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Show Budget Session Could Complicate Finances Several actions taken by the 1978 Budget Session may complicate Utah's long-range finance problem concluded Utah Foundation, the private research organization, in their analysis of the 1978 Budget Session which adjourned last month. Items cited by' the Foundation report that could create financing problems for future egislative sessions were: legislation enacted this year requires that the governor must include "a minimum of $15,000,000" in his 1979-80 budget to fund on-going building alterations, repairs and improvements. Only the first phase of a new $21 million department of transportation-public safety complex was funded this year. Approximately $14 million to complete this project must be financed by future legislative sessions. It is expected only about $5.3 million out of $13,550,000 appropriated for parks and recreation projects can be funded this year from surplus funds. Financing of the remaining projects will be a problem that must be faced by the 1979 legislature. The state building board was authorized to plan, program, and prepare construction drawings and specifications for an additional $41 million in state building projects Actual funding for these projects would have to be met by future legislative appropations Two new bond issues totaling $50 1 million were authorized this year Repayment of these bonds must begin in 1983 Utah began financing a portion of highway patrol costs from general fund revenues rather than highway -user revenues. While this action will make more funds available for highway purposes, it will place an added burden on general state finances. Foundation analysis point nut these actions could add to other problems that Utah will face in attemnting to maintain a Da am ed budget in the years ahead. ihey cite growing school enrollments, rapidly increasing retirement costs, higher social security (FICA) contributions, unemployment insurance coverage for state and school employees, rising salary levels, a large backlog of unmet building i and capital needs and outstanding debt that must be repaid as some of the factors that are contributing to Utah's long-range finance problem. According to the Foundation report, the time of large state sur- ' pluses in Utah apparently has ended. The budget approved for 1978-79 calls for a razor-thin balance of only $21,000 at the end of the year The study indicates that Utah could encounter a deficit by June 30, 1979, if a slowdown in revenue should develop during the year. The only major tax change made by the 1978 Budget Session was a 2-cent per gallon increase . in the motor fuel tax. Approximately one-fourth of this increase (or 1 -i cent per gallon) will go for city and county road purposes, with the remaining three-fourths of the increase (or lVfc cent per gallon) allocated for state highway purposes. State spending authorized by the 1978 Budget Session totaled ( $1,138,109,000 This sum is 1 approximately $6.2 i million more than the ! amount recommended by 4 the governor and is $69 million greater than the total authorized for the 1977 78 fiscal year I The Foundation study points out, however, that the increase in state ' spending for next year probably will be somewhat greater than ( $69 million because actual spending outlays for 1977 78 probably will be less than the amount ' authorized As has been the case in most recent years, the bulk of the new spending in Utah will be for education State expenditures for education are expected to total $532 million, or 47-percent of all state outlays for next year. |