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Show Federal Fwrts Don IlDswds Federal outlays in Davis County during the 1975 fiscal year totaled $333,330,000. This fact was reported by Utah Foundation, the private tax research organization. ACCORDING TO the Foundation Foun-dation analysis, Federal expenditures ex-penditures in Davis County last year were equal to $2,911 per capita or approximately 65.4 percent of total personal income in the County. By way of comparison. Federal outlays throughout the State during fiscal 1975 totaled $1,788,878,000, and were equal to $1,500 per capita or 32.2 percent of personal income. Federal outlays include all Federal spending for salaries (civilian and military), retirement re-tirement and other employee benefits, Federal purchases, contracts, and construction, grants-in-aid to state and local units, and other Federal payments made to institutions and individuals. THE FOUNDATION study observes that Utah's share of total Federal spending has declined during the past five years. Between 1970 and 1975, Federal outlays in Utah have risen by 55 percent, compared with an increase of 72 percent for the nation as a whole. Although Utah realizes a slight "net gain" from Federal operations, the State suffers a "net loss" when such Federal expenditures are financed through added borrowing. Foundation analysts point out that Utahns pay out more than twice as much in Federal taxes to meet interest costs on the national debt as individuals and institutions insti-tutions in the state receive back in federal interest payments. Thus, additions to the debt and increases in interest costs tend to take money out of the state. The federal budget for the 1976 fiscal year indicates that there will be a deficit of approximately $76 billion in this year's operations. Based on the 1975 experience, the Foundation report estimates that the new effect of this prospective deficit will be "a $12 million annual drain from individuals and business firms in Utah." NATIONALLY, income security payments (social security public assistance, retirement, etc.) have surpassed sur-passed national defense as the main object of Federal spending programs. Last year income security payments throughout the United States totaled $104.2 billion, or 31.9 percent of all Federal outlays. Total expenditures expen-ditures for national defense and international relations, on the other hand, amounted to 088.3 billion, or 27.0 percent of all Federal spending in fiscal 1975. IN UTAH, national defense still is the largest single area of Federal activity, but it is being rapidly replaced by income in-come security as the major area of Federal spending within the state. Between 1970 and 1975, Federal outlays in Utah for income security climbed by $287 million, or 153 percent. During this same period, Federal spending in the state for national defense activities rose by only 21 percent. THE FOUNDATION study also indicates that while Federal programs and activities activi-ties may have a stimulating effect on local economies, they often prove to be liabilities to state and local government operations. This is especially true in programs that create a large increase in Federal employment but no corresponding corres-ponding increase in taxable weath and income in the private sector of the economy. Studies by Utah Foundation have shown that the tvpical family in Utah pays only about one-half of the taxes needed to finance essential state and local services (such as schools, sewers, roads, water, police and fire protection, etc.) used by the family. THE OTHER half of the cost for such services typically is borne by the taxes paid by business and industry. The report concludes that Federal programs which do not stimulate growth in the private sector, are likely to result in reduced local services ser-vices or higher taxes to support sup-port such services. - |