Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-13
District Urged
To Keep Works
Finance Plan
Citizens Group Warns
Thot Deviotions Will
Defeat Purpose
BY George Beveridee


Commissioners to stick by their
original plan for financing the
proposed $305 million public
works program, warning that
deviationS from it would de-
feat the entire purpose of the
plan"
The appeal was made in the
midst of a restudy of the entire
tax financing proposals by city
officials.
The council, in a letter to
Commissioner Samuel Spencer
signed by Woolsey w. Hall yes
terday. declared:
That the council respectfully
urges the Board of Commission.
ers to strongly adhere to the pub
lie works program which was
advocated by the President of
the United States. approved by
the Bureau of the Budget and
accepted in good spirit by the
community.
THE public works program, in
the opinion of the council. con-
tains the maximum tax burden
which the citizens of the District
of Columbia are able to bear and
the Congress should recognize
the manifest need to shoulder
its fair share of the cost of ade-
quately maintaining the Federal
City through a fairer Federal
contribution, which is grossly in
adequate.
1T is our opinion that to de-
viate from the program as
urged and conceived by a return
to 'pay-aS-you-go financing
would defeat the entire purpose
of the plan"
Borrowing Seen.
The reference to a return to
pay-aS-you-go financing OBJ
viously was tied to the possibility
that local taxes be increased to
the point that it would be UNI
necessary to borrow money from
the Federal Government to
finance some of the works
projects.
The Commissioners original
plan called for general fund tax
increases of about $4.5 million a
year plus water. sewer and high
way fund tax increases, a SO mil |
lion increase in the annual Fed
eral payment and interest bear
ing Federal loans amounting to
about Sill million over the 10
year improvement period.
A joint House Senate Subcom-
mittee considering the program
has ordered the Commissioners
to restudy the entire tax Struc-
ture. amid strong indications
that subcommittee members want
higher tax boosts than the city
heads propose.
Seek Way Around Loans.
After a closed meeting of top
officials yesterday. Mr.. Spencer
told reporters the officials were
trying to line up additional reve-
nueS to make unnecessary the
$40 million in loans proposed to
finance general fund portions of
the program. He said his i'm
preston from the subcommittee
was not that it wanted to elm
mate the loans entirely. but to
give strong consideration to the
possibility of cutting them down.
He said the officials also were
looking into the possibility of
"earmarking some of the funds"
for specific works projects. Sub
committee members have ex-
pressed concern previously that
some Of the new revenues pro-
posed might be eaten up in ex-
penses other than public works.
The city officials will meet
again Monday morning to go
over material which they will
take to their next closed session
with the subcommittee at 2 pm.
Wednesday.
The commissioners have been
holding almost constant work
sessions with their budget and
tax experts since closed-session
meeting with the subcommittee
last Wednesday.
At that time, subcommittee
sources disclosed that considera-
ton was being given to reducing
the Federal loan proposed, and
also to providing taxes to fend
off deficits which might occur
during the next several years.
Concern Expressed.
A major concern voiced by
subcommittee members through
out their hearings has been a
fear that the new revenues
might not be enough to guaran-
tee completion of the works
projects. Members have stressed
that they do not want to take
to the House and Senate floors
a program under which they
might have to return in a few
years for more money.
The Commissioners, however,
have insisted that the revenues
proposed would meet nearly all
the cost of the works projects.
While other deficits - having
nothing to do with the works
program - might occur, these
should be dealt with on a year.
by-year basis as they come up,
city officials have urged.
Beyond the question of deficits
which may or may not occur.
1t is known also that the sub
committee is seeking some means
to earmark increased revenues
for specific expenditure on the
needed capital Improvements.
So far as the revenues them
selves are concerned, the sub
committee is investigating vir-
tually every tax source the city
has Cnecial attention I1oeY11harS