2012 Budget Plan Builds Cash Reserves

A critical goal for the long-term financial strength of the Unified Government and community is rebuilding cash reserves. To avoid even more drastic cuts or elimination of services, the Unified Government spent that saved cash at a heavy rate over the past several years. General Fund cash reserves have dropped from about $31.6-million in 2006 to about $3.6-million in the proposed 2012 budget.

Unless cash reserves are stabilized and restored, the Unified Government risks having its credit rating downgraded. A lower rating will result in significant increases when bonds are issued to build streets, sidewalks and other infrastructure. In the long-run, taxpayers could end up paying 10% more to borrow money for such projects. That means a bigger price tag on projects so fewer improvement projects will be able to be built. Not following a steady path to restore cash reserves over a period of years would be an unwise decision which will cost taxpayers millions in unnecessary extra interest charges in the future.

10 months ago