Show Increase In State Taxes I An increase in state taxes may nay be required next biennium in Utah merely to maintain present spending levels after providing for normal growth adjustments in the general genera fund rund and allowing for expected enrollment increases in the schools and colleges THIS FORECAST was made by Utah Foundation the private private private vate tax research agency in its latest study on the condition o of Utah state finances The Foundation estimates that a statewide property tax of slightly less than 15 mills or its equivalent in other new or increased taxes probably will vill be needed during each of the he next two years in in order to balance jalance the uniform school fund und at present spending levels I This compares with a statewide statewide state- state wide vide property tax levy for schools of f 71 mills in in 1962 76 mills in iIi 1963 and 97 mills in 1964 FOUNDATION analysts point out ut that this projection n is predicted predicted predicted pre pre- on spending levels under present school aid formula Additional Additional Ad- Ad taxes of 25 million during the b biennium i e n n i u m an amount equivalent to an added state tate property tax on mills would be required for each increase that is made in the basic school aid formula Similarly an annual increase of mills in the property tax or the equivalent in other taxes would be needed for every 1 1 that is added to other state spending totals during the forthcoming biennium TIlE THE STUDY indicates that some temporary respite from these predicated higher taxes be in the state might gained in I shifts from you pay to i bonding for its building pro pro- gram It warns however that such a temporary solution could add to the range long-range financial fi financial fi- fi financial problems of the state because of the required amortization amortization amortization amor amor- and interest costs State expenditures exceeded state revenue in Utah by 36 million in the fiscal year ended June 30 1964 The study shows that state revenue received during the 1964 fiscal year totaled totaled totaled to to- to- to while state general expenditures for current current current cur cur- rent operations and capital outlay outlay outlay out out- lay amounted to ACCORDING to the report state expenditures in Utah have been greater than current revenue revenue revenue rev rev- in seven out of the past 11 years and five out of the past six years During this per iod it has been the calculated policy of the Utah Legislature and the administration to meet new expenditure needs by utilizing utilizing utilizing uti uti- fund balances and surpluses surpluses surpluses sur sur- pluses to moderate the need for new or increased taxes There are virtually no remaining remaining remaining re re- uncommitted fund balances balances balances bal bal- bal bal- ances at the present time the report observes In fact the Foundation predicts that there will be a deficit of approximately approximately approximately 5 million in the uniform uniform uniform uni uni- form school fund at the close o othe of the present 65 1963 biennium because because because be be- cause actual revenues from current taxes have fallen considerable considerable considerable con con- short of advance estimates estimates estimates esti esti- mates upon which appropriations for this biennium were based IN DISCUSSING the demands demands de de- de mands that will be placed before before before be be- fore the forthcoming 1965 Utah Legislature the Foundation ob- ob se ves that in the years immediately immediately immediately im im- im- im mediately ahead must be prepared to match their enthusiasm enthusiasm enthusiasm en en- for new and h higher gher spending programs with an equal enthusiasm for higher taxes to pay the bill |