Show No Tax But Future Dark Although Utah may be able to balance its' state budget next year without any major tax the long-range picture is not quite as This was the conclusion presented by private research organization in their latest analysis' of the condition of state RECENTLY the Governor announced that there appears to be no need for a tax increase to support the budget that he will propose to the Legislature in The Foundation study confirms this impression by noting that Utah should be able to balance its state budget next year with no increase in taxes providing no new or expanded spending programs are only modest increases are permitted in general fund and uniform school fund and appropriations for state buildings are limited to the most critical BASED on a mid-range estimate of economic the Foundation observes that revenue from present general I fund and uniform school fund tax sources should increase by about million next This increase along with adjustments in balances and surpluses will about million in added funds' available for adjusting expenditure levels in Over the past five per fund appropriations of higher have risen at an average rate of per Per student appropriations for higher education have increased percent per year during this THE STUDY points out that if these recent cost trends are general fund appropriations would increase by million next Rising social school and administrative costs would add another million to this basic state requirement This would leave approximately million that could be used for adjustments in the school the state building a Medical Hospital working capital and other purposes without having to re sort to a tax UTAH ended the fiscal year with a balance of million in the general This was offset in part by a deficit of million in the uniform school leaving a net surplus of million in the combined funds The Foundation report estimates that Utah will conclude the present fiscal year with a balance of million in the general fund and a deficit of million in the school or a combined surplus of DESPITE the generally favorable short range Foundation analysts caution that Utah may encounter difficulties in balancing its budget over the next ten If cost trends of the past five years are continued over the next revenues from present tax sources could be nearly million short of meeting state operating expenditures during the ten-year In state building requests could add as much as million additional to this long-range The study points out that to the extent rising cost trends of recent years can be Utah might be able to balance its long-range operating budget without a tax still would be faced with the problem of financing its building program during the |