Columbia University Libraries Digital Collections: The Real Estate Record

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J------\ REAL ESTATE B U I LD E R S Vol. CII. NEW YORK, OCTOBER 12, 1918 No. 15 Predict No Increase in Tax Rate for This Year Budget of $6,300,000 Over 1918 May Be Covered If Half of Increase in Tentative Assessments Holds THE city's tentative budget for 1919 shows an in- crease of $6,300,000 over the budget for the pres- ent year, according to figures made pul:)Iic by Comptroller Charles L. Craig. Despite this increase, Mr, Craig said the indications are that the tax rate for next year will be lower than this year. The Controller's statement follows: In spite of decreases in the expenditures of numerous cit}^ departments the tentative budget for 1919 shows an increase of $6,300,000 over the final budget of 1918. These increases are due entirely to emergencies arising from the war. About $2,300,000 is due to the main- tenance of a special police force to protect the CatskiII aquedûct, bridges, and similar structures against alien enemies. Necessities for the Health Department, hos- pitals, charitable and other institutions required an in- crease of approximately $1,000,000 due to the high cost of food, drugs, and like supplies. The salaries of the men in the Police and Fire Departments were increased $150, while the salaries of all city employes receiving $1,800 or less were increased $100, and employes of the Street Cleaning Department have received substantially the same increase. These increases were made neces- sary by the high cost of living brought on by the war, and aggregate about $4,000,000. Altogether the com- pensation of about 60,000 employes was aíîected by these increases. An increase of $360,000 was allowcd to the Dock Department for dredging in order to fit the port for war purposes. The great increase in wages of skilled and unskilled labor by reason of competition of war mdustries required additional appropriations amount- ing to more than $3,000,000. The unparalleled severity of the weather last winter increased the cost of snow removal, so that, with the added cost of disposing of refuse, the requirement for the Street Cleaning De- partment is nearly $2,500,000 greatcr than last year. War prices for coal, paving, and like materials and sup])Iies have required increased appropriations of fully $800,000. Long delayed and necessary repairs to ferry- boats, public buildings, structures, and equipment re- quired additional moneys amounting to more than $500,000. An increase of $950,000 for the Board of Elections has been made necessary by extending the franchise to women. Unprofitable subways add $1,- 200,000 to last year's losses of ,$5,700,000 in interest on the city's investment in the dual system. A great part of the foregoing increases are ofíset by the saving in the more economical administration of the various city departments. In many instances these departments, in spite of the increase in salaries, show a decrease appropriation from 1918. In other words. a more economical and efficient ad- ministratiun has greatly reduced and held down what ctherwise would have been an extraordinary increase in the budget due to war causes. Moreover, thousands iif employes from the various city departments serving in the army and navy are carried on the city pay-roll and their families regularly receive their salary under the Fenner law. In spite of the increase in the budget, the indications are that the tax-rate for next year will be lower than in 1918. Hearings on the budget will be held in the City Hall on October 15 and 16 and October 23 and 24. In anticipation of the budget hearings Edward P. Doyle, chairnian of the Budget Committee of the Real Estate Board, has prepared the following statement: "The harm done to the City of New York by sentimen- talists, social reformers and professional settlement work- ers of a certain type, during the past twenty-five years cannot be measured by increased taxes or by the excess of (Continued on page 420) By LAURENCE McGUIRE, President of the Real Estate Board. WE had confidently expected an increase of at least $20,000,000 in the budget over last year, and of course are relieved to find that the addi- tional amount is so much smaller than was anticipated, The ComptroIIer has itemized the increases and called attenliion to the decreases in expenditures. What is apparent is that the Administration seems to have done considerablc in the way of cutting down routine expenses, largely, it is probable, by not replac- ing employes who have dropped out of the service of the city and by economy in other directions. Of course the impossibility of new construction and repair work, made difficult because of war measures, has aided in keeping down the total expenditures. From ComptroIIer Craig's statement it seems prob- Committee of the Real Estate Board, excepting those requiring legislation, have been approved. The ten- tative increased valuations of real and pcrsonal prop- erty amount to $745,000,000. If one-half of this in- crease is sustained thcre will be no increase in the tax rate over last year. In almost any event it seems prob- able that the tax rate for 1919 will not be more than a few points higher than the rate of 1918. As the real estate interests had looked forward to an increase of twenty-three points this is gratifying. The Budget Committee of the Board of Estimate is entitled to credit for having accomplished what must have been extremel}- difficult when the cost of every- thing, including mandatory increases of salaries, has advanced so greatly, Of coursc, thc budget is as yet only able that many of the recommendations of the Budget tentative.