Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-06-02
House Group
Expected to Use
Mcmillan Line
BY SAM EASTMAN
Star Special Writer

Star Special Writer
President Kennedy's revenue
raising proposals for Washing
ton will be rejected by the
House District Committee, in
the opinion Of top city officials.
The committee. they believe,
instead will report out finance
ing bills in line with those
sponsored by its chairman,
Representative Mcmillan, DEM
ocrat Of South Carolina.
City officials base this FORE
cast on bits Of evidence, reason
ing and rumors.
Under the administrations
legislative proposals, the Gov
ernment's annual payment to
the District and the city's Dor
rowing authority would be
beared to property values here.
$32 Million Now
The Districts annual author
lied Federal payment now is
$32 million. The White House
bill would eliminate this fiat
ceiling in favor of a flexible
formula equal to the property
taxes the Government would
pay the city If it paid taxes.
This bill would raise the Fed
eral payment maximum to $50
million for the fiscal year be-
ginning July /.
The city now Is earmarking
the remainder of a SIS million
loan authorization for general
construction projects. Under
the administration backed plan,
the District would be permitted
to borrow up to 8 per cent of a
l0-year average of the assessed
value of real and personal
property in Washington.
This formula would raise the
borrowing ceiling to 1925 mil
lion. With SIS million already
spent, this would leave $3.50
million on tap.
Whitener Offers Bills
At Chairman McMillan's re-
quest. Representative Whit
ener. Democrat of North Caro-
lima, introduced bills to raise
the Federal payment to $40
million and to authorize the
District to borrow another SIS
million.
AS an alternative, Mr.. Me-
MILAN later introduced legis-
lation to set the annual pay
ment at S45 million
Mr.. Mcmillan repeatedly feels
that the Presidents bills have
no real chance of enactment.
This alone. matched with the
fact that Mr.. Mcmillan has
sponsored alternative meas
ures, convinced many city Of
ficials that the White House
legislation will not clear the
committee.
This line of reasoning has
been strengthened by COM
ments on the varioues revenue
proposals MADE, both publicly
and privately, by some influ-
entail members Of the commit.
tee.
Congress May Override
Congress may. Of course.
override the decisions reached
by Mr.. McMillan's committee.
The Senate District Committee
is thought to be sympathetic
TO the administrations reve-
INCREASING program. 3ut OPP
position from the House lis
trlct Committee would present
a formidable hurdle TO enact
ment.
District officials yesterday
also conceded that Mr.. McMil-
lans bills, plus an expected
order by the Commissioners TO
increase the real estate levy,
would lift the revenue sources
TO high level to finance SPEND
ing needs for the forthcoming
fiscal year.
But. they said. the flexible
element for meeting long
range revenue needs that Is
carried in the Administrators
proposed legislation is missing
from the measures sponsored
by Mr. Mcmillan.
Final Session Tuesday
Senate and House District
subcommittee are slated 10
hold the third and final session
Tuesday on the city's revenue
needs.
A rr0use Appropriations sub
comr, tee. meanwhile. will be-
gin .c'1scd hearings tomorrow
on the city's budget for the
fiscal period beginning July /.
This subcommittee. headed
by Representative hatcher.
Democrat OF Kentucky, now is
limited 10 consideration OF the
city's so-called "A" budget-a
$3.50 million spending program
that could be financed from
existing revenue sources. The
Commissioners have had 10
shelve a second spending pack
age OF more than $50 million
for lack OF revenue.
II is expected that the Com
missioners will try 10 win
approval for submission Of the
"B' budget items before final
congressional action on the
revenue bills.
One likely move would be 10
seek this clearance from the
Federal Budget Bureau as snnn