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Show Utah Foundation Analysisof budgetrequest State expenditures totaling $1,130,063,800 were recommended by Governor Scott M. Matheson in his proposed budget for the forthcoming 1978-79 fiscal year which was submitted to the , 1978 Budget Session of the Utah Legislature on January 9. According to an analysis by Utah Foundation, the private research organization, the 1978-79 budget proposal is approximately ap-proximately $76 million, or 7.2 percent more than the total state spending authorized for the present (1977-78) fiscal year. Of the recommended state budget for 1978-79, $531.3 million, or 47 percent of the total, would be expended for education. Other major areas of state spending included in the budget are social services - $240.3 million (21.3 percent), traasporation - $168.1 million (14.9 percent), governmental govern-mental operations - $90.9 million (8.0 percent), public safety - $16.1 million (2.3 percent), natural resources -$25.5 million (2.3 percent, business, labor, and agriculture - $15.3 million (1.4 percent), debt service -$9.1 million (0.8 percent, development service - $6.2 million (0.5 percent), and all other - $17.2 million (1.5 percent). The Foundation analysis emphasized that in addition to these regular budget expenditures financed from current revenues and surpluses, sur-pluses, the Governor also recommended that the state authorize another bond issue totaling approximately $109 million to finance various capital improvements. Proceeds from this proposed bond issue would be spent in the following manner: Water Projects -$25,000,000: Park Projects -$13,500,000; Building Projects - $40,000,000; Highway High-way Construction $30,000,000; Total $108,500,000. The Governor cites inflation in-flation and rising construction con-struction costs as major reasons for abandoning the pay-as-you-go approach in favor of bonding to meet the state!s capital needs. Foundation analysts point out that Utah currently is repaying the $67 million bond issue which was authorized in 1965. Approximately Ap-proximately $15 million from this issue remains to be redeemed In addition. beginning in 1980, Utah also must start to repay the $70 million bond issue which was authorized by the 1975 Legislature. It should be noted, however, that per capita state indebtedness in Utah currently is less than a third of the average state debt in the nation as a whole. The Governor suggests in his 1978 budget presentation that the Legislature refrain from making any major changfes in the state's tax structure until after a proposed tax study is completed. The Budget, however, does contain the following recommended tax changes : 1. Eliminate the last 1 percent sales tax charge on residential utility bills. 2. Increase the present 7 cents per gallon tax on motor fuel or change the tax to an ad valorem tax which is based on price rather than volume. 3. Increase the motor vehicle registration fees by $5 per year. Aside from the aforementioned afore-mentioned bonding proposal, included among the major spending recommendations contained int the Governor's 1978-79 budget are the following: -State Support of the public school program would be raised from $732 to $795 per weighted pupil unit, an increase of 8.6 percent. In addition, it is proposed that the ceiling on the number of units for handicapped children be raised by approximately ap-proximately 7 percent. -Recommended appropriations ap-propriations of state funds for higher education would be set at $131.4 million, an increase of $14.1 million, or 12 percent above the amount provided during the current (1977-78) fiscal year. In addition, the Governor supports a proposed increase in-crease in student tuition rates. -State appropirations for social services would be raised by approximately 16 percent from $89.1 million in 1977- 78 to $102.5 million in 1978- 79. -A transfer of $5 million would be made from the anticipated surplus in the general fund to help alleviate some of the money problems in the transportation tran-sportation (highway) fund. The traasportation fund also would be aided by providing that a portion of the highway patrol costs would be financed from general fund revenues rather than highway-user revenues. |