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Show Utah Faces Acute Money Problems j Revenues from Utah's present I tax structure, (including the changes made by the 1903 Legislature) Legis-lature) will be $200 million short of meeting projected expenditures expendi-tures during the next ten years if present trends continue. This was the conclusion reached reach-ed by Utah Foundation, the private priv-ate tax research organization, in their analysis of revenue and expenditure ex-penditure trends for the decade ahead. The report emphasizes that these projections are based primarily on an assumed continuation contin-uation of trends established during dur-ing the past ten years. The financial problem facing the State will be most acute in thr 19CT-69 biennium, according to the itudy. At that time, the Foundation estimates that I'tah's present tax structure will be $84 million short in meeting projected project-ed state expenditures. Foundation analysis point out that a major element in the projected pro-jected revenue deficit for the period per-iod ahead stems from the large unmet capital outlay "need". The State Building Board in January, 19C5, placed the building needs of the State for the period 1905-1975 1905-1975 at $194 million. The recently approved bond issue will meet oniy about $05 million of this reported building need. To meet the fiscal problems facing the State in the decade ahead, the Foundation study outlines out-lines four possible alternatives: (I i reduce spending plans, (2) scale down or postpone building projects, (3) increase taxes, and (4) increase borrowing. Each of these alternative actions is analyzed ana-lyzed in t'.e report. Probabl . the fastest growing a"ea of state expenditure, in the ne.i ile?a(k, accord np to the report, re-port, will be for hU'.her education. educa-tion. The Foundation analysis shows that operating josts foi higher education are expected tc soar in the years imrrediatel ahead because of the flood ol new students who will be seek ing higher education. Most of th state buildi.ig needs in the per iod ahead are also traceable to' this expected deluge of post high school students. 1 The report points out that many of Utah's fiscal problems during the past fifteen years were due to the rapid rise in public pub-lic school expenditures. Between 1950 and 1964, publis school ex-penditures ex-penditures in Utah more than quadrupled. This was caused by (It the increase in school enrollments, en-rollments, (2 the decline of the purchasing power of the dollar, (3i the rise in wage levels for school personnel, (4 a reduction in the average class size, and (51 miscellaneous factors, such as new programs, expanded retirement, retire-ment, added supervision, etc. Although the rise in public school enrollments is beginning to taper off, l oundation analysts expect that school expenditures in Utah will continue to increase because of rising per unit school costs. During the past ten years, per student operating cus.s in Utah's public schools ha e been climb, ng at an average com-jpounie com-jpounie l rate of fi per .vnt per year. |
