Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-04
Citizens Ask Approval of Rec
concentrations of Appro-
priation Group.
TAX INCREASE WARNING
SOUNDED BY DONOVAN
Prospective Improvements in Near
Future Total $40,000,000,
Auditor Points Out.

The Senate was urged by the Fedora
ton of Citizens Associations last night
to stand by the recommendation of its
appropriation committee and increase
the Federal Governments lump-Sum
share of the expenses of operating the
city government from 100000 to
$12,000,o00.
1t took this action after listening to
an exhaustive discussion of the Ma
tional Capitals balance sheet, pre-
sented by Maj. Daniel j. Donovan, au-
ditor of the District.
The federation adopted this resolu-
ton, offered by Harry N. Stull: RE
solved, That the federation earnestly
requests the Senate to adhere to its
appropriation committees recommen-
dalton that the lump sum Of Federal
contribution be increased"
Financial problems of the municipal
government were described graphically
by Maj. Donovan in the course Of his
address, in which he Endorsed the pro-
posal of Representative Moore, Demo-
crat, of Virginia, to set up a fiscal
commission to study the problem Of
the Districts financing and its relation
to Federal contributions, gave warning
that an increase in the tax rate is
threatened, which may go in time to
So from the present $1.70, and pointed
out that prospective Improvements In
the immediate future will entail the
expenditure of some 100000.
Cites Other Projects.
Mai Donovan called the federation's
attention to the point that current rev.
enues and the present annual 100000
lump sum contributed by the Federal
Government are insufficient to pay the
running expenses and provide normal
annual improvements, and unless the
United States raises its share an in
crease in the tax rate will be inevitable.
The mounting totals Of the appropria-
tions, he said, also may result in an in
crease in the $3,000,000 cash operating
fund.
Aside from normal annual improve
ments, Mai. Donovan cited a number of
proposed municipal projects, including
the buildings in the Municipal Center,
q municipal airport, a new jail building
and others, which he declared would
Where is all this money coming
from?" he asked.
THE delegates to this federation can
give as good an answer to this question
as I can" he said. THE action of the
Senate subcommittee on appropriations
in charge of the District bill for 1881 in
increasing the Federal contribution from
So, 1000, 900 to $12,000,000 is one answer,
but it should not be overlooked that this
answer has not yet been approved by
the House."
Answers Questions From Floor.
Following the presentation of his ad-
dress Maj. Donovan submitted to ques-
tioning by delegates from the floor. In
answer to these, he said that the Cram
ton park-purchase bill does not in
crease of the obligations of the District
of Columbia, as 100000 is being set
aside annually now for the purchase
of park lands. The George Washing
ton Memorial Building, he said he un-
derstands, Is not to become a charge
upon the District of Columbia, but is to
be constructed as national memorial.
Asked If there is any attempt at
economy in the municipal government.
Maj. Donovan told his inquirer that
he could answer that better than he
could, explaining that he did not wish
to appear in the light of criticizing.
Maj. Donovan's address follows, In
part:
THE prospective total Of appropri-
atoms. therefore, for the fiscal year
1881, payable from the general revenues
of the District of Columbia, which in
cludes the contribution by the United
States, appears to be somewhere around
$44, 100000. This is an increase over
the appropriations for 1925 of over $12,-
100000 Should the present $4,000, 900
payment by the United States be con-
tinued by Congress in the next fiscal
year, it means that $35,000,000 of the
probable total appropriations of $44, 000-
600 will have to be paid from revenues
of the District. AS the United States
contribution in 1925 was $4,000, 900, and
If that Is the amount paid in 1881, 1t
will be seen that the entire increase
In appropriations between the two years
named must be paid from local rev.
enueS.
For the fiscal year 1881 the current
revenues of the District are estimated
to amount to $4,000, 900 on the theory
that the $1.70 tax rate will continue
in that year, made up of real estate
Continued on Page 4, Column So