Evening star., 1951-05-23
Raise in D. T..
Taxes Hinge on
Budget Action
Pay Increase, Cut in
Federal Payment
Could Bring Boost
By Don S. Warren


The District soon may need
more taxes.
Whether it will or not depends
on what happens to its budget
and finance plans.
The District can meet an i'm
pending record $138 million spend
ing plan for the year beginning
July l, officials say, if there are
no great payroll increases and no
drastic slash in the Federal pay
ment.
The Bates Subcommittee of the
House Appropriations Committee
Us said to have agreed on a 1852
supply bill of about s138 million.
This would be some $2.7 million
below what the District Commis-
sioners had asked.
But there is some worry be-
cause an increase in the pay Of
Federal workers-extended sooner .
or later to cover District employees
has been recommended and is
under study. Coupled with this
are intended moves by some House
members to slice the size of the
Federal payment.
Blunt Warning by Fowler.
District Budget Officer Walter
L. Fowler put the issue bluntly
before a joint congressional group
yesterday while testifying on a
city tax issue related to its gen.
.eral finance.
If there is a pay boost, he
warned, I'VE may be back here
before long asking for an increase
in revenues"
He had in mind also that Rep
resentative Taber, ranking Re.
publican member of the House
Appropriations Committee. has
announced he will renew his fight
this year for a cut in the size OF
the Federal payment.
Under his leadership. Congress
last year cut the legislated $l2
million Federal payment down by
10 per cent to $108 million.
This fight is expected to be re-
newed when the District supply
bill for 1852 hits the House floor.
1t may come earlier in the House
Appropriations Committee, where
the bill now is expected to be
taken up June 4.
Up S16.4 Million.
Lacking any such developments.
officials say they can meet q
budget that tops this years spend
ing by about 1854 million.
| Some readjustments already are
recommended to make this pos
sible. Some construction projects
have been deferred, officials say.
to keep down next years spending.
| Last January. the Commission
ers recommended budget OF
S136.7 million. But mostly be-
cause of increased construction
costs, an added layer of $3.7 mil
lion was requested recently. Even
so, city officials said, some projects
were held back to prevent deficit
budget.
MIR. Fowler warned that sug-
gested 10 per cent salary increase
for Government workers, when ap-
piled to the District, would cost
the city about Sc million a year.
A 81 per cent raise, he added.
would mean about 81 million more
on city costs. He voiced fears of
another financial crisis, if wage
boosts were coupled with a reduced
Federal payment.
AS yet there is no official word
of what the Bates subcommittee
lis recommending on the 1852 city
supply bill, although the suggested
2 per cent trimming got backstage
confirmation.
Some sources said nearly 81
million has been Topped off the
Police Department requests be-
cause it is not believed possible
the department could recruit a
desired 300 increase in its force at
this time.
Golf Fund Cut Reported.
A proposed fund of $275,0O0,
also said to have been dropped,
was to permit the District Recrea-
Ition Board to take over the man.
Iagement of the public golf links
now under contract by S. G..
ILeoff1er. This subject raised a
sharp contest at recent public
hearings on the budget. 1t may
be renewed on the House floor.
On another controverted item.
the Bates subcommittee is said to
be supporting a 100000 outlay
for medical charity work by the
|private hospitals. Spokesman for
the volunteer hospitals had asked
for at least $894,000.
Some sources said, however,
there still is question of raising
the daily rates of payments for
INDECENT care performed by pri-
vate hospitals. Agents for the pri-
vate hospitals had asked that the
present rate for bed patients be
increased from SO to $3.50 a day.
This issue, too, may be up for fur
ther argument.
AS drafted by the Bates Sub
committee, reporters heard, the
pending bill does not include a
fund for the beginning of huorida-
ton Of the city water supply. One
reason was that the item has not
yet passed the Budget Bureau.
Some said it might be proposed
later as a supplemental item.