Uncategorized, US Economy, Utah Economy

Proposed Budget for Utah

Click to see original imageInitial reaction concerning Gov, Calvin L, Rampt0n’s proposed $768,599,90O state budget for 1975-76 has been quite favorable among Utah legislators, The proposed budget, up 10.5 per cent from last year, will be the subject of committee discussion, legislative debate, and political jockeping off and on during much 0 the 60-day session of the 41st Legislature. Senate President Ernest H. Dean (D-American Fork) said he hoped the budget could be completed two weeks before the end of the session. In most recent sessions final passage hasn’t come until the 11th hour. In the face of rising inflation, the proposed 10.5 per cent budget boost seems fairly reasonable. Yet, with several tax hike measures alpparently necessary to pro uce the needed revenue, too much stress cannot be placed on economy. The Utah Taxpayers Association recently noted that the various bills coming before the Legislature would add $63 million to the state’s tax bill, if passed. ‘ Two such bills were introduced Wednesda – one to hike the liquor tax fiom 8 to 12 per cent, netting about $2.4 million, and one announcing intent to increase the excise tax on cigarettes, without specific figures. Govemor Hampton, in his budget message, proposed “adjusting” state income taxes to provide an extra $12.7 million, thereby correcting what he called a miscalculation of revenue by the legislature two years ago when the lawmakers keyed the state tax return to the federal return. The governor wants the new law repealed. Whether to move in this direction if solons favor the move, or adjust rates under the present system obviously will be a matter for legislative debate. One budgetary proposal sure to be controvesial calls for dipping into state general funds for $3 million to augment Division of Wildlife Resources funds. Senate Minority Leader Dixie Leavittt (R-Cedar City) already has challenged this proposal, believing the hunters through increased fees should pay the added cost rather than the public. The proposal is indeed open to debate. in prepring his budget proposals, Govemor Rampton pared down department requests considerably, including those of education. The Executive Compen sation Commission has proposed substantial sala raises for five elected state dz ficials; Governor, from $33,000 to $45,000 annually; attorney general, from $23,000 to $33,500; secretary of state, from $20,000 to $25,000 auditor, from $19,000 to $28,000; and treasurer, from $19,000 to $27.000. The govemor feels raises should not be effective until new terms begin in 1977, Meantime, he has recommended paying a costof-living adjustment to the elected officials, with the exception of himself. The govemor also suggested increasing judges saaries according to the commission’s recommendations, but over a three-year phase-in period. The Herald believes salary adjustments may be in order, but as to the amount, they should be weighed by the legislators wit the same yardstick of economy applied to other expenditures in this time of financial stress,