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Show 'y State Financial Condition Still Elated : ? Excellent Despite 1 975 Imbalance 1 i H Although total state dis-,llaJ dis-,llaJ bursements exceeded reve-! reve-! "'f nues by $28.7 million during 'not the 1975 fiscal year, the ' condition of Utah state financed finan-ced ces still is rated "excellent" llool by Utah Foundation, the ne private research organization, 'he According to the Foundation ired, analysis, the 1975 fiscal 'e a imbalance was caused by (1) an $18.5 million jump in state unemployment benefit pay-ca's pay-ca's ments plus increased adminis-the adminis-the trative costs resulting from the and 1974-75 economic recession, us (2) approximately $5.7 million vere in taxes which were charged in 119 'fiscal 1975 but not actually collected and recorded until """"1 after the close of the fiscal year, and (3) expenditures recorded in fiscal 1975 for projects authorized and fund-"1 fund-"1 ' ed in earlier periods. Total state revenue in Utah for the fiscal year ended June 30, 1975 amounted to $733.8 million, compared with general gene-ral state expenditures of $762.5 million. This is the first time since 1969 that state disbursements in Utah have exceeded slate revenues. State revenue in Utah rose by nearly $80 million, or 12.2 last year. Increased Federal aid and high tax yields resulting from continued inflation infla-tion and economic growth were the major elements in this strong revenue gain. Although the 1975 Utah Legislature rasicd the state individual income tax rates, this increase was not reflected in the revenue collection for the 1975 fiscal year. Foundation analysts point out that taxes accounted for $429.7 million or 58.6 of last year's total revenue receipts. Federal aid (including revenue sharing) was equal to $220.4 million, or 30 of the state revenue total. The remaining $83.7 million resulted from tuition fees, charges for services, and other miscellaneous miscellan-eous earnings. Except for Federal aid, the sales tax is the most productive product-ive source of revenue for state government in Utah. Last year it produced $173.7 million in state revenue, or 23.7 of the total. When local sales taxes are also considered, the total yield of the sales tax in Utah amounted to $197.6 million. By comparison, total property taxes charged by governments in Utah equaled $181.1 million during the 1974-75 fiscal year. The state property tax was eliminated in 1974. The Foundation study shows that education was responsible for nearly one-half of all state spending in Utah last year. State expenditures for educa- j tion totaled $358 million, or , y 47 of all state spending X during fiscal 1975. Included in this state expenditure total is $117.1 million for higher education, $220.6 million for I stale aid to local schools, and r. $20.3 million for other educa- I tional purposes. i j In addition to these state expenditures for education substantial amounts are spent on educaiton from revenues j raised locally. When all funds ; are included, total state and local expenditures for educa- s tion amounted to nearly $500 , million in fiscal 1975. """ Utah devotes a higher (, proportion of combined state and local government spend- l j ing to education than does any V other state in the nation, F primarily because a larger part of its population is in the school-age groupings. Correspondingly, Corres-pondingly, the proportion of state and local budgets for ' ; police and fire protection, j health and hospitals, sewer- 3 age, etc. is markedly below national norms. Other major areas of state spending in Utah include state highways (including state aid for local roads) -- $107.5 million (14.1 of total state spending), public welfare - V $84.7 million (11.1), employment employ-ment security (including unemployment un-employment compensation) '; $59.6 million (7.8), health I and hospitals -- $28.8 million I (3.8), and natural resources I - $28.4 million (3.7). |
