Evening star., 1935-03-12
SENATORS WEIGH
DISTRICT BUDGET
Officials Are Heard by Cub
committee in Executive
Session.
A senate subcommittee began hear

A Senate subcommittee began hear
ings today on the 1886 District ap-
preparation bill, with local officials
explaining the need for items elm
mated by the House when it reduced
the total of the bill to s39 1908. .404.
While the subcommittee was dis
cussing the question Of the Federal
payment, which the House left at the
present lump-sum figure of s5,700,O 900,
District officials called attention to
the communications they made in
their original estimate for a Federal
payment of S8,317,500.
At that time. the Commissioners
believed the needs of the District for
the coming year would require addi-
tional revenue. They also reached
the conclusion that the District al
ready is paying fair and reasonable
realty and personal taxes on the pres
ent rate. 1t was for these reasons
that they recommended last Fall that
the Federal payment be increased to
the S8,317,500 figure which they ar
rived at by taking an average of the
Federal payments since the lump
sum method of fixing the Federal
share was begun 10 years ago.
Trimmed Twice.
The Budget Bureau, however. re-
duced the Commissioners estimate by
several million dollars to a total of
SAC, 1922. This amount, based on
continuing the present Federal pay
ments and the present real estate tax
rate, would have used up all but about
$500 of anticipated District revenues
for the coming year.
The House then made further cut
in the local budget to S39 9.308, ,404. In
making this reduction, they eliminated
about $612.000 in general revenue
items and also made sharp reductions
in highway improvements and water
main extensions. which are paid for
directly by motorists gasoline tax and
water users. through water rent If
the Senate does not restore these high
way and water main projects. sub
stantial surpluSes will lie idle in the
Treasury next year in the gas tax and
water rent accounts.
The principal witnesses today were
Commissioner Allen, Auditor Donovan,
Public Utility Commissioner Keech,
Sanitary Engineer Gordon and heads
Of several other departments.
Other Taxes Weighed.
In considering the general financial
condition of the District, it is under
stood there was some discussion today
of the possible enactment of a local
estate tax and an increase in the spe-
cial taxes on public utilities as a
means Of providing additional reve-
nues after 1886. 1t is understood Dis
trict officials pointed out that the
present outlook is that in the fiscal
year 1887 the District will be operat-
ing only on current revenues; that Is,
there would be no unexpended balance
at the end of 1886 year if the S612 900
allowed by the budget, but eliminated
from general fund items in the House,
is restored in the Senate.
It was pointed out that for the 1895
budget the District would have had a
leeway of only $1,O00,O00 over oper-
ating expenses to be spent on capital
improvements except for the prospect
of a $2,450,000 balance expected to
remain at the close of the current year
due to the small total of the current
appropriation.
The Senate subcommittee made no
decisions today, but is merely hearing
witnesses in executive session. An ad-
journment was taken at noon until
tomorrow morning, and several days
probably will be required to complete
the hearings.