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Show Utah Foundation Analyzes Biennium Budget, Finds Tough Problems in Balance Attempts An analysis of 1957-59 finances by Utah Foundation, the private nonprofit tax research agency, indicates that Utah lawmakers will be hard-pressed to balance the state's budget during the coming biennium. According to Utah Foundation calculations, general fund revenue and surpluses during the forthcoming biennium bien-nium will be between $72,249,000 and $77,000,000 (the lower figure is based on the more conservative estimate of revenue contained in the budget bud-get document). Regular state agencies and institutions in-stitutions have asked for general fund appropriations totaling $60,783,000. This request represents repre-sents an increase og $10.8 million, mil-lion, or 22, over the amount actually received by these agencies agen-cies during the current 1955-57 biennium. The Governor has recommended rec-ommended that these agencies receive general fund appropriations appropria-tions totaling $55,987,000, which Is 12d above the 1955-57 appropriation approp-riation level (including deficits), but is 8 below the agency requests. re-quests. Based on these revenue estimates, esti-mates, appropriation requests and recommendations, the Utah Foundation analysts estimate that the General Fund should have between $11.3 million and $20.8 million that could be used for other purposes during the forthcoming biennium. The actual ac-tual amount available will, of course, depend on the revenue realized, and the appropriations approved for regular state functions. func-tions. Among the possible demands that will compete for this surplus, sur-plus, the Foundation report lists the following: State Building Program. Proposals Pro-posals vary from $11.1 million to $29.8 during the next biennium. Governor has recommended that $10 million be allocated for this purpose. Public School Emergency Building Aid. Probably a request of $2,000,000 or more. Uniform School Fund. Transfer Trans-fer to reduce the impact on the property tax during the next two years. Existing nonproperty tax sources are expected to be between $17.7 million and $25.5 million short of meeting uniform uni-form school fund requirements during the next two years. Aid to Local Government. Has been requested by some cities and counties. The Foundation report points out that even If no changes were made In the present school formula, for-mula, the expenditures from the uniform school found will rise by $5 million during the next two years over the 1955-57 expenditure ex-penditure level. The principal reason for this, according to the Foundation study Is the rise in enrollments which automatically automatical-ly results In Increased state aid to the respective districts. The Governor In his budget message proposed that the state, supported basic school program be increased within the range of $4,650 and $4,800 per distribution unit. The Utah Legislative Council Coun-cil has recommended a school program of $4,800 per distribution distribu-tion unit coupled with a local effort of 14 mills, which would provide an Increase In the school program of 18V4 and require a two-mill greater-local effort. The report states that If the basic school Toropr am werf' Increased In-creased from $4.059 -to $4,650 per distribution unitthe total cost to the state would be between $59,500,000 and $63,100,000, de-pending de-pending upon the amount of lo-cal lo-cal effort required. An Increased basic program of $4 .800 would cost between $62,200,000 and $65,800,000 during the next biennium. bien-nium. The estimated uniform school fund expenditures during the 1955-57 biennium are $47,-000,000 $47,-000,000 uniform school revenues and beginning balances during the next two years (1957-59) are estimated at between $40.3 million mil-lion and $43.8 million. In analyzing the highway sit. uation, the Utah Foundation concludes con-cludes that "based on anticipated anticipat-ed tax yields from present highway-user funds, the state should have sufficient highway revenue to match Federal-aid require-ments require-ments under the expanded Federal Fed-eral highway program and also provide for the expenses of the State Road Commission during next three years." In addition to meeting these basic , requirements, require-ments, there should be' between $3.7 million and $6.4 million remaining re-maining for use on other state highway projects, the report continues. con-tinues. This balance, of course, would be reduced" or even completely com-pletely wiped out if legislation is enacted to provide refunds for off-highway. usWof motor fuel. i a- OutiuatiOat jttca iiiai "the basic policy question regarding re-garding highway construction and finance in Utah is at what point and to what extent Utah should build roads financed entirely en-tirely from state . funds. Utah's policy until very recent years has been to confine expenditures of state funds for highway construction con-struction largely to amounts required re-quired to match federal aid. Utah Foundation notes that the 1955 Utah Legislature appropriated ap-propriated $5,000,000 from the State General Fund to a Public Welfare Reserve Fund. According Accord-ing to the report, "this fund now has no useful purpose, and since Its creation, the only transactions transac-tions Involving it have been the original allocations made to it from the state general fund." The report suggests that "consideration "con-sideration might well be given to its use as a revolving fund or working capital fund which need not in any way Impair Its purpose pur-pose as a cushion for welfare finances. |