Evening star., 1931-05-12
Schools, Libraries and Other
Municipal Agencies to
Be Affected.
INCREASE IN SALARIES
AND PERSONNEL BANNED
Donovan Says Estimates Of $57,.
097 ,3S4 Must Be Cut
to $45,61s,14O.

Drastic and unprecedented reduc-
tions in the expense of operating the
public schools. public libraries and other
municipal agencies in he 1898 fiscal
year appeared imminent today as the
District Commissioners resumed con-
sideration of the budget estimates for
that year and found themselves con-
fronted with a perplexing economic
problem.
Data prepared for the Commissioners
by Mai Daniel j. Donovan, auditor and
budget officer, showed the revenues in
1893 would fall far short of the amount
previously estimated, owing to general
conomic conditions and other unex-
pected developments, with the result
that operating expenses would have to
be "cut to the bone" or the existing tax
rate of $1.70 materially increased.
Tax Rate to Be Retained.
The Commissioners, however. have
virtually decided to keep the tax levy
at $1.70 In 1888, and the only alterna.
tive is to lower the municipal costs.
The conditions facing the Commis-
sioners are due to the large appropria-
tions in 1880. 1891 and 1882, coupled
pectation of continued difficulty in the
collection Of taxes, owing to the eco
nomic situation.
The Commissioners today summoned
the newspaper men to their estimates
hearing and frankly laid the facts be-
fore them. DR.. Luther H. Reichelderfer.
president Of the board. outlined the
dilemma" in which the city heads find
themselves, and then Auditor Daniel ].
q ra,z@ ty@A1 Avf4 w~kt It,
cussion of the figures, which lasted
about an hour.
Outlines Reductions.
First he set up the estimates submit
ted by the department heads of their
1888 needs, amounting to $57,097, ,3S4
Cncluding trust and special funds).
Then, by detailed series of estimates
based on the experience of the 1880
fiscal year and the first 10 months Of
the 1881 (the current) fiscal year, he
showed that these estimates must be
cut to $45 5,6I8140 If the District is to
keep its 81 10 tax rate and maintain its
credit at the Federal Treasury by keep
ing its cash working capital fund up
to the $3,0O0,000 mark, as required by
Law.
He showed that the appropriation for
1882. already enacted by Congress. will
proximately 81 TOO 000 and this figure
must be replaced in 1888. thereby low
ering to that extent the amount other
wise available for regular municipal
purposes
OF the $45, 5,61s,14O appropriation pos
sible in 1888 on the ITO tax rate,
about $4,000, 900 will be available for
what is termed capital expenses. in
volying new buildings, new street work,
and the like, and the balance will go
for operating expenses. The enormous
cut which this will entail is shown by
comparison with 1881 (the current year,
when $4,000, 900 is being spent on cap
ital improvements, and 1882. for which
$l2,500. 900 has been appropriated.
In introducing the subject, DR.. Reich
elderfer said this was a poor year to
talk about tax increases. which are ma
tionally unpopular. The District Is
further embarrassed by ignorance as
to what will be the outcome of the
study of the congressional Committee
on Fiscal Relations between the Dis
trict and Federal Governments, headed
by Representative Carl Mapes of Mich
igan.
Bans Salary Increases.
II we are to have no tax increases.
he said, that probably will mean that
all salary step-urs for 1888 must go,
(Conttnued on Page 2, Column ~