Show Deficit Likely In School Fund Even though Utah ended the 68 1967 fiscal year with balances balances balances bal bal- ances of in the general general general gen gen- eral fund and in the school fund on June 30 1968 Utah Foundation predicts that the State is likely to conclude the present 69 1968 fiscal year with no general fund balance and a sizable deficit in the uniform school fund AMONG TilE THE factors mentioned mentioned mentioned men men- in the report for this apparent reversal of Utah's financial condition are the following following- 1 1 I. Regular general fund operating costs were increased by 63 million and school operating operating operating op op- costs went up 48 million in fiscal 1969 2 2 An appropriation of 5 to meet bond retirement on July 1 l 1969 must be set setup setup setup up as an expenditure item this year 3 Additional deficit or supplemental supplemental supplemental sup sup- appropriations of for welfare purposes and for debt retirement retirement retirement retire retire- ment probably will be required during the 69 1968 fiscal year 4 4 Part of the 68 1967 68 appropriation appropriation appropriation ap ap- ap- ap for local school building aid was held up and will be paid during the current current current cur cur- rent fiscal year 5 5 Utah's resources for I last year 68 1967 included a nonrecurring 55 million transfer transfer transfer trans trans- fer of suspense funds plus resulting from the consolidation of funds When it became apparent that there would be a revenue shortage in the 68 1967 and 69 1968 fiscal years the Governor Gover Gover- nor ordered a 4 percent cut cutin cutin cutin in most general fund and n 0 some uniform school fund appropriation allotments These allotment cuts saved the State 25 million in fiscal 1968 and will save an added 27 million if they are continued throughout through through- out the remainder of the 1968 69 fiscal year EVEN IF these 4 percent cuts are continued throughout the balance of the fiscal year however the Foundation report report po points out that Utah is s likely to conclude the fiscal period with a deficit that could approach 7 million The study notes that any deficit in inthe inthe inthe the present period must be he carried over into the next fiscal year and met from revenues revenues revenues re re- re- re venues collected in the 70 1969 fiscal year This of course w will ll reduce the funds that will be available to meet the expenditure needs of next year The Utah Foundation con eludes by observing that that tha Utah will experience some some serious financial problems during during during dur dur- ing the coming fiscal year Even if spending increases increase are held to the trend of th the past ten years general fund and uniform school fund expenditures expenditures expenditures ex ex- could exceed re revenues revenues revenues re- re venues from present ta tax sources by 18 million during the 70 1969 fiscal year TilE THE STUDY emphasizes that the above forecasts an are based on continuation of thi the trends of the past decade Any new or expanded spending programs in excess of these year ten-year trends or any resumption resumption re re- of a substantial building program beyond that financed from the 1965 bond sale proceeds would further complicate the revenue shortage shortage shortage short short- age prospect during the coming coming year iI j i i y I |