Show Demands of Legislature Would Double Present Taxes Utah budget makers budget makers will need unusually sharp pencils as the 1969 Legislature prepares to todeal todeal todeal deal with the states state's financing problems for the forthcoming fiscal year according to a are research research re re- search brief Issued by Utah Foundation a private nonprofit i fit public service agency IF lF ALL requests of state I agencies and i institutions n for additional sal funds ds for tug the fiscal ls y year ar 1969 70 were to be granted a doubling of all existing taxes I supporting the States State's General Fund F and Uniform School Fund I would still fall 50 30 million short of meeting of-meeting the 70 1969 requirements requirements require require- ments the Foundation n report indicates Purpose of this this' Res Research arch Brief is is to measure the costs o of various r proposals against the projected yield of taxes that would be required to meet them Merits of the proposals aie are not here questioned nor is there any attempt to make relative re reo evaluations among t them emt the Foundation noted THE REPORT referred to the Foundations Foundation's November publication publication publication pub pub- which projected a deficit de do in in the next fiscal period from froin present present level level operations if existing revenue sources are not expanded or added to While some predict hi higher hiher her levels of return from present taxes there appears to tobe tobe tobe be general agreement t that hat even under the most favorable conditions available income from existing sources will win fall fan short of meeting requirements of existing programs allowing for foe normal growth the Foundation Foundation Found Found- pointed out Any new pr programs programs pro pro- grams or further expansions of existing programs will require additional revenues to finance them After showing that initial requests of all state agencies would considerably more than double existing general gen gen- eral venue revenue requirements the Foundation noted that initial requirements the Foundation n noted that noted ted that initial requests are traditionally cut in the budget budget- making pro process ess H However wever itis it itis is apparent that I a middle middie of the road program would cost the equivalent of a full one one cent cent increase in sales tax plus plu a the board beard 25 per 25 per cent across Increase in individual and corporate corporate corp corp- orate income tax plus plu an add add- i Ie I.e. e on top of the current current cur cur- rent 73 mill mill state property levy of 3 to 5 mills The middie middie middle mid die dle of the road program Included included in In- the State School Board Board- State Stat Board of Education proposal proposal pro pro- for increased support of public u schools o 34 per c cent o of the l maximum request of f the Utah Education Association the Coordinating Coordinating Co Co- Councils Council's recommendation Den dation for increased support support sup sup- port of higher education 47 percent percent per percent cent of the institutions institution's initial requests and expected Building Building Build Build- ing Board recommendation for new construction in addition to th that t provided by bonding and other available funds 12 percent percent per percent cent of initial requests from Institutions and agencies and Increases for other state departments departments depart depart- ments and agencies including Public Welfare representing represent represent- Ing about ing-about ing about 7 per cent of initial requests THE Foundation noted that Utah's broad tax structure has three major sources of income the sales sales' tax which furnishes about 73 per cent of General Fund revenue the income tax which provides more than 90 per per cent of Uniform School fund non property non property tax revenue and the property tax which is primarily used by state and local government but which is used by the state as required to balance the Uniform School Fund Projected yields from major taxes as presented in the Foundation report cover a considerable considerable con con- range It was was was' indicated that in fiscal 1969 70 the general sales tax 3 per cent is expected to produce from 66 to 75 million 22 to 25 million for each 1 per cent The income tax individual and corporate combined com corn is expected to yield 62 5 to 64 million at existing rates A wide state property levy is expected to produce 1685 million million mil mil- lion for each mill levied I THE task of the Governor and of the Legislature to tailor spending appropriations to Utah's fiscal capacities to determine determine de de- termine priorities among the financial needs for the for the respective respect ive lye functions and at the same time to avoid erection of serious tax barriers to Utah's aspirations aspirations for industrial growth will wil require statesmanship akin to the wisdon of Solomon the report concluded |