Evening star., 1936-07-25
ALL DEPARTMENTS
ADVISED TO CUT TO
STRICT NECESSITY
Uncertainty Over Federal
Share for ! 938 Fiscal Year
Prompts Caution.
IMPROVEMENT PLANS
HELD IN JEOPARDY
Donovan Says $5,oOO,ooO Lump
Sum Will Barely Cover 0per-
alton and Maintenance.
BY DON S. WARREN.

Unable to hazard even a guess as
to what will be the Federal payment
toward expenses of the city govern
ment in the next fiscal year, the
Commissioners are searching for all
possible economies in District gov
ernment maintenance in striving to
stave of a boost in taxes in the fiscal
year 1888.
The situation was described today
in this way: Unless the Federal pay
ment is raised, and unless the mount
ing cost of operation can be cur
tailed. additional tax revenues must
be provided.
What amount of Federal payment
will be recommended to Congress will
remain in doubt, probably for several
months. Under the current appropri-
alton act, the President is to name a
committee to study the issue and sub
nit recommendations. These will be
passed on by the President.
What economies may be effected
next year also will remain in doubt,
at least until after the Commissioners
review the findings of their depart
ment heads.
Department Heads Warned.
Calling all department executives
into an extraordinary mass meeting
late yesterday, Commissioner Melvin
C. Hazen and Budget Officer Daniel
]. Donovan pleaded for the strictest
economy in preparation of the 1888
estimates.
The session served to emphasize the
weight of the blow to District finances
should the Federal payment to the
District again be slashed by Congress.
Maj. Donovan estimated that if the
payment was not increased over the
S5,000,000 appropriated for this year,
the general fund revenues Of the Dis
trict probably would not be more than
sufficient to cover maintenance and
operation, leaving nothing for capital
improvements, such as new schools.
S960,OOO Deficit Seen.
He reminded the department heads
that present calculations show that
the District will end the present fiscal
year next June 80 with a net deficit
of about $96O,oo0. There will be a
disparity between 1887 revenues and
expenditures of nearly $4,000 900. The
larger actual deficit is avoided because
the District this year has the benefit
of a surplus of more than S2,700,000
carried over from the fiscal year
1886.
Commissioner Hazen brought out
that operating expenses Of the Dis
trict have been rising at the rate Of
about 81 100000 a year.
I'VE must economic as much as
possible" he said. 1T is true that in
creases in salary items approved by
Congress and the development of the
municipal plant to meet the demands
of the growth of the city are RESPONSE
BILE for much of this rising cost.
However, there is always the ten
dency of executives to seek to in
crease the importance of their depart
mentS. Last year the Commissioners
were forced to cut some $4,000, 900
from the estimates of the depart
ments. If you will do that you will
save Us t1lS eIIlDdIE dSSultUL VI OO1IlS
it,"
Asks 20-Year Check.
He asked the department chiefs
to study their records for the last 20
years to determine if the rising costs
of operation are fully justified.
The meeting had been called to give
| Budget Bureau officials an oppor-
tunity to outline standard forms for
estimates and their justification,
which must be followed this year in
preparation of the new budget. Ex-
plantations were given by John L.
Keddy, assistant director of the bu-
reau in charge of District estimates.
Maj. Frank Akers Frost, chief of the
| division of estimates Of the bureau,
also participated.
The department heads were told to
have their estimates in the hands of
the Commissioners August /. The
Commissioners are directed to submit
their estimates to the Budget Bureau
not later than September Is.