Evening star., 1936-07-07
CITY HEADS VOTE.
$1.5O AS TAX RATE.
FOR CURRENT YEAR.
Donovan Recommendation
Followed Despite Deficit
Prospect.
'38 BUDGET PUSHED,
HAzEN ANNOUNCES
Shortage in Income Must Be Met
by U. S. or New Levies,
Official Says.

The District Commissioners today
approved the $l50 tax rate for the
District during the current year.
The rate had been recommended by
Maj. Daniel ]. Donovan. District audi
tor, in view of a possible deficit Of
$9a0.365 Donovan also explained
that because current revenues will be
SO small all of the unexpended and
unappropriated balance Of the sur
plus raised In 1922 will have to be ex-
pended this year.
Commissioner Hazen said that in
spite Of the apparent shortage in in
come, there will be no delay in draft
ing the new 1888 budget.
There will be gap between what
we get and what we need" said Hazen.
1T will either have to be made up by
the Federal Governments contribution
or by new taxation. Until the Presi-
dent names his special committee and
completes his study We don't know
where the extra money will come
from"
New Revenue Study Ordered.
oCtCldl udyS ago f1dLCII OlOCIcO IIlc
Special Committee on Taxation to re-
view its studies Of possible new sources
of revenue. Maj. Donovan, chairman,
said the committee will get to work at
once.
Maj. Donovan made his recon-
mendation informally last Saturday,
and presented it formally today in
spite of possible deficit in current
revenues Of s3,718,409.
This deficit will be the largest in
the history of the District but, it was
explained. the District still will be
able to "pay-as-you-go" as provided
under the act OF June 20, 1922.
Surplus Carried Over.
An unappropriated surplus of
s2,758,044 is being carried forward as
part of the general fund.
Maj. Donovan is hopeful that the
study ordered by Congress TO meet
the situation, but he still is also
relying on possible new sources of
revenue now under study by the spe-
cial committee.
This committee made its prelim-
inary studies nearly year ago under
the chairmanship of z. Barrett
Prettyman, then corporation coun-
sci. dts conclusions left open four
| sources for additional money: Inher-
itance tax. increased gasoline tax, a
weight tax on motor vehicles, and an
increase in public utilities taxes
Donovan succeeded Prettyman as
chairman.
Donovan said, the necessary income
must come If the District is to main
tain its present record of no defaults
and no debts.
Col. Dan I. Sultan, Engineer Com
missioner, was much discouraged
yesterday after reading Mai. Dono-
vans report.
"A deficit is always sad" he said.
Donovan, on the other hand, had
quick response as to how the money
should be raised.
"The Federal contribution should
be larger" he said.
The auditor agreed that an equit-
able solution to the share of the Fed
eral contribution could be reached If
the departments would be required to
pay taxes at the rate of s1.5O per S100
on the property they occupy. That
rate Is the same as assessed and COL
lected from private citizens and Dom
ovan believes it would be fair for the
United States.
He refrained, however, from
making such a recommendation In
the hope that the committee to be
named by the President will give the
subject full consideration.