Evening star., 1953-04-18
Fights Shaping Up
On Housing Program
And Retirement Fund
By the Assoeioted Press

in the House today over an Ap-
preparations Committee recon-
mendation to end the public
housing program and halt Fed
eral donations to the Civil Serv-
ice retirement fund.
The twin proposals were en-
bodied in the first big money
bill sent to the House floor this
year. The bill is scheduled for
debate starting Tuesday. Some
Democrats already were saying
several cuts were "phony" aud
would have to be made up later.
Cuts in the Civil Service re-
tirement fund accounted for
more than half of the cash re-
duction of $721 ,423 ,697 claimed
by the G. o. P.-dominated COM
mittee. The groups report
touched off it's drive to chop $40
billion from former President
Truman's budget requests for the
fiscal year starting July l.
Trims Not Stated.
The bill is to finance % mis-
cellaneous agencies, but the
committee did not say how much,
if any. the Eisenhower adminis-
tration trimmed from the Tru-
man proposals for each agency.
The cut amounted to 81 per
cent, leaving the bills total at
$451 ,020, ,493 instead of the ST.
172, ,444 100 originally sought.
Representative Thomas, DEM
ocrat, of Texas, senior minority
member of the drafting subcom-
mittee. insisted many reductions
would have to be replaced. per-
hapS when dollars are more VAL
liable than they are today.
In a separate budget-trim-
ming development. Secretary of
the Interior Mckay said a re-
viSed budget for the Reclamation
Bureau pared $53.838,00 from
the 1921, ,188. 900 proposed by Mr..
Truman. Biggest cut in the new
figures sent to House and Senate
Appropriations Committees was
given as $48, 1888, 900 in construc-
tion funds.
Denial of funds for the GUS
tomary Federal contribution to
the Civil Service fund was cited
by Mr.. Thomas as an example
of "phony" economy. Even some
Republicans privately agreed,
limiting they may support an
amendment to restore at least
part of the money.
Includes Past Debts.
Original budget requests were
for $176.139,000 as the Govern
ment'S regular contribution to
the fund and $192,015,O 900 in
interest on money owed by the
Government for past donations
it failed to make.
The Civil Service fund is built
up by contributions from both
Federal workers and the Gov
ernment. but the Government
doesn't always put in its esti-
mated full share each year.
The Appropriations Committee
said the Government should op-
crate the retirement fund on a
pay-aS-you-go basis. Since the
fund already has a big reserve
largely from employe contribu-
tlons-it could get along for
quite a while without any addi-
tional Federal donations.
But eventually, MIR. Thomas
said, the fund will be depleted
and employe contributions won't
be sufficient to meet annual out
lays. Then, he predicted, the
Government will have to con-
tribute heavily to make up it's
past deficits.
A leading House Republican.
Chairman KeeS of the Civil Serv-
ice Committee, said: II take a
dim view of it. Well have to
put in the money some day."
Some G. o. p. Help Expected.
Democrats looked for some
help from urban Republicans
for the housing program.
Congress in 1949 authorized
construction of $4,000 low-rent
housing units annually for each
OF six years. Last year it cut
the authorization to $4,000 new
starts.
Claiming the program is mot
justified and is not in accord
with the program for economy
and a balanced budget" the
committee said there should be
no more starts after July /.
Its recommendation in this
respect may be upset by the
House.