From Deseret News archives:

County surpluses are red flags

Corroon fears trend may be fueling scandal, waste

Published: Friday, July 15, 2005 10:18 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Having money left over at the end of the budget term may seem like a sensible thing, but to Salt Lake County Mayor Peter Corroon, it seems that the trend of operating under budget may be fueling scandal and waste.

The problem has only gotten worse recently with some county departments spending less than 80 percent of their budgets. Those unused dollars, Corroon said, may be inviting unnecessary spending and concealing financial problems behind large fund balances.

"At the end of the year, people have money left over and they ask to do things that wouldn't be part of a normal budget process," Corroon said. "It's kind of like having an extra $20 bill in your pocket; it's just more tempting to spend it."

With more than 43 county funds, the unused money can add up quickly. In the fleet management fund, for example, about 23 percent of a $20 million budget went unused — a total of about $4 million. That amount was added to the division's already growing surplus of more than $10 million.

Percentages were similar in the county's sanitation fund, which had a budget nearly 21 percent over its actual needs.

Story continues below
"My philosophy is, set a budget and stick to it. Obviously we want to be conservative in making projections, but you don't underestimate your budget just for the sake of saying you saved money at the end," Corroon said. "It's just not good government."

Corroon is now trying to implement that new philosophy, which is starkly different from the county's traditional method of projecting higher budgets than needed, creating a fund balance and then drawing it down over time.

The mayor's new push for more accurate budget projections means some divisions will not see the same budget figures as in the past. The fleet division, which is already being evaluated because of its padded budgets, will likely not see the $20 million-plus budgets of previous years, said Assistant Public Works Director Jason Godfrey.

Until now, Godfrey said, the fleet projected its budget simply by looking at last year's figures and adding for inflation. That method resulted in unjustifiably high budgets, Godfrey said, as well as a lack of oversight as to where the fleet was spending its cash.

Some of the fleet's recent scandals, such as excessive overtime and questionable purchases, can be directly attributed to the division's growing surplus, Godfrey said.

"Any organization that has a fund balance doesn't feel an acute need to manage costs," he said.

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

Medical debts harming families

Healthcare in the US is survival of the fitest. If you have wealth, two...

Mormons entering mainstream

Distroted posting here again... Listen, if your point of reference is your...

Palin: Aides kept her 'bottled up'

Gee, and all this time we thought it was her brain that kept her bottled up.

I-80 reconstruction finally done

Almost a year ahead of schedule. If you want Bedrock, go back to the years...

BLAH BLAH... BLAH BLAH BLAH..

Sarah Palin is real. And I'm glad the political machines and the drive-by...

Cougars land Vegas standout

Uhhh.....here's a rocket science equation for you: Two spots available = 2...

House passes health care bill

No liberal in this thread seems to want to tackle the problem of how to pay...

Ute's are going to smoke the Frog's this weekend and will be the busters...

Lit flicks: Holiday movie offerings

too good a book to adapt to film.

Advertisements
Advertisement