Thursday, June 06, 2013

Toledo's $5 million surplus is really a $4 million deficit!

On Thursday, Toledo Mayor Mike Bell announced that the city had a $5.08 million surplus at the end of 2012.

But the 2012 budget called for $12 million to be transferred from the Capital Improvement Program fund (CIP) into the General Fund to pay for the yearly expenses.

When the budget was finalized, that transfer amount was increased to $13 million.

According to Jennifer Sorgenfrei, the city's public information officer, the total amount actually transferred into the General Fund was $9 million.

So - $9 million raided from the CIP to cover yearly costs and $5 million left over means that the city actually had a $4 million deficit.

Despite taking in more $3 million more than they expected and having $6 million less expenses than they planned, they still had to raid the CIP to cover their overspending.

And overspending it is when the outlay is greater than the income.

So, they've got $5 million left over - but that's just money that never should have been taken out of the CIP in the first place.

What will council do with this $5.08 million???

They should return it to the CIP - and plan to replace the $59 million total they've taken out of the fund that is supposed to pay for long-term projects likes roads and buildings, vehicles and infrastructure.

But they won't. They'll spend it, of course.

Faced with a choice of returning the money to the CIP or spending it on their own pet projects, our council members have shown that they always choose their own pet projects over the interests of the taxpayer.

Only in Toledo is an actual deficit characterized as a budget surplus and only here is that cause for even more spending.

Can you say 'stuck on stupid'???

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