Show Spending Programs in Utah Would Require New Taxes I Any new or expanded spendIn spend spend- In lug Ing programs mS by the state of 1 for the 63 1961 biennium for Cor any purpose will 1 require CO corresponding cot cor- rc responding new or In increased taxes It was UI stated slated by Utah Foundation In a n comprehensive r analysis of state finances released re reo leased today The private tax lax research agency ag ag- ency nry study bases calculation calculations 1 upon present ute state spending levels level lev lev- 1 el els plus the Increased demand U upon on the State for fot support of the he public school program rising ris ing from enrollment Increases and normal increases In regu tar lar state agency o operations Even If ff h no changes arc are made in the state school alt or 01 In ht special purpose appropriations the Foundation estimates estimates estimates esti esti- mates that the state property tax tor or its lis equivalent in other new now or Increased taxes nee needed elt eltIn in 1961 and 1962 is 7 7 2 mills compared with 61 GI mills in 1959 1939 and 5 59 mills In 1960 Assuming that appropriations for regular agencies and institutions supported by the Gen Geu- General era eral Fund were to increase in inthe j the same proportion as for the I present biennium the study I II notes that the amount remaining remain remain- I ling ing for the state and school building bunding programs from present I tax resources would be approxImately approximately approximately the same as the amounts provided for Cor these purposes purposes pur poses by the 1959 Legislature This forecast is based upon revenue revenue revenue rev rev- estimates which assume growth of the economy in the next two y years years ars in keeping with r recent cent and current current Utah trends According to the Foundation report an added property tax of mills during each of the next two years or its equivalent in other new or added state taxes would be required for each 1 million In added state spend spend- ing Similarly additional state funds of equivalent to a mill miU property tax levy during each of the next two years would have to be found for each Increase in the basic school formula Utah's financial outlook has improved considerably since the 1959 Legislature adjourned ac ae- ac- ac c cording to the Foundation study At the close of the 1959 session session ses ses- sion Ion it was Vat believed by most analysts that there would ba bi I tittle little or h no balance in the General Gen I Iera era oral eral Fund at the end of tM tha 61 1939 biennium Greater than anticipated revenue collections during doting the past st one and one one- half years however have brightened the picture As a are are- re result re- re suit sult n a 4 i 1 million ending general gen era oral eral fund balance Is now expect ed cd The report also points out that compared to most states In the nation Utah's financial condition Is excellent With no general genera bonded debt the State closed the 1960 fiscal year with I substantial fund balances In contrast the study note notes that I 11 41 of the other 49 states owed oweda n a total of 82 billion on genera general general gen gen- era eral bonded Indebtedness at the tha close of the last fiscal year State revenue receipts totaled totaled totaled total total- ed ed million while state expenditures ex ex- expenditures in Utah amounted to million dUrIn during the fiscal I year ended June 30 1960 the report shows Although total I revenue exceeded spending by t r 13 million last year Found Hors analysts do not e expect th this will be repeated repealed during tl ti se second ond year of th the 61 1959 b They point out outmost t r most of ot the favorable balam In state finances last year yar mA ms be bl accounted for tor by ml mi milion lion increase in highway fun tun balances resulting from Feder Feller reimbursement for projects started in prior pe lads lods They also note that b tJ cause of time la lags lar and Pig Ilig differences dIfference spending du ing Jug the second year usually sul substantially higher than it during the first t years yeats of a 11 Mel Wei |