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Show ' Ji C a- Sr p r c v i i - THENATTONAL T I & Business news and commentary Volume 6 Number 43 50 cents Construction is blossoming As sure as tulips burst into bloom this month, so did contractors move into high gear, spreading new roofs and roads across the state. And, as last week's breezy spring days turned into re- minders of blistering weeks forthcoming, houses seem to pop out of the market, raising real estate sales volume to a new high for 1977. index Home Builders Association of Greater Salt Lake broke ground for its annual Parade of Homes, located at Glen-moVillage. Fourteen model homes are planned. The event or (See CONSTRUCTION, page 11) Real Estate Sales Volume Salt Lake Area Feb Apr 1977 5 Million green, commissioners proved two new, large 9 8 ap- 7 con- 6 5 4 struction projects planned for summer. commitments, momentarily bouncing loan volume totals from a stagnation period. five-week-lo- Contractors moved into high gear, spreading new roofs and roads across the state. On ng Friday, March 22, the Legislators didnt do such a bad job with Utahs budget Despite the fact that this was the first billion dollar budget in Utah history, the Utah legislature was reasonably conservative in arriving at a spending program for the 1977-7- 8 fiscal year, according to a Utah Foundation study. previously-impounde- d Federal funds for high- way purposes. The approved legislative program calls for a balance of budget that will leave a razor-thi- n only $139,000 at the close of the 1977-7- 8 fiscal Foundation analysts observe that this could pose a problem if revenue collections fail to reach the rather optimistic estimates employed in achieving the balance. It was pointed out, however, that the Legislature did leave itself a cushion when it placed $5,000,000 into a reserve fund to be used for emergency drought purposes, if and when needed. year. Utah was able to balance its budget for the coming year and still provide some tax relief especially to the elderly poor. Altogether the study points out, the tax changes made should save Utahns up to $8.2 million next year. Among the taxes reduced were the inheritance tax, the sales tax on residential heating and lighting bills, and the property tax paid by elderly home owners and renters. On the other hand, because of changes made last year, the unemployment tax paid by employers will rise this year. low-inco- State spending programs authorized for the 1977-7- 8 fiscal year will total nearly $1,016,000. According to the Foundation report, this amount is about $67.4 million more than the amount approved for the current (1976-77- ) fiscal year. One measure that could have an important e impact on state finances, according to the report, is a measure which requires an actuarial study of the Utah retirement program. Previous studies by Utah Foundation and the Legislative Fiscal Analyst have revealed that the present program will result in dramatic increases in benefits and costs in A January report by the future years. Foundation disclosed that the present program will require state and local retirement contributions exceeding $14 billion annually by the long-rang- Most of the new spending authorized for next year is for education, with increased amounts also going for social service programs and for state employee salary adjustments. The study notes that next year's appropriations for transportation were cut substantially, but the current year transportation authorizations, had been inflated somewhat by the release of Page 12 Mtg. Rates ... Page 12 Quotes ..Page 24 III Mar ;eb Apr Source: S.L. Board of Realtors Look for higher prices once labor negotiations get underway Purchasers of commercial and industrial goods in Utah are expecting past and upcoming labor negotiations to directly affect the price of various commodities. In the opinion of buyers, steel and aluminum are two substances expected to increase because of labor negotiations within those industries. cent wage increase in 1977 for steel workers will add to the price of steel, opined president of Utah Purchasing Managers Association, as will 20 cent increases in 1978 and A 40 I II I always passed on to the con- sumer. by averting a strike, Jerman said, steel producers have managed to keep the But, price increase minimal. Buyers generally try to stockpile in advance of a he said, and the strike, stockpiling, or hoarding, usually creates a shortage with the producer that also contributes to the price increase. Purchasers here have known that the steel workers (United Steel Workers) would settle Wage increases are almost always passed on to the consumer. Some 450,000 United Steel Workers settled April 9, nearly four months ahead of 1979. A law. nationwide will be directly affected by the wage increase. The exact amount of the price increase is impossible to he said, but determine, almost arc increases wage total of 954 bills and resolutions were considered by the 1977 Utah Legislature. Of these, 369 were approved by both Houses. The Governor, however, vetoed 15 of the enacted bills after the Legislature had adjourned, leaving 354 measures that will finally become People OTC settlement deadline. Harvey Jerman. president of the 150 member purchasing managers association, said the price of steel year 1986. Jobless Rate. Page 7 Loan Volume Page 20 3 And in Salt Lake City, as March snows thawed, bankers seemed to warm real estate loan portfolios with a few new News... Page 3 New Corps ... Page 16 10 In Park City, as the ski season closed and hills began turning Bank their August 1 before their August deadline. Consequently, they did not begin to stockpile steel. For Utah, the price of steel should remain relatively stable but will increase because of the wage increase. Jerman and other Utah buyers expect aluminum to increase this summer, too. The Al- uminum Workers International and 54,000 members of (See PRICES, page 3) |