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Show Foundation sees no tax hike state. The increased expenditures expendi-tures resulting from inflation, though deferred, could exceed revenue gains for the longer term. large outlays of state funds. Although the short-range financial finan-cial condition of Utah appears to be reasonably good, the Foundation study warns that there are many problems and troubles clouding the long-range long-range picture. The report notes, for example, that while inflation infla-tion has given an immediate spur to revenues, it has also accelerated the long-range expenditure ex-penditure requirements of the State operations in Utah during dur-ing the forthcoming 1970-71 fiscal fis-cal year can be balanced with no increases in taxes, according to an analysis just prepared by Utah Foundation, the private tax research organization. This cheery outlook for the coming fiscal year, however, is conditioned on the stipulation that (1) only moderate increases increas-es will be permitted in general fund and uniform school fund costs, (2) no new or expanded state programs will be undertaken, under-taken, (3) state appropriations for state building and local school building purposes will be limited to "barebone" mini-mums, mini-mums, and (4) state revenues reach or exceed estimates based on a "middle-range" projection pro-jection of economic growth. The report cautions that new or expanded state spending programs pro-grams andor major upward revisions re-visions in the state school aid formula beyond the limits used in the Foundation projections could require higher taxes or other sources of revenue. For example, the study notes that each $1 million in state spending spend-ing is equivalent to a 0.56 mill ,$0.56 per $1,000 assessed valuation) valu-ation) property tax levy or its value in other revenues. Similarly, Sim-ilarly, each $100 boost in the school aid formula is equal to a state-wide property tax levy of 0.71 mill or its equivalent in other revenues. According to the report, state revenue collections in Utah during the past year and a half have greatly exceeded earlier estimates and forecasts. Because Be-cause of this unexpected surge in state revenue receipts, Utah was able to complete the 1968-69 1968-69 fiscal year in the black. The study attributes much of this increase in state revenue collections col-lections to the inflationary factors fac-tors in the economy. The study notes that the rise in the cost of living index was approximately approxi-mately 5y2 percent during the past twelve months. If present revenue trends hold up, Foundation analysts note that Utah should be able to meet all of its commitments for the present (1969-70) fiscal year, including a $6,277,824 appropriation ap-propriation for state building purposes. The report points out, however, that 1969-70 revenue receipts include a one-time "windfall" of approximately $6.3 million resulting from the speed-up in state income tax withholing collections. Revenue collections during the coming (1970-71) fiscal year will depend to a considerable consid-erable extent on economic conditions con-ditions prevailing in Utah and the nation. According to Utah Foundation projections, the combined revenue of the general gener-al fund and the uniform school fund present nonproperty sources sour-ces is expected to range somewhere some-where between $192 million and $208 million in 1970-71, depending depend-ing upon the economic growth and inflation assumptions used. This compares with a combined total of $156 million in 1968-89 and an estimated $195 million in 1969-70. The report indicates that the 1970 Utah Legislature, meeting meet-ing in January for the first time in a budget session, should be able to balance the 1970-71 budget without any major tax increase, provided expenditure increases are kept under control and the state does not embark on any new projects involving |