Evening star., 1948-04-04
Horan Propose,
Par|ey on DC.
Fund Problem
Says Budget Needs
Force Survey Of
Revenue PIons
By Don S. Worren

l
A proposal that District legis-
lative and appropriation COM
mitteemen of Congress join in a
conference on the city's finan-
cial troubles was advanced
yesterday.
It was q break in the sporadic
feuding that had been going on
recently between spokesmen for the
budget and revenue groups In
charge of District affairs-where
the sales tax is main point ut
issue.
The offer of q round table dis
cussion of the, whole problem came
from Chairman Koran of the
House Appropriations subcommittee
which will write the Districts 1949
budget bill. He said he would send
invitations to the legislative groups
in charge of any new revenue bills
to pool views on facts, problems and
answers.
Mr.. Horan suggested the round
table be held before his subcommit-
tee writes its version of the bill
determining how much the city can
spend In the year beginning July l..
Fund Needs Delaying Bill.
Up to this development, the situa-
ton was approximately this:
l. Mr.. Horan, in charge of the
city budget bill, declared fund needs
were so high he could not draft
the spending measure until he knew
how much additional revenue might
be provided under a new tax meas
ure. and
2. Chairman Bates of the Fiscal
Subcommittee of the House District
Committee, in charge of any new
revenue legislation, asserted there
should be no move for increased
taxes until the budget group had de-
termined how much must be spent
in the next year.
In addition to this conflict, Mr..
Bates has asserted there should be
at least some reduction in the pend
ing SOL ,400, 900 budget requests of
the Commissioners and Mr.. Horan,
from his preliminary look at the
budget, sees the need for more,
rather than less spending.
Bates, Horan Differ on Sales Tax.
On top of this situation, Mr.. Koran
is a determined advocate of the
sales tax plan for city finance and
Mr.. Bates regards it as the least de-
sirable form, one to be adopted only
as last resort.
Yet, both Mr.. Bates and Mr.. Horan
have declared belief that the crea-
tion of single joint congressional
committee in charge of all District
affairs, including both finance and
spending, would point the way to a
better solution of District money
problems. This suggested the idea of
a Joint revenue and budget meeting
before action is taken on the now
independently : considered spending
and revenue problems.
The fiscal subcommittee of the
House and Senate District Com
mittees have concluded joint hear
ings on an additional city tax bur-
den. Decisions are being postponed.
There may be another special joint
hearing on the specific question
of the proposed retail sales tax.
Hearing May End Next Week.
The Horan appropriations sub
committee has spent week on
executive budget hearings and hopes
to finish by the end of next week
The fundamental issue between
the House District spending and
finance units was highlighted yes
terday when Fiscal Chairman Bates
received from Budget Chairman
Horan letter warning that the ap-
preparations subcommittee would be
unable to bring out spending bill
until it knew what the revenues
would be.
A similar position was declared
last year by Mr.. Horan and he lost
the battle at that time.
Mr.. Bates told reporters he would
reply to Mr.. Koran. He indicated
he would take the position that be-
fore any consideration could be
given to placing an increased tax
burden on the District the respon-
sible congressional group should
know how much additional revenue
was needed, and for what it was
to be spent"
Reduced Spending Urged.
Mr.. Bates said he was impressed
with the findings of the Board of
Trade that permanent improve
ment outlays for the District should
be held to about $1,000, 900 annually
which is less than the Commits
sioners proposed for the coming
year.
Mr.. Bates urged the Horan Budget
unit to reduce the pending SPEND
ing requests to "the minimum con-
'sistent with God public service" He
said he agreed with the Board of
Trade recommendations that reduc-
tions up to $4,000, 900 could be found
in the pending budget.
Possibility that Congress may Or
der a cost-of-living pay raise for
Government workers, which would
be applied to District employees. is
complicating the city finance prob
lem. Adoption of a Government
pay raise would add at least $8,-
100000 to the District deficit, al
ready calculated at not less than
Sc. .00O, 900.
The Commissioners have said ad-
ditional revenus must be found for
the next fiscal year, above the pro-
posed per cent sales levy, If pay
raises, as yet unbudgeted, must be
met.
Agents of the Washington Com
mittee for Consumer Protection
yeste. ,ay demonstrated against the
proposed sales tax. Volunteers car
(See D. c. FISCAL, Page ABB
speak at ceremonies in the Hyatts-
villa nS ~