Evening star., 1938-10-30
OMIT TAX BOOST
IN D. C.'S BUDGET.
City Heads Seek Increase of
$622,884 to Total of
$5O,383,963.
Continued From First Page.)

reason that this years appropriations
we're sWelled by the fact that some
of the new revenues going into the
highway fund were received too late
to be appropriated for operations in
the previous fiscal year.
g. The highway fund proposals in
clude sums for studies of grade
separation structure at Fourteenth and
Water streets SW., for continuation
of construction of the new PennSyl-
vania Avenue Bridge, and for conf
plcton of the construction of new
culvert under Massachusetts, avenue in
the line of the Rock Creek and Po-
tomac parkway, which is intended to
be started this fiscal year.
9. An appropriation of $34,5O0 to
provide for the purchase of modern
accounting Office machines and other
equipment needed to establish the
central billing system proposed for
the Districts tax assessing and tax
collection departments. This would
permit the maintenance of current,
central account of the status of all
tax bills owed the District by each
individual taxpayer.
Security Decision Held Up.
Pending publication of the report
of Burdette G. Lewis the out-of-town
social work expert employed to survey
the adequacy of the Districts 100000
appropriation for direct relief of the
destitute, the Commissioners have
withheld any final decision on appro-
priations needed next year for emer-
gency relief and for the program of
aid to the needy blind, the aged and
other categorieS under the social Sc
curity program. To complete their
budget in these respects they merely
listed the amounts of present year
appropriations for such purposes.
The statement made by Maj. Dono-
van to the Budget Bureau, in outlining
the Districts financial problem. in
Cludes reference to the need for
larger Federal payment than the
present s5,oo0,000 lump sum, but it
was presumed the Commissioners esti-
that this sum would be continued for
another year. fhis is the customary
budget making procedure.
In this connection, Maj. Donovan
advised the Budget Bureau:
The total budget recommendations
submitted to the Commissioners for
all purposes for the fiscal year 1940
amounted to S66,344 544. In their
study and review of these recon-
mendations, and in order to hold the
budget down to the lowest possible
r;cto xIrjt !, ,,,iy, inn
sion for efficient operation, and provide
only for a few of the most urgently
necessary capital Improvements, the
Commissioners had to reduce the de-
rartments recommendations by close
TO sl6.OOO.OOO This left the amount
of the budget as approved by the Com
missioners and as now submitted TO
the Budget Bureau, $50. 1888 936.7l.
Public Hearings Held.
Before commencing work on the
budget the Commissioners held pubic
hearings lasting several days. Repre-
sentatives of the principal trade ana
civic organizations IN the DlSlrlcC az
tended these hearings.
Strong recommendations were maze
to the Commissioners during the hear
incs not to submit budget total Tor
the fiscal wear 1910 in excess OF the ap-
rropriations for 1899, and under no
circumstances to require the raising OF
more revenue for the general tund IN
lo4O than could be raised on the basis
Of the tax structure for 1899. The
Commissioners have endeavored to the
best of their ability to respect this
demand of the public, although IN DO
ing so they realize it has been neces-
sarv to withhold their approval from
many meritorious and necessary pro-
posals of the several departments OF
fhe District government, including the
public school system. the Department
of Public Welfare, the Sewer Depart
ment. and the National Guard OF the
District, and to a lesser degree in
number of other municipal serV-
ices,
The general fund charges for the
fiscal year 1910, as carried in the COM
mIssioners budget, plus $l,300,oOo
covering certain charges not PROVIDED
for in the District Budget, require the
raising of s42,OO0000 in revenue for
the general fund in that year, a sum
which is s9.O00,00O more than can be
derived from revenues derived from
$3.50 tax rate on real estate and tan
sihle personal property with the busl-
ness privilege tax dropped and no SUB
stitute provided in lieu thereof.A
This would be the normal 1887
revenue basis)
If the Federal payment in 1910
ho
would then be required to raise an ad-
ditional s4,0OO,O0O. This could be met,
as far as the fiscal year 1910 is con-
ccrned, by continuing the SITS tax
rate. which was effective in the fiscal
wear 1888 and also in 1899, and by
providing an additional 81 900, 900 from
some other source.
Survey of Tax Structure.
In this connection it should be
noted that the District Revenue Act OF
May is, l938 provides for a survey
and study of the entire tax structure OF
the District of Columbia to be made
under the direction of the Joint Con-
gresslonal Committee on Internal Rev.
enue Taxation. 1t is the intention
to have this study result in new tax
program to cover period OF years,
thus obviating the necessity OF obtain
ing annual emergency revenue legisla-
ton, as was the case for the fiscal years
1888 and 1882 The program. if passed
by Congress, could become effective
commencing with the fiscal year 1870"
Maj Donovan reported that the
1910 estimates of the commissioners
would allow but $3.500.000 for Capt.
tai improvements, under general fund
appropriations, not including highway
and water department outlays-or con-
siderable less than in some past years,
not counting items under the Dis
tricts present P. w. A. program. He
added:
The Board of Education year or
two ago completed a new fiye-year