Evening star., 1952-01-21
Record U. S. Budqet
Asks 1854 Billion;
d. c. Cut So Million
Designed to Keep
City's Expenses
Within Revenue
By Horriet Griffiths

VVbNusN NSNSHbuS
By Harriet Griffiths
An economy budget of $780,
442. 100 for the District in 1858
was sent to Congress today by
Truman. This is nearly
So million less than it Is costing to
operate the city government this
year.
The budget is designed to keep
the expenses of running the city
government within the amount Of
revenue anticipated in the fiscal
year beginning July l.
These facts stand out in the
proposed budget:
l. This is the first time since
1884 that the proposed budget Is
less than that of the previous year
by any substantial amount. This
does not mean that the city's in
come from taxes is going down.
The District is exhausting surplus
funds built up in previous years
and must either reduce expendi-
lures or up taxes.
Based On Full U. S. Payment.
2. The Commissioners slashed
some $50 million from the requests
submitted by the various city de-
partment heads in arriving at the
proposed budget Of $136, ,442. 100.
8. The budget is based on q full
$12-million payment by the Fed.
eral Government toward the city's
expenses.
Reluctant to increase taxes, the
District budget makers tailored
the budget to fit the anticipated
income. The city entered the cur
rent fiscal year with a SIS million
surplus. A little more than SIS
million surplus will be carried into
the next year. The anticipated
surplus next year is $2,161, ,673, in
cluding only $4,000 from the gen.
eral fund.
Cut in improvements.
Proposed new permanent i'm
provements for the city were cut
from the $32 $50 for the cur
rent year to $21,517. 300 next year.
A new separate fund was added
to the three customary divisions
OF the budget this time-the
Motor Vehicle Parking Fund. This
was set up for the Motor Vehicle
Parking Agency, and is being fed
the fees collected from parking
meters.
The fund will be used for ad-
ministrative expenses and of.
street parking facilities. It will
get 100000 this year, and a like
amount next year.
Uses Unspent Funds.
Other budget divisions besides
the General Fund are the Water
Fund. budgeted at $12,751 900
next year, and the Highway Fund,
totaling $11,033,493.
In cutting down next years ex-
penditures. District budget officials
made use of 'lapsed'' items-funds
appropriated to a department but
not spent because of inability to
fill positions or go through with
some other project.
Last October 81, the Commits
sioners issued an order freezing
vacant positions. Through this or
der, and the forcing of other saw
ings, Budget Officer Walter L,
Fowler noted, cost of the pay in
crease was reduced to $6.303 500
for this fiscal year. and the esti-
mate for 1858 to $7,022,53
In addition to the pay increases
the District budget had to take
care Of increased costs caused by
legislation to benefit certain
groups of city employees.
These included a 5000, 900 bill for
paying police and firemen for holi-
day work, and $3.50, 900 increase
in their retirement fund. The
city's new budget carries an added
$3.50. 900 for its so per cent share
Of maintaining the new Federal
Courthouse, and an increase from
SAB to $4.76 in the per-day cost
Of keeping about 5000 patients in
st. Elizabeths Hospital.
Revenue Drop Foreseen.
For next year, the District cut
back its proposed installment on
repaying the debt for purchase Of
land under the Capper- Champion
Act from the usual 81 million to
$500. 900.
Estimating 1858 revenues at
S140, ,504,773, the District is pre-
pairing for possible decrease Of
about 100000 in the yield Of the
3 per cent sales tax, which now ap-
oroaches SIS million.
This is on the theory. Mr.. Fowler
said. that possible reduction in
the amount of civilian goods avail
able next year might result in
ess buying. A slight drop in motor
vehicle taxes also is anticipated.
The District also has before it
IN Increasing threat Of a revenue
lrop via the establishment of sub
lrban branches by large downtown
department. stores.
Realty levies bring In the lions
share Of the tax intake-esti.
Continued on Page AS, Col. ~
Stories on Budget
Inside Todoy's Star