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Show 4 Utah budget session actions may complicate long-range finances Several of the actions taken by the 1978 Budget Session may complicate Utah's long-range long-range finance problem. This was the conclusion of Utah Foundation, the private research re-search organization, in their analysis of the 1978 Budget Session, which adjourned last month. Among the items cited by the Foundation report that could create financing problems prob-lems for future legislative sessions were the following: Legislation enacted this year requires that the Governor Gover-nor must include "a minimum of $15,000,000" in his 1978-80 budget to fund on-going building build-ing alterations, repairs and improvements. Only the first phase of a new $21 million department of transportation-public safety complex was funded this year. Approximately $14 million to complete this project must be financed by future legislative sessions. It is expected that only about $5.3 million out of $13,550,000 appropriated for parks and recreation projects can be funded this year from surplus funds. Financing of the remaining projects will be a problem that must be faced by the 1979 legislature. The state building board was authorized to plan, program, pro-gram, and prepare construction construc-tion drawings and specifications specifica-tions for an additional $41 million in state building projects. pro-jects. Actual funding for these projects would have to be met by future legislative appropriations. appropri-ations. Two new bond issues totaling total-ing $50.1 million were authorized author-ized this year. Repayment of these bonds must begin in 1983. Utah began financing a portion of highway patrol costs from general fund revenues rev-enues rather than highway-user highway-user revenues. While this action will make more funds available for highway purposes, pur-poses, it will place an added burden on general state finances. Foundation analysts point out that these actions could add to other problems that Utah will face in attempting to maintain a balanced budget in the years ahead. They cite growing school enrollments, . rapidly increasing retirement costs, higher social security (FICA) contributions, unemployment unem-ployment insurance coverage for state and school employees, employ-ees, rising salary levels, a large backlog of unmet building build-ing and capital needs, and outstanding debt that must be repaid as some of the factors that are contributing to Utah's long-range finance problem. According to the Foundation Founda-tion report, the time of large state surpluses in Utah apparently appar-ently has ended. The budget approved for 1978-79 calls for a razor-thin balance of only $21,000 at the end of the year. The study indicates that Utah could encounter a deficit by June 30, 1979, if a slowdown in revenue should develop during the year. The only major tax change made by the 1978 Budget Session was a two-cent r gallon increase in the mou fuel tax. Approximately 0Bfr fourth of this increase (or n cent per gallon) will g0 for and county road purposj with the remaining thre$! fourths of the increase (or in cent per gallon) allocated ot state highway purposes. State spending authorized by the 1978 Budget Session totaled $1,138,109,000. This sum is approximately $63 million more than the amount recommended by the Gover-nor Gover-nor and is $69 million greats than the total authorized for the 1977-78 fiscal year. The Foundation study points out however, that the increase hj I state spending for next year I probably will be less than the amount authorized. As has been the case in most recent years, the buftof the new spending in Utah wJl be for education. State ej-penditures ej-penditures for education art expected to total $532 million I or 47 of all state outlays lot 6 next year. Other major areas of state spending in 1973.79 include social services- $244 ) million (21), transportation- I $174 million (15), and go, p ernmental operations- $86 i million (8). " |
