Evening star., 1955-05-09


estimates has been sharply queS-
toned by congressional budget
makers, it was disclosed today
with publication of testimony
before House Appropriations
Subcommittee.
Representative Rabaut, Dem
ocrat, of Michigan. chairman of
the five-man subcommittee ham
ding the Districts SITS million
budget for the next fiscal year.
charged:
IN the past six years the
budget estimates of revenue
have been below the actual re-
ceipts anywhere from 81 mil
lion to SIS million"
And, he asked, several days
before the subcommittee was
reported to have. cut 81 million
from the authorized Federal
payment to the District:
"In view of the constant un-
derestimating of revenues, what
basis is there for the committee
to believe that your present .esti-
mate of revenue is valid, and
that the District government is
in as bad financial position as
has been indicated in the various
publicity media?"
Notes First Estimate
He noted that only a few days
before the hearings began on
April IA the original budget es-
innate of revenue anticipated
in fiscal year 1856 has been in
creased by $1,250,000."
Then, he demanded, I'm the
past you were over anywhere
from 81 million to SIG million.
and now, all of sudden, you have
found S1,250,000. Will it be So
million or S4 million when we get
through? What's it going to be?"
AS submitted to Congress last
January, the District budget
showed an outright deficit of
S860.000, without the usual 81
million allowance for reserves.
Agreeing that revenue estl-
mates have been low for several
years, Schuyler Lowe, director
of General Administration, said.
Our old taxes consistently pro-
duced an actual increase over
the Immediately proceeding year
because of an expanding econ
omy in the community but
for each of those years it was
expected that the economy was
going to flatten out.
Income Flattened Out
However, the Income from
those old taxes has definitely
flattened out. For example, in
the past fiscal year 1854, had
we not had what you might call
windfall receipts from our inheri-
tance tax, our old taxes would
have brought in less money than
they did in fiscal year 1858"
Also, he pointed out, the Dis
trict's estimate of what would be
produced by the l per cent
grocery tax levied last year was
too high and had to be reduced
sharply when actual collections
began to come in.
However, Mr.. Lowe declared.
1T is probable, unless there is
some bad downturn. that We
will actually take in slight
amount more than we have
shown here, but the reason for
that is that these figures that we
estimate and assemble for sub
mission to a committee such as
yours are supposed to be valid
bottom figures.
Even so, between September
and April we had some individual
taxes that we have had to
reduce. We have had some
slippage in our receipts"
Running like a theme through
the hearings were congressional
demands for a quick general
reassessment of District real
estate.
District officials, however, in
sisted that such a survey would
be unnecessary and too costly.
Estimates of the cost run be-
tween $48O,000 and 81 million
to hire an outside firm to do the
Job in one or two years.
Tax Assessor James L. Martin
has contended that with three
more assistant assessors and
their stats he could do most of
the work in four or five years
and complete it in 10. g..
Complaining because some
residential areas have not been
reassessed in 20 years, Mr.. Ra-
baut declared at the end of seven
days of questioning District Of
ficialS:
II think our committee is al
most united in its belief that
there should be a reStudy, and
not one of these 10-year period
studies, as to property assess
ment, and the tax situation.
There may be some great in
justice being done, injustice to
your government, and there may
be personal injustices being done
to other people.
Those are inevitable results