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Show Federal Spending in Grand County Totaled H.S9S.Q00 Last Year F d ,. .. n .1 ,. . l.'T "" '""'""""''-" "m " " -'- "' mM y-, , I ; si ..-, J ; - . v - . ) .. ' . . . - . 5 r r i Professional Charro Francisco Zamora will perform in the artistry of classical Maguey roping at the Canyonlands Rodeo June 6-7. Grand County during the 1975 fiscal year totaled $4,595,000. This fact was reported by Utah Foundation, the private tax research organization in an analysis of Federal Outlays in Utah. Federal outlays include all Federal spending for salaries (civilian and military), retirement retire-ment and other employee benefits, Federal purchases and contracts, grant-in-aid to state and local units, and other Federal payments made to institutions and individuals. The fiscal 1974 expenditure total is equal to $707 for every man, woman, and child residing in Grand County, and is the equivalent of 16.5 of the total personal income of all inhabitants of the county. By way of comparison, total Federal outlays throughout the state during the 1974 fiscal year amounted to $1,613,669,-000 $1,613,669,-000 and were equal to $1,389 per capita. These Federal expenditures in Utah last year were the equivalent of 32.4 of the state's total personal income. Foundation analysts emphasize that while these Federal programs and activities activ-ities may have a stimulating effect on payrolls and local economies, they sometimes can prove to be liabilities rather than assets to state and local government operations. This is especially true in the case of programs which create large increases in Federal employment with no corresponding corres-ponding increase in taxable wealth and income within the private sector. Previous studies stu-dies have shown that, on the average, individuals in Utah pay only about one-half of the cost of necessary state and local government services, with the remaining half being borne by taxes on business and industry. Another part of the Foundation Founda-tion study indicates that Federal budget deficits and increases in the national debt tend to take money out of the state of Utah. As a specific example, the report shows that a $70 billion Federal budget deficit could result in an annual $11.9 million drain from individuals and business firms in Utah. The study points out that in fiscal 1974 individuals and institutions in Utah received only $37 million in Federal interest payments, an amount equal to 0.1 8 of total Federal expenditures for interest on the national debt. On the other hand, Utah residents paid about 0.42 of all Federal taxes collected to finance Federal activities and programs pro-grams during the 1974 fiscal year. According to the Foundation calculations, if the Federal Government incurs a budget deficit of $70 billion and this deficit is financed by new debt obligations bearing an average interest rate of 7 the interest obligations of the Federal Government would rise by $4.9 billion per year. Since Utah pays 0.42 of the Federal taxes, Utah's share of this added cost would be approximately $20.6 million per year. Based on the 1974 experience, exper-ience, individuals and institutions institu-tions in Utah might expect to receive back only about $8.7 million in added Federal interest payments from this increased Federal debt. T'- ., the net effect of a $70 L. on Federal deficit would be an annual outflow of $1 1 .n million from the people of Utah. Moreover, this $11.9 million annual drain would become . perpetual item unless ( lie Federal debt were reduced at some future date. National defense is the largest single area of Federal activity in Utah. The Foundation Founda-tion study observes national defense and international relations rela-tions account for $636 million, or 39.4 per cent of all Federal spending in Utah. Income security payments (social security, se-curity, public assistance, unemployment un-employment insurance, retirement retire-ment benefits, etc.), the next largest area of Federal spending spend-ing in Utah totaled $400 million. Other major Federal outlays include commerce and transportation, $132 million; natural resources and environment, environ-ment, $93 million; veteran benefits, $79 million; health, $74 million and education and manpower, $68 million. The proportion of total Federal outlays made in Utah has been declining during recent years. In the 1969-70 fiscal year, for example, Utah's share of all Federal outlays amounted to 0.01. Ity 1973-74, Utah's share had declined to 0.57. |