Evening star., 1932-08-14
D. c. COSTS FACING
S5,0D0,0DO SLASH
TO AVERT DEFICIT
Commissioners Without Cash
Surplus in Meeting 1884
Estimates.
S40,14O,OOO INCOME
FOR $41,133,266 BILLS
$4s, ,124,000 Requirements of De-
partments to Come Down Before
List Is Submitted.

A cut of not less than $5,000000 in
the department estimates of S48124,00C
for the 1884 fiscal year is expected tc
be made by the District Commissioners
before the estimates are forwarded to
the Bureau of the Budget September l,
based on statistics as to the financial
condition and prospects OF the local
government, made public yesterday by
District Auditor Daniel J. Donovan.
The statistics show, briefly. that the
District. its cash surplus gone. is living
from hand to mouth, and that it would
run into an actual deficit before the
present fiscal year elapsed, except for
economies made mandatory by the
terms of the economy act.
The 1888 appropriation act, under
which the District is now operating,
exceeds the estimated revenues for 1888
by S65O,O0O. although this amount is
expected to be saved through operation
of various sections of the economy act.
The Districts cash balance in the
United States Treasury July l, 1882,
had dWindled to a mere 1892, 149, about
one-tenth of the sum considered neceS-
sary to enable the District to meet all
its bills promptly without waiting for
tax revenue. With a sum such as this
in the treasury on which to operate a
$4,000 900 gross annual business, as
the District is called upon to do, it may
fairly be said that the District has no
surplus and is down to current revenues.
S9,469,143 1880 Balance.
A few figures will serve to drive the
rse Nn1 Tt1lx
cash balance was $9,469,143. On July
half. and S4,271, ,544 was left. On July
of this year. the District opened its
books with 1922 149.
It has always been the Districts aim
to keep a cash working capital fund Of
not less than $3,000,000 in the national
strongbox to allow it to maintain its
reputation for meeting bills promptly,
without the embarrassment of having
to wait for tax payments. Otherwise
the Government is in the same position
OF the low salaried worker who barely
manages to live within his means. He
can pay his bills, but he has to make
his creditors wait until pay day for
most of them.
And for the present year at least,
it seems that the District will stay
solvent through the lucky circumstance
that the expected savings through the
economy act will just about match the
expected difference between gross
appropriation requirements and ex-
pected cash revenues.
Maj. Donovan now estimates that
during the present fiscal year the in
come to be expected in the general fund
(that is-the income applicable to all
ifoNoc oocNIina 70
enueS, permanent and indefinite appro-
priations and trust and special funds)
will amount to $38,060.000. This rep
resents decline of 100000 over the
estimates made up Is months ago, when
the 1888 estimates were being received.
Estimate of Income.
His present estimate of the compar-
able income in 1884 is $40, 140, 900, made
up as follows:
Real estate tax. $40 ,400, 900
Tangible personally tax. 100000
Motor vehicle tax. ......... 100000
Intangible personally. ...... 100000
Public utilities, banks, etc.. 2,150,00O
Penalties and interest. ..... 475,000
Miscellaneous ........ 100000
Unexpended appropriation
balances .............. $4,000
Federal contribution. .... $500, 900
Total $40, ,140, 600
The amount of the 1884 estimates OF
expenditures, leaving out expenses pay
able out Of the gas tax and other spe-
cial funds mentioned above, is SAL ,173,
266.
With these estimates in mind at the
outset, two alternatives are open to the
Commissioners, first, to increase eSti-
mated income by raising taxes; second
to decrease estimated expenses by cut
ting out projects recommended by de-
partments. AS has already been an
nounced the Commissioners expect to
stick to the present level of taxes.
Therefore at the outset their prob
lem is to meet estimated bills of SAL
1926 with estimated income of s40,-
100000. This leaves a shortage Of ST.
033,266.
Reduction to S4,033,266.
If they content themselves with
slashing off only this much the Dis
trict will still be left unable to meet
its bills promptly, and to remove this
stigma will take another 100000, sc
that with these two items the estimate
must come down S4,033,266.
This still makes no allowance for any
blI ILhdBe III revenue eSLlinaL6S LOT 1889
1t must be remembered that 1888 reve.
nues fell 81 100000 short of the esti.
mates made at the time of the prepara-
tion of the 1888 budget Making allow
ance for this, figure in excess of S.
100000 must be Topped from the esti.
mate total of expenditures before the
city heads could feel safe in recon-
mending total figure to the Bureau OF
the Budget
Il should also be pointed out that 1925
income estimates are based On a reVer.
sion TO the S9,500,000 Federal contribu-
tion made in 1881 and 1882, although
the contribution for the current veal
is only S7,750,000 and there is no as.
Surance that this will be raised agar
to the old figure.
Altogether, it seems fair to estimate {
cut Of at least 5000 900 in department
tai estimates, which were already shaved
to the bone by various department head
on orders by the Economy Committee
1t is impossible to forecast at this TIM
where cuts will be made. The Commis
Sioners, under the budget act, may no
even make public the total Of estimate
they recommend. The first intimation o
where the ak has fallen will come OF
the day after the opening session Of tn
next Congress, when the Budget Bureau
submits the District budget, along witt
that for the Federal Government, t
Congress.
BROOM HANDLE WEAPON