Are there alternatives to borrowing $345 million?
Verna McDaniel, County Administrator wants you to believe that the only alternative to borrowing the money is to make draconian cuts to popular services to the poor and sick in Washtenaw County.
http://www.ewashtenaw.org/government/administrator/fiscal-stability/alternative-b-internal-external-reductions/alternative-b-internal-external-reductions
The budget shortfall over the next 4 years is projected to be only $5 million. That represents about 0.5% of the County budget. The County is actually in good financial condition according to the independent audit conducted in 2012. The County ended the year with $16 million in unrestricted cash in County funds. They also increased their net assets by $8.8 million in 2012.
SEE INDEPENDENT AUDIT HERE
The County is also spending in excess of $1 million in investment expenses for the current investment funds in the WCERS and VEBA accounts. The County would be better off to invest those funds in broad index funds, like S&P 500 or Russell 2000 funds, and save the fees paid to financial managers.
The County also spends millions of dollars on overtime for County employees, much of it wasteful. Minimal restrictions in overtime usage could eliminate the shortfall.
http://www.ewashtenaw.org/government/administrator/fiscal-stability/alternative-b-internal-external-reductions/alternative-b-internal-external-reductions
The budget shortfall over the next 4 years is projected to be only $5 million. That represents about 0.5% of the County budget. The County is actually in good financial condition according to the independent audit conducted in 2012. The County ended the year with $16 million in unrestricted cash in County funds. They also increased their net assets by $8.8 million in 2012.
SEE INDEPENDENT AUDIT HERE
The County is also spending in excess of $1 million in investment expenses for the current investment funds in the WCERS and VEBA accounts. The County would be better off to invest those funds in broad index funds, like S&P 500 or Russell 2000 funds, and save the fees paid to financial managers.
The County also spends millions of dollars on overtime for County employees, much of it wasteful. Minimal restrictions in overtime usage could eliminate the shortfall.