OCR Text |
Show Tax increase seen in state to maintain present spending An increase in state taxes may be required next biennium in Utah merely to maintain present spending levels after providing for normal growth adjustments in the general fund and allowing for expected enrollment increases in the schools and colleges. This forecast was made by Utah Foundation, the private tax research agency in their latest study on the condition of Utah State finances. The Foundation estimates that a statewide property tax of slightly less than fifteen mills, or its equivalent in other new or increased taxes, probably prob-ably will be needed during each of the next two years in order to balance the uniform school fund at present spending levels. lev-els. This compares with a statewide property tax levy for schools of 7.1 mills in 1962, 7.6 mills in 1963, and 9.7 mills in 1964. The study indicates that some temporary respite from these predicted higher taxes might be gained in the state shifts from pay-as-you-go to bonding for its building program. pro-gram. It warns, however, that such a temporary solution could add to the long-range financial problems of the state because of the required amortization amorti-zation and interest costs. Expenses exceed revenue State expenditures exceed state revenue in Utah by $3.6 million in the fiscal year ended June 30, 1964. The study shows that state revenue received during the 1964 fiscal year totaled to-taled $259,450,502, while state general expenditures for current cur-rent operations and capital outlay amounted to $263,050, 860. According to the report, state expenditures in Utah have been greater than current cur-rent revenue in seven out of the past eleven years and five out of the past six years. During Dur-ing this period, it has been the caulated policy of the Utah Legislature and the Administration Adminis-tration to meet new expenditure expendi-ture needs by utilizing fund balances and surpluses to moderate mod-erate the need for new or increased in-creased taxes. There are virtually no remaining re-maining uncommitted fund baiances at the present time the report observes. In fact, tho Foundation predicts that there will be a deficit of approximately ap-proximately $5 million in the uniform school fund at the close of the present 1963-65 biennium bi-ennium because actual revenues reven-ues from current taxes have fallen considerable short of advanced ad-vanced estimates upon which appropriations for this biennium bien-nium were based. In discussing the demands that will be placed' before the forthcoming 1965 Utah Legislature, Legis-lature, the Foundation observes that "in the years immediately a head, Utahns must be prepared pre-pared to match their enthusiasm enthusi-asm for new and higher spending spend-ing programs with an equal enthusiasm en-thusiasm for higher taxes to pay the bill. |