Evening star., 1948-10-21
Sales esTaxBacked
Anew as Budget
Hearings Open
Equitable Increase
In Federal Payment
Also Demanded

Enactment of a sales tax for
Washington, an equitable in
crease in the Federal payment,
and an "austerity' budget linn
tied to the amount of antici-
pated revenue were recommend
ed today by witnesses at the
Commissioners public hearing
on the 1850 municipal budget.
In the District Building board
room, crowded with representatives
Of more than 80 organizations, the
hearings got under way at 10 am.
after Commissioner John Russell
Young briefly outlined the Districts
fiscal outlook as it appears from the
sl10,188,648 estimate submitted by
department heads.
McCoach First Witness.
The first witness, Maj. Gen. David
I. McCoach. jr., speaking for the
Washington Board of Trades Mu-
nicipal Finance Committee, recom-
mended three-point course OF ac-
ton for the city heads:
That the general fund budget be
limited to the amount of total rev.
|enue to be received under present
revenue availability estimates; that
the Commissioners recommend again
the enactment of sales tax, with
equitable increases in the Federal
payment. and that they request
supplemental appropriations for es-
sential items which cannot be in
cluded in the budget under present
conditions, If revenue availability is
increased.
In the general fund, departments
al estimates submitted to the Com
missioners total s94,394,831. whilal
Budget Offlcer Walter Fowler -
Inmates general fund availability a.
only s80,95l, Ass.
After reviewing this state of af-
fairs, Gen. McCoach declared, 1T
seems clear that in submitting their
estimates to Congress, the Commits
sioners must reduce the depart.
mental estimates" He declared Ger.
tain capital outlays in the electrical
and sewer systems must be carried
on in the interests of health and
safety. estimating the minimum for
these purposes at between $2,500 900
and $1,000, 900.
Base of S7S,0OO,00O
Maintenance and operation on
exactly the same basis as the cur
rent year will, in 1850, require ap-
proximately s78,00o,o0O." Gen. Nc
Coach said. If vital capital outlays
are added to the $4,000 900 for
maintaining current city services,
Gen. McCoach added, the total is
about $8l ,000, ,009-the amount Of
estimated revenue availability.
Then, he said, there will be no
money available for other capital
improvements. although some rela-
lively small sum Is highly desir-
able" for continuation of projects
already started
The Board of Trade continues to
urged per cent sales tax, ex-
pected to yield about $13, 500 900 an
nually, he told the Commissioners,
adding that the principal efforts Of
the District government and its cit
izens should be directed toward
early passage of the legislation by
Congress.
Strong representation should be
made to Congress for a more ade-
quate Federal payment, Gen. Me-
Coach said. because it is probable
that even with a sales ta8 the Dis
trict will need additional funds il
the city is to fulfill requirements
caused by the large increase in the
population of the Nations Capital.
New Formula Urged.
I'VE hope that the Commissioners
will make a vigorous attempt to se-
cure the enactment of formula for
determining the Federal payment" {"
Gen. McCoach declared, which will
(See RTTnGET pa0e A-10