Evening star., 1938-01-21
GAS TAX OPINION
DENIES HIGHWAY
AID .JEOPARD|zED
Collins Reports "OfficiaI"
Ruling Says Diversion
Not Involved.
SLASH OF MILLION
IN BUDGET INDICATED
Cut Expected to Eliminate at
Lease One Extra Revenue
Proposals.
BY JAMES E. CHINN,

1H0 Rouse subcommittee on Ap-
preparations in charge of the 1899
District supply bill received an off
clal' opinion today that the Budget
Bureaus proposal to charge the $685.
600 street lighting bill in the coming
fiscal year to the gasoline tax fund
would not constitute diversion and
therefore would not jeopardize an
allotment Of Federal highway aid
funds.
The opinion arrived shortly before
the subcommittee met to mark up the
1889 appropriation bill, which, 1t was
indicated, will be about $1,000. 900
under the Budget Bureaus approved
figure Of $47,344,702.
Chairman Collins declined to dis
close the authority for the opinion,
but said: I'VE got it from an Official
and proper source"
AS result. the subcommittee is ex-
pected to saddle the 1899 fiscal year
street lighting bill on motorists.
Slash in General Fund.
The contemplated Sl,OO0.OOO Mash
IN the Budget Bureaus estimates, it
was said. will be made almost entirely
IN general fund items and not in the
special water and gasoline tax funds,
indicating the subcommittee plans to
effect economies in municipal services.
Funds recommended in the budget
Tor capital improvements will not
be reduced. 1t was explained, although
there may be some shifts in the
amounts recommended for certain
projects. and new items inserted for
thoss eliminated. The total set aside
Tor capital Improvements, however,
Will be substantially the same as the
Budget Bureau recommended.
The contemplated 100000 reduc-
ton will be brought about generally
through slashes in administrative
expenses.
Mr.. Collins declared "if the District
doesn't have the money, it can't spend
It," But, he emphasized, that in
making the cuts, mo one will be hurt"
indicating the subcommittee does not
propose to reduce personnel.
Cut Not Fully Approved.
The proposed $1,000,o00 slash has
not yet received the approval of the
entire subcommittee. It merely repre-
sents the amount Mr.. Collins believes
the recommended budget can be
trimmed without seriously affecting
municipal services. He pointed out
the subcommittee may make some
radical alterations before the ap-
preparation bill is whipped into final
shape.
Mr.. Collins plans to have the meas
ure ready to report to the House
Wednesday.
A cut Of s1,0oo,ooo would bring the
1889 bill more in line with the s46.-
100000 supply act for the current
fiscal year, and down to figure which |
q number of civic and trade organi- !
cations urged that it be kept. At the |
same time it would reduce the Dis |
tricts anticipated budget deficit in
the coming fiscal year to $4,000,O00 or
less and make unnecessary all of the |
revenue-producing plans the Fiscal
Affairs Subcommittee of the District |
Legislative Committee decided to rec
ommend. These include an income tax,
continuation of the business privilege |
tax as well as the present Sits |
levy on real and personal property. |
$5,00O,000 Extra Tax Goal.
The fiscal Affairs Subcommittee set |
out to rewrite revenue bill that !
would produce s5,ooO,oO0, the peak
estimate of the probable shortage. |
That figure, however, was based on
the $47, ,344,702 budget recommended
by the Budget Bureau.
The three sources of revenue the
Fiscal Affairs Subcommittee proposes
to tap would raise anywhere from |
$S,000,000 to $l0.000,O0O, depending
largely on the rate and the exemp-
tons in the income tax.
The principal problem the subcom-
mittee now faces Is to determine
whether to approve the Budget Bu-
reau's item Of $65O,00O to start re-
placement Of the Pennsylvania Ave-
nue. Bridge across the Anacostia
River or to use that money to begin |
construction of an elevated highway
on K street to bypass traffic through |
Georgetown. Mr.. Collins has taken |
the position the elevated highway
should take precedence over the pro-
posed new bridge.