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Show State's Taxpayers Face Rising Costs In Administration, Report Reveals Although revenue trends from all major Utah taxes are up sharply, and Utah's general fund will have a nine million dollar surplus at the close of this biennium, fiscal prospects for the next biennium give no basis for comfort com-fort to Utah taxpayers, it was stated in a research brief issued today by Utah Foundation, the non-profit private Lax research agency. To support this viewpoint, Foundation Founda-tion analysts present the following "facts of life": General fund revenues for the next biennium (1957-1959) (1957-1959) are estimated at $67,750,000 or $4,000,000 more than the same taxes will produce this biennium. The general fund requests from the regular state departments, agencies, and Institutions, however, total $G0.8 million for 1957-59. an increase of $12.1 million above the amount appropriated for the present 1955-57) biennium. If all regular fund requests ire granted, there will remain J15K million in the general fund .'or special appropriation and for working capital to finance state budget allocations during the 1957-59 biennium. This latter Durpose (working capital) -nakes It necessary to leave approximately ap-proximately a $4 million balance in the fund, thus leaving $12V nillion to meet buiWing an ither special appropriations from present general fund revenue wurces. Building Program State institutions and agencies agen-cies have proposed a building program which would require ,73.870.000 in state funds over a jx-year period, of which $37,-.36,000 $37,-.36,000 is sought for the l'i-D iennium. The Legislative Coun-il Coun-il subcommittee on state build-ngs build-ngs recommended a 529.870.00C otal for the six year period, of hich $11,100,000 would be ap iropriated for the forthcoming biennium. The higher building equests of the institutions and agencies contemplate the issuing tt bonds, while the Legislative lubcommittoe plan was based on a pay-as-you-go program. In addition to the foregoing the State has provided $2 million or more In each of the past bl-ennlums bl-ennlums for emergency public school building construction Thus, the Foundation concludes that the "state building needs will consume at least all of the funds available from general fund sources above the needs for regular operating appropriations." appropria-tions." FUcal Headache Foundation analysts note that the other major part of the state's fiscal problem which will lacs the 1957 Legislature relates to the Uniform School Fund or state aid for operations of the public schools. With no changes In the present school finance formulr. but recognizing expected enrollment enroll-ment increases in the coming tv-n year period, funds for stat" al l to local school districts nnd o-or o-or activities financed from th Uniform School fund will exr""' th" 'und's expected surplus and nonproperty tax revenues hv $11 7 ni'Mnn for th two ve-r period. Thin means thnt $11.700.. 000. of $5,850,000 each year must be raised by a state property tax or from other sources. The Foundation report emphasizes empha-sizes that the above calculations are based on the present school finance formu!a. If the school finance formula Is raised by as much as 15 mills, as it appears probable, this would add another anoth-er $5,100,000 each year to the cost of the program, making the annual deficiency of $11,000,000 from present non-property tax! xnirces during each of the next two years. Other Plans The report observes that other proposals for revising the school finance formula would require an additional $9 million each year as the state's share in the program. This amount plus the annual $5.8 million margin between be-tween existing non-property tax revenues of the Uniform School Fund and requirements under the present formula would make a total of $14.8 million each year to be raised by the State from state property tax andor other sources. This total is equivalent equiv-alent to a 12.7 mill ($12.70 per $1,000 assessed value) state-wide property tax levy. Utah Foundation observes that considerable discussion has been given to an additional rc sales tax, half of which would be channeled to cities and courvties and the other half to be available avail-able for school purposes. Such a move would provide approximately approxi-mately $5H to $6 million in additional ad-ditional revenue for the public schools. A state-wide property tax levy of five mills would produce pro-duce a similar amount. A ten mill state-wide property tax levy Is roughly equivalent to a one per cent sales tax In its revenue productivity In Utah. The Utah Foundation report concludes that "Utah's abnormally abnor-mally high educational load, stemming from the fact that we have a larger proportion of our population actually enrolled In the public schools and colleges than any other state, plus a per capita Income level 30th among the 48 states. Is the basic factor which confronts the people of Utah with major fiscal problems for state and local governments. |