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Show Utah Foundation Sees Brighter Outlook For State's Finances Higher than anticipated general fund receipts have brightened the state general fund picture considerably during the past 12 months, according to a current analysis of state finances just prepared by Utah Foundation, th private governmental organization. organ-ization. The report estimates that the state general fund will end the present (1959-61) bienniumwith a $3 million balance. A year ago following the 1959 legislative session, no ending balance was indicated. Despite the improved general fund picture, the Foundation observes ob-serves that the next Utah Legislature Legis-lature will be faced with the problem of meeting rising expenditure ex-penditure demands with shrinking shrink-ing fund balances to cushion the impact. In order to balance the budgets for the 1957-59 and 1959 61 bienniums, the general fund will have used approximately $10.6 million in previously accumulated ac-cumulated balances and surplus. In its analysis of the uniform school fund, the Foundation observes ob-serves that a substantial property tax was needed to balance the uniform school fund budget during dur-ing the present biennium. The state school property tax in 1959 was 6.1 mills. Based on the best information available at this time, the Foundation predicts pre-dicts that the state school levy in 1960 again will be about six mills. This compares with only 1 mill in 1957 and 1958. When the school equalization program was first established in 1947, the state school levy was 8.5 mills in 1947 and 8.9 mills in 1948. Foundation analysts point out that it is difficult to obtain a complete and objective understanding under-standing of Utah state finances because of the multiplicity of state funds and limitations in the state's accounting system. - On March 1, 1960, there were 197 separate funds for cash control con-trol purposes in Utah. Each of these funds is a separate fiscal and legal entity established to satisfy a specific constitutional, statutory or administrative requirement. re-quirement. The report points out than "an excessive number of funds, restricted in use, not only seriously impedes fiscal management, manage-ment, but also tends to defeat the judicious use ow public money, the very objective that fund re-structions re-structions are established to attain. at-tain. According to the study, more than two-thirds of total state disbursements in Utah are not subject to specific legislative appropriations. In analyzing the state's accounting ac-counting system, the study observes ob-serves that "while the Utah accounting ac-counting system provides mechanical me-chanical control over the state's finances, it fails to furnish the data needed for formulating sound decisions involving public policy." As an example, the report re-port notes that state receipts and disbursements often are inflated by items that bear little or no relationship to general governmental govern-mental operations. The Foundation suggests that "in order to secure improvement in the state accounting system, Utah might make the Legislative auditor a special advisor in matters mat-ters of state accounting." According Ac-cording to the report, he could advise administrative authorities on charges which could make the financial information more useful use-ful to the Legislature. In addition, addi-tion, he could suggest statutory revisions to the Legislature which would improve the accounting ac-counting system. |