Only $40? Depending on what's available:
$5 cards - 2 pack of Bikes.
$5 coins - 10 half dollars
5 sponge balls
5 rope
5 dollar bill/paper to money
5 plastic cups, bouncy balls and some fruit (for cups and balls and bill in lemon)
5 TT - THE utility item (maybe a little silk or 2)
2 newspaper and rubber cement - T&R newspaper perhaps? confetti, paper tree
2 a sharpie and paper - mentalism, math tricks
1 a knife for bill in lemon and to cut whoever stole all my stuff

Joe

>> Not exactly sure how to make a home-grown TT from the drugstore or what to do about a few silks

With the proper handling you could use a large thimble for a TT and nobody would see it. You should be able to pick one up at sewing store or walmart. Would work for salt vanish, or other small trick

With the proper motivation (a few shots at the bar) I have been know to do torn and restored bar napkin they are small and paper so they fit well in a TT.

A TT can be fashioned out of some flesh colored medical tape or band-aids.

$40...?

Rope, Scissors, Paper bags, a notepad, playing cards, a bucket, and a pocket full of quarters and I am good for 45 minutes with a room of kids. I even have money for lunch.

I could replace some of my stuff. My rabbit-in-the hat puppet is a the cheap and readily available Folkmanis version and I would also go ahead and buy another coloring book. I might try to get a cheap change bag as well. This would come in around $40. The rest of my stuff is like stuffed animals and dolls from thrift stores, a board, a pvc tube. I'd wnat to get another spinning plate as well, and some sort of replacement for my concertina... hmm. I guess I'm pretty reliant on my props. I have a lot of comedy, bits of business etc... but honestly the core of the act has some props I'd have a hard time doing without.

My ukulele and harmonica's would be over the $40. (key's of A major to G minor)
I have had just as much fun with a kazoo.