Evening star., 1935-01-16
Measure Based on Contin-
uing Present $3.50 Tax
Rate and Leaves Federal
Payment at $5,700,00O.
LARGE SURPLUS LEFT
IN WATER.GAS FUNDS
Uniform Rates and Zones for Tax.
icabs Required by House Com
mlttee Rule to End Chaos in
Present Situation - Character
Education Ended.

Already cut practically TO subsist-
ence basis as it came from the Budget
Bureau, the 1886 District appropria-
ton bill was further slashed sl.O66.-
4l8, as reported TO the House today
by the Appropriations Committee.
AS reported. the bill carried a total
of S39. .308. .404. Although this is Slight
ly higher than the current appropria-
tion. the increase is due primarily to
the provision of funds for restoration
Of the remaining per cent of the pay
cut on July /.
The sum appropriated for the cur
rent year was s36,5S4, ,677s4, but the
committee explained in report that
this figure does not include the cur
rent expenditure for that part of the
pay restoration that took effect last
July. This expenditure will make the
actual appropriation total for the cur
rent year s3S.O97. .524e4, so that the
new bill for next year is only sl.210.-
879.06 higher than this years appro-
priations
Increase Explained.
This net increase is due to the ad-
dition of S1,215,546 to the bill to pro-
vide for salaries on a 100 per cent
basis during the next fiscal year," the
committee stated. Whatever increase
appears in the bill for 1886 for new
items or increases in existing items,
apart from salary restoration, are off,
set in the aggregate amount by the
elimination of homecoming items for
1885 not repeated for 1886"
Reported to the House by the APP
preparations Committee at noon. the
bill was taken up with an agreement
that general debate would continue
for the rest of todays session. The
time was divided equally between
Chairman Cannon of the subcommit-
tee in charge of the bill and Repre-
sentative Otter of Pennsylvania,
ranking Republican member.
During general debate the discus
sion is not confined to the District
bill, on which no action will be taken
until tomorrow.
The bill is based on continuing the
present tax rate of S1.50 per S100 of
assessed value, and leaves the Fed
eral payment at S. 100000. Some rec
ommendation on fiscal relations may
come from the White House after
President Roosevelt receives the report
of the Treasury experts now studying
the Districts tax burden in compari-
son with other cities. If the tax study
should lead to a recommendation af-
fecting the Federal share. it could
be considered before the bill is finally
enacted into law.
Few New Projects.
The bill carries only a few new i'm
provement projects, and the effect of
the 81 ,066, ,4l8 cut in the budget recon-
mendation would be to leave District
tax money idle in the gasoline tax and
water funds. along with a surplus of
$612,7 in the Districts general rev.
enue fund. The Budget Bureau eSti-
mates would have ended the year with
a 1888 deficit in the general fund.
Even if the budget figures had been
allowed, there would have remained
unexpended balances of S283, 900 in the
gas tax fund and $3.50 900 in the Water
Department special fund. The House
Committee, nevertheless, cut $215, 900
from the recommendation for gas tax
street and road expenditures, which
merely builds up the gas tax surplus
from $283, 900 to $498,00O
The House group also Slashed $685.
900 from the budget items for the
Water Department, which raises the
water-fund surplus to S888,000.
Since gas tax and water-rent COL
lectionS can only be used for highway
work and for Water Department ex-
penses, these unused balances will be
idle in the Treasury
The net cut of $613,l68 in general
fund items was taken largely from
public schools and public welfare. The
budget estimates for the school system
were reduced by s252, 2,759 and the pub
lie welfare estimates were cut to the
extent of $214,800. The remainder Of
the general fund reduction was spread
over number of departments.
The committee refused to allow $87,.
$40 for special fsrce for character
education beyond the present fiscal
year, thereafter turning this work over
to the regular teaching force, who
come in direct contact with the chill
dren. Other cuts in the school esti-
mates include: Night schools, $3.50;
Community Center Department, 81, 5,189,
and for buildings and grounds, s140, 900.
The public welfare cut was made up
Of: Workhouse and reformatory. $116,-
500. of which $16,500 is disallowance
of new employees: $50, 900 reduction in
the $4,000 item for construction of
buildings and walls and $4,000 from