Evening star., 1960-06-21
c. in Funds Jam
As u. S. Grant Fails
Tax Bill Delay,
Congress End
Add to Crisis
BY GRACE BASSETT
Star stan Writer

Star Stan Writer
The District Commissioners
today were trying to find a
way out of a new fiscal crisis
aggravated by the expected
early adjournment of Congress.
With just weeks remaining in
this session, the House Appro-
priations Committee yesterday
denied a request for 81 million
in Federal payments to the
city. Still awaiting House Dis
trict Committee consideration
is a separate bid for $50 mil
lion in new taxes Commission
ers want to levy.
The Federal payment was to
help finance seven school prof.
ects and other badly needed
library, paving, welfare and
correctional construction.
Today, Commissioner Robert
E. Mclaughlin announced that
the city will ask the Senate
Appropriations Committee to
restore the 81 million Federal
payment. s
The Commissioners. he said,
will not request restoration of
the $2l7,050 cut by the House
Appropriations Committee from
the operating item requests.
Mr.. Mclaughlin explained that
the Commissioners in the past
have been criticized for at
tempting to win back relatively
minor spending reductions.
Part-Time Glasses Seen
Without the 81 million,
packed schools may see part
time classes again, city officials
said.
The Commissioners first
sought taxes for the public
works. Failing to convince Dis
trict Committee members of
the need. they turned to the
Appropriations Committee with
their Federal payment request.
Ironically, they now may need
both the payment and the taxes
to meet immediate municipal
cost increases.
Also in sight on the spend
ing side of the budget are raises
in pay. Congress already has
passed salary increases amount
ing to $3.5 million for District
classified employees. The Presi-
dent probably will veto it. But
should Congress override his
veto, Senate and House Dis
trict Committeeman are en-
pected to rush through about
SIS million in parallel pay raises
for teachers, police and fire.
men. This would demand Se5
million.
The public works spending,
planned to be financed by the
lost Federal payment, amounts
to $40 million.
The only money on hand to
help cover either cost is about
$2.5 million in surplus.
Realty Boost Possible
Even without salary in
creases, public works needs
probably will force the Com
missioners to raise real estate
taxes to bring in an estimated
$4.5 million in additional rev.
enue next year.
That would give them ST
million to funnel into works.
Or the Commissioners may de-
eide to cut back public works
and use some of this money
for salary increases should
Congress require them in clos
ing days of the session. Their
problem is complicated by the
fact that some of the $2.5 mil
lion surplus already is obli-
gated for operating expenses.
The House Appropriations
Committee gave the city heads
an odd order to build priority
works, but made no provision
for money to pay for them. So,
the Commissioners may be ex-
pected to look for loose revenue
as they never have looked be-
fore.
School items in the $40 mil
lion works bundle include a new
junior high school at South
Dakota avenue and Hamilton
street NE, an addition to
Kenilworth Elementary School
and the Deal Junior High
School, site money for new
elementary schools at Wheeler
road and Mississippi avenue
Sc. and North Dakota and
Kansas avenues NV, and
planning funds for a new ele-
mentary school on the former
Garfield Hospital grounds and
for additions to Eliot Junior
High and Bancroft Elementary
School.