Evening star., 1934-01-05
CITY HEADS STUDY
BUDGET CUT EFFECT
ON VITAL PROJECTS
viii Prepare Analysis of
Bureau Reduction for Con-
sideration of Congress.
CIVIC LEADERS CERTAIN
TO PROTEST AT HEARING
Will Ask More Money for Schools
and Other Needed Improve
ments Here.

The District Commissioners today
began an informal study OF the pros
poets of the municipal establishment as
pictured in the proposed 1885 "econo-
my" budget for the next fiscal year,
which allows for but little more. than
actual subsistence and yet sets up the
probability of large surplus IN reve-
nues
The city heads made no comment to-
day on the estimates as forwarded to
Congress yesterday by the Budget Bu-
reau, but began a scrutiny of proposed
appropriations, having in mind District
needs not provided in the proposed
budget
The budget for the new year calls for
appropriations totaling 35.821 01394
which represented a reduction by the
Federal budget officers of S3,663,845
from the carefully planned budget total
which had Deen prepared by the former
Board of Commissioners.
On the basis CT expected revenues of
the District during the next fiscal year
the proposed budget will leave a sur
plus of s540300U of unobligated funds,
which would be piled up in the United
States Treasury.
Liquor Revenues Excluded.
This estimated surplus in funds does
uISludC ltNCIlucS W UC ucllNeu
the sale of legal liquor here Present
proval of liquor law for Washington
would produce at least $785 600 annual
ly. This is based on sales taxes and
license fees as proposed in the licens-
ing of private establishments as pro-
vided in the bill sent to Congress by
the Commissioners Maj Daniel J.
Donovan, District auditor, has empha-
sized this is a conservative estimate
and that the liquor revenues might run
to more than 100000 a year.
The Commissioners will make seri-
Gus study of the situation facing the
District during the next fiscal year and
will have prepared an analysis of con-
ditions when the budget is taken up
for consideration by congressional COM
nnittees.
They will consider the prospect of
the long list of apparent additional
Capital Improvements needed by the
District and will have before them also
revenue questions as related to the
bed rock" estimates adopted by the
Budget Bureau
Aside from any data the Commits
sioners may lay before members of
Congress in response to questions as to
District needs, there are indications
numerous civic leaders will appeal to
Congress for more adequate provisions
for schools and other District improve
ments which have been held back by
the adoption of the 1884 economy ap-
preparation act
The Commissioners already have be-
fore them long list or needed District
improvements which they have not
been able to start because of appro-
priation limits in the past. These I'M
nd IF ho
proposed municipal center, schools,
libraries, hospitals and other public
utilities
The commissioners have submitted to
the Public Works Administration for
NAL request for grants of funds for con-
Struction of long list of such projects,
the total cost of which was estimaed
at more than $50 900 600 These grants
have not been forthcoming as yet, al
though the District did receive some
sl.9O0,000 for Federal highway improve
ments here and approximately S1,700,-
600 for Improvements to the District
sewage system.
Center Plans Halted.
The District has expended approx
mately $6,000,000 for the purchase OF
center group of administrative build
ings and will be required to construct
the needed buildings before the Federal
Government takes over the present Dis
trict Building.
Another large project now under con-
eideration is the proposed construction
of a sewage disposal plant at Blue
Plains. A special board of sanitary en-
gineers employed by the District to
study plans for such development just
recently submitted tentative report
setting up the estimated cost OF the
plant at S8,000,000. Engineer Commits
sioner John c. Gotwals has not an
nounced as yet whether he will submit
this problem to Congress at the present
session.
If the 1885 budget as proposed by the
Budget Bureau, is passed by Congress
without any substantial changes in ap-
preparations, the Commissioners will
have before them the question of whether
there should be reduction in the pres
ent real estate tax of 1.50 for each SlO0
of value. District officials refrained
from any speculation on the question OF
the tax rate.
It has been pointed out that the Dis
trict surplus revenues of SIS, ,403 900 dur
ing the next fiscal year would be re-
duced to the extent of So 800 900 if Gov
ernment salaries were restored to full
100 per cent basis. AS the budget now
stands it provides for Government pay
on a 90 per cent basis during the next
fiscal year, whereas there now is ID
per cent reduction.