Show Utah Faced With Serious Budget Problem utah is faced with a serious budget balancing problem in the 69 1967 biennium because of the overly optimistic revenue esti esti- esti estimates mates contained in the Governors Governor's Budget and used by bythe bythe the 1967 1067 Utah Legislature in making their appropriations for forthe forthe the biennium This was pointed out in a study just released by Utah Foundation the private tax reo cc- search organization THE FOUNDATION analysis shows that actual revenue col- col collections col in the general fund Cund and the uniform school fund for the 1967 fiscal year were 54 mil mu- million lion below time the official estimates used at the time of the 1967 legislative session The unofficial al estimates made by Utah Foundation were considerably more conservative and event event- eventually proved to be only slight slight- slightly slightly ly high exceeding actual col eel eel- by 10 million or 08 per ler cent for fiscal 1987 1967 Even more serious than the 54 million shortage in revenue loT fot the 1967 fiscal year accord accord- lug ing to Foundation analysts is the fact that estimates of rev rev- revenues revenues for fiscal 1968 and amid fiscal 1909 were projected in the bud bud- budget budget get from these optimistic 1967 estimates Even If time the projected rates of increase used Usel in the b budget for the next two years are correct the fact that such projections will be made from froma greatly a much lower Jower base would great great- reat- reat ly Iy reduce the expected for the next two years As a result time the Foundation con con- concludes eludes thet the total shortage of funds in Utah for time the 69 1967 biennium could be several times time the 54 million shortage I incurred in fiscal 1967 alone ANOTHER DARK cloud on the horizon the report con con- continues is the prospect of a Federal tax Increase later this year Such an increase would have a direct effect in reducing state individual and corporate income tax collections as well as adversely affecting other state tax revenue collections such as the sales tax A pro longed labor dispute in Utah could have a similar adverse effect on state revenues during the period ahead Earlier this year the Gayer Gover- Governor nor predicted that time the state would end the 67 1965 biennium with a surplus of million in time the general fund and the uniform school fund This ex cx- cx surplus has largely vanished because of the failure of revenues to meet expectations and the fact that the 1967 Legislature appropriated 55 million from this expected sur sur- sur plus pIlls for bond repayment The Foundation report oh- oh observes serves that the failure of rev rev- revenue collections to meet ear ear- her lieI expectations could force Utah 1 to trim expenditures by cutting back on time the appropriation appropriation allocations to the in in- in institutions of higher learning as aswell aswell well as other general fund agen- agen agencies agencies cies and or 2 to Increase rev through ma II state property tax hike above the 73 mill level contemplated in the bud bud- budget budget get TH THE E ONLY bright spot seen by the Foundation in this rather gloomy revenue picture Is that total property tax valuations in 1967 will vill be higher than antici antici- anticipated Preliminary estimates by the State Tax Commission place time the total assessed lion tion more than 50 million above the estimate used in the Governors Governor's Budget Assuming a asi similar si milar under estimation of time the property tax base in 1968 the total savings to the State in higher state property tax col col- col collections and reduced state aid from the uniform school fund could amount to more than 3 million during the bien bien- bien |