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Show Long-Range Fiscal j I Problems Loom for j fare of Utah Although the 1976 Utah ;gislature concluded its bud--,e .v;t session with widespread 0 sagreement as to whether ch"V ",e state Dud8et for tne imingyear will be in balance, at .-. ie fiscal outlook beyond 1977 u . even more uncertain. This the main message contained jtj'.' the fiscal summary of the eM "176 Budget Session prepared Utah Foundation, the ( " ivate research organization "lecializing in studies of state sid local government in Utah. (Among the items contribut- 'g to Utah's long-range fiscal toblem, according to the bundation, are the following: 1. An imbalance between icome and outgo in the ighway fund has been only jmporarily resolved by trans- irs from general fund sur- lus. Eventually the long- inge highway problem in itah will have to be faced- ither through a drastic irtailment of highway activity I the state or by an increase ) the motor fuel tax. '2. Enrollment projections idicate that there will be a ipid growth in the Utah chools during the decade head. Substantial sums will e needed for operations and apital outlay to provide for ais anticipated increase in the timber of students even at resent guaranteed levels of tate support. In addition, chool expenditures in Utah 3 ?ill also rise as the school S jrogram is increased to meet pres- jsing costs, higher salary and arrel ;enefit demands, improved lal oi fervices, etc. Sties ; 3. Because renewal of the pres- jederal revenue-sharing pro-emp- ram is uncertain at this time, is difficult to make any grad- ccurate forecast of revenues ay of jeyond 1976. Presently, state these jid local units in Utah receive bill) jiore than $36 million a year in er, il ederal revenue-sharing unro inds. the 4. Existing legislation con-(jmp.ins con-(jmp.ins provisions which auto-e auto-e run Statically will raise program p se' psts and expenditures in the was riod ahead. Financing of 3llons!mployee retirement costs jfoo'id repayment of the 1975 po-nd issue are two of the 3 pe;iems that will have a delayed rpple- itipact on state finances. Such ant utomatic increases place add-mored add-mored pressure on Utah's long-econs long-econs ange financial outlook. s ults: ; Total state spending author-allons author-allons Fed for the 1976-77 fiscal year !eanc estimated at $915 million. an(j i'Ws sum is approximately $3 o it'illion more than the amount scommeded by the Governor . efit-i his budget, and is about $75 rfay trillion, or 9 greater than the costsPending level approved for 5S ttifie 1975-76 fiscal year. fy the The Foundation report .alK itnows that more than 70 of ufir;le increased spending for the rea coming year will go for ; education--25 for higher ! education and 46 for in- ' creased support of the public schools. The analysis further indicates that approximately 23 of the increased funds will be for social service . programs. Following adjournment of the Budget Session, the Governor vetoed five appropriation appropri-ation items totaling $2.5 million along with a scheduled reduction in the state inheritance inheri-tance tax. He indicated that he also may make across-the-board cuts in the appropriation allocations prior to the start of the 1976-77 fiscal year if he feels that these are needed to balance the . budget based on, the latest revenue trends. Foundation analysts point out that the principal difference differ-ence between the Legislature and the Governor with respect to the budget is that the Legislature revenue estimates for 1976-77 are about $4 million higher than those used by the Governor. After allowing allow-ing for items vetoed by the Governor, and using the revenue estimates adopted by the Legislature, the State will conclude the 1976-77 fiscal year with an ending combined balance of $5.4 million. On the other hand, if the more conservative revenue estimates esti-mates employed by the Governor Gover-nor are used in he analysis, the ending surplus would amount to about $1.4 million. In addition to the inheritance inheri-tance tax reduction, which was vetoed by the Governor, the 1976 Budget Session reduced state individual income tax rates and eliminated the sales tax on prescription drugs. These latter two reductions are expected to effect tax savings of about $8.9 million. The Foundation study indicates, indi-cates, however, that the most significant tax change made this year from the standpoint of business is contained in the amendments toc the Employment Employ-ment Security Act, which were approved by the 1976 Session. The revision will allow Utah to retain its experience-rating' plan, but will raise the wage base on which unemployment insurance taxes on employers are calculated. Altogether, the 1976 Budget Session dealt with 209 separate sepa-rate bills and resolutions. The Foundation report points out that the volume of nonbudget-ary nonbudget-ary matters considered at budget sessions has expanded dramatically since the first budget session was held in Utah six years ago. Between 1970 and 1976, the total number of measures brought before the Utah Legislature during its even-year budget session has increased fourfold. four-fold. I |