Evening star., 1948-05-06
Budget Action
Jammed by Pay,
Tax Problems
Sl0l, ,l64, 900 Spending
Bill Sent to Senute
To Encounter Delay
By Don S. Worren

Action on the Districts pressing
budget and revenue issues now
awaits a break in the legislative
logjam over the problem of how
much OF pay raise is to be enacted
for Government workers.
The House yesterday passed and
sent to the Senate without change
the s10l,l64,O00 city spending bill
for the year beginning July /, but
there it will encounter a delay to
await some solution to the problem
of finding extra funds needed to
make it balance.
To meet a deficit of around
$5,000,000, now in sight, the Com
misSioners and numerous members
OF Congress are proposing per
cent general sales tax
Bates Is Key Figure.
Key figure in the revenue prob
lem is Chairman Bates of the
House District Fiscal Subcommittee
An opponent of sales taxes, except
as a last resort" he is maintaining
there should be no decision on an
extra load of District taxes until
Congress indicates clearly what it
is going to do about Government
pay raises.
He wants to wait "about two
weeks" for this, since adoption of a
cost-of-living pay raise. applied to
city workers, would add an esti-
mated s6,O0OO00 to $8O00,00o to the
impending District funds deficit.
At the other end of the Capitol.
Senator Dworshak. Republican, of
Idaho. head of the Appropriation
Subcommittee on the District, said
final action on the supply bill
should be held up until some way is
charted for the District to close the
revenue gap under the Sl0l ,l64, 900
budget.
Settlement Proposed.
A settlement of the issue over
Government pay was proposed yes
terday by the Senate Republican
Policy Committee. Chairman Taft
said the group suggested conSulta-
tions between House and Senate pay
raise sponsors, in search for a
agreeable plan.
District Committee leaders at
both ends of the Capitol, mean
while. are showing anxiety over re-
curing delays on the revenue prob
lem, although they agree the rea-
sons advanced are good. There was
growing concern that, with Con-
gress expected to adjourn in about
six weeks, hasty job might have
to be done over revenues.
There also was some fear that,
at the last minute, move might be
made to take the easy way out by
increasing real estate and personal
property taxes again. The real
estate tax was raised last year from
SITS to 81 per SlO0 and assessments
yere increased 20 per cent.
Hearings Adjourned.
Joint House Senate hearings were
held some weeks ago on the revenue
problem. but the hearings were ad-
lourned to await action on the city's
budget. Senator Cain. Republican.
of Washington, and other members
Of this Joint group are said to
believe a sales tax is unavoidable
now. They have been waiting for
Mr. Bates to act. since tax legisla-
ton much originate on the House
side.
Thev was little fuss in the House
over passage of the record breaking
supply bill. Two efforts were made
for amendments. and both were
voted down. In the final test. the
bill was passed by voice vote, with
no opposition.
Maryland Representatives Beall
Republican, and Sasscer, Democrat,
teamed up in fight for free tuition
for nonresident pupils attending
District schools This was defeated
In test vote by IA to 10, when few
members were on the House floor.
Representative Fogarty, Democrat.
Of Rhode Island, ranking minority
member of the Horan Subcommittee.
made an unsuccessful fight to strike
from the bill the rider banning use
OF any Of the appropriated funds for
payment of salaries of any CITY
employe who belongs to union
whose officers have refused to sign
the Taft-Hartley Act anti-Com-