Evening star., 1948-06-12
ID. {. Supply Bill
Heads for Final
Congress Action
Conferees Agree on
S9o, ,729, ABB; Revenue
Measure SnurIed
By Don S. Worren
BULLETIN

day took the Senate floor to
begin a determined fight for
enactment of the 2 per cent
sales tax which would be COM
bined with a revised income
levy exempting incomes up to
$4,000 here. He charged that
failure of the revenue bill
would force a 75-cent rise in
the District property tax rate,
if Congress passes pay raise
bills.
One part of the Districts
financial problem, the 1949
spending program, today was on
its way to final Congressional
action, but the revenue side of
the picture was still in a snarl.
House and Senate conferees on
the budget for the new fiscal year
compromised differences late yester-
day between the two bodies to rec
ommend an outlay of 500, ,729. .483.
This reduces net Senate cuts to
81 ,435 500 from the House total, with
restoration of a $16l 500 previously
slashed by the Senate.
Quick House and Senate approval
is expected to be given the plan to
send the supply bill to the White
House before adjournment next
Saturday.
Pay Raises Not Figured.
AS the bill now shapes up, 1t pre-
sents prospective deficit of about
$160,000 by the end of next year,
which might be absorbed admins
tratively. But a supplemental re-
quest for $150,000 to finance con-
tinuation of the child day-care
centers now is expected and this
would boost the immediate deficit
to more than 100000.
None of these calculations, however,
allows for the possibility of a last
minute order by Congress of Gov
ernment pay raise, to be applied to
classified city workers, along with
collateral approval of pay boosts for
District police. flremen or school
teachers, which may shoot the 1949
District deficit up by 100000.
The new city revenue bill, though
easily passed by the House, SO far
has been blocked by the Senate by
objections by Senator Johnston.
Democrat, of South Carolina, who
opposes the sales tax provision. The
South Carolinian said yesterday he
was prepared to filibuster. if neces-
sary, to kill the House bill.
Might Raise Realty Tax.
Sponsors of the revenue bill warn
that passage of the pay bills and
failure of the tax measure might
force boost in the realty and per-
sonal property tax rate from 81 to
$3.50 next month and to So a year
from now.
Anticipating increased budget de-
mands in the 1850 fiscal year, Chair
man Bates OF the House District
Fiscal subcommittee, forsees the
possibility that property owner
who last year paid realty and per-
sonal property tax bill OF $1,000
would have to pay about $4,000 in
1850. The property tax burden this
year was raised by about 80 per
cent, including rate and assessment
increases. Mr.. Bates calculated the
rest from a preview of a possible
1850 budget of we'll over sl05, ,000, 900.
With pay raise legislation and the
necessity of meeting obligations
postponed by various means this
wear, he estimated the deficit for
1850 might run to $4,000, 900.
Psychiatric Item Scrapped.
One decision of the conferees
knocked out of the spending bill a
Senate item of $4,000 for prepara-
ton of plans for new psychlatrlc
ward building at Gallinger Munich
pal Hospital.
Left intact, however, were funds
for plans and construction OF a
combined pediatrics and crippled
children's building, under con-
tract limit of s2,05o,oo0, and new
laboratory building. with a cost
limit Of s478,0o0.
House managers accepted a Sem
ate provision reducing to the So
per-day cost the charge against the
District for city patients treated
at Freedmen's Hospital. The
House had allowed much higher
rate for Freedmen's, but the Senate
insisted any deficit in operations
there should not be laid on District
taxpayers.
Under the conference agreement,
s15O, 900 was restored for sewer con-
struction projects Topped of the
fund in the Senate, as was an item
of $4,000 for equipment needed in
the reconditioning Western High
School. Minor items also were re-
stored for the operations OF the
offices of the Corporation Counsel.
the Auditor, the Tax Collector ana
the Assessor.
School Payroll Cut Stands.
No change was made in decisions
to cut school payroll funds by
slO0 900, which would mean Drop
ping so teaching positions. The
conferees, however, are leaving tho
application of the cut to school OIL
ficials, instead of specifying the
saving must be made in the white
schools. -.
The conferees made no change IN
a cutback in the proposed enlarge
ment of the police force but ac-
cepted a reduction from 207 to l57
in the number of extra men.
The House managers accepted the
Senate order for a 100000 survey
of school facilities and personnel.
A formal report is to be submitted
TO the Congressional Appropriation
Committees by next March !.
The conference group is recon-
nending the Senate item OF $4,000
for purchase of sites for fire houses
in the vicinity Of Forty-ninth and
East Capitol streets and twenty"
fourth and Irving streets S.E.
Chairman Koran Of the House
Funds Subcommittee won his argu-
ment for language to strengthen the
control Of the District Auditor over
city disbursements.