| OCR Text |
Show New taxes, bonding will not solve Utah's financal problem ; Despite the imposition of new taxes, the authorization of $67 million bond issue, and the transfer of funds by the 1965 Utah Legislature, many of Utah's basic financial problems are by no means resolved. This was the major conclusion conclu-sion reached by Utah Foundation, Founda-tion, the private tax research organization in their fiscal analysis of the 1965 Legislative Legisla-tive session. The Foundation's report points out that two years from now Utah will be faced with (1) a high level of current operating op-erating expense, (2) demands for additional funds for operating oper-ating expenditures especially at the colleges, (3) the necessity to begin making interest and principal payments on the $67 million bond issue, and (4) additional ad-ditional requests for buildings and other capital outlay projects pro-jects beyond those financed by the bond issue. In order to balance the 1965-67 state budget, the 1965 Legislature increased the individual in-dividual income tax, the corporate cor-porate tax, the special excise tax on liquor and wines, and authorized a $67 million bond issue for capital improvements. The cent sales tax which had been used for the capital outlay program was diverted to the general fund where it will be used for general operating purposes. For education According to the Foundation's Founda-tion's study, approximately three-fourths of the increased spending authorized by the 1965 Utah Legislature for the coming biennium will go for education. Two years ago, the proportion going for education was' even higher with nearly 80 of the added expenditures authorized by the 1963 Legislature Legis-lature being designated for education. ed-ucation. On both occasions, a substantial raise in the elementary ele-mentary and secondary school program was the principal factor fac-tor in the larger increase in education outlays. The report points out that although state appropriations to the colleges and universities were increased significantly by the 1965 Legislature, the amount of the state appropriation appropri-ation per student will not change apparently during the next two years. Major reason for this is that the post war baby bulge is reaching .college age and will begin entering Utah colleges this fall. Foundation analysts note that most institutions of higher high-er education have annuonced higher tuition fees next year in order to meet rising costs. The Legislature raised the minimum min-imum fees at the institutions of higher education. The boosts were greatest for out-of-state students attending Utah public pub-lic colleges. Prior, to this increase, in-crease, non-resident fees at Utah colleges were among the lowest in the nation. Property tax up Based on the final estimates used by the Legislature, the state property tax needed to balance state operations during each of the next two years will amount to 8.5 mills ($8.50 per $1,000 assessed valuation). This compares with 9.7 mills in 1964 and 7.6 mills in 1963. Foundation analysts note that the 1965 state property tax mill levy estimate might be scaled down slightly if several favorable factors materialize. In addition to a possible reduction re-duction in the state property tax levy, the report observes that the general fund could end the 1965-67 biennium with a surplus of $4.0 million if the original estimate of sales tax revenue is realized. During the legislative session the Governor's Gover-nor's budget estimate of sales tax receipts for the 1965-67 biennium bi-ennium was reduced when collection col-lection experince was not living liv-ing up to expectations. Recent tax collection reports however, indicate that much of this apparent ap-parent slowdown was due to a delay in reporting rather than a slowdown in business activity and sales tax collection. The Rev. Gilbert Kuyper of Knox Presbyterian Church, St. Paul, announced the topic of his Sunday sermon on the church bulletin board: "What on Earth Are You Doing for Heaven's Sake?" |
