Evening star., 1961-03-12
Calls Hearing
For orWednesduy,
Urges Economy
By JOHN McKELWAY
Star Staff Writer

chairman Of the House Dis
trict Committee, moved last
night to settle the city's uncer-
tain financial future.
The South Carolina Demo-
crat called a hearing Of the
full committee for Wednesday
at 1880 am. on his bill to
boost the general sales tax
from 2 to 3 per cent.
In q letter to his committee
colleagues, Mr.. Mcmillan said
he felt that IF District Off
cialS will economic, the SO
or $1l million additional taxes
that can be collected with the
l per cent additional sales tax
will be sufficient taxes for this
year."
Coupled with his move to
break up about So million in
surplus funds frozen in the
motor vehicle parking fund,
Mr.. Mcmillan added he was
looking for other ways to ease
the city's financial needs.
In a bill which he introduced
Friday, Mr.. Mcmillan recon-
mended that the surplus be
turned over to the highway
fund for street repairs. The
bill also ruled out use Of future
funds for an underground park
ing lot, long planned by the
agency but never authorized
By Congress. He said he is
convinced private parking
operators are able to meet the
city's parking needs.
Hospital Project Shelved
Mr.. Mcmillan also revealed
that he has been informed
District officials will scrap for
the time being an ambitious
program to consolidate major
buildings at District General
Hospital. The project, con-
tained in the fiscal 1862 public
works budget, would have cost
an estimated $1l million.
Planned for the last three
years, construction would have
started next November.
This decision is the first evi-
dence that city officials are
pulling back some Of their
original plans for the next
fiscal year.
Besides Mr.. McMillan's re-
fusal to go along with several
tax proposals-aside from the
sales tax-fiscal 1862 plans
were rocked when the House
refused to approve an addi-
tional Sc million in thu, Federal
payment for the current fiscal
year. Even If granted by the
Senate, the request has little
chance Of surviving a confer
ence Of House and Senate mem
berS. -
Nevertheless, District officials
will fight for restoration of the
item on Friday when they ap-
pear before a Senate Subcom-
mittee on District appropria-
tionS.
To Seek Quick Action
Mr.. McMillan'S strategy is
get quick action on the sales
tax in both houses to prevent
last years predicament.
The bill passed the House
but languished in the Senate
until the closing hours of the
session, although it was re-
ported out fayorably by the
Senate Committee. Senator
Morse, Democrat of Oregon. q
perennial foe of sales taxes,
was ready to talk the bill to
death before it died quietly
without reaching the floor.
The Commissioners subse-
quently made the sales tax the
keystone of their proposed tax
legislation for fiscal 1862. They
also proposed increases in
cigarette, alcoholic beverage
and beer taxes and asked for
an increase in the Federal
payment authorization from
$32 million to $36 million.
Door Left Ajar
Mr.. Mcmillan apparently has
not shut the door tight on
these proposals. He said yes
terday there is some possibility
of holding hearings on the new
taxes later in the session, per-
haps at a joint session Of the
Senate and House District
Committees.
Much depends on the treat
ment the District budget re-
ceivS from the Appropriations
Committee. AS. yet, hearings
have not started in the House
because of the absence of Rep
resentative Rabaut, Democrat
Of Michigan, who Is chairman
of the House subcommittee on
District appropriations.
Mr.. Mcmillan has indicated
he would be willing to consider
an increase In the Federal pay
ment authorization if the APP
preparations Committee grant,
ed the present full amount
$50 million. The highest the
city ever has received is $25
million.
Only two witnesses are
scheduled to testify at Wednes-
days hearing-Co Commissioner
Walter N. Tobriner and William
H. Press, executive vice presi-
dent of the Metropolitan
WASHINGTON Board of Trade.