Evening star., 1936-10-11
Budget
Continued From First Page.)

had sought a budget of $1.l17,000, or
more than double that appropriated
for this year. This was cut to STAT
$50. Included in the secondary por-
ton of the budget is an item of $780,
900 for construction of one new health
center. DR.. Rutland had asked twice
that, for two buildings. He proposed
a program of five. to be built over a
period of years.
Requests from many departments
for increases in staff to permit estab-
lishment of the suggested standard
hours" of work for Government en-
ployes were cast aside, Maj. Donovan
said, because of the financial prob
lem.
Traces 20 Years History.
Maj. Donovan traced the history Of
the Districts finances over the past
20 years, showing that the city now
faces It's worst financial crisis.
He showed that whereas substantive
law still calls for payment by the
United States of 40 per cent Of Dis.
trict expenses. the Federal payment
has been steadily reduced in the past
| 10 years, while the District budget
mounted. For instance, in 1882 the
Federal payment was ss.500000 a.
against s5,0O0,000 for this year. q
loss Of s4,5O0,ooO.
Reductions in assessments on rea
estate, made because Of the depression
slump In values, and reduction ir
! the realty tax rate from S170 to 81 so
brought the total loss in revenues, in
Guiding the cuts in the Federal pay.
ment to s8,20oo0 since 1882.
The fiscal year 1888 will start with
a revenue deficit of sl,064,000, to be
carried over from the present fisca
year, he reported. This becomes q
first charge against the 1888 collec-
tons. The probable general fund rev.
enues next year, computed on a con-
tinuation Of the $l.50 realty tax rate
and Federal payment of only s5,000,-
900, are estimated at $36,350,0oo. But
Maj. Donovan explained, this is re-
duced at once to s34.776, 900 by caring
for this years deficit and other items
$l.7O Rate Held Necessary.
ITO meet part Of the budget 9TH,
mere maintenance section) with 9
Federal payment of only $4,000. 900
using present revenue sources" Maj
Donovan said. would require a ia,
rate slightly in excess of sl.70, ane
this rate would not provide one dollal
toward any part Of the estimates car
ried in part 2 of the budget (for cap
ital improvements and expansion O
services. To provide funds for th'
entire budget would mean a tax rat'
Of approximately $2.10.
THE Commissioners are under com.
pulsion in submitting the District
budget for next year in two parts
They have been instructed not tt
include more than s5,000,0O as the
Federal payment. This they have done
as well as retaining the tax rate oi
$150.
THE Commissioners are unwilling
| to advocate any increase in that rate
or to recommend legislation providing
other sources of revenue, at least unit
such time as the pending fiscal study
shall have been completed and the
amount of the Federal payment de.
| termined
Must Have More Money.
| 0yIy;tt this n, foryo tior hefore them
the Commissioners will then be pre-
pared to decide what, If any. addi.
tional taxes should be raised by tnt
District. The outstanding and i'm.
portant fact in this report is that the
District must have more money. Tht
days of large unappropriated surpluse.
apparently have passed. 1t should bt
apparent to any one that the presen
Federal payment Of $5,000.000 doe.
not represent 4 just or equitable par
ticipation by the United States in th'