Evening star., 1953-02-06
Rei||y.Sees DC.
Studies So|vinq
Public Works
Commissioners Urge
Caution in Goueing
Fowler's Report

for the city's proposed eight-year
public works program was ex-
pressed today by John A. Reilly,
Mr.. Reilly, president of the
Second National Bank, is chair
man of a widely representative
Citizens Committee, set up to
review the $3.50 million program
and to press for Congress par
ticipation in it.
His statement of optimism
came in the wake of:
!. A warning by District
Budget Officer Walter Fowler
that the city, in the absence of
increased revenues. faces a stag
gering deficit within the next
decade.
2. A statement by the Com
missioners that Mr.. Fowler's
forecast should not be applied
directly to the public works pro-
gram.
Direct Report to Case.
Mr.. Fowler's financial analysis
was submitted directly to Capitol
Hill in response to a request
from Chairman Case of the Sem
ate District Committee. Both Mr..
Reilly and the Commissioners
indicated concern, however, that
its release came before the COM
pletion of related fiscal studies,
dealing directly with the public
works program.
The city heads said Mr..
Fowler's statement represents a
general set of conditions. They
said their current studies are
detailed analyses and estimates
p. undertaken in an effort
to arrive at a reasonably realis-
tic forecast of the District Of
Columbia'S budget over the next
eight years." and added:
Pending final decisions :.
1t is not yet possible to make
public the details of the District
of Columbia's capabilities for
handling this program"
Formula Revised.
Original program proposals
were made last September by an
earlier citizens group, headed by
Francis G. Addison, jr. The
program called for a 1919 million
expenditure over a Six-year
period. 1t proposed, on a basis
of past capital outlay expend-
itures.. that about half the cost
be paid from normal District
revenue sources. It said rs per
cent should come In a non-
interest bearing Federal loan,
and Is per cent in grant as
Congress share toward improv-
ing the Federal City.
After receiving the report, Dis
trict officials brought the cost
estimates up to date and began
to apply them against long
range estimates of city's pro-
Spective revenues and expenses.
The proposal to earmark for
the program $120 million from
the city's normal revenue sources
repeatedly hit a road-block right
away.
District officials, including Mr..
Fowler. contended that increased
operating expenses in the future
would make some of this money,
at least, unavailable, Mr.. Reilly
said. A possible result. it was
understood, is that the basic
fiscal pattern recommended by
the Addison group may be
revised.
At the same time, however,
some of Mr.. Fowler's estimates
of future budget prospects were
challenged as being too conser-
vative. These differences over
future income and expense esti-
mates still have not been re-
solved, and are the subject Of
the current studies.
Challenges Expense Increase.
Mr.. Reilly, on this same point,
questioned one condition cited
by Mr.. Fowler in his report to
Senator Case. Mr.. Reilly said
he can not accept Mr.. Fowler's
premise that the city's operating
expenses will increase at the rate
of per cent per year.
Mr.. Reilly emphasized that the
present aim is to agree on figures
that will stand up when Capitol
Hill authorization is sought with
in the next few months.
I'm still confident" he said,
"that after we review our fiscal
studies, we can work out a pro-
gram on a basis that will be
fair to the people of Washington
and to Congress.
Text Of Statement.
Following is the text of the
Commissioners statement relat-
ing to Mr.. Fowler's report:
The Boarda of Commissioners
hopes that no one will misunder-
stand the information concern
ing the budgetary problems Of
the District of Columbia General
Fund as bearing directly upon
the pending public works pro-
gram. The budgetary informa-
tion represents a general set of
conditions, whereas the Board
of Commissioners has been and
is continuing to make detailed
analyses and estimates of the
future capabilities of the District
to handle the specific public
works program when the final
scope Of that program has been
determined.
In order to do this with a
maximum degree of accuracy,
various fiscal studies have been
under way over the past few
months with regard to the Ad-
olson Committees recommends
tions for the immediate needs
public works program.
Numerous Studies.
Since there are obviously