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Thursday, June 16, 2011

Martin's Magic Math...AGAIN

A while ago, I wrote something in pretty simple terms that explained why it is that there is no EXTRA in our city budget for a library or proper snow removal.

A lot of you readers got it...shared it...passed it on. I thank you for that. It's amazing how easy it is to understand what's happening in our city when people care enough to try.

What's not so easy is the PERSISTENT efforts of people like Martin Howrylak to CONTINUALLY claim that there is extra money in our three-year rolling budget.

That budget, by the way? HIGHLY REGARDED and LAUDED by Gov. Snyder and his financial folks for being EXTREMELY fiscally sound, cutting edge and forward thinking.

Funny how the loudest Conservative voices battling our city choose to simply ignore THAT. Selective politics and all, I guess...

Anyway, the tricky thing with a rolling budget is that things might look one way in the 1st year, but it is constantly being updated to reflect new expenditures, drops in revenue, increase in the cost of services, etc.

Martin Howrylak says we have over 20% in fund balance NOW, so we have money to pay for a library.

The MAJORITY of council, the financial administration and our City Manager KNOW that's not true...they've shown it to us. They've explained it to us. They've shared how the cost of everything is going up, our revenue is still going down, and that so-called EXCESS will fall below suggested limits by the end of the three-year budget as it stands now.

In other words, Mr. Howrylak is looking at the trees, not the forest.

For example, I have PLENTY of money in my bank account to cover what I want to do today. I've been dying for an iPhone arm band to use while jogging/biking. And I'd love to buy a new handsfree headset for my household phone to replace what the dog chewed up (the third time). I could even take my girls to lunch and get dessert, too.

Except I know that TOMORROW, I've set up some automatic drafts. That EXCESS today is spoken for by EXPENSES tomorrow.

The city budget is the same.

Martin Howrylak knows this. He's just banking on the hopes that we don't.

Fight misinformation and funny mathemagic...VOTE YES ON AUGUST 2...SAVE TROY.

1 comment:

  1. Well said ... the truth is the fund balance is already being used and will be at 13% in 2 years. Meanwhile, economists are saying the recession is going to take 4 years to turn around.

    These financial arguments don't make sense. If Howrylak is supposedly an accountant (with ANY background in Finance) he should have been more concerned about our financial rating than anyone. Yet he pushed the millage cap. In addition to the fact that our rate for debt will be higher if we let the fund balance drop below a certain level, the credit markets are tight at any interest rate right now. A lot of people flocked to bonds two years ago that are turning back to stocks. Yet, at the city council meeting where they discussed the library millage, Howrylak actually mentioned the idea of financing snow removal through a bond! What kind of a financial decision is it to incur debt to cover an essential local government function? It's crazy to me that these "fiscal conservatives" want us to spend down to our last dime! No true fiscal conservative fails to save for a rainy day, or pays interest when they don't have to. Only a politician hoping to be able to campaign on a slogan of saving services with no taxes would, I guess. It seems it's all about sounding fiscally conservative even if in practice they are not.