Evening star., 1960-08-07
District Fiscal
1ieup Awaits
Capitol Action
Congress to Vote
On Sales Tex Bill,
SuIury Rise Funds

The Districts fiscal situation,
left uncertain when Congress
adjourned before the Demo-
cratic and Republican conven-
tions, probably will be cleared
up within the next three or
four weeks.
The Senate gets back tomor-
row, the House next week.
Expected to win passage in
the Senate is a House-passed
bill to raise the Districts gen.
eral sales tax from 2 to 3 per
cent. The proposal is pending
before a Senate District Fiscal
subcommittee.
Rated Top Priority
Passage of the sales tax bill
Is given top priority by city
officials, who picture the city's
financial situation in this man
ner:
The District needs about S.
million to finance the rs per
cent pay rise for classified Fed
eral and District employees,
passed over the Presidents veto
before adjournment. An addi-
tional $4.8 million will be
needed for a similar salary in
crease which Congress is ex-
pected to grant local policemen,
f1remen and school employees
this month.
Congress will be requested to
approve also an SO million pub
lie works program planned for
this fiscal year.
50 Million Available
According to the latest esti-
mates by city officials, the Dis
trict now can count on about
SO million in available revenue
to help meet pay increases and
the works program. The sales
tax increase, if passed, would
yield an estimated $6.3 million
in the current fiscal period.
This leaves the city with a
needed 50 to SO million I'M
available from any source, so
Congress will be asked to in
crease the Federal payment.
Already appropriated for this
fiscal year is a Federal pay
ment of $25 million, though
$32 million has been authorized.
The session is viewed as a
crucial one also in the field of
urban renewal.
The Redevelopment Land
Agency feels that the speed of
the city's renewal program
hinges on what Congress does
about three major bills await
ing decision.
Congress could give us a
terrific boost or setback by what
it it does on these bills, "
Gordon E. Howard, RLA's act
ing executive director, said
yesterday.
These are the measures at
issue:
Rabaut bill. This measure is
opposed by the city's urban
renewal agencies. 1t would
forbid the RIA to undertake
urban renewal projects not yet
authorized until half the South
vests renewal is half complete;
require slum cleared land to be
leased or sold to the highest
bidder rather than by private
negotiation. and place the
major responsibility for carry
ing out urban renewal with the
District Commissioners. The
bill passed the House on June
q in a 348-to-35 roll call vote.
No hearings have been held in
the Senate, so the bills fate
there is uncertain. 4"
REDEEMED powers. The Re-
development Land gency
wants the District of Columbia
Redevelopment Act of 1915
amended to clarity procedural
questions. One amendment
would specify that urban re-
newal powers could be used in
blighted downtown business
areas as we'll as in residential
ones. Another amendment
would let land contributed by
the District for urban renewal
be counted as part of the
matching funds for Federal
money. A third amendment
Would empower the District to
bridge Ninth street S.W., with
a hotel envisioned as part
of the $50 million Tenth
Street Mall and Plaza planned
for the area by Webb & Knapp
Commissioner Robert E
Mclaughlin said this clearance
See DISTRICT, Page Al