By RUSTY PAYN
Washington isn’t the only place where budget battles loom. Gov. Mike Leavitt’s proposed Fiscal Year 1997 Budget was released, and according to the Utah Taxpayers Association, Utah taxpayers won’t like what the future holds.
They say that although Leavitt proposes increases in education, and infrastructure and transportation, the spending increases are too large, and the tax burden isn’t lowered enough.
“This year’s tax cut needs to be at least $185 million just to keep state government within the spending limit and Utah’s high-tax burden from getting higher,” said Howard Headlee, Legislative Director for the Utah Taxpayers Association.
Leavitt’s budget proposes a 21.2 percent increase in the Uniform School Fund. He also proposes a 7.5 percent increase from 1996 in the general fund, and a 7.3 increase in transportation over 1996.
That’s too much, Headlee said.
“They’re spending money faster than people are earning it,” Headlee said. “The governor promised that he wouldn’t allow state spending to exceed the growth of income” of Utah taxpayers.
Utah’s spending limitation law limits state government spending to a combination of inflation, population and personal income factors. The law was created to ensure that state government does not grow faster than the state economy and taxpayers’ ability to pay.
With the rapid growth of Utah’s economy, Headlee feels taxpayers should get more relief than the proposed $75 million tax cut by Leavitt.
“Exceeding the spending cap means Utah’s already high-tax burden will be getting even higher,” Headlee said. “And if we can’t lower taxes in times of historic economic growth, when can taxpayers expect relief?”
The Taxpayers Association said if the economy slows down in the future, cuts in education will be much harder than raising taxes. That is the danger of such a large increase in any program as large and as important as education funding.
Utah has the largest overall tax burden in the Western United States, and one of the highest in the nation, Headlee said. It is repeatedly ranked among the “Top Ten Tax Hells” by Money Magazine.
“The Utah Taxpayers Association feels that reducing Utah’s high-tax burden during these times of economic plenty should be viewed as equally an important priority as rebuilding our infrastructure and investing in education,” Headlee said. “But unless the legislature lives with the spending limit and cuts taxes by at least $185 million, Utah taxpayers will be in worse shape at the end of the current economic boom than they were when it started.”
“Don’t go back to the taxpayer,” Headlee said. “Taxpayers deserve relief. Everyone can win. We just need to balance our priorities.”
