Evening star., 1940-08-25
District Budget
Hearings Start
Tomorrow
1912 Estimates First
Left in Hands of
Commissioners

A total OF S62 .9Ui 20 IN lS4Z DuOg-
ct estimates submitted by the vari-
Gus municipal departments, exceed
ing anticipated revenue by between
$10,0o0.000 and s11,00000O, will be
the subject of two days of public
hearings before the Commissioners
beginning tomorrow at 10 am The
estimates are about S14,0CJ 900
higher than the current years
budget.
The hearings will be the first since
the recent Withdrawals of the Budg-
ct Bureau from detailed consider
alton of the city's estimates and the
consequent placing of responsibility
on the Commissioners.
While the bureau indicated 1t
would concern itself only with broad
budgetary policies and items affecc-
ing national interests, District
Budget Officer Daniel j. Donovan
warned that the bureaus new pol
icy specifically stated it would re-
quire a balanced budget.
Hence under the new arrangement
three courses will be open to the
city heads. They must either lop
some S10000000 from the estimates
of the department heads. raise the
real estate tax. which is the only
flexible item in the present District
tax structure. or ask for new taxes.
Court Ruling May Cut Total.
Detailed estimates of anticipated
revenue are not yet available but
rough estimates place it around
S52.000.000 from all sources. The
S62 .907 .225 estimates of the depart
ment heads could be met, Maj.
Donovan estimated. by raising the
real estate tax rate to 50 from its
present SITS. Many officials feel.
however. that the present rate Of
S1,75, furnishing as it does, 80 per
cent of the general fund, should be
a ceiling and all that real estate
should be required to bear.
The rough estimate of $50 900 600
of anticipated revenue is also subject
to court decisions on the income
tax. Should private as we'll as
Government employees who main
tain legal or voting residence else
where be exempted. returns from
the tax would be curtailed.
Change Reduced Total.
As a matter of fact, the present
revenue program adopted in 1899
to raise additional income for the
District actually cost the District
some 100000 in taxes. It elimi-
mated the Intangible personal prop
erty levy and the business privilege
tax from which the District was
getting some s5.5O0,oo0 and sub
stituted a personal and corporate
income tax from which an estimated
S3.200,000 was realized. Other in
come such as court fines, etc. raise
this last figure to about $4,000 900,
which is still more than S2000000
under the amount lost by abolition
of the two old taxes.
Even if last years increase Of
$1,000, 900 in the Federal payment.
which can vary by decision of Con-
gress. is taken into consideration,
the net loss in income to the Dis
trict figures to about s1000O00.
The amount asked by the depart
ment heads exceeds current appro-
priations by close to S14 10000 but
is $4,000 less than what they asked
for at this same time last year.
Representatives of At organiza-
tions have indicated they wish to
testify before the Commissioners to-
morrow and Tuesday concerning
various items in the budget.
Guard Asks Armory Funds.
Among the final estimates sub
mitted to the city heads were the
s1.816,670 budget of the National
Guard and s30.435 of the parole
board. The Guard seeks a So per
cent increase to finance equipping
and maintaining the first unit of the
new armory to be finished January
/, and $1.150O00 to complete the
armory. twenty-five new positions
are requested as we'll as $4,000 for
separate motor sheds at Camp
Simms to keep the motor equipment
of the Guard away from the new
armory. The parole board requests
call for four new positions two pa
role officers and an assistant parole
officer being included.
High lights of the estimates of the
other departments which have been
submitted to the Commissioners
during the last two years are large
scale building program in the public
school budget requiring nine new
schools and 81 school sites. and 143
new teachers: completion Of the new
central library: 100 new policemen
and a new precinct; a new North
west health center and additions to
Gallinger Hospital; new receiving
nome and new buildings at the Home
for the Aged at Blue Plains; new
fireboat and fire station; additional
personnel for street cleaning and a
new incinerator; improvement to 55
streets and a grade separation at
Fourteenth street and Maine ave-
nue. S.W.
To Appear at Hearings.
Those who will appear at the
hearings tomorrow include Harry
N. Stull. president of the Fedora
ton of Citizens Associations; Arthur
L. Sundlun of the Merchants and
Manufacturers Association, A. j..
Driscoll of the Mid-City Citizens AS
sociation, George E. Keneipp of the
keystone Automobile Club, Wash
ington I. Cleveland of the American
Automobile Association, Eta L..
Taggart of the Washingtonians,
Rufus L. Lusk of the Washington
Taxpayers Association, Dorsey w.