Evening star., 1940-03-27
DC. Budget Cut;
Shake-Up Due
lin Institutions
1941 Fund SIoshed
$1,317,701, Is Still
Above This Years
BY JAMES E. CH1NN.

Drastic shake-up in administra-
ton of public welfare institutions
and relief of some of the most
pressing conditions in those that
have been recent targets of criti-
cism are provided in the 1941 Dis
trict appropriation bill reported to
the House today.
Appropriations totaling $48,29l,717
are recommended to operate the
municipal government in the new
fiscal year beginning July /, a slash
OF $1,317,701 under estimates ap-
proved by the Budget Bureau. The
s48,291,717 figure, however, repre-
sents an increase of s222,51O over
appropriations for the current fiscal
year.
The $1,317,7o1 cut in budget
estimates was applied to near
ly all municipal departments,
most of them on a small scale,
and is In keeping with the
promise of Chairman Caldwell Of
the House subcommittee in charge
of the bill to fashion a program
that would, as near as possible, keep
within anticipated available reve-
nue.. On the basis of appropriations
called for in the bill the District
would wind up the new fiscal year
in the red to the extent of an esti-
mated s800,515.
S6,0O0,0O0 Federal Share.
No increase in the Federal pay
ment toward District expenses is
provided. The amount is fixed at
$6,000,o00, the same as appropriated
for the present year.
Chairman Caldwell said today he
believed the committee has pre-
pared the best appropriation bill
possible on the basis of anticipated
revenue in the coming fiscal year.
He said the prospective $80O,515
deficit at the close of the next fiscal
year did not represent a serious
situation, since the probably Short
age would be merely "a bookkeep.
ing one"
The House plans to begin consid-
Grafton of the bill tomorrow.
Obviously aroused by the attacks
on welfare institutions, the sub
committee which wrote the bill pro-
vided for q new ofhcial-a principal
assistant director Of public welfare
who will have immediate super
vision over the institutions and who
will be held responsible for their
proper administration. In addi-
ton, the bill contemplates replace
ment of the heads of two institu-
tions where existing conditions have
been most vigorously denounced
the Home for the Aged and Inf1rm
at Blue Plains ard the National
Training School for Girls.
The subcommittee pointed out in
its report on tho bill it believed the
fixing of responsibility on one quail
flied Official who will devote his en-
tire time to sing the welfare
institutions will go a long way
toward eliminating unsatisfactory
conditions which have existed in sew
eral of the institutions for some
time"
SS0O,515 Deficit Seen.
The $1,317,7O1 the subcommittee
removed from the budget estimates
saved the District from a possible
revenue deficit of more than $2,OOO,-
600 at the close of the coming fiscal
year. The subcommittee explained
that the municipal treasury would
face shortage of $1,O85,415 at the
close Of the present fiscal year, June
30, but that an anticipated surplus
in the new fiscal year amounting to
1894 900, due largely to postponement
of collection of one half of the local
tax on personal incomes until Oc-
tober, would lower the deficit at the
end of the 1941 fiscal year to the
estimated s800,515.
'"The total general fund revenues
for the fiscal year 1941 are estimated
to be $42,723, ,OO0," said the report.
This leaves an estimated surplus
for the fiscal year 1941 in the general
fund of 1884 900. However, it is esti-
mated that there will be deficit for
the fiscal year 1910 amounting to
81 ,085. AIS, which. after deducting the
probable surplus for the fiscal year
1941, amounting to $284,900, will
leave net deficit at the close of the
fiscal year 1941 of $800,515. unless
additional revenue is provided"
School Budget Hardest Hit.
The public school budget bore the
brunt of the" House committees
trimming process. Nearly $500,000
of the total of s1,317,70l Topped of
the budget estimates was in school
items. The bill, however, does pro-
(See D. c. BUDGET, Page A-73
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