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Show - ' " ' ' T05 scfc c -- fa IV Or o AW f i Vt , , , I 'Tis the season Cedar City Main Street Christmas lights beckons shoppers as the Yuletide season draws closer and closer. Utah Foundation Long-range economic outlook for Utah uncertain, report says Although the short-term financial outlook for Utah remains excellent, the prospects for the intermediate in-termediate and longer terms are somewhat less encouraging. en-couraging. This was the conclusion reached by Utah Foundation, the private research organization in their annual analysis of the condition of Utah state finances. The report points out that expenditure increases resulting from commitments com-mitments made by past legislative sessions will be placing a greater burden on Utah's future financial resources. Some of this pressure on Utah finances will begin to be reflected in the outlook for the forthcoming for-thcoming 1978-79 fiscal year. After basic state needs are met, there will not be any substantial amount remaining to take care of new and or expanded state programs in 1978-79. During recent years, Utah has been able to generate surpluses, which have been used for one-time kinds of expenditures and tax reductions. According to the Foundation report, it appears ap-pears unlikely that additional ad-ditional tax cuts can be made in 1978. In fact, there is a possibility that the 1978 Budget Session may be forced to raise taxes, especially for highway purposes. Utah conc luded the 1976-77 fiscal year with a general fund surplus of $13.3 million and a uniform school fund surplus of $3.3 million A special building appropriation ap-propriation from sunplus. however, reduced the balance in the general fund to $9.2 miu'nn. making the combined general fund-uniform fund-uniform school fund balance equal to $12.5 million Based on present revenue projections, Utah Foundation Foun-dation estimates that the state will end the 1977-78 fiscal year w ith a balance of $.7 million. At the conclusion of the 1977 Legislative Session, it was anticipated that there would be a balance of only $139,000 at the end of the 1977-78 fiscal year. Despite this improvement in Utah's short term fiscal outlook. Foundation analysts indicate that the picture for 1978-79 and beyond is less encouraging. They point out that greatly increased expenditure commitments for retirement, local school building aid. debt retirement, and other new programs will beein to be reflected in the outlays for 1978-79 and subsequent fiscal years. The report notes, how ever, that this rather pessimistic long-range outlook may be altered somewhat if Utah should receive a favorable court decision with respect to the ownership of several shale oil tracts in Eastern Utah. Bonus payments in excess of $72 million are being held in escrow until the courts finally determine if title to these lands rests w ith the state of Utah or with the Federal Government. If the courts eventually award these lands to the state. Utah law would place these bonus payments into a special trust account and the earnings therefrom would help support the Utah school program. On the other hand, if the lands are awarded to the Federal Government, Utah would receive only a reduced share of such moneys w hich w ould be used to provide loans for water projects and other community com-munity projects. |