Show State Expenditures to Increase 51 Million in Next Biennium State expenditures in Utah will Increase by 51 million next biennium as a result of f new spending authorization by bythe bythe the 1963 Utah Legislature This was shown in a detailed fiscal analysis of the 1963 Utah legislative session just released by Utah Foundation p the PJ I re re search search organization on More than four fifths of the added funds to be made available during the next two years will go for lor education the Foundation reports In- In Increased In 1 creased appropriations and al- al allocations locations for all other I of state government ac ac- ac account count for less than 20 of the expected expend expenditure rise 1 TO FINANCE this increased ed spending program the 1963 Utah Legislature raised a number of taxes Among the tax changes s enacted were 1 i ia in the a one half cent Increase sales tax 2 a per pack I boost in the cigarette tax 3 enactment t of a 25 tax on onI I other tobacco products 4 a aI I complete revision In the un un- un unemployment employment compensation tax rates and base and 5 author author 1 for increased property I taxes for lor school and library In addition to the foregoing tax changes the Foundation report notes that a slight in- in increase In crease cr ase in the sta state te property I tax may be needed to finance I the enlarged school program I enacted this year ear The state statewide wide tax levy evy to balance the uniform school fund amount ed to 75 mills in 1961 and 71 mills In 1962 Based on revenue and school expenditure estimates for the next biennium this state property tax levy may go as high as 79 mills during each of the next two years FOUNDATION analysts point out that the one half cent increase in the sales tax which will go into effect on July 1 1963 and is scheduled to terminate on June 30 1969 is earmarked for the state building program It is ex ex- ex expected I Ito to produce about 60 million for this purpose ol over r I Ithe the next six years Because of ofa a collection lag only about million of this amount however will actually be col cold during the 65 1963 bi bi- bi biennium The report notes the veto by the Governor of the bill which would have appropriated ed million for building purposes over a year six per per- period iod and permitted substantial borrowing during the early years of the program The building proposal sub by the Governor would have limited actual building building I appropriations to a year two I period provided for a tenta tenta- tivo program during the see sec end ond and third 67 1965 and and re- re restricted re- re restricted the amount of interim borrowing The building issue will likely be resolved at a special session of the Legisla- Legisla Legislature Legislature ture ACCORDING TO the reo re- re report port estimated revenues to the state general fund during the next biennium are 1312 million and budgeted meats ments are 13 1309 9 million This razor thin balance in the general fund is dependent up- up upon upon on the realization of the reo re- revenue venue estimates which are based on what may be assumptions of growth in Utah's economy and the expansion of tax revenues The Foundation report points out that if the ed general fund revenues are not realized the general op act provides that thata a million transfer from the general fund to the uni uni- uni uniform form school fund will be reo re- reduced by the amount or of the deficiency Any reduction in inthis inthis this transfer will require a corresponding increase in the state school property tax THE 36 MILLION transfer made by the 1963 Legislature is almost three times the amount provided by any pre pre pre- previous legislature In 63 1961 for example the school fund und transfer was million Part of the 1963 increase how how- however ever was to replace approximately 12 million in sales tax revenue which had been earmarked to the school fund by the 1961 Legislature but was placed in the general fund by the l 1963 63 Legislature |