Evening star., 1953-02-05
Fowler S Data
On Finances
Spurs Study
Donohue and Lowe
Irked by Revelation Of
View on FiscuI Crisis
By Don S. Warren

warnings Dy OISJTlCt ouOSCt
Officer Walter L. Fowler that the
city faces staggering shortages
in the next 10 years today drew
promises from Chairman Case Of.
the Senate District Committee to
dig deeper into the problem.
Senator Case agreed the situa-
ton calls for thoughtful studies"
He gave assurances his commit
tee will continue to explore the
problems.
But he was more optimistic
than the budget chief that the
problem could be solved.
Mr.. Fowler, replying to an in
quiry from Senator Case. sent q
summary to the committee chair
man yesterday. In it he warned
that. by the end of fiscal 1862,
the District will face a deficit Of
more than $100 million in the
general fund account.
Displeased by Action.
Both F. Joseph Donohue, presi-
dent of the Board of District
Commissioners, and General ADJ
ministration Director Schuyler
Lowe, Mr.. Fowler's immediate
superior, indicated their displeas-
ure over the budget officers send
ing his information and views to
Senator Case without their
knowledge.
Mr.. Donohue said the first he
knew of Mr.. Fowler's action was
when he read it in the news
papers.
Mr.. Lowe said he conferred
with Mr.. Fowler early today on
the "pros and cons of the tim
ing" of Mr.. Fowler's statement.
Mr.. Lowe conceded that the
budget officers figures may be
close to the final computations
now being prepared by Mr..
loves Office.
AA AAOCkuA ANCpUAW
But, the administrator said.
Mr.. Fowler's release of his con-
clusions at this time comes as
an interim report" when Mr..
Lowe had hoped to release full
report by mid-February.
"His figures are no secret"
Mr.. Lowe said, "but we wanted
to get the whole picture to-
gether." He emphasized further
that any outlay of District ex-
penditures is predicated on q
higher Federal share in city
operation costs.
IF we don't get a Federal
grant or higher contributions,
we can't get anywhere" Mr..
Lowe said.
Based on Costs.
Mr.. Fowler'S figures we're based
on estimates of the gradual rise
in city costs and made no allow
ances for higher tax yields or
any increase in the size of the
Federal payment. Nor did his
estimate consider any costs to
the District from the proposed
$3.50 million public works pro-
gram, soon to be forwarded to
Congress.
Mr.. Fowler stressed. however,
that in the proposed 1854 city
budget, the District is relying on
surpluses to meet current costs.
as it has done several times
recently. But he warned that
such surpluses are running out
and that a day of reckoning is
coming.
Mr.. Fowler's statement to Sem
ator Case said:
1.-The 1854 budget, as trans
mitted to Congress, is a balanced
budget. However, with respect to
the general fund alone it con-
templates the use of unappro-
priated surpluses and unexpend-
ed balances of prior years
amounting to $10,330,968.
Can't Long Continue.
"Oyer a period Of years we
have been relying upon surpluseS
and ynexpended balances to
make up a considerable part Of
our revenue availability in the
general fund. but we do not be-
lieve we can continue indefi-
nitely to rely upon that source.
"Disregarding for the purpose
Of this report any contemplated
long term public works program,
such as is recommended by the
Addison Committee, and think
ing in terms Of normal revenue
availability. normal operating
and maintenance costs and nor
NAL capital outlay for public
works improvements, the picture
at this time presents itself as
follows:
"The three special funds
(highway, water and motor
vehicle parking funds) can be
adjusted to remain within avail
able revenues, provided no large
construction program is UNDER
taken.
Sees Financial Difficulties.
However, with reference to
the general fund. and based upon
q normal increase In revenues,
an increase Of 8 per cent each
year in operating expenses, and
an average expenditure each
year Of $40 million in capital
outlay for public works improves
ments. it would appear that, be-
ginning with the fiscal year 1855,
We would be in serious financial
difficulties, unless new tax legis-
lation is enacted or unless the
Federal payment is materially
increased.
"It is estimated that the deficit
in the general fund at the end
Of the fiscal year 1962-under
the conditions mentioned above
but without new tax legislation
or increased Federal payment
would be over 500 million.
The enactment of pay In.
crease legislation for police. fire.