Evening star., 1933-03-22
Additional Pay Cut, Applied to
City Workers, to Produce
$1,8O0,OO0 Saving"
CONGRESS TO DECIDE
HOW TO USE MONEY
Employment. Creating Work or Tax
Reduction Could Result From
Various Economy Steps.

Unless the National Capital is per-
mitted to carry on a larger amount of
useful, job-creating municipal work in
the coming fiscal year than was provid-
ed for in the 1884 District bill, which
died on March 4, or unless local taxes
are reduced, Washington will be re-
quired next year to build up another
Of those unexpended balances that have
accrued In the past. to the detriment
of the city's voteless taxpayers.
This appears to be the outlook from
an unofficial survey of the Districts
financial set-up, as the House prepares
to begin work anew on the local sup
ply measure, which must start its legis-
lative journey all over again in this
new Congress. The District appropria-
ton bill IS expected to go forward from
the Budget Bureau within the next day
or so.
The taxpayer naturally will wonder at
the prospect of collecting more revenue
than Is to be spent. at time when
taxes are so diff1cult to meet because Of
economic conditions. The answer lies
largely in the application Of the Federal
economy measures to the District bud
get. with no accompanying let-up in the
obligations imposed on the local tax
payer.
Result Of Old Law.
The old economy law, with the 81s
per cent pay cut, reduced the payroll for
municipal employees by an estimated
$2,20O,00O during. the current fiscal year.
And If the President should extend the
pay cut to the maximum Of Is per cent
allowed under the new retrenchment
lew, District officials figure the addi-
tional slash of 62s per cent would take
81 100000 more from city workers next
year. On this assumption, therefore,
the economy law would mean a $4,000,-
600 reduction in the Districts payroll
next year, and this sum accounts for
nearly all of the anticipated surplus
that probably would exist If Congress
appropriates no more than was con-
templated in the bill that failed and
reduce the already greatly diminished
Federal share of Sits, 900 toward the
total requirements of the Federal City
this year.
In the current fiscal year, District
taxpayers contributed about 80 per cent
of the money required to pay these
salaries. as the fiscal relationship under
last years lump sum was approximately
20 per cent for the Federal Government
and 80 per cent for the local tax
payers. Savings" under salary cuts,
are. therefore, largely savings Of local
tax revenues and it is argued that when
local tax revenues are saved the bene-
fits should accrue to the local tax
payers.
No Excessive Income.
As matters now stand, the District
it needs at present to meet nor
NAL requirements. In fact, when
District Auditor Donovan appeared
before the Senate subcommittee on
District appropriations recently he
estimated the city would probably
close this fiscal year with deficit CT
$4,000 to carry over. If, however, the
President establishes Immediately an
additional pay cut of 62a per cent, the
resulting saving during April, May and
June would be just about enough to
avoid this deficit and enable the Dis
trict to break even at the end Of the
fiscal year.
If surplus does develop next year
it will be the result of having applied
to the District budget throughout the
next fiscal year an economy law de-
signed to meet the requirements Of the
national budget, without passing any of
this local saving on to the taxpayer
and without appr propriating 1t for pur-
poses that would stimulate employ
ment.
Necessarily, large part of city's ex-
penSeS consists of personal services A
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