Evening star., 1949-04-14
Senate Pressed
To Act on D. {.
Revenue Bill
Logjom Of important
National Legislation
CompIieotes Situation
By Don S. Warren

NCW PlCoouIC Was UullQlIlg up
today for Senate action on the
pending s18.000.000 city revenue
bill. on which hangs delayed pay
raises for the city's employees and
funds for more adequate public
services.
The problem was being consid-
cred by Senate leaders, but as yet
Majority Leader Lucas has been
unable to find a spot for action
on the city tax bill, which features
a modified 2 per cent sales levy.
Complicating the situation is the
Senate logjam of important ma
tional legislation.
Hope for Early Action.
Chairman McGrath of the Sem
ate District Committee and Sena-
tor Hunt, Democrat, Of Wyoming.
head OF the District Fiscal Sub
committee, are hoping for a
chance soon for action on the city
revenue bill. The latter has ad-
vised Senator Lucas of increasing
demands for the delayed cost-of-
living pay raise for city workers.
q raise granted to Federal en-
ployes as of last July.
Without new revenues, city off,
cials have warned, this added cost
of about $Io,000.0o0 cannot be
met.
AS 1t looked today, however,
Senate consideration of the tax
bill may have to wait a while
longer, since the unfinished busi-
ness now before the Senate is the
long, ,range housing bill. After
today's session the Senate is ex-
pected to take an Easter recess
until next Monday.
Several other important District
matters and long string of minor
bills also are awaiting action.
Senate Appropriation Subcom-
mittee hearings have been COM
pleted on the city's 1850 "austerity"
budget, but it's mark up" has been
delayed for a time to see what
happens to the new revenue bill
Spending Bill Slashed.
The House, in action preceding
It's revenue decisions, had slashed
$4.400.000 from the spending bill
for lack Of funds, but still left a
deficit Of about $2,500,0O0 with
out counting the cost of the pos
Sible pay raise.
How long the Senate Appropria-
tions Subcommittee headed by
Senator Hill, Democrat. of Ala
bama will wait for tax bill action
remains in doubt.
About ready for Senate action,
alsosis the plan for an elected
city government here. sponsored
by the Kefauver Home Rule SUBJ
committee Of the Senate District
Committee and now approved by
a big majority of the District
Committee. 1t will be debated in
the Senate as soon as q report
explaining its provisions is filed
by Senator Kefauver. Democrat,
of Tennessee.
On the House side, a one-year
extension Of the child day-care
program. on a much reduced basis,
Is one of several city measures re-
ported by the District Committee.
House action was deferred last
Monday because of international
issues.
Would Cut Costs.
The day-care center bill would
reduce from $150,000 to $4,000
the Districts costs for the service
to children of working mothers
but would return to a revolving
fund fees paid by parents.
The tax bill will meet the city's
needs In the year beginning July
only if enacted by May /, ac-
cording to Fiscal Chairman Hunt
and District finance officers. The
report of the Senate Committee,
filed with the Senate Tuesday,
contends expected receipts from
the sales tax section will diminish
by about $1,200,O00 for each
month of delay in enactment.
Even with passage by May /, the
report states, the District will be
about $1,000,000 short of the
needed $18.000,000. City officials
say this can be absorbed by the
temporary use of cash balances.
If there is no final action on the
revenue bill before June /, how
ever. city officials say. some emer-
gency steps will have to be taken.
esides the sales tax, the House
tax bill. as approved by the Sem
ate committee. calls for a 15-cent
rise in the So tax rate on real
estate; broadening of the per-
sonal income tax but a higher
basic exemption, from $1,000 to
$4,000, and a strengthening of the
5 per cent income tax on unin-
corporated businesses by lowering
the exemption there from $40, 900
to $1,000.
In support of the modified sales
tax plan, the committee report
emphasizes that sales levies now
operate in a States and in 134
cities and three counties.
To Boost Property Tax Rate.
1T is believed that the imposi-
tion of a sales tax, such as the
one provided in this bill with its
liberal exemptions, would not
work as much q hardship on per-
sons in the low-income brackets
as would a substantial increase in
the rate of property taxation"
the report said.
To raise $13.500, 900, as esti-
mated for the sales tax, property
taxes would have to be boosted to
$2.s5 per 500 of value, the report
said.
The Hunt subcommittee brought
out that. under the 1947 Revenue
Act, the city realty tax bill went
up 80 per cent. owing to a boost
in both rate and assessment, and
that the added Is cents proposed
in the pending bill, would raise
this IN, .AAxxt 1A~ AA~k -