Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-12
DISTRICT BUDGET
CUT IS FORECAST
Schools, Libraries and Other
Municipal Projects to
Be Affected.
Continued From First Page.)

that there must be no additional per-
sonnet and that there must be radical
cuts in school and library buildings and
in park Improvements and expenses.
THE Commissioners he added,
realize that some of these cuts will
be criticized on the theory that the
work cut out is needed. But this year
we feel We must make some radical
cuts.
THE situation will not be as bad as
It appears at first blush because the
appropriations for 1880, 1881 and 1892
we're abnormally large. In these years
We have been partly living on our sur
plus. In 1888 we will~be living on cash
income, and we must cut our expenses
to meet the income. We will have no
| surplus to call on"
Will Cut Into Capital.
Mai. Donovan showed that the stu
alton was even worse than DR.. Reichel-
derfer had intimated, because not only
will the 1882 bill exhaust the cash sur
plus, but it also will cut into the So
00O, 900 working capital fund required
by law to be kept by the District in the
Federal Treasury to meet all Of its bills
without borrowing from the Federal
Government
The fiscal year 1880 closed with o
cash surplus of $9,469, 1887 to the
credit OF the District in the Federal
Treasury, according to Mr.. Donovan's
figures. BY next July /, this will be
reduced he estimates. to 1882 SOS .s5.
or, In other words, only about $500, 900
above the cash working capital require
ment. BY the first of July, 1892, this
balance will have been reduced, he esti-
mates, to 81 1892, 084.35. This will inn
pair the working capital fund to the
extent of 81 ,667 ,9l6-or, in round fig-
ures, $l,7o0.0 900. This sum is one of
the first to be taken care Of in the 1888
estimates, reducing to that extent the
sum otherwise available.
Estimates Revised.
The effect Of general economic condi-
tons is shown by Maj. Donovan in a
revision, made May /, of estimates orig
inally prepared last September of the
amounts expected to come in by way of
taxes during the present fiscal year.
This revision shows reduction in real
estate taxes from $20,570 900 to 500
425 600: tangible personal property from
$38l5,000 to $3,535 900: motor vehicle
tax from 100000 to $437 500; intangible
personal property tax from $4,000 900 to
S2,665 900, and miscellaneous items from
100000 to $2,6500 There Is at
mated, about $3,500,000 in real estate
taxes, So, SOC, 900 tangible personal prop
erty taxes and $4,000 in intangible
personal property taxes.
Maj. Donovan estimated that II the
Commissioners we're to approve the de-
partmental estimates, exactly as sub
mitted, it would require a tax rate of
$3.50, to carry the appropriation. In
1888, he estimates, every scent increase
in taxation will result in a yield CT
S650,000 in tax revenue, and the
amount of reduction of the estimates
necessary to bring the appropriation
back to the Sl.70 scale is a matter of
simple multiplication.
Less Funds Available.
He said that by keeping within the
$1.70 tax scale in 1888 there would
be $4,449,000 less available from gen.
eral revenues mot including special
and trust funds than in 1881, and
$4,000 900 less than in 1892.
Maj. Donovan pointed out that in
1891 and 1882 the amount of the ap-
propriaticnS payable from the general
fund (this does not include trust and
special funds mounted sharply, and
that If there is a reduction in 1898.
it will mean largely that the District
is getting back to normal.
The figures are: