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Wednesday, February 23, 2011

Government Finance Is So Complex!

Using just one example, our county probably needs to spend $30 or so million dollars to shore up the continuing landslide at the old landfill. 

So, if we subtract $30 million from the $9 million reserve fund the county currently maintains, that gives you... ( -$21) million dollars.

'Looks like we'll have to use government math to make up for that shortfall.

So, (-$21) million + a mill levy override + a tax increase + fee increases = $52 million dollars... Bingo! An instant $32 million windfall!

Whoops! We overstated by $1 million. No problem, we'll just tack on a bus rider fee to cover it.

Oh geez... It looks like, in our euphoria over the positive returns on our tax collection efforts, we messed up the math again. We now have $52 million dollars--not the $31 we originally came up with. That'll just go into the discretionary slush fund for any future eventualities like bailing out towns or school districts, or paying attorneys and engineers. 

Wait, I think there's an extra $1 million now from the bus fee!?

Government finance is soooo complex. I'm completely confused.

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