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Show Utah Foundation State finances rated "Excellent" dispite excessive disbursements nings. Except for Federal aid, the sales tax is the most productive source of revenue for state government in Utah. Last year it produced $173.7 million in state revenue, or 23.7 percent of the total. When local sales taxes are also considered, the total yield of the sales tax in Utah amounted to $197.6 million. By comparison, total property taxes charged by local governments In Utah Other major areas of state spending in Utah include state highways (including state aid for local roads) - $107.5 million (14.1 percent of total state spending), public welfare, $84.7 million (11.1 (11.1 percent), employment security (including unemployment unem-ployment compensation) - $59.6 million (7.8 percent), health and hospitals - $28.8 million (3.8 percent), and natural resources -$28.4 million (3.7 percent). Although total state disbursements disbur-sements exceeded revenues by $18.7 million during the 1975 fiscal year, the condition of Utah state finances still is rated "excellent" by Utah Foundation, the private research organization. According to the Foundation analysis, the 1975 fiscal imbalance im-balance was caused by (1) an $18.5 million jump in state unemployment benefit payments plus increased administrative costs resulting from the 1974-75 economic recession, (2) approximately ap-proximately $5.7 million in taxes which were charged in fiscal 1975 but not actually collected and recorded until after theclose of 1 the fiscal year, and (3) expenditures ex-penditures recorded in fiscal 1975 for projects authorized and funded in earlier periods. Total state revenue in Utah for the fiscal year ended June 30, 1975 amounted to $733.8 million, compared with general state expenditures of $762.5 million. This is the first time since 1909 that state disbursements in Utah have exceeded state revenues. State revenue in Utah rose by nearly $80 million, or 12.2 percent last year. Increased Federal aid and high tax yields resulting from continued inflation and economic growth were the major elements in this strong revenue gain. Although the 1975 Utah Legislature raised the state individual income tax rates, this increase was not reflected in the revenue collections for the 1975 fiscal year. Foundation analysts poit out that taxes accounted for $429.7 million or 58.6 percent of last year's total revenue receipts. Federal aid (including revenue sharing) was equal to $220.4 million, or 30 percent of the state revenue total. The remaining $83.7 million resulted from tuition fees, charges for services, and other miscellaneous ear- equaled $181.1 million during the "" 1974-75 fiscal year. The state property tax was eliminated in 1974. The Foundation study shows that education was responsible for nearly one-half of all state spending in Utah last year. State n expenditures for education totaled $358 million, or 47 percent of all state spending during fiscal 1975. Included in this state expenditure ex-penditure total is $117.1 million for higher education, $220.6 million for state aid to local schools, and $20.3 million for other educational purposes. In addition to these state expenditures ex-penditures for education substantial sub-stantial amounts are spent on education from revenues raised locally. When all funds are included, in-cluded, total state and local expenditures for education in Utah amounted to nearly $500 million in fiscal 1975. Utah devotes a higher proportion of combined state and local government spending to education than does any other state in the nation, primarily because a larger part of its population is in the school-age groupings. Correspondingly, the proportion of state and local budgets for police and fire protection, health and hospitals, sewerage.etc. is markedly below national norms. |