Herman T. LaCrosse, 76, a retired deputy director of the Army budget, died of cancer Wednesday at the Carriage Hill Nursing Home in Bethesda.

Mr. LaCrosse spent 25 years of his 41 years of federal service with the old War Department and the department of the Army, where he developed a number of techniques to simplify budgetary processes. In 1948, he established a completely new structure for the Army budget and later initiated procedures to integrate the Army's programs with it budget systems.

He came here in 1924 as a budget analyst with the Army adjutant general's office in the War Department and later worked for the Department of Commerce and the Federal Security Agency. He returned to the War Department's budget division in 1943 and was named deputy director of the Army budget in the office of the comptroller in 1951, by which time the War Department had become the Department of the Army. He retired in 1965

Mr. LaCrosse twice received the Army's Exceptional Civilian Meritorious Service award for his work in instituting consumer funding principles in Army fiscal operations.

He lived in Kensington and was active in the Church of the Nativity in Washington, where he served on a number of church committees. He also was a past president of the Holy Name Society there and was active in the Knights of Columbus.

His wife of 38 years, Mary Ann died iin 1975.

Survivors include a son, John T. LaCrosse, of the home; a daughter, Natalie A. William, of Moose Head Lake, Maine, and Louis, of Massachusetts; a sister, Lucienne Commeau, of Bath, Maine, and five grandchildren. CAPTION: Picture, HERMAN T. LaCROSSE