Evening star., 1933-02-25
INCREASED FUNDS
ASKED FOR CAPITAL
Donovan Tells Senate Sub.
committee Lump Sum
Is Inadequate.
(Continued From First Page.)

NOlQ tI1c ScIldIc COIIllIlllIcc lIlc OStIlCt
would have a deficit Of $l,900,000 at the
end Of 1884
In order to show the Senators what
the situation here will be during the
next five or six years If the Federal
contribution is held down and the rev.
enue trend does not improve, Donovan
described briefly the future require
ments Of the city for the next five years.
Congress, In 1881, passed law to en-
courage advance planning Of public
works and setting up Federal stabili-
cation board. In April, 1882, the Dis
trict Government drew up and SUBJ
mitted to this board six-year operat
ing expense and construction program
for the city.
Donovan testified that under this
program the District would need ap
preparations for the five fiscal years
from 1884 to 1888 of $252, 2,810,775. On
present anticipated revenues, and as
Suming that the Federal contribution
were restored to $9,500,000 for each of
those years, there would be available
only slightly more than $225, 100000
toward meeting the total requirements.
900, even If the Federal contribution
were put back to $9,500,000, the figure
which was in effect before the House
secured compromise reduction to
S7,775, 900 for this year. If the Federal
contribution Is to be S6,500,000 during
those five years, Donovan said, there
would be q further shortage in the
amount needed of $17,500,000, which,
added to the $27,600,0 900, would make
total shortage of s45,0OO,000. He then
explained that In recent revision
rome projects had been eliminated
from this advance planning program.
which would make the estimated short
age in required revenues for the five
year period 10000 900 If the Federal
contribution was kept at $6,500,000
during that time.
Opposes Realty Tax Raise.
The auditor declared there should
hot be any increase in the tax on real
estate On the contrary. he said, there
Is sentiment for reduction in the real
estate tax burden. He said Representa-
tives Holiday and Collins had been
huoted as holding that view.
Asked by committee members what
he would suggest in connection with the
downward trend Of collections toward
the general revenue fund, Donovan
pointed out that the Commissioners had
suggested relieving the general revenues
by using the 1-cent increase in the gas
tax recommended by the Senate District
Committee to cover the cost of several
District activities which are at present
chargeable to general revenues, such as
the Department of Vehicles and Traffic,
salaries Of traffic policemen, the division
of bridges and park roads. He pointed
out that In the pending appropriation
bill the Commissioners have transferred
to the gas tax fund nearly $1,000 900
formerly met from general revenues for
repairs to streets. If the bill to In
crease the gas tax cent should be en-
acted, he said, that would transfer
another 100000 Of general revenue
expenses to the gas tax fund.
Summing up his argument. Donovan
took the view that real estate taxes
should not be increased, and that If
the District cannot get a material in
crease In the Federal contribution 1t
would then be question Of considering
legislation for other sources of revenue,
or reducing appropriations to keep
within anticipated collections.
To show how the Federal contribu-
tion has gone down In recent years
the witness pointed out that in 1922
the appropriations from the general
share was $9,200000, whereas in the
pending bill for 1884 general fund
appropriations are $3l l.642000 and the
Federal share recommended in the
House bill is $6,50O,000. Gn addition
TO the general fund appropriations, the
current bill carries approximately So
1922, 900 for expenditure through the gas
tax ard water funds, which are con-
fributed wholly by District residents.)
The auditor gave the committee
comparison Of general fund appropria-
tions and the Federal contribution for
the intervening years as follows: 1923,
general fund, s24,000,O00; Federal share,
$9.400,0oO. 1924, $4,000 900, compared
with ss.4oo 900. 1925. ssl 900 900, com
pared with s9,200,000. 1926, $31, ,000,-
900, compared with ss,oOO,Ooo. 1927,
:S34,000,000. compared with $9,00O,0C0.
1923, $35,000,000, compared with So
100000. 1929, S36 100000, compared
with 100000. 1880, $41, ,000, 900 COM
pared with $9,0OO,O00 1881, $45,500,-
1000, compared with $9,500,000. 1882,
844, ,000, 900, compared with $4,000, 900,
and 1888, $38500,000 compared with
t7,775,oOo.
Surplus Disappears.
. At the beginning OF the fiscal year
1929 the District had surplus in its
general fund, not including gas tax
p1 WdkC1 4uA40 Va SO,1AO,OUU. SdlO
this mounted to high point Of $9,469,-
1000 In 1881, but has been used in the
past few years, so that the city began
this fiscal year with $542, GOO on hand.
Donovan testified that for seven
months Of this fiscal year the Dis
trict's collections have amounted to
SIS, $4,000, as compared with $16,-
100000 collected during the cores
bonding period Of the previous fiscal
year. He told of the sharp decline in
the amount realized by the city from
the last two annual tax sales, and
pointed out that in June 1882 the Dis
trict had over 100000 Of unpaid
taxes.
In response to questions by Senator
Grammer, Republican of Washington,
Assessor William P. Richards explained
that the District has a full value as
eessment law, with a present rate of
SIT per thousand of assessment.
A delegation including w. H. Ras-
tall, Mrs. Leslie Wright and Mrs. Bur-
ton K. Wheeler urged the committee
TO expedite as much as possible the
erection Of the proposed new Wood
row Wilson High School in the north
west section.
John A. Lankford and DR.. Walter
C. Simmons appeared in support of
the need for a public golf course for
colored residents. Such project was
contemplated by the office of Public
Buildings and Parks near a colored
school development in a section of
: Anacostia Park, but the House re-
duced the park fund.
Truesdale Addition Sought.
Mrs. H. P. Clark asked the subcom-
mittee If any provision could be made
for building an eight-room addition to
the Truesdale School, She said furnace
gases made half of the present structure
highly unsatisfactory. She was told
that since the Budget Bureau had not
recommended an appropriation for this
purpose there was no action the sub
committee could take. DR.. Luther