Evening star., 1946-01-21
Sharp Increase in
Operating Costs
Noted in Requests
By DON S. WARREN.

A record-smashing $81, SOC, ,00O
District budget for the next
fiscal year that drains the city
treasury of virtually all re-
sources and puts in the lap of
Congress a serious problem of
increased revenues for the fu-
ture was forwarded to the Cap
itol today by President Truman.
It calls for greatly increased
maintenance outlays for the year
beginning July /. 1t includes more
than $l8,410,0o0 for permanent i'm
provemepts made possible only by
using most of the $4,000, 900 public
works investment fund built up dur
ing the war-lean years to supple
ment current year revenues.
Warning that any additional ex-
penditures in the 1947 fiscal year
would create deficit, the message
states: 1.-The District must find new
sources of revenue to finance any
further enlargement of general fund
expenditures in the future"
Numerous proposals that soon
may heap additional costs on the
District were cited by the President
as evidence Of the need for addi-
tional revenues If the Districts gen.
eral fund is to be kept solvent.
Federal Share Remains Same.
In keeping with procedure, the
Budget Bureau left the Federal pay
ment at its past $4,000, 900 level.
Such sum would amount to but 8
per cent of the total general fund
outlays proposed for the next fiscal
year. But Senate and House groups
now are preparing drives for adop-
ton Of fixed formula for measur-
ing the Federal share or for a sub
stantial boost in the ltlmp-sum pay
ment pending approval of the pro-
posed formula. simultaneously, a
committee of District officials is
considering new revenues.
: The District total now proposed Is
more than SIS, 600 600 in excess of
appropriations so far made for this
fiscal year. This startling contrast
will be modified by about Sc 1000 900
in the near future, for such sum
will be needed this year to cover
costs Of increased pay granted last
July. The Senate since has passed
and House action now is awaited on
a new Government pay bill which
would again upset financing calcula-
tions, for both this and next year.
Budget Slashed s11, 1,ooO, 900.
The Commissioners, with the ap-
proval of the Budget Bureau and
the President, slashed nearly $11,-
000, 900 from the original estimates
Of District departments in order to
get down to the $81, sos 600 total
that current revenues will cover. In
doing so, they deferred many prof.
ects it is known would have been
approved if the money were avail
able.
They cut approximately in half
the additional jobs requested by
their departments. More than
1900 more employees, requested by
municipal agency heads, would
have cost an additional $685. 900
year. The budget calls for 932
positions costing $1,7600
OF the latter, 524 are brand-new
jobs, 189 are to meet requirements
under re-establishment of the 40
hour week and 219 are restoration
of jobs not filled during labor
shortage war years.
Half of the additional District
jobs granted are for the Health De-
partment and its agencies, which
requested 997 positions and won 465
in the budget.
Operating Expenses Increase.
On this point budget experts ex-
planned that operating expenses
have increased $4,000, 900 since 1912
and now exceed the total of the
Districts general fund revenues ex-
cept for the $6,000,0O0 Federal pay
ment. Next year, however, the Dis
trict would have to dip even into
that to pay maintenance and op-
GRAFTON costs, not counting capital
outlay.
1T will be noted from the sum-
mary Of operations that the 1947
general fund expenditure program
will exhaust all available funds with
the exception of some $4,000, 900 re-
naming in the public works invest
ment fund.-" the budget message
stated.
1mpending pay increases, addi-
tional school and branch library
construction, future expansion of
health and welfare programs, and
the possibility Of the District being
required to reimburse the Federal
Government for its share in future
Capital Improvements such as the
Federal Courts Building, replace
ment of obsolete buildings at ST.