Evening star., 1932-05-17
Sees S1,000,0O0 Deficit.

Sees 100000 Deficit.
Reviewing briefly the history Of sur
plus balances the District has had In
varying amounts since 1916, Donovan
declared the information now available
as to the falling off in revenue collec-
ttons this year indicate that, for the
first time since 1916. the District OF
Columbia Is apt to be in the red by
$1,000 900 at the end Of 1888.
Members of the Senate subcommittee
followed closely the unfolding OF the
story of the present financial outlook
of the District government and lndl-
Gated by their questions a deep study
of the problems confronting them.
Chairman Bingham called the at
tention OF his colleagues to the report
Of the Bureau of Efficiency, made to
the Mapes committee OF the House, IN
which the bureau found that, for the
current fiscal year, the United States
share of District expenses should pe
sl0,l83,391. Senator Bingham sala
the Federal Government for the prop
erty It. uses in Washington, togetner
with allowances for the loss OF reve-
nue. TO the city and the extraordinary
eynendit,1res placed on the CITY 10
meet the requirements OF National
Capital.
Senator Capper of Kansas chair
wan of the District Legislative COM
rnittee, said he has given care1ui STUDY
To the Bureaus report and nao oeen
impressed by it.
Bingham Defends Taxpayer.
Referring to the action Of the House
IN cutting the Federal contribution 10
$500 600 in the pending bill, senator
Bingham said: 1. +o he
"ff the Federal Government Is 10 De
given relief as taxpayer 10 tne eA-
then Accountants have figured its la
h,litv to be. certainly the taxpayers OF
the District of Columbia ought 10 De
ent,tIed to some relief by having their
taxes reduced
Senator Capper indicated he agreed
with Senator Bingham's declaratlon.
senator Bingham asked Donovan Wnere
the district would be at the end OF the
fiscal wear 1888, if the House bill goes
through with the cuts already mace,
with the Federal share at So'ooooVo
and bearing in mind the present OUT
look for local revenues. Ia.
Donovan answered that tne cisy Guy
would be approximately 81, ,OO0, ,o0O
Congress some years ago required the
citv to set aside to enable 1t to pay lts
OBLIGATIONS from month to month while
awaiting tax collections would be en-
tirely gone.
Fears Burial" of City.
AT this point Senator Copeland, DEM
ocrat of New York, asked Donovan
what would happen to the District II
the Senate should follow the rule II
has applied to some OF the depart
mental appropriation bills by cutting
the total 10 per cent under the House.
The New York Senator wanted to know
If that would put the District into a
hole. 49,.
we would be buried with the noie Inleo
In on top Of U.s." Donovan replied.
IF there is any justification for cut
ting 10 per cent, it would only be on
that part of the bill representing the
Federal contribution" Donovan said
rs this is the only Federal money IN
volved.
senator Jones, Republican, of Wash
fngton, chairman of the entire Appro-
priations Committee, attended the
hearings and took part in the discus
sion from time to time.
Senator Dickinson, Republican, OF
Iowa, said he has been opposed to the
10 per cent cut policy in the Senate
and told Donovan that If his argu-
ment is correct it also would apply 70
all reirnbursable appropriations, such as
those for the Post once Department,
which are met largely by postal rev.
enues. Donovan said the difference
was that such activities as that are
Federal, whereas the District revenues
are held in trust for the District In
the Treasury and cutting down appro-
priations from them would not help the
United States in balancing its budget.
Sees Strange Policy.
Senator Copeland observed that, In
his opinion, it would be strange policy
for the Federal Government to cut 10
Der cent from its tax obligation in con-
nection with the District.
Senator Capper wanted to know II
the Commissioners have done all posi-
Bile to hold their budget recommend
ations down to necessary items. Dono-
van replied that the Commissioners told
Chairman Jones in letter recently that
they slashed $l0,000,000 from the esti-
mates originally prepared by department
heads and further cuts were made In
sthe budget as submitted to Congress In
December.
S Donovan told the appropriations group
that later on, when Senator Capper
holds hearings before the District Com
mittee on the House bill which seeks
to repeal the 60-40 law, he would have
a great deal of detailed information on
fiscal relations to submit.
In revealing that District revenues
have fallen of heavily during the cur
.rent year from expectations when the
year began, Maj. Donovan testified that
an estimate based on actual collections
for the 10 months ending April SO
amounted to $28,3o6,39S.
Revenue Drop Shown.
He estimated collections for the re-
manning two months on liberal basis
would add S1,600000. This, he said
would make a total of apparent reVe-
nues for the current fiscal year OF
s$29, ,906, 1898, whereas the estimate made
July l, 1881 the beginning OF this fiscal
year, was that collections for the IL
months would amount to S3l 445 000
This means that actual collections up
to the close OF this fiscal year will be
short by Sl,445 900 Of what was esti-
mated when the year began. Donovan's
statement showed that when the present
Fiscal year ends the District will have
used up all but S494, ,2l0 of the $4,000
1000 cash working fund it has carried In
srecent years.
: Donovans statement also shows that
the Office of Assessor Richards recently
made new studies Of probable assess
ments for the fiscal year 1888, revealing
information which was not available
when previous estimates were made
Commenting on this latest assessment
information. Donovan stated:
"It will be noticed from the restate-
ments for 1888 that no change is made
IN the estimated assessment for rea
property, namely, Sl,245 100000; thai
4hn nnrnrnr,nnnt for tnnulihla q nars0na