Evening star., 1933-09-10
GAS TAX RELEASE
FOR RPUBL|C WORKS.
SOUGHT BY KING
Senator Will Ask Douglas Also
to Free $635,O00 of
Water Fund.
REDUCTION OF IDLENESS
BEHIND SPECIAL PLEA
Surplus Hints of Tax Cut, Chair
man Says, Seeing More Lib
eral D. C. Budget.

new appeal to the Budget Bureau
to allow the District TO spend its gas
tax and water funds at this time for
work-creating Improvements, including
the new Calvert Street Bridge, is ex-
pected to be made to Budget Director
Douglas tomorrow by Chairman King
OF the Senate District Committee.
Congress, in drafting the current ap-
preparation act, authorized expenditure
OF $1,500,000 of gas tax revenues and
$685., 1000 Of water fund surplus, but with
the proviso that the approval of the
budget director must be obtained.
Believing the expenditure of these
District revenues now would help to
lessen the strain of the unemployment
situation, Senator King has taken a
Keen interest in the subject ever since
the Commissioners made formal appl-
cation earlier in the Summer for per-
mission to spend all of the authorized
gas tax money and $500, 900 of the
water fund authorization.
Tax Reduction Possible.
Aside from this immediate problem.
Senator King revealed yesterday that
II. as now SEEMS likely, the District
government ends the present fiscal year
next Summer with surplus funds on
hand. he would favor making "a little
more liberal provision in the local bud
get for needed Improvements. and also
some further tax reduction If possible.
He may take the opportunity to dis
cuSS this and other problems relating
to the next District budget during his
conference With Mr.. Douglas tomorrow,
as well as the more pressing question
OF releasing the gas tax and water
funds referred to in the current Dis
trlct appropriation act.
In expressing his view regarding
some lberalizing of the next budget
from the standpoint of needed i'm
provemefs, Senator King said:
There are indications that the Dis
tr1ct Will have some surplus funds at
the end of this fiscal year That would
present the question of reducing taxes
or making the budget a little more
liberal for necessary improvements I
am inclined to favor fewer restrictions
In the budget. SO that these funds
could be spent for needed work. and,
so far as it might be possible. I should
also Ike to see further tax reduction
Figures Not Available.
Although figures are not yet avail
able as to the latest calculations Of
District officials regarding a probable
surplus, it has been indicated that
some revepue balances are expected to
remain in the general fund and in the
gas tax and water funds This outlook
is one of the results Of the deep re-
ductions made in District appropria-
tions for the current year.
The condition Of the one fav opA
water funds at the close of this fiscal
year depends, OF course, on whether the
Budget Bureau agrees to release the
81 500 900 OF gas tax money and the
S5O2,000 Of water revenues. But even
If both of these amounts should be
released now there still will be some
unexpended balance in each fund at
the close Of the current year.
Another suggestion Senator King
made TO District and Budget Bureau
officials few days ago was that they
consider possible consultations in the
municipal service in connection with
the preparation of the 1885 District
estimates. The Senator has learned
that the estimates for each activity will
have to be prepared in conformity with
the prescribed budget FORMS
Changes Not Specified.
He has suggested that they could pre-
pare separately from the regular budget
set Of figures showing what changes
could be made in the amounts re-
quired, If any Of the municipal de-
partments or agencies we're consoli-
dated. Two District officials were des-
lgnated by the Senator early in the
Summer to study possible reorganiza-
tion OF municipal functions The Sen
ator is not discussing at this time.
however, any specific changes along this
line that may be under consideration.
While he may discuss these 1895
buoget problems tomorrow, Senator
Kings chief concern at present is to
urge immediate use of the gas tax and
water fund money which Congress has
already said may be spent if the budget
director makes it available The Dis
trict Committee chairman has pointed
out that release of the water fund sur.
plus would put back to work 456 en-
ployes who had to be laid off in July
because of lack of funds, while a part
Of the gas tax money would insure en-
ployment for $50 Highway Department
workers, some Of whom had to be laid
off recently, with the others due ts
follow soon. If these District fund;
are kept idle in the Treasury, the city's
unemployment problem Is aggravated
to that extent
The Senator also is anxious to see
the replacement of the Calvert Street
Bridge proceeded with, Congress hav-
ing stipulated that $3.50 of the ST.
SOC 900 gas fund could be used to start
the new bridge. if the budget director
gives permission.