Evening star., 1948-09-30
District Budget
Faces Deficit
0f14MiI!ion
CopituI Hos Small
Surplus for Current
Yeor, Fowler Reports
By Jerry O'LeoN, Jr.

L. Fowler said today the city
will finish the current fiscal year
without a previously forecast
deficit, but added that proposed
expenses for the year beginning
July would have to be cut
nearly $14,es>0oO unless new
revenue sources are provided.
Increased revenues rubbing out
the expected deficit and providing
a small surplus were discovered in
a revised estimate of city income
made September l, he said.
The amount of the cut the Com
missioners will have to make in the
new money requests Of their depart-
ment heads is based on similar FORE
casts of expected income from July /.
S96,S4s,141 Revenue Expected.
Estimates of all the municipal de-
partmentS totaling $1lo,188,648 ex-
ceed by $13,50o,00O the anticipated
revenue of $96,546,141, Mr.. Fowler
said. Most of the deficit would be
in the general fund, if Congress were
to enact the appropriation as the
budget stands today. The highway
an6 water furds are self-sustaining.
The Commissioners favor a 2 per
cent sales tax to meet the deficit,
coupled with elimination from Dis
trict income tax liability of all per-
sons making less than $1,000 a year.
Opposition to the proposed sales tax
by Senator Johnston, Democrat, of
South Carolina, killed the budget
balancing levy at the last session Of
Congress.
Financial Condition.
Mr.. Fowler, in his statement on
the Districts financial condition re-
leased today. said:
"A revision of the revenue esti-
mates in the general fund for the
fiscal year 1949, made on September
l, l948, eliminated the previously
estimated deficit of 1854 900, pro-
vided funds for estimated mandatory
deficiencies of 81 ,065,5l0 and left the
amount of $301,455 available In the
public works investment fund for
1850.
This increased the revenue esti-
mates for September /, l948, over
the May 6, 1948, estimates by $780,
965. For the fiscal year 1850, the
revenue availability general fund.-
Is estimated at $80,95l, ASS based ON
existing legislation"
IT approved as the budget stands
today, Mr.. Fowler said the deficit
would be exactly $13,433,376. ANY
pay raises would increase this deficit,
he added.
A somewhat brighter picture has
developed in the highway fund.
Mr.. Fowler said the 1949 appropria-
ton charges of $9, ,282 200 would leave
a deficit of $23,021 to carry over into
fiscal 1850. But the 1850 revenue
availability is expected to be about
$9.543,697 and the appropriation is
estimated at $9,372, 500. Thus. a
reserve of $171,197 would remain
from 1850.
Water Fund Balance.
For the water fund, Mr.. Fowler
said, a balance of $44,98o remains
for fiscal 1850. The availability in
1850, however, exclusive of securities,
amounts to $6,050,989. The esti-
mates submitted for 1850 total S.
337 900, which would necessitate a
sale of $2S6,010 in securities to bal
ance the budget.
The estimates submitted by the
department heads represent an in
crease of $10,309, ,165 over appropria-
tions for this fiscal year. OF this
increase. $7,460,24 is for operating
expenses and $2,848, ,922 Is for capital
outlay. The general fund accounts
for s10,184,548 of the increase, with
the operating increase amounting to
$6,756626 and capital outlay, $3,-
427.922.
The largest operating expense in
creases are sought by the Public
Welfare Department mostly for st.
Elizabeths HospitaD the public
schools, the Health and Police De-
partments. Largest increase in cap
ital outlay is to complete the con-
tract authorization for Gallinger
Municipal Hospital.
$1,076,617 for Raises.
Mr.. Fowler said the gross increase
for salaries is $3,711,962. He said
81 l,076,6l3 Is requested for wage in
creases required by law, such as
within grade promotions and for
employees entitled to the Federal
$3.50 a year pay raise.
A total of $685. ,228 is requested
for 652 new positions in the Dis
trict government. The total gross
increases requested for other obli-
cations is S6,516,618. They are brok-
en- down as follows:
Increased prices for purchases
other than equipment, s2,393,368;
increased work load, $448,607; re-
placement Of equipment, Sl.086,575:
new equipment, s565, 1877, and essen
tial repairs, s296,063.
OF the gross s13,875,7 ,705 increase
in capital outlay s6,507 zoos is to
complete contracts already author
lied. s737 $40 Is for furniture and
equipment for projects already au-
thorized, $4,448,o34 Is for utility
iteu,s or transfers and 40 1g3 176 for