Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-03-28
Passes
SD Million
U. 5. Payment
Compromise Proposal
Including Tax Rise
Goes to President
By DON S. WARREN


With no fuss about anything
the House today approved a COM
promise deal on means to solve
the Districts deficits. 1t sent to
the White House for approval a
bill raising District taxes by at
least So million in the coming
fiscal year and raising the au-
thorized amount of the Federal
payment from $40 million to
$23 million.
This followed action by House
and Senate conferees late yes
terday settling differences be-
tween the different measures
passed by the two bodies and
adopting the compromise ap-
proved late yesterday by the
Senate. II
There was no contest or debate
in either the House or Senate
as it cleared the bill for the
signature of the President.
The Senate acted last night
and the House at the opening OF
it's session today. In the House
the bill was called up by Repre-
setative Smith, Democrat of Vir-
ginia, who is chairman of the
Fiscal subcommittee of the
House District Committee as well
as chairman of the House Rules
Committee.
Test Due on Appropriation
Approval of the compromise
measure had been expected. The
real test will come later this
session when Congress considers
an appeal from the Eisenhower
administration and the District
Commissioners to appropriate the
necessary extra millions to bring
the Federal share, for the year
beginning July /, up to $2a
million So million more than
the House has so far granted fol-
the 1857 fiscal year.
District officials were cheered
by the news, especially since the
House this year in acting on the
1857 District spending program
approved a $40 million Federal
payment, the maximum possible
under present law.
This was done because of the
general congressional knowledge
that the District is facing seri-
Gus financial problems and the
fact that another big increase
in District taxes was pending.
Involved in the revenue meas
ure is an increase of about So
million in District taxes, effec-
tive July l, plus the now legis-
lated increase in the Federal
share.
Capital Outlays Sought
Once the new revenue meas
ure is signed by the President, as
is expected. the Commissioners
will forward to Congress a sup
Elemental appropriations bill Of
about $18 million to provide for
capital improvements which
could not be included in the reg
ular budget sent to Congress last
January because city finances at
that time could not cover the
costs.
What happens to these sup
Elemental requests, of course
will depend upon whether the
House will actually appropriate
$23 million for the Federal share
II it does not, or seeks to make
some retreat from this figure
then some of the District Gov
eminent plans to meet demon.
strated needs will have to be re-
duced or postponed.
Senate Appropriations Com
mittee action on the 1857 budget
is to come after the Easter re-
cess. The Senate Appropria-
lions subcommittee headed by
Senator Stennis, Democrat OF
Mississippi. is planning to start
its open public hearings on the
District budget as soon as the
Senate gets back to business
after the Easter recess. The
word today was that the sub
committee will go into many de-
tails of the city's financial prob.
lens and will take a close lool
at problems of the public schoo
system as it is affected by racia
ofiNra