Mayor Marion Barry will not propose raising taxes this year to make up for substantial projected cuts in federal funds to the city, a high level administration official said yesterday.
However, the administration will seek to limit the impact of the cuts on local services by defying a congressional mandate to retire an additional $20 million of the District's accumulated general fund deficit, according to Alphonse G. Hill, deputy mayor for finance.
"We take the same position on taxes that Mr. Reagan is taking," Hill told a reporter. "We don't want to have a tax increase either."
Congress and the District have been at odds for years over how to eliminate the city's accumulated deficit, which totaled $269.9 million at the close of fiscal 1984.
The city prefers to make further reductions in the deficit at a slower rate than has been sought by Congress, which reviews and approves the city's budget. For the last several years, Congress has mandated that the city cut the deficit by $20 million a year.
But Hill, who supervises the assembling of the city's budget, said he will recommend that the city shear off only $7.4 million of the deficit in the current fiscal year that began Oct. 1.
The remaining $12.6 million that was to go toward deficit reduction would instead be used to offset most of the $16.8 million cut in federal funds expected March 1 under the Gramm-Rudman-Hollings Act.
"We will not reduce it [the city's deficit] by the margin that Congress asked us to," Hill said. "As long as we are continuing to reduce that deficit, we are on good footing with our [bond] rating agencies."
The accumulated general fund deficit is the amount of unfunded expenditures and long-term obligations incurred before home rule, such as future pension payments.
No overall impact analysis has been conducted by the District, but agencies have begun to make preliminary estimates of the effects the cuts in federal aid to the city could have this year.
Audrey Rowe, D.C. commissioner of social services, said yesterday that Gramm-Rudman-Hollings cuts could force an end to some of the city's discretionary public assistance programs, such as the emergency assistance program.
That program, expected to aid some 12,500 District households this fiscal year, generally is used to prevent evictions or foreclosures or to pay utility bills in emergencies on a one-time basis.
Social services budget officer Stacie Balderston had estimated that the commission might have to absorb about $3 million in budget cutbacks in the last half of this fiscal year, if Gramm-Rudman-Hollings budget cuts were spread equally throughout the District government.
"The impact on us is going to be very severe very quickly," Balderston said at a commission policy luncheon.
The total social services commission budget is $320 million in fiscal 1986, but the cuts would have a disproportionate impact on a limited number of programs, officials attending the luncheon said.
Some of the most vulnerable discretionary programs include shelters for the homeless, child welfare, job training for welfare recipients and community youth programs. CAPTION: Pictures 1 and 2, Alphonse G. Hill . . . wants to pay off only $7.4 million; Audrey Rowe . . . discretionary programs in danger.