| Show Big Dig Increase in Spending 1 Forecast for Utah in 64 1963 I State expenditures In n Utah will Increase ase by 51 million next biennium as a result of ol new spending authorization by the 1963 Utah Legislature This was shown In a detailed fiscal analysis of the 1963 Utah legislative session just released by Utah Foundation I Ithe the private governmental re research research search organization More than lour four of the added funds to be made available during the next two years ears will wm go for education the Foundation reports Increased In creased appropriations and allocations for all alt other functions functions of state government account account ac ace count for less than 20 of the expected expenditures rise To finance this increased spending program the 1963 Utah Legislature raised a 11 number of taxes Among the tax tn changes enacted were 1 a one half cent Increase In Inthe Inthe inthe the sales sale tax 2 a per pack bo boost bost st in the cigarette tax 3 enactment of a 25 tax boost on other tobacco products 4 a complete revision revision re revision vision in the Unemployment compensation tax rates and base base- and 5 authorization for increased property taxes for lor and library pur pure poses In addition to the foregoing tax the Foundation report notes that a slight increase in crease In the state property tax may be needed to finance the enlarged school program enacted this year The statewide statewide state state- wide property tax levy to balance balance bal bal- balance ance the uniform school fund amounted to 75 mills in 1961 and 71 mills in 1962 Based ased on reven revenue e and school expenditure expenditure expenditure estimates for next year biennium this state property tax boost levy may go as high as 79 during each of the next two years Foundation analysts point out that the one half cent In Increase Increase increase In- In crease in the sales tax which will go into effect on July 1 I 1963 and Is scheduled to terminate terminate ter ter- ter minate of June 30 1969 is earmarked for the state building program It is expected expected ex ex- to produce about 60 million for this purpose over the next six years Because of ofa a collection lag only about million of this amount however will wilt actually be cot col during the 65 1963 bi bl bl m. m The report notes the veto by the Governor of the bill which would have appropriated appropriated million for build Ine ing purposes over a year six year perl period d and nd permitted substantial substantial borrowing during the early early ear ear- ly years ears of ot the program The building proposal submitted by the Governor would have limited actual building appropriations appropriations to a two year period pert peri od ad provided for a tentative program during the second and third 1965 67 and 69 1967 and restrict restricted ed the amount of Interim bor borg rowing The building issue will likely be resolved at a special pedal session on the legisla ture According to the report es estimated estimated es- es revenues to the state I general fund during the next biennium are 1312 million and budgeted commitments are 1309 million This razor razor razor ra zor thin balance in the general general gen gen- eral fund is dependent upon the realization of the revenue estimates which are based on what may be optimistic assumptions assumptions assumptions as as- of growth in Utah's economy and the expansion of tax revenues The Foundation r report e p 0 r t points out that if the estimated estimated estimated esti esti- mated general fund revenues are arc not realized the general appropriations act provides that a million transfer from the general fund to the uniform school fund will be reduced by the amount of the deficiency Any reduction inthis in inthis inthis this transfer will wm require a corresponding increase In the state school property tax I The 36 million transfer made by the 1963 legislature 1 Is almost three times the amount provided by any previous previous pre pro legislature In 63 1961 for example the school lund fund transfer was million Part of the 1963 Increase however was to replace approximately approximately approximately ap ap- ap- ap proximately 12 million in sales tax revenue which had been to the school fund by the 1961 legIslature legislature legislature leg leg- but was placed in the general fund by the 1963 legislature leg leg- |
