Evening star., 1952-05-21
19.Cent Increase
|nNontgomery
Tax Rate Asked
$25,496,705 Budget
Is Recommended as
Record for County

RECORD FOR County
A record high operating and
capital budget of $25, ,496, ,705,
which would call for a 19-cent in
crease in the present $2.03 basic
tax rate in Montgomery County,
was recommended yesterday by
County Manager Irving G. Nc
Nayr.
Mr.. McNayr transmitted his
budget message to the County
Council in Rockville.
The budget includes $13,262, 1859
for operating expenses and $12,-
234,346 for capital projects. It is
nearly II per cent higher than last
years $21 million budget.
Another $7,362,836 would be
spent other than through direct
county appropriations. This would
raise the total non-capital ex-
penditures in the county to $780,
625,195. Included in this figure is
$1,825. .032 in special taxes raised
and spent in the suburban dis
trictS.
Seeks Pay-as- YOu-Go Basis.
Mr.. McNayr said his budget, and
recommended methods for financ-
ing 1t, are aimed at putting the
county on a pay-as-you-go basis.
The county manager reported
the estimated assessable base
would be $474, lis $50, as of July /.
Although $56 million higher than
this years base, he said it would
not provide sufficient additional
tax funds to meet county needs.
Mr.. McNayr said the assessable
base estimate probably will be
increased about 81 million before
the budget is adopted next month.
This might cut three cents off
the proposed tax rate increase,
he added.
Montgomery County is at a
financial crossroads" Mr.. Nc
Nayr wrote in his letter of trans
INITIAL. He said the first years
payment on State school loans
borrowed two years ago falls due
In fiscal 1928.
The county will pay off some
$2,520.310 in debts during the
coming year-a $725,143 increase
over last years debt service.
Up 80 Gents in 2 Years.
The proposed tax increase would
mean 32-cent increaes for
county resident in q two-year
period.
To put the county on the pay
AS-you-go basis, Mr.. McNayr rec
olnmended that $1,110,0O0 Of the
county's $1,256,126 accumulated
surplus be used for cash pay-offs
Of proposed capital projects.
~ In reversing a stand taken last
year, Mr.. McNayr urged the
county to apply for $4,203. 200
available from State school loan
funds for school construction. He
eited the flooded municipal bond
market as the reason for his rec
ommendation.
Mr.. McNayr said the County
probably could avoid any sizable
bond issue for long period If it
used the State loan monies and
surplus funds and issued parking
lot bonds only as needed.
Omits Some Appropriations.
Mr.. McNayr recommended
against revamping of the juvenile
court setup until after a study
has been made by the county bar
association.
He recommended discontinue
ance Of the Office of Civil De-
fense.
He urged that the Social Serv-
ice Exchange, the Youth Com
mission and the Financial Con-
Sultant Service be discontinued.
Mr.. McNayr recommended
against any increase in the pres
ent $4,000 appropriation for
Montgomery Junior College. He
turned down q number Of re-
quests for creation Of new jobs,
including several school board
posts, and a separate director of
public safety. Salary increases
for teachers, police and others
were not recommended.
In general Mr.. McNayr clipped
some So million off agency re-
quests.
Schools Get Lions Share.
County schools get the lions
share of the appropriations with
So million slated for school con-
struction. The board, however,
asked for $11.2 million and now
will have to establish it's own
priority Of need in the building
program.
The schools also would get an
other $6.432.598 for operating ex-
penses. some 100000 less than
requested. The schools anticipate
another 50 million in State and
Federal aid. No increase was
made in the $11.500 salary for a
superintendent.
Other items included in the
capital budget are $2,120,300 fol-
road and storm drainage prof.
ects; 1901 ,046 for completing the
county office building; $23, 900 for
a health clinic building for the
Viers Mill Village area; $750,O0O
for the Silver Spring parking LOT
program; $4,000 for the Mont
gomery Hills parking lot program;
$4,000 for the Wheaton parking
lot program, and SOS, 900 for the
Bethesda Public library building
The funds for the county Of
flee building would be obtained
through use of $4,000 of the
county surplus and proceeds oi
bonds already issued. The health
clinic also would be paid for out
Of surplus funds.
The county road building pro.
gram would be financed through
use Of $637 400 from accumulated
surplus funds, $4,000 from bono
funds Of past years, $700,800 from