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Show New taxes unncessary, says UF, I if expenses are kept in check j ings financed under the bonding bond-ing program are completed, the j State still will be faced with additional building needs. The 1965 report of the state building build-ing board listed ten-year build- ing needs totaling $128.9 mil-lion mil-lion after the special "critical" ; needs which were to be financed finan-ced from bond funds are met. Much of these "needs" were at the college institutions and are subject to adjustment as actual enrollment and space utilization factors become known. State operations for the forthcoming 1967-69 biennium can be balanced with no increase in-crease in taxes, according to an analysis of state finances just completed by Utah Foundation the private tax research organization. organ-ization. This forecast by the Foundation, Founda-tion, however, is predicated on the following conditions: (1) only a moderate growth will be permtted in regular general fund appropriations, (2) no new state programs or activites will be initated, (3) no new state ap-propriaions ap-propriaions will be made for state buildings, (4) no major change will be made in the state school aid formula, and (5) state aid for local school construction will be limited to $5 million for the biennium. The report warns that "any new or expanded state spending programs and or any major adjustments in the present school aid formula will require an increase in state taxes." For each $1 million per biennium boost in state spending the state property tax will have to be raised .31 mill (31 cents per $1,000 assessed valuation) or the equivalent amount secured from other, new or increased taxes. Similarly, each $100 increase in-crease in the present school aid formula will require a property tax boost of .79 mill or its equivalent equi-valent in other taxes. The study shows that state expenditures in Utah during the fiscal year ended June 30, 1966, totaled $340.8 million, or about $14 million more than total staate revenue of $326.8 million for the year. Foundation analysis point out that over the past nine years, the state has expended $76 million mil-lion more han was received in current revenue. State expenditures expen-ditures exceeded state revenues in seven of the past nine years and in all of the past four completed com-pleted bienniums. Began borrowing According to the report, the practice of expending beyond current revenue in Utah began during the middle and late 1950's when fund balances and surpluses which had accumulated accumu-lated during and after World War II were used to meet rising ris-ing expenditure demands and committments. Later, the State began to engage in some limited lim-ited and short-term borrowing for needed building projects. In 1965, Utah completely abonded its pay-as-you-go philosophy and authorized a $67 mllion state bond issue for building purposes. When the $67 million bond issue is-sue was being considered in 1965 it was argued (1) that this was the only way to obtain ob-tain hugh sums needed and (2) that in the long run bonding bond-ing was cheaper than pay-as-you-go because of rising building build-ing costs. This year a part of the building program financed with bond funds was deferred. This action was announced as a esponse to a presidential request re-quest to delay state and local construction projects as an anti-inflation measure. Foundation analysts point out that even after the build- |
