Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-08-28
Record DC. Budget
Ready Next Month
$225 Million
TotuI to BRING
Congress Plea
By JAMES g. DEANE
Star star Writer

A record District budget ex-
pected to exceed 1925 million
for the next fiscal year is being
readied for submission to the
District Commissioners next
month.
The spending proposals are
expected to include the first in
stallment of a $l12 million pub
lie works borrowing program re-
Gently authorized by Congress.
The amount of the initial
borrowing, to be from the Fed
eral Treasury, has not been
disclosed, but it could well be
$40 million or more.
City budget officials now are
blue penciling departmental
spending requests which re-
portedly exceed $3.50 million.
Some $40 million or more Of
this is for capital outlay
projects.
The tentative spending pro-,
poSals apply to the year starting
next July l. The proposals and
budget Office recommendations
are due to be made public in
mid-September. A public hear
ing is scheduled for october Z.
Stable Cuts Due
Budget officers are expected
to make stable cuts in some
departmental requests. How
ever, the borrowing program
will allow more liberal treat
ment of construction proposals
than usual. Departmental off,
cials will be given an oppor-
tunity to appeal to the Com
miSSioners for restoration of
budget Office cuts before the
final document goes to the Fed
eral Budget Bureau early in
November.
For the current fiscal year.
Congress approved an appro-
Ipriation for the city of 1904
million. But pay raises re-
Gently enacted for city employees
have added some $13 million.
giving the city a budget in
effect, of $217 million for this
year.
Congress TO Get Plea
To cover the pay raises the
Commissioners plan to ask
Congress in January to appro.
PIRATE additional Federal pay.
ment funds. A $32-million Fed.
leral payment has been author
lied but only $40 million has
been appropriated.
The increased pay scales will
E absorb most of the additional
! Federal payment money, If
Congress grants it, not only this
year but in subsequent years.
}, This, officials indicated, will
! make an early start on borrow
: ing practically unavoidable in
order to proceed with the am
bilious works program.
The Districts individual in
come tax has been bringing in
:. more money than anticipated.
Z But some other tax revenues
! have been falling off. It is not
yet known whether any signif1-
cant increase in revenue can
: be expected to bolster the
= spending plans.
Proposed Items
Among the increased ex-
penditures being proposed for
! the next fiscal year are a mum.
: Der of new school buildings,
: new facilities at the Welfare
Departments Children's Center
in Laurel, Md, and improve
. ments at District General Hos
. pital. The public assistance
\ rules also will require addi-
tional funds because of a
8 steady climb in relief recipients
which is expected to continue
q through the new fiscal period,
: officials said.
A serious complication in the
new budgeting is a threat by
Congress to end the city's 1
per cent sales tax on food, now
bringing in about 50 million a
year. This raises the possible
ity that other new tax revenue
may have to be sought. The
tax question is expected to
come up when the Commits
sioners ask for pay raise money
when Congress convenes.
Budgeting for Raises
Another complication is a
change in budgeting ordered by
the House Appropriations Com
mittee which will require the
budgeting of funds specifically
to cover routine in-grade pay
raises.
For the last few years the
District has been absorbing the
cost Of these raises by keeping
some jobs vacant. The COM
mittee complained about this
and ordered that all vacant po-
sitions not filled after six
months be abolished. Several
hundred jobs are involved in the
order.
The in-grade raises cost the
city more than 81 million an
nually.
. CONVENTIONS