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Show Notional economy struggles State finances remain stable -Even though the national economy continues U struggle, Utah state finances remain reasonably bright. At least, that is the opinion of Utah Foundation, the nonprofit tax research organization, in its analysis of budget prospects for fiscal year 1992-93. The foundation report points out that the state has concluded each fiscal year since 1987-88 with a budget surplus. The surplus for fiscal year 1990-91 which concluded June 30, 1991, was just over $34 million or about one percent of the $3.44 billion in total expenditures for that year. Last month, Gov. Bangerter submitted a state operating budget of $3,407,527,100 for the 1992-93 fiscal year. This represents an increase of $159.8 million, or 4.9 percent over the amount authorized for the current (1991-92) O fiscal year. This 4.9 percent increase in the proposed operations budget would be the smallest increase in four years and reflects the impact of the national recession on the Utah economy. Utah Foundation analysts point out that job 0 growth over the previous 12 months in the state was 4.8 percent in August 1990 and has steadily slowed to about 2.5 percent by the end of 1991. The operations budge funds 16 major state programs. However, of these 16, four receive almost 80 percent of budgeted funds. These four programs are public education ($1,348.8 million), health ($501.2 million), higher education edu-cation ($67.9 million) and human services ($390.8 million). In other words, though state government administers many programs, 80 percent per-cent of operating funds go to pay for educating Utahns and providing for their health and welfare. In addition to the regular operating budget, the governor also recommended $341.5 million for capital outlay, $60.9 million for debt service, and $1.5 million for "other" programs. Thus, the total budget proposed was $3,81 1,468,900. This amounts to a 2.8 percent increase ($103.8. million) over the total 1991-92 fiscal year authorized budget. A total state government spending increase of 2.8 percent would be the smallest increase in five years. The proposed budget will fund a salary increase in-crease of three percent for state employees. The governor would like this increase to be based on merit and not given across-the-board to all workers. Revenue forecasts indicate that there will likely like-ly be $65 million in surplus funds for the combined com-bined 1990-91 and 1991-92 fiscal years. The governor indicates that, when these funds are combined with some matching federal funds and other revenues there will be a total of $82.1 million available for proposed ' 'one timesupplemental s. The governor has proposed that $46.3 million in supplemental funds be spent in fiscal year 1991-92 and that $35.9 million be spent in fiscal year 1992-93. Utah Foundation believes there is some need for caution when the legislature deals with the budget. The governor's budget proposals contemplate con-template an average increase in jobs of three percent and a 7.2 percent increase in total personal per-sonal income for 1992. This projected level of economic growth for 1992 assumes the Utah economy will strengthen somewhat from its current rate of growth. If the national economy does not improve, Utah's economy may not realize the assumed level of growth underlying the governor's proposals. |
