| Show Finance problems to face Utah by 1963 unless controls Foundation report sounds signal Utah will be facing serious financial problems by unless future expenditures are carefully This warning was sounded by Utah the private governmental research organization in a detailed analysis of Utah state The Foundation study shows that mainly because of expanded school operation and state building major fund balances and surpluses in Utah were reduced by million during the past two A further reduction of million is expected in the In addition to reducing its fund balances and Utah has borrowed or authorized loans totaling million from the State Treasurer's bank These fund and loans have cushioned the tax increases needed to finance the State's expanded capital outlay program and to meet rising school According to the state and school building authorizations during past two plus the current two-year period total the current expenditures from the Uniform School Fund have risen from million in the biennium to an estimated million in Although Utah has been able to finance an increased spending program in part by using surpluses and borrowing from other the Foundation points out that this practice cannot be continued beyond the present The report observes further that the growth in the State's economy will do well to keep pace with the automatic increases in spending requirements resulting from population growth and rising price As a new or expansions in existing programs will require corresponding new or increased Despite the danger Utah Foundation notes that the State's financial condition Is relatively good when compared to most of the other states in the Utah docs not have any long-term general bonded debt By 41 of the 49 states had long-term general indebtedness totaling billion at the close of the fiscal and the Federal debt was billion on June According to the Foundation state expenditures totaled million and state revenues were million In Utah during the fiscal year ended June For the entire biennium two-year expenditures exceeded current revenues in Utah by the difference being met from carry-over fund The report indicates that an increasing proportion of state expenditures is going for capital outlay At present nearly 29 of all state spending in Utah is for capital This compares with capital spending of 20 in 1955 and 15 in During the past twelve Utah State government has spent nearly million for capital outlay Foundation analysts point out that Federal aid is the number one state revenue source in accounting for approximately all state on the other is the largest expenditure item In Nearly 44 of all state spending in Utah during fiscal 1961 went for local funds were the total amount spent for education in Utah would approach million per of which one-fourth was for capital out lay to house expanding |
