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Show Utah Foundation Analysts Release Predicted Biennium Spending Report State expenditures in Utah will probably top $200 million mil-lion next biennium, it was estimated this week by Utah Foundation, the private, nonprofit tax research organization. organiza-tion. Actual appropriations authorized by the 1955 Utah Legislature for the forthcoming 1955-57 biennium equaled "$78.7 million, or about 39 of the total expenditures contemplated con-templated during the period. The Foundation report reveals re-veals that the major -portion of the state expenditures total results from revenue that is made automatically available to spending agencies without the necessity for biennial review or appropriation by the legislature. Foundation analysts point out that Utah's fiscal position posi-tion has been cushioned in recent years by the carry-over cf svbsiantial surpluses and reserves re-serves in building and current operating funds. At the beginning begin-ning of the current (1953-55) biennium bi-ennium such balances, spread among More than 125 funds and operating accounts, totaled $34.3 million. In addition, there was a balance of $32.8 million In the Unemployment Compensation Reserve Re-serve Funds on July 1, 1953. Earmarked Funds "Much of these fund balances represents commitments for specific spe-cific functions, or is required to maintain working capital or statutory sta-tutory referves," the report continues. con-tinues. However, the surpluses have enabled the state to meet rising costs without substantial revision of the tax structure. "A most signlficent action taken tak-en by the 1955 Utah Legislature was that of placing all sales and use tax revenue Into the State General Fund," according to the report. "In addition to eliminating eliminat-ing the confusion resulting from separate general appropriating funds, this change should also provide greater equity in financing financ-ing the various Drocrams and seivlws of government thdn was formerly the case." Utah Foundation estimates that General Fund revenue will total S53.1 million during the next biennium. The 1955 legislature legisla-ture appropriated $59.5 million from the General Fund for the period. However, the General Fund is not over appropriated, according to the Foundation, since several of the appropriations appropria-tions consist merely of contemplated contem-plated fund transfers which will be made only if there is sufficient suffi-cient revenue in the General Fund. Transfer Doubtful A proposed transfer of $15 million mil-lion from the General Fund to the Uniform School Fund, designed de-signed to reduce the state property prop-erty tax lexy, probably will not be made unless revenue yields exceed present estimates, Utah Foundation anaylsts predict. The State Budget Director has also recently termed this trans fer as unlikely under present prospects. The Foundation report estimates esti-mates that a state property tax levy of between six and seven mills ($C.O0 and $7.00 per $1,000 assessed valuation) will be required re-quired in 1955. "The levy In 1956 may he somewhat higher since the beginning balance In the Uniform School Fund will be budgeted during the first year of the biennium, and school enrollments enroll-ments will increase during the second year." The Foundation states, however, that "these factors fac-tors may be offset, at least in part, by an apparent upward trend in state tax yields." |