Here is a VERY important point for you and everyone else in your community per any tax increase proposed by your local government(s). The new accounting changes for all government operations over the last few years is designed to make the operation “look” cash poor by requiring them to have funding for their “liabilities” up to 35-years out. (parking zone for the cash)
Now that might up front look like a prudent thing to do BUT, what they do is project their liabilities out 35-years cross-matched with their income of 1-year out. ** If you, I, or Bill Gates did the same thing we all would look like we are on death’s financial door.
They are moving on a tax increase not because they are short on cash today, they are doing it because they are pulling income and standing balances off their operating funds into “advanced liability accounts” creating the shortfall on their operating budget to justify the increase.
What is “ESSENTIAL” for you and all others in any local government venue to do is: Based on their “gross income, not net” last year (and go five years back) and then project their income based on projecting out 35-years to cross match with what they say their liabilities are…!
If that was done I have a feeling that viewing projected income 35-years out without ANY tax increase, they would be in the black by a BIG margin and NOT short of funds.
All local governments across the land are saying they are short of funds today because they are doing the same thing of projecting out liabilities 35-years cross-matched with projections of income out 1-year. So the same applies for every City, County, School District, University, Enterprise Operation across the land…
Detroit in declaring bankruptcy did the same thing right under the local public’s and nations view by promoting the liabilities out (one side of the coin) 35-years and not the income (the other side of the coin) for the same and got away with it. Detroit was sitting on 18-billion in liquid investment assets at the time when they did this. But they said their liabilities were 27-billion (projected out 35-years) claiming to be 9-billion short today…
Please share this communication with other activists in your state and ask them to do the same. Want to light a big fire under the corruption? Then make sure everyone Statewide sees this detailed outline communication As Soon As Possible. (A.S.A.P)
Sent FYI and Truly Yours,
Walter Burien – CAFR1.com WalterBurien@CAFR1.com CAFR1 NATIONAL POST