Evening star. [volume] (Washington, D.C.) 1854-1972, 1961-10-05
City'sB Budget
Needs Put at
S295 Million
But Spending Cut
Muy Be Dictated
By Totul Revenue
BY SAM EASTMAN
Star Staff Writer

District budget officials today
said the city's spending needs
next year total $685. million,
but that under current revenue
sources the figure would have
to be dropped by $34 million.
A revenue increase of 1924
million, from taxes or borrow
ing, would be enough to finance
the recommended $295.5 million
for the fiscal year beginning
next July /.
Budget aides divided their
spending recommendations into
two packages-$26l.5 million
that can be raised from present
revenue measures and a $34
million second budget"
The $34 million second bud
get" could be financed with an
extra S22.3 million because act
ual appropriations for some
items are to be deferred until
the following fiscal year.
Included in this second
budget" are public items plus
funds for new and improved
services in various departments,
and money to ease the work
load in the school and welfare
departments.
Hearing Set Tuesday
The Commissioners will hold
a public hearing Tuesday on
the proposals.
The hearing will be held at
10 am. in Room 500 of the Dis
trict Building.
Copies of the budget docu-
ments are available in the
budget office in the District
Building.
The report, from the Depart
ment of General Administra-
ton, carries no specific reve-
INCREASING proposals. An an
swer to this question will have
to be deferred until after the
Commissioners have made their
budget decisions, the report
said.
The Commissioners failed
both this year and last year to
get a revenue bill through Con-
gress.
The Commissioners revenue
raising authority is limited to
fixing the real estate levy. raised
this year from $3.50 to $3.50
per 500 of assessed valuation.
and to a business inventory
tax. All other revenue meas
ures for the District, along with
spending proposals, are subject
to approval by Congress.
In today's report, the Com
missioners were told that the
revenue-spending gap is in the
city'S major bookkeeping cate
CORY, the general fund. There is
no problem in financing the
proposed budget items in the
highway. water. sanitary sew
age works and motor vehicle
funds, budget officials said.
These funds are fed from spe-
cial revenue sources.
Now S27O.1 Million
The Districts current bud
get is 270.1 million, or 1854
million under the amount the
budget office believes the city
needs to spend next year
(S295.5 Million, but $8.6 mil
lion over the total available
from current revenue sources
! ($261.5 million).
Today's recommendations
from the budget office reflect
recommended cutbacks in the
spending requests from city
departments, which totaled
S308 million. Details on the
budget Offices recommended
tons for the departments will
be made public during the next
several days.
On the revenue side, budget
officials have figured in a Fed
eral payment to the city of
the full authorized amount,
$32 million. The largest amount
actually appropriated to date
was a $50 million payment
voted for the current fiscal
year
The report also recommends
asking Congress for permission
to borrow the final $18.7 million
of $75 million Federal loan
authorized for general fund
public works projects.
This loan was to have covered
the city's borrowing needs
See BUDGET, Page "A