Show k 4 Gover Gov Governor r r Clyde Tells of f Strength of Utah in Threat of Recession By y George e D. D Clyde How row is the current economic recession affecting the financial structure of at our State Government Government Govern Govern- ment Will we have to levy new emergency taxes to carry carryon on the programs we initiated 15 months ago ego when we were riding the crest Of a prosperity wave These are questions that are being asked around the state They are legitimate questions that concern every Utah citizen I am happy to report that the answer based on the t e facts and the Ule hard cash coming lito to the State Treasury are Ie re reassuring A year ago our best economists studied the pl picture ture for the 59 1957 biennium and estimated that the state would be able to meet all an of ot Its obligations and nd still have a surplus of about in the General Fund at the end 6 of f the biennium That we all n agre agreed d was wasa a good prospect I Since then and particularly within the last four months the general economic outlook across the nation has changed consider consider- ably We have entered on a period of business recession Fortunately its effects have been less severe In Utah than In many other states Opinion of f Economists Some time ago I called in a group of outstanding Utah economists economists mists and financial experts I to ask their opinion on the economic outlook outlook out out- look for Utah The substance of their opinion was as made the subject subject subject sub sub- of one of this series of ot weekly reports I was pleased toto to toto toto to find as I as-I I am am sure sure you were that the experts were were unanimous 1 IB feeling that there were many favorable ra factors operating in Utah that would s soften the Impact impact Im im- im pact ct of ot the recession and make it less Jess severe severe here than In most moss of the nation That however way was t the theory h e o 0 r y and we we Interested Ir how we well the facts as as' as they d de- de I clope bears out out the theories I have just been furnished some I figures by Mr H H. C C. Shoemaker r Chairman of the Utah State Tax Commission n that may help to todo do I I Just that Figures on Utah's Outlook Tax collections for the most part are fully up to advance estimates estimates or or substantially ahead of them The corporation franchise franchise franchise fran fran- chise tax which goes directly Into the uniform school fund will willi probably produce produce- more this year years than had anUci On the basis ot receipts to date it appears the in inheritance inheritance In- In tax will bring in more ni more r than was expected The Insurance tax Is down below the the estimate estimate 1 the only tax j source In which collections collections' are I down down but but collections on the I tax are up p above estimates to balance It off oft In the field of of special taxes devoted de devoted devoted de- de voted to highways the motor fuels tax appears to be producing pro pro- during more than had been anticipated the special fuels I tax Is up and receipts from temporary permits up As a result we e expect x p pee e c t to finish the currant fiscal year on July 1 In excellent excelle t 1 financial shape We shall be able to take tak care of our our obligations Including the building program program for the entire the biennium the supplemental appropriations that will not be recurring next fiscal year and the transfer from the general gentral fund to the uniform school fund and end the year with a general fund surplus of a little more than Surplus In General Fund Looking ahead to fiscal 1959 our tax people have made their most realistic estimates of re receipts re- re and then reduced them by a full million dollars In order to make them ultra conservative Making su such h an allowance and providing for tor the transfer of from the general fund to the uniform school fund next fiscal year yeu it still sUll appears that we I shall have a surplus of at least In the general gentra fund at atthe atthe the end of the fiscal y year ar and the I bIennium and and it could be considerably considerably considerably con con- larger A year ago at the height of our prosperity we looked forward forward forward for for- ward to a end biennium end surplus of Now with some e lid figures to replace pure estimatEs estimates esti esti- mates It appears that the surplus surplus surplus sur sur- plus will be clo close cloce e to half a million dollars dollars than we orl originally estimated and and and this In spite spits of the national business recession This should give U uc us some omE renewed re re- mewed confidence In our Utah economy and the future of the state I |