![]() ![]() According to a citizen of Henrietta NY, a town whose budget surplus captured media attention in 2015: “Give it back to the taxpayer. However, this approach often instills distrust in constituents, who feel like they are being taxed gratuitously. The justification: they’ll be able to turn to this money if things go bad. Sometimes, governments might decide to put their budget surplus in a rainy-day fund. What happens if you don’t use your budget surplus? While moderate budget surplus can be a sign of a healthy economy, there are a number of risks associated with budget surplus on the local and state level. This legislation exists to protect governments from amassing too much in savings without injecting the money back into the economy. New York state law, for example, prevents school districts from retaining more than 4 percent of their budgets. Many states have laws governing budget surpluses. What is budget surplus and how can you best manage it toward the end of your fiscal year? See below for answers to common questions and recommended guidelines to set your agency up for fiscal success.īudget surplus happens when government taxes on the private sector exceed the money government spends. ![]() Because of the compressed time schedule, government purchases face less scrutiny at year-end than in other parts of the year. Procurement also becomes easier toward the tail-end of a fiscal year. ![]() Government sees a 5X increase in expenditure in the final week of the fiscal year as compared to an average weekly expenditure. In fact, research shows that of all industries, use-it-or-lose-it budgeting policies are most pronounced among government buyers. As the old adage goes, “If you don’t use it, you lose it!” The question of How to Spend Budget Surplus resurfaces toward the end of every fiscal year in government. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |