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Show Utah's Finance Outlook Dim, Study Reveals Utah will be facing serious financial problems by 1963, unless un-less future expenditures are carefully controlled. This warning wa sounded by! Utah Foundation, the private governmental research organization organiz-ation in a detailed analysis of Utah state finances. The Foundation study shows that mainly because of expanded expand-ed school operation and state building outlays, major fund balances and surpluses in Utah were reduced by $17.8 million during the past two bienniums. A further reduction of $2.8 million is expected in the 1901-63 bien-nium. bien-nium. In addition to reducing its fund balances and surpluses, Utah has borrowed or authorized loans totaling $13.5 million from the State Treasurer's bank allowances. al-lowances. These fund balances, surpluses, and loans have cushioned the tax increases needed to finance the State's expanded capital outlay program and to meet rising ris-ing school expenditures. According Ac-cording to the report, state and school building authorizations during the past two bienniums plus the current two-year total $57.7 million, while the current expenditures from the Uniform School Fund have risen from $44 million In the 1955-57 biennium to an estimated $100 million In 1961-63. Although Utah has been able to finance an increased spending spend-ing program in part by using surpluses and borrowing from other funds, the Foundation points out that this practice cannot can-not be continued beyond the present biennium. The report observes ob-serves further that the growth in the State's economy will do well to keep pace with the automatic auto-matic increases in spending requirements re-quirements resulting from popu-tion popu-tion growth and rising price levels. As a result, new activities activi-ties or expansions in existing programs will require corresponding corres-ponding new or increased taxes. Despite the danger signals, Utah Foundation notes that the State's financial condition is relatively re-latively good when compared to most of the other states in the nation. Utah does not have any long-term general bonded debt. By contrast, 41 of of the other 49 states had long-term general Indebtedness totaling $8.9 billion bil-lion at the close of the 1960 fiscal fis-cal year, and the Federal debt was $2S9 billion on June 30, 1961. According to the Foundation report, state expenditures totaled total-ed $210 million and state revenues reve-nues were $186.5 million in Utah during the fiscal year ended June 30, 1961. For the entire 1959-61 biennium (two-year period), per-iod), expenditures exceeded current cur-rent revenues in Utah by $10.9 million, the difference being met trom carry-over fund oalaiiOca. The report indicates that an increasing proportion of the state expenditures Is going for capital outlay items. At present nearly 29 of all state spending in Utah Is for capital outlay This compares with capital spending of 20 in 1955 and 15 in 1950. During the past 12 years, Utah State Government has spent nearly $320 million for capital outlay purposes. Foundation analysts point out that Federal aid is the number one state revenue source in Utah, accounting for approximately 29 of all state revenue. Education, Educa-tion, on the other hand, Is the largest expenditure Item in Utah. Nearly 44 of all state spending spend-ing in Utah during fiscal 1961 went for education. If local funds weie included, the total amount spent for education in Utah would approach $150 million pei year, of which one-fourth was for capital outlay to house expanding ex-panding enrollments. |
