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Show need Spending Restraints , 'sling restraints will j ibe exercised and new inure proposals "Y.ly scrutinized if the " jiget is to be balanced ,ear without a tax a. This was the mes-y.en mes-y.en by Utah Founda-i Founda-i private tax research aion in their current lis of Utah state STUDY points out that ill experience an ex-aight ex-aight budget situation r period immediately In fact, the report ob-, ob-, , that using a "mid-projection "mid-projection of revenues rooming year and an im that expenditures raised to cover higher suiting from inflation, :iion growth, and "" school enrollments, ";ineral fund and the ti school fund could be in meeting all commit-t commit-t .alirthe coming 1980-81 Mi .t. Pjugh the 1979 Utah baire did provide some Jntial tax cuts and 'Jt :ition analysts expect r.xx reductions can be fad within the present iiry constraints, the indicates that "it ap-( ap-( unlikely that any Jmajor tax cuts can be ?vthe 1980 Budget Ses sion" which will meet in January. THE MAJOR problem,. according ac-cording to the analysis, is that revenue growth in Utah slowed down after adjournment adjourn-ment of the 1979 Legislative Session. By the end of the 1978-79 fiscal year, combined general fund-uniform school fund collections were nearly $10 million below the revenue estimates used by the Legislature in balancing the budget. Continued slow collection experience makes it appear that an added revenue shortage of $10-$20 million could develop during the 1979-80 fiscal year, creating creat-ing a total revenue shortfall of between $20 and $30 million for the two-year period. Faced with this revenue-slowdown revenue-slowdown problem, the Governor earlier this year ordered or-dered a 4 percent across-the-board cutback on general fund, uniform school fund, and transportation fund appropriations for the 1978-80 fiscal year. Exempted from the Governor's order were appropriations for debt service ser-vice and for state aid to the public schools program. FOUNDATION analysts indicate in-dicate that most economists in the State agree that Utah's long-range economy is basically strong. Moreover, employment and personal income in-come in the State still are both rising. The current financial problems of the State appear to be due to a number of unusual factors that have combined to cause the present slowdown in state revenue collection. In addition, addi-tion, the business slowdown on the national level is another factor accounting for the failure of state revenues ' in Utah to meet earlier expectations. ex-pectations. Based on the Foundation projections, Utah could conclude the present fiscal year on June 30, 1980, with a general fund balance of $13.8 million. This amount will be offset, however, by an expected ex-pected deficit of $9.6 million in the uniform school fund, leaving a combined "surplus" of approximately $4 million. The study observes that "were it not for the action ac-tion of the Governor in ordering order-ing the 4 percent expenditure cuts, the State probably would -end the year with a deficit." Another ."saving factor" in the budget is that the cost of the tax rebate program authorized by the 1979 Legislature appears that it may be somewhat less than was originally projected. IN THE forthcoming 1980-81 fiscal year, revenues could be $7 million short in meeting expenditure increases needed to cover rising costs resulting from population increases, enrollment growth, and inflation. infla-tion. While the study notes, however, that this $7 million shortfall is not significant when compared with combined com-bined general fund-uniform school fund revenues of more than $817 million, it does indicate in-dicate how tight the budget will be next year. |