Evening star., 1949-10-18
D. c. Budget
Continued From First Page

ly excessive departmental esti-
mates has now reached such pro-
portions that most thinking
citizens completely disregard them
as measure Of true needs. The
cry Of wolf has been so fire.
quently and regularly sounded
that the result conforms to the
lesson of the fable. Frankly, I
do not believe under these cir
cumstances hearings at this stage
serve any useful purpose"
Commissioner John Russell
Young explained that if $12,-
100000 were allowed for these
purposes, the total would be $780,
447,197, which would leave only
about $3.500.0o0 for the increase
or expansion of services. Also, he
said. the general fund has a debt
Of $1.759,0O0, mostly caused by
purchase of park and recreation
areas.
More than $4.000.000 of the
revenue availability of approxi-
mately S104 ,000. 900 for 1851 is due
to an estimated surplus as of the
end of fiscal 1850. and this amount
will not be available in 1852 unless
revenues from new taxation ex-
ceed estimates, Mr.. Young pointed
out. He added any increase inI
operating expenssTis usually rel
curing.
Mr.. Reilly said it appeared that
if the Commissioners would hold
operating expenses to a reason
able level, ample funds would be
available next year from current
revenues for the needed public
school construction program.
The Board Of Education has
asked total of $1o.o3e,650 for
permanent improvements, includ-
ing $6,120,000 for new school
buildings.
Larger Federal Payment Urged.
Mr.. Reilly said that if operating
expenses are held to their present
level and mandatory increases,
there should be available about
$20,000,000 for capital improve
ments.
Under the circumstances,
therefore, no new taxes should be
levied and no existing tax rates
should be increased" Mr.. Reilly
declared. ANY further increase
in revenue should come from an
increase in the Federal payment in
some proportion to increases in
local taxes.
1--WE urge the Commissioners to
adopt a policy against any tax
increase in the next several years,
inasmuch as residents of the Dis
trict OF Columbia are now paying
practically every tax levied in
other Jurisdictions at comparable
rates with those levied elsewhere,
and in the case Of a great many
communities, District residents
are paying higher rates."
$112,000,000 Limit Suggested.
Mr.. Connaughton told the city
heads the Federation's Fiscal At
fairs Committee has suggested the
budget should not exceed $112,-
100000 in any event, and asserted,
1T is not necessary for us to go
on spending spree simply be-
cause we have found another ave-
nue. of tax-raising, to wit, the
general sales tax"
The Federation favored the
sales tax as a method of balanc-
ing the budget, he said, and not
"as another source Of revenue to
spend recklessly."
Specific recommendations pre-
sented by Mr.. Connaughton in
cluded:
A Federal contribution to the
District Of not less than $50, ,000,-
900, as compared to the $12. 900 900
contribution to the Districts $103,-
100000 budget this year.
A statement that the present
"pay-as-you-go" system Of provid-
ing capital improvements which
will last for so years or more "does
not make sense"
Realty Tax Increase Opposed.
No further increase in the real
estate tax and immediate aboli-
ton of the "inequitable income
tax now enforced in the District" )"
together with repeal Of the per
sonal property tax.
A statement approving the
present sales tax, since only q
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