Evening star., 1952-06-17
Vote for Full
S12Mi||ion DC,
Payment Seen
Senate Expected to
Approve. Boost
From House Cut
By Don S. Warren

ThIS is the major issue with the
House in the '$135 million city sup
ply bill, laid before the Senate
yesterday by its Appropriations
Committee.
BY a substantial majority, the
Senate committee rebelled against
the House move to cut down the
Federal share by 20 per cent or
$2.4 million.
The Senate also is expected to
back up its committees findings.
that Congress should restore most
of the $5.3 million spending cuts
ordered last March by the House.
The Senate bill would reinstate all
but $1.3 million Of the House
economies"
One Of the high lights of the
bill is new item of $50, 900
for plans for a new industrial
home school for children to
be built at the Children's Gen.
ter at Laurel, Md.
Actions of the Senate committee
cheered District officials.
They saw hope for a fairer deal
on the Federal share, money to
meet mandatory within-grade pay
setups and a liberalization Of the
budgets for many key agencies.
Praise From Donohue.
F. Joseph Donohue, president
of the Board Of Commissioners,
praised the Senate committee for
it's understanding of city problems
and voiced hope for quick Senate
approval.
"The Senate committee has
reported a very realistic budget" +"
he said. 1T is still under the
needs of the District, but we can
function under the money allowed.
"The $12 million Federal pay
ment is still less than 9 per cent
of the total budget and is very
little for the Federal Government
to pay towards the upkeep of the
Capital.
"The Senate committee was
very patient with us during the
hearings and went into each item
with extreme care. They seem to
show a thorough understanding of
District needs"
Senator Hill, Democrat, Of Ala
bama. head Of the Senate subcom-
mite in charge of the bill, said he
hoped for quick approval of the
liberalized measure.
Opposed by Ferguson.
Senator Ferguson Republican,
Of Michigan. voted against the full
$12 million Federal payment. But
he said last night he had not de-
cided if he would make a fight
against it in the Senate.
The Hill subcommittee, with the
approval Of the full committee. Of
fered solid. factual arguments for
the $12 million payment.
Such an amount, the committee
report first noted. was authorized
in the 1947 District Revenue Act.
In that bill a heavy new load of
taxes was placed on District resi-
dents to keep the city out of
deficit and debt.
Then the committee report
adds:
> Expenses Of the District gov
eminent continue to increase. and
much Of the costs are due to
basic legislation, yet there is NO
increase in the
Federal contribution.
I'm fact, under the House bill
the contribution would be less
than 8 per cent, the lowest in his
tory. and incidentally about the
same amount paid by the Federal
Government in 1922, when the
United States share was 40 per
cent.
Taxable Area Decreasing.
'The area of tax-exempt prop
erty Is increasing from year to
year and consequently the tax
able property area-the major
source Of revenues diminishing.
AS of June 30. 1851. the tax
exempt property area was SIT
per cent, as compared with 49.7
per cent in 1945. or an increase
of approximately 4 per cent.
"Of the $135,117.089 recon-
mended to be appropriated for
1858 the sum of $111,296.214 is
payable from a general fund.
With a Federal contribution to
this fund of $11 million the per-
centage of the United States
share would be about 10 per
cent"
The Hill subcommittee report
showed that, with enactment of
the Senate version of the bill,
the District would end the next
fiscal year with an overall surplus
of $6.4 million. Part of this would
be the result of a 1-cent increase
in the Districts gasoline tax rate,
beginning July l. This is esti-
mated to bring in an additional
$1.2 million a year.
The Senate bill outlays, while
liberal in comparison with the
House decisions, still would be
sos million. or sc per cent below
the costs of the present fiscal year
Fight Against Time.
The bill now faces a fight
against time. Unless it can be
cleared by Congress in the next
two weeks, the District will be
without appropriated funds July /
Passage Of an emergency con-
tinuing resolution would necessary
to permit the city government to
operate. The same plight faces
most of the Federal agencies.
Washington and Sandy Hook, Md.
father Of the defendant.