sources in 1882 to provide SUFFICIENT
revenue to meet the ever-increasing ex-
penses. In other words, the District in
1881, on the basis of the House bill,
would spend 100000 more than its
income in that year. Without the sur
plus to draw on, the tax rate would
have to be increased to $1.90.
Tax Increase Seen.
But in 1882 the surplus will be ex-
hausted, unless the plan OF the Senate
appropriations committee is finally ap-
proved, leaving the District in the po-
sition of either drastically reducing its
budget or else raising the tax levy. The
Senate committees recommendations
however, will give the District the So
100000 additional from the Federal
Treasury, plus the cut of nearly 81 $780,
900 from the House bill to augment its
depleted reserve, and thus prevent a
higher tax rate.
A graphic picture of the Districts
financial condition as would exist on
the basis Of the 1881 appropriation bill
as passed by the House was given by
Maj. Daniel j. Donovan, auditor and
budget officer, at a meeting last night
Of the Mid City Citizens Associations.
Donovan did not touch, however, on the
action Of the Senate appropriations
committee.
Donovan pointed out that If the $43,-
100000 carried in the appropriation
bill as passed by the House had to be
paid entirely out of available revenues,
plus the 100000 lump sum contribu-
ton Of the Federal Government, the
tax rate in the coming fiscal year would
have to be jumped from $1.70 to $1.9O.
Otherwise, he declared, the District
would be confronted with a deficit of
100000 at the beginning of the 1882
fiscal year If it did not have more than
100000 In surplus revenues to draw
on.
I'm 1881 on the basis of the general
revenue charge in the House bill it
would take $1.90 tax rate to raise the
amount necessary in current revenues"
said Maj. Donovan. IF the proposed in
crease in salaries for police and f1remen
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