Show State Spending Will I Rise By 21 Million State spending for ing purposes will rise by an estimated million during the forthcoming 72 1971 fiscal year as a result of actions taken by the 1971 Legislature THIS TillS WAS reported by Utah Foundation the nonprofit nonprofit nonprofit non non- profit tax research organization tion in their fiscal analysis of the legislative session which ended on March 11 According to the report the million spending increase is from tax moneys expended for general fund and uniform school fund purposes only SPECIFICALLY excluded in inthe inthe inthe the analysis are any e. e expenditure expendi expendi- ture increases that may occur f fro from r o m earmarked highway funds institutional fees dedicated dedicated dedi- dedi p dedi-p credits building funds Federal aid and other funds over which the Legislature exercises exercises exercises ex ex- little or no direct control NEARLY three-fourths three of the added spending for next year will go for education Foundation analysts point out that educational outlays are expected to rise by million million million mil mil- lion in 1971 Approximately 95 million of this increase will be accounted accounted accounted ac ac- ac- ac counted for by the new public public public pub pub- lic school finance program In addition to these added state funds for the public schools local tax contributions will rise by 33 million Thus the total cost of the new public public public pub pub- lic school finance program will be million higher next year LEGISLATIVE appropriations for higher education in 72 1971 will be about 60 million million million mil mil- lion greater than the amount available this year according to the Foundation study The 72 1971 state appropriations for higher education totaled million This amount is slightly slight slight- ly higher than the Governors Governor's budget recommendation of million but is 32 million million million mil mil- lion below the recommendation of the state board of higher education The other major area of state spending-social spending services welfare welfare welfare wel wel- fare correction health w will 11 receive state appropriations totaling million in 1971 These appropriations for next year are about 39 million greater t than h a n the amounts available for far this year THE 71 1970 social service appropriations however were augmented by supplemental appropriations of 26 million authorized by the 1971 Legis Legis- lature The 72 1971 social service service service ice appropriations therefore are nearly 66 million above the original amounts appropriated appropriated appropriated for this purpose in 71 1970 by the 1970 budget session Most of the new revenue needed to finance the increased spending levels authorized for 72 1971 is expected to come from present tax sources The only general tax increase enacted enacted enacted en en- acted by the 1971 Session was a 2 per barrel increase in the beer tax expected to produce an additional per year FOUNDATION analysts conclude conclude con con- cl clude de that the general fund will have sufficient resources to meet all of its commitments commitments commitments commit commit- ments and still complete the 72 1971 fiscal year with a comfortable comfortable comfortable com com- surplus Based on the revenue estimates contained in inthe inthe inthe the Governors Governor's budget and the spending authorizations made by the 1971 Legislature the general fund will conclude the 72 1971 fiscal year with a surplus surplus surplus sur sur- plus of at least 15 million Moreover recent collection trends indicate that the budget revenue estimates may be conservative conservative con con- and the 72 1971 ending ending ending end end- ing balance in the general fund could reach 35 million to 45 million THE UNIFORM school fund on the other hand may not be able to meet all of its 72 1971 commitments unless there is an upward adjustment in the state property tax or added funds are derived from some other source Based on revenue estimates contained in the Governors Governor's budget and continuation of a 72 mill state property tax levy the uniform school fund would be about 56 million short in meeting its commitments commitments commitments commit commit- ments for next year THIS WOULD require a 29 mill increase in the state property property property prop prop- erty tax Of course if actual revenues exceed original b budget budget bud bud- d- d get estimates the uniform school fund shortage and the added property tax required would be reduced correspond correspond- |