Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-11
Works
Continued From First Page.)

stantially beyond the increases
proposed by the Commissioners
The city heads original plan
calls for S45 million more in
general fund tax raises. plus ad-
ditlonal water, sewer and high
way fund boosts which would
raise the figure to about $40
million annually. They also pro-
pose a 50 million annual boost
in the Federal payment, and in
terest-bearlng loans totaling
about Sill million during the
l0-year works program period
Seeks to Avoid Deficit.
Mr.. O'Hara said subcommittee
members were driving. if we
possibly can. to offset future
deficits lin the general fund.- :"
and with the hope that it may
not be necessary to borrow any
money"
Mr.. O'Hara added he did not
mean to imply some Federal
loans would not be necessary.
But his statement was the first
clear indication of any opposi-
ton to the Understanding loan
proposal.
One reason he cited for ques-
tloning the loans was the in
creased interest costs they would
incur. OF the works program S
Sill million in proposed loans,
about $40 million would be for
The general fund. During the
l0-year works period. about SIS
million would be repaid in prin-
cipal and intrest, with the rest
repaid in subsequent years.
Members had voiced concern
previously. however. about the
prospect of future deficits in the
general fund.
The concerns hinge mainly
around l0-year projections of
revenue and expenditure esti-
mates presented by the Com
missioners, which show deficits
beginning to appear in 1857.
The city heads have stressed
that the projected deficits APP
pear regardless of the works pro-
gram, which would be virtually
paid for by the new revenues
proposed. In addition, they have
emphasized that the city must
present balanced budget each
year, and that projections several
years into the future amount
largely to crystal-ball gazing.
Selling Prospects Weakened.
Subcommittee members. never
theless. have commended that the
chances of selling the entire
works financing program to the
House and Senate are weakened
oy prospects that new revenues
might have to be found in a few
| years.
1--WE want to know definitely
that there is going to be so much
money for capital improve
ments." Mr.. O'Hara said yester-
day. THE program is being
sold on the basis that it is
needed
That same feeling, he said,
has aroused interest in the posi-
bility OF finding a way to ear
mark new revenues for the works
projects, so that they could not
be diverted to other needs.
| One way to bring this about,
he said. might be to match high
er Federal payments to taxes
earmarked for the works project,
much in the way that Federal
matching funds help pay for
highways and hospital construc-
ton. He stressed that such a
possibility only is being explored,
preliminarily by the subcommit-
tee. however.
| The SO million annual Federal
payment increase proposed by
the Commissioners has not been
argued extensively. Mr.. O'Hara
said, because the emphasis has
been on the tax program.
So far as the specific works
improvements are concerned,
however, the subcommittee still
is viewing the $305 million figure
as 1.-THE target" he said.
Mr.. O'Hara told reporters sew
eral figures were mentioned in
discussing the extent to which
taxes should be raised. Asked if
the proposals were as high as
SIS million, he replied smilingly
that they were somewhere "be-
.e,-- 3- 4, X -s.- $685.. -: