Aug 14, 2008

13%

That was then (June 16, 2008):

The Southeast Texas Political Review has learned from inside sources at the Jefferson County Courthouse the a [sic] preliminary budget that is being floated around may top $140 million dollars [sic].

This is now:

That leads to what we reported over a year ago that the Jefferson County Budget will top $120 million (shhhh really $136 because of the rainy day fund).

Philip doesn't know what he reported from month to month, much less a year ago. 

Even funnier, he has no idea about this "rainy day fund."  Readers who actually examine the real budget will see that Philip's numbers concerning the unreserved fund balance aren't even close to reality, so Philip is obviously making up this number.

I previously addressed this entire issue of unreserved fund balances on several occasions, yet Philip R. Klein has refused to respond. From December 12, 2007:

Let's first examine Philip's statements concerning the fund balance, or more properly, the unreserved fund balance. As I've pointed out repeatedly, Philip has no grasp of fundamental economics, so he's unable to comprehend basic fiscal management. Hence, Philip's confusion between a fund balance and an unreserved fund balance.

Unreserved fund balances are important in mitigating current and future risks, and to ensure stable tax rates. Fund balances are also critical in long-term financial planning. Furthermore, credit rating agencies carefully monitor levels of fund balances and unreserved fund balances in a government's general fund to evaluate that government's creditworthiness.

For local governments, the accepted figure for an unreserved fund balance is from five to 15 percent of regular general fund operating revenues, or no less than one to two months of regular general fund operating expenditures. Jefferson County's unreserved fund balance is certainly within this parameter, so Philip is arguing from a position of ignorance.

For more information on this subject, please refer to the Government Finance Officers Association website on recommended practices. In particular, read the documents concerning Budgeting and Fiscal Policy. Really, Philip, you need to "talk educated."

Readers will  immediately understand how Philip could take a solvent and prosperous Dairy Queen franchise and run it into the ground through bad financial management. His bumper sticker mentality precludes a rational discussion of the real issues, so he's forced to recycle the "same old think, over and over and over again."

Any comment, buddy?

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