Show Utah Expenses to Rise 51 Million Mio n in Biennium 1 State Stale expenditures in Utah will increase by 51 million next ned biennium as a result of new spending authorization by th the 1963 Utah Legislature TJ Thus This s was shown in a detailed fis fiscal al analysis of of the 1903 1963 Utah legislative session just released b by Utah Foundation the private governmental reI research re- re research I search organization MORE lORE THAN TITAN four fifths of the added funds to be made available during the next two years will go o for or education the Foundation reports Increased Increased In In- creased appropriations and al- al allocations locations for all oIl other of state stale government account account ac ac- count for less than 20 per cen cent t of of the expected expenditure e rise riser To finance this increased spending program the 1963 Utah Legislature raised a number of taxes Among the lax changes enacted were 1 a om one half haIC cent increase in the tile sales tax 2 a 4 cent pack boost boost in the cigarette tax 3 enactment of oC a 25 per cent tax on other tobacco products 4 3 a complete revision in the Unemployment unemployment un Un- employment compensation tax rates and base and 5 au au- au- au 1 for increased prope property property prop- prop e erty taxes for school and library li Ii- Ii purposes IN ADDITION to 10 the foregoing fore lore going tax changes the Foundation Foundation Foun- Foun dation dation report notes that a I slight slight increase in the state property tax may be needed to finance the enlarged school program enacted this year The statewide property lax tax l levy vy to balance the uniform school fund amounted to 75 mills in 1961 and 71 mills in 1 1962 Based Based on revenue and sch school ol expenditure estimates for the next biennium this state slate property property prop prop- erty tax lax levy Y may go as high as 79 mills during each of oC the next two years FOUNDATION anal y s t s p point out that the tile one half cent increase in the sales tax which will go into effect on July 1 1963 and is scheduled to terminate on June 30 1969 is earmarked for the state stale building program It is expected expect expect- ed to produce about 60 million for Cor this purpose over o the next six years Because of a collection lag only about million of this amount however will actually actual actual- I ly be collected during the 1963 65 biennium TilE THE REPORT notes the veto by the governor of the b bill ll which would have appropriated appropriated lt 6 million for building building building build build- ing purposes purposes over a year six-year period and permitted substantial substantial borrowing during the f early years of lh the program The building proposal submitted submitted sub sub- f by the governor would have ha e limited actual building appropriations to a year two period provided for a tenta- tenta jve J program during the second sec sec- s second c cond ond and third 1965 57 and 69 1967 and restricted the amount of interim borrow borrow- ing mgr The building issue will likely be resolved at a special session of the legislature ACCORDING to the report estimated revenues to the state stale general fund during the next biennium are 1312 million mil mil- lion Hon and budgeted commitments commitments commitments commit commit- ments arc 1309 million This razor thin balance in the general fund is dependent depend depend- ent upon the realization of the revenue estimates which are arc based on what may be optimistic optimistic assumptions of oC growth in Utah's economy and the expansion expansion expansion ex ex- of tax revenues I THE FOUNDATION report points out that if the estimated ed general fund revenues are not realized the general appropriations ap- ap act provides that thata a 36 million transfer from the general fund to the uniform uniform uniform uni uni- form school fund lund w will ll be re re- duce by br the amount of the deficiency Any reduction inthis inthis in inthis this transfer will require a corresponding increase in the state stale school property tax The 36 million transfer made b by the 1963 Legislature is almost three times the amount provided by any pres previous previous pre pre- legislature In 63 1961 for example the school fund transfer was million PART OF the 1963 increase however was to lo replace approximately approximately ap ap- ap proximately 12 million in sales tax lax revenue which had been earmarked to lo the school fund by the 1961 Legislature Legislature Legislature Legis Legis- lature but was placed in the general fund b by the 1963 Leg Leg- |