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Show Federal Government Tightens Purse Strings Since establishment of the federal revenue sharing program in 1972, all local units in Iron County have received $3,230,517 in revenue sharing funds. An additional $438, 152 has been allocated to these units for 1979-80, which is equal to $29.67 per capita, or a countywide property tax levy of 6.21 mills ($6.21 per $1,000 assessed valuation). These were some of the facts reported by Utah Foundation, the private research organization, in a detailed analysis of the federal revenue sharing program and its impact in Utah. Federal revenue sharing will expire on Sept. 30, 1980, unless its renewed by Congress. The program has come uuder increased criticism during recent months, and its eventual fate in Congress is uncertain. un-certain. The report shows federal revenue sharing payments to Iron County during the 1972-79 period totaled $1,453,977, with an added allocation of $188,276 for 1979-80. Revenue sharing payments to Cedar City amounted to $1,575,170 in the 1972-79 period plus an added $235,079 for 1979-80. Despite early skepticism concerning con-cerning the permanency of the program, most units in Utah have incorporated federal revenue sharing funds into their regular operating programs. Approximately 77.5 percent per-cent of all revenue sharing funds expended in' Utah during fiscal 1977 went for current expenditures, 22.1 percent for capital outllay, and 0.4 percent for debt service. State and local units throughout Utah have received $285.1 million in federal revenue sharing funds during the period 1972 through 1979. An additional ad-ditional $42.1 million has been allocated for the final entitlement period (Oct. 1, 1979 through Sept. 30, 1980). These funds may be spent by the receiving units more-or-less as . they please without the extensive requirements for eligibility a.nd ad- . ministration . that are attached to most of the categorical federal aid programs. Foundation analysts point out that the state's share of federal revenue sharing funds in Utah is used to support the public school operating program. If the allocation to the state is not continued beyond Sept. 30, 1980, it would cost Utah $7.2 million during the 1980-81 fiscal year and more than $14 million in subsequent years. The anticipated allocation beyond September Sep-tember was included in the 1980-81 state budget adopted by the 1980 Legislature. The $42.1 million in total federal revenue-sharing funds allocated to Utah this year is equal to a state-wide property tax levy of 8.03 mills, ($8.03 per $1,000 assessed valuation). On the average, it would take 2.68 mills to replace the revenue Sharing monies received by the State, 2.47 mills to replace the county portion, and 5.26 mills to replace the city and town portion. Federal revenue sharing distributions throughout the United States totaled $6.85 billion this year, or $31.12 per capita, according to the Foundation analysis. By comparison, revenue sharing allocations to Utah this year will average $30.79 per person, or slightly less than the U.S. average. Defenders of federal revenue sharing contend that the program allows more of the functions of government to be provided by units of government closer to the people than would be the case if the decisionmaking decision-making powers were centralized in Washington. Opponents of the program, on the other hand, contend that these funds have been obtained mainly through added federal indebtedness and that this has contributed to the current high rate of inflation in the U.S. Moreover, they claim that the program has led to fiscal irresponsibility irrespon-sibility by not requiring those who spend the money to be responsible for raising it. |