Evening star., 1936-03-25
BUDGET DECISION ].
AWAITS ACTION AS
HEARINGS RECESS
Size of Emergency Fund
Main Factor in Question
of Increase.
BOOST TO $3,600,0OO
IN AID ITEM POSSIBLE
Senate Subcommittee Head Sees
Possibility of Balancing
Districts Finances.
BY J. A. OLEARY.

BY J. A. OLEARY.
Whether District taxes will have to
be increased to take care of the 1887
appropriation bill hinges on what pol
icy the present Congress decides ons
in governing distribution Of the ad-
ninistration's new emergency relief
program throughout the country.
Chairman Thomas of the Senate SUBJ
committee indicated today as hearings
on the District supply measure re-
cessed until next week.
Devoting most of today's session to
discussion of public welfare activities,
the subcommittee learned that the
size of the emergency relief fund is
the main factor that might necessi-
tate higher taxes, even with the Fed
eral lump sum payment toward all
District expenses restored to the bud
get recommendation of s5.700,000 in
stead of the House figure Of s2,700, 900.
Relief Decision Necessary.
But the extent to which the District
relief items in the House bill of
1906, 900 will have to be raised will
remain an uncertain factor until Con-
gresS decides how the new national
relief fund of 81 500 900 900, asked for
recently by President Roosevelt, is to
be used. Since the Presidents relief
message was submitted only last week.
the relief bill has not taken shape, and
it is not known yet whether 1t is to
be all for work relief. thereby increas-
ing the amount the District and other
localities will have to figure on spend
ing.
1t has been estimated by some Dis
trict officials that the relief item in
the House bill may have to be raised
as high as So 500, 900. This is believed
to be based on the need that would
exist if the District has to make pro-
vision from now on for about 5000
cases of employables, involving about
Is 900 persons, in addition TO caring
for unemployables.
1t was the possibility Of this added
relief burden which led Commissioner
Allen to predict last night that the
District tax rate on real and personal
property might have to be raised from
$3.50 to s1.7o per 500 of assessed
value.
Balanced Budget Seen.
Chairman Thomas said today that
if the Federal share of next years bill
| is fixed at the budget recommendation
of S5, 100000, and cuts in public health
| items are restored. the District will
| have balanced budget on its present
tax rates, except for the uncertainty Of
the size of the local relief appropria-
| tion.
He pointed out that additional rev.
enue could be raised by increasing the
real estate tax rates, or by turning to
a sales tax and an increased gasoline
tax or some other new source. He
added, however, that any of these new
sources would require legislation sep
arate from the appropriation bill, and
indicated that the need for going into
that question depends on settlement
of the emergency relief program.
BIanton Granted Hour.
In view Of the fact it probably will
| be several weeks before the District
supply bill is rewritten and sent to the
Senate, Congress may, in the mean
time, have shaped the administra-
tion's National relief program to a
! degree that will enable the Subcommit-
/ tee to know how much the Commis-
sioners will have to spend for relief.
Following the announcement yester-
! day that Representative Blanton of
Texas, leader of the House effort to
slash s3,000.000 from the Federal
share. has been granted an hour in
which to argue his case before the
Senate subcommittee, it developed to-
day that Chairman Norton Of the
House District Committee. opponent
of Blanton's view on the fiscal rela-
tions question. also may appear before
the Senate group to support restora-
ton of the lump sum to the budget
figure.
While Mrs Norton has not made
definite announcement of her plans.
she is considering the advisability Of
making a plea in support of fairer
Federal payment before the Senate
group.
Blanton to Be Conferee.
As chairman of the subcommittee
which wrote the bill in the House,
Blanton will be one of the conferees
after the measure passes the Senate.
It is something new in appropriation
procedure for the House subcommit.
tee chairman to take part in the Sen.
ate hearings before the Senate amends
the bill.
Although Mrs. Norton Is head OF
the District Legislative Committee in
the House, that group takes no part
in drafting the appropriation bill, and
she would not be one Of the conferees
to act ON Senate amendments, as
Bianton would be.
The Senate hearings probably will
be resumed next Thursday, with more
than 40 spokesmen for civic and trade
organizations waiting to appeal for q
fair apportionment Of the total of the
bill between the Federal and local
community. and for restoration Of va.
rious maintenance items and improve.
ments.