Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-07
BUDGET
Continued From First Page

the project but since have agreed
on the Thirteenth street site.
Commissioner Karrick said the
House bill would leave a deficit
of nearly 100000 in the general
fund and makes no provision
for a contingency reserve. He
said this came about because the
House rejected a requested APP
preparation of So million in the
Federal payment for the present
fiscal year. This was intended
to raise the 1856 Federal pay
ment to the full $40 million
authorized in law before enact
ment of the new revenue law
which raised the total authori-
cation to $23 million. A year
ago Congress granted only $18
million as the Federal share and
the District sought unsuccess-
fully this year to reclaim that
lost 81 million.
Estimates Revised
The District early last month
revised its estimates of revenue
ito be received in this and the
next fiscal year and found that
the total for the general fund
would be a little more than 81
million higher than had been
estimated some months before.
This would seem to indicate,
he reported, that the District
might have a surplus of about
SIT million at the end of the
next fiscal year but he brought
out that because of increased
costs and new legislation there
would be a new demand on the
District for more than So million.
He added that if a needed 81
million was reserved for con-
tingencieS the District faced a
deficiency of $1.3 million in
operating funds.
He saw a way out of this diff
Guilty by reason of the operation
of the new, revenue law. Under
this, he said, the District could
proceed with its budget plan and
would submit later a capital out
lay program for spending SO /
million in the fiscal year begin
ming July /.
Grants $40 Million
The Importance of the later
increase in the Federal payment
by So million was emphasized.
The pending bill, as passed by
the House. grants only $40 mil.
lion. Commissioner Karrick
said:
1T is estimated that the Dis
trict revenue act, approved March
81. 1856, will produce $685.
600 in the fiscal years 1856 and
1857. This amount, the increase
OF So million in the Federal pay
ment authorization and an in
crease in the real property tax
rate from 1920 to $3.50, which
will yield $1.8 million, will pro-
duce 500 million in the general
fund. leaving an indicated sur
plus of $459,06l' for 1857"
What should be done with a
surplus of $1.2 million in the
Motoro Vehicle Parking Agency
fund came up for discussion. En-
gineer Commissioner Thomas A.
Lane said the fund was ear
marked by law. He referred to
the fringe parking lots developed
near the South Capitol Street
Bridge and the Carter Barron
Amphitheater.
Suggests Transfer
| Senator Beall, Republican of
Maryland, wanted to know if
there was any way to transfer
a portion of the fund. say a half
million dollars, to the general
fund so that it might be used for
school or other purposes. He
was told change in basic law
would be needed.
Senator Hayden commented
ION the other hand. We have to
consider the problems OF the be-
wildered motorist.' He referred
to the proposal he and other
Senators are sponsoring for an
enlargement of the Capitol
grounds near the site of the new
Senate Office Building. He noted
that there are some 1900 en-
ployes of the Capitol, many Of
whom have no place to park.
The extra land he wants bought
would be used at least temper
arily for parking and under
ground garages could be built.
, officials were asked to submit
reports on increased traffic in
the District and Chairman STEM
mis- said the subcommittee would
I on into fha motor vehicle fund