Campaign: Economic Development

Spend it or Lose it doesn't make sense anymore.

You say you are looking at creative ways to increase revenue through program cuts or increasing taxes so, why hasn’t anyone looked at revamping how state funding is allocated?

 

You ask any agency accountant or OFM and most every state employee can tell you this too, how many times have you heard the phrase “got to send it or lose it” especially around the end of a fiscal year or biennium? If an agency doesn’t spend all of their allocation for that period, the next budget cycle guess what? Their next allocation is reduced by the amount that didn’t get spent in the previous one. This causes waste! We’ve all seen it. Agencies budget themselves up near the end of a fiscal period then low and behold they have all sorts of funds available they need to spend by June 30 or risk losing it the next fiscal period. Trust me; a lot of frivolous spending goes on at this point until the money is gone. We “all” know it happens. Check the spending records for most of your agencies in May and June.

 

What if agencies could get the funding they requested and if funds were left over they could return it to the general fund to help offset lower than expected revenues without impacting their next budgetary request? Maybe even offer an insentive. It just may help if you can get OFM and the Legislature opt in.

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Idea No. 159