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Show Serious Financial Problems Seen For Utah Unless Costs Curbed Utah will be facing serious financial problems by 1963 unless un-less future expenditures are carefully controlled. This warning was sounded by Utah Foundation, the private governmental research organization organiza-tion in a detailed analysis of Utah state finances. The Foundation study shows that mainly because of expanded school operation and state building build-ing outlays, major fund balances and surpluses in Utah were reduced re-duced by $17.8 million during the past two bienniums. Further reduction of $2.8 million is expected ex-pected in the 1961-63 biennium. In addition to reducing its fund balances and surpluses, Utah has borrowed or authorized loans totaling $13.5 million from the State Treasurer's bank balances. These fund balances, surpluses and loans have cushioned the v tax increases needed to finance the state's expanded capital out lay program and to meet rising school expenditures. According to the report, state and school building authorizations during the past two bienniums plus the current two year period total $57.7 million, while the current expenditures from the Uniform School Fund have risen from $44 million in the 1955-57 biennium to an estimated $100 million in 1961-63. Although Utah has been able to finance an increased spending program in part by using sur-nlncoo sur-nlncoo an H Vvnrrnwinff from other taling $8.9 billion at the close of the 1960 fiscal year, and the federal debt was $289 billion on June 30. According to the Foundation report, state expenditures were $210 million and state revenues were $186.5 million in Utah in the fiscal year ended June 30, 1961. For the entire 1959-61 biennium expenditures exceeded current revenues in Utah by $10 million, the difference being met from carry-over fund balances. The report indicates that an increasing proportion of state expenditures is going for capital outlay items. At present nearly 29 per cent of all state spending in Utah is for capital outlay. This compares with a capital spending of 20 per cent in 1955 and 15 per cent in 1950. During the past 12 years government has spent nearly $320 million for capital outlay purposes. Foundation analysts point out that federal aid is the No. 1 state revenue source in Utah, accounting account-ing for approximately 29 per cent of all state revenue. Education Educa-tion on the other hand, is the largest expenditure item in the state. Nearly 44 per cent of all state spending in Utah during fiscal 1961 went for education. If local funds were included the total amount spent for education in Utah would approach $150 million per year, of which one-fourth one-fourth was for capital outlay to house expanding enrollments. funds, the Foundation points out that this practice cannot be continued con-tinued beyond the biennium. The report observes further that the growth in the state's economy will do well to keep pace with the automatic increases in spending spend-ing requirements from population popula-tion growth and rising price levels. lev-els. As a result, new activities or expansions in existing programs will require corresponding new or increased taxes. Despite the danger signals, the Foundation notes that the state's financial condition is relatively good when compared to most of the states in the nation. Utah does not have any long term general gen-eral bonded debt. By contrast, 41 of the other 49 states had long term general indebtedness to- |
