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Show Gov. requests $1.13 billion state budget for 1978-79 State expenditures totaling $1,130,063,800 were recommended recom-mended by Governor Scott M. Matheson in his proposed budget for the forthcoming 1978-79 fiscal year which was submitted to the 1978 Budget Session of the Utah Legislature Legisla-ture on January 9. According to an analysis by Utah Foundation, the private research organization, the 1978-79 budget proposal is approximately $76 million, or 7.2 more than the total state spending authorized for the present (1977-78) fiscal year. Of the recommended state budget for 1978-79, $531.3 million, or 47 of the total, would be expended for education. educa-tion. Other major areas of state spending included in the budget are social services, $240.3 million (21.3 per cent); transportation, $168.1 million (14.9 per cent); governmental operations $90.9 million (8.0 per cent); public safety, $26.1 million (2.3); natural resources, resour-ces, $25.5 million (2.3; business, busi-ness, labor, agriculture, $15.3 million (1.4 per cent);' debt service $9.1 million (0.8); development service, $6.2 mil- lion (0.5 per cent); and - all other, $17.2 million (1.5 per cent). The Foundation analysis emphasized that in addition to these regular budget expenditures expendi-tures financed from current revenues and surpluses, the Governor also recommended thai the state authorize another an-other bond issue totaling approximately ap-proximately $109 million to finance various capital improvements. im-provements. Proceeds from this proposed bond issue would be spent in the following follow-ing manner: Water Projects, $25,000,000; Park Projects, $13,500,000; Building Projects, Proj-ects, $40,000,000; Highway Construction, $30,000,000; Total: To-tal: $108,500,000. The Governor cites inflation and rising construction costs as major reasons for abandoning abandon-ing the pay-as-you-go approach ap-proach in favor of bonding to meet the state's capital needs. Foundation analysts point out that Utah currently is repaying the $67 million bond issue which was authorized in 1965. Approximately $15 million mil-lion from this issue remains to be redeemed. In addition, beginning in 1980, Utah also must start to repay the $70 million bond issue which was authorized by the 1975 Legislature. Legis-lature. It should be noted, however, that per capita state indebtedness in Utah currently current-ly is less than a third of the average state debt in the nation as a whole. The Governor suggests in his 1978 budget presentation that the Legislature refrain from making any major changes chan-ges in the state's tax structure struc-ture until after a proposed tax study is completed. The Budget, Bud-get, however, does contain the following recommended tax changes: 1. Eliminate the last 1 sales tax charge on residential utility bills. 2. Increase the present 7c per gallon tax on motor fuel or change the tax to an ad valorem tax which is based on price rather than volume. 3. Increase the motor vehicle ve-hicle registration fees by $5 per year. Aside from the afore-mentioned bonding proposal, included in-cluded along with other major spending recommendations contained in the Governor's 1978-79 Budget are the following: follow-ing: State Support of the public school program would be raised rais-ed from $732 to $795 per weighted pupil unit, an increase in-crease of 8.6. In addition, it is proposed that the ceiling on the number of units for handicapped handi-capped children be raised by approximately 7. Recommended appropriations appropria-tions of state funds for higher education would be set at $131.4 million, an increase of $14.1 million, or 12 above the amount provided during the current (1977-78) fiscal year. In addition, the Governor Govern-or supports a proposed increase in-crease in tuition rates for students. State appropriations for social so-cial services would be raised by approximately 16 from $89.1 million in 1977-78 to $102.5 million in 1978-79. A transfer of $5 million would be made from the anticipated surplus in the general fund to help alleviate some of the money problems in the transportation (highway) (high-way) fund. The transportation fund also would be aided by providing that a portion of the highway patrol costs would be financed from general fund revenues rather than highway-user revenues. |