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Title: CAFR Virginia Has At Least $10.85 Billion In Surpluses of the Taxpayers Money it is not using.
Source:
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URL Source: http://cafrman.com/Articles/Art-VA-S1.htm
Published: Feb 2, 2007
Author: Walter Burien
Post Date: 2007-02-02 18:32:54 by richard9151
Keywords: None
Views: 95
Comments: 9
I am going to begin posting more info, in chewable bites, about the CAFR (Consolidated Annual Financial Reports) and begin to show how this issue can be used to control local debate and elections. If you are interested in such, please be sure to follow along. . The first post was; CAFR vs total debt The second post was; The Trade Deficit - Money and Control The information post for background is; The governmental and judicial systems within the United States of America, at both federal and local state levels, is owned by the “Crown,” which is a private foreign power. Before jumping to conclusions about the Queen of England or the Royal Families of Britain owning the Crown Colonies, as in U.S. The second information post for background is; As we get further into this subject, we, as a people, need to know what is behind the problem, and, where we, as a people, went wrong, and what needs to be corrected. In addition, we need to know why America was known as a Republic, and, why it is said that our nation was founded on Christianity. This post is about that, and is the counter-point to the informational post on the Crown Colonies; The Constitution Part IX. The third post was; CAFR Scam On American Taxpayers Continues! The Fourth post was; CAFR -- I have always found it amazing…. The Fifth post was; The Truth About State and Local Governments Having Excesses of Your Tax Dollars They Are Not Using. FY 2003 Report Introduction The Commonwealth of Virginia at the Commonwealth-level has approximately $10.85 billion of the taxpayer's money it is not using, i. e. surpluses equal to $1,492 for every man, woman and child in Virginia or $5,968 for a family of 4. This does not include all the additional surpluses that exist in the school districts, cities, or counties in Virginia. The Exhibit A below shows the results of the FY 2003 review. What are these surpluses we refer to? Government surpluses, as used in this report, are funds that are not required or needed for the operation of all government operations, funds, accounts, agencies, etc., directly or indirectly, for the year(s) covered by the budget which is usually one year. Theoretically, at the end of every fiscal year, governments should have little or no cash/investments on hand. But what we have found is that most governments have huge amounts of cash and investments on hand at the end of the fiscal year. And somehow these cash and investments are not being recycled back through the budget process the next year, but are being held year-after-year. A Government Can Have a Budget Deficits/Shortfalls and Financial Surpluses At The Same Time. This is the most deceiving topic that governments, politicians, and the news media have conveyed to the public about governmental financial matters. In realty, a government can simultaneously have a budget shortfall and a financial surplus of the taxpayers' money. The problems are focused in four areas: 1. The budget only covers a small portion of the Commonwealth's financial condition. There are a group of funds not part of the budget process. The complete list of funds and budgetary requirements are found in the Comprehensive Annual Financial Report (CAFR). This report depicts the complete financial status of the Commonwealth. The budget only covers a portion of the financial resources of the government. A Little Background: The CAFR usually has four categories. Governmental Funds Proprietary Funds Fiduciary Funds Component Units Governmental Funds involve activities of the government including most basic services such as environmental resources, general government, transportation, education, health and human services, and protection of persons and property. Most of the cost of these activities are financed by taxes, fees , and federal grants. Proprietary Funds are used when a government charges customers for the services it provides, whether to outside customers or to other agencies with the Commonwealth. For example, Enterprise Funds, a component of proprietary funds, are for activities that provide goods and services to outside (non-government) customers, which includes the general public. Fees, charges for services or goods, assessments, fines, licenses, etc. are the major revenue sources. Fiduciary Funds are activities in which the Commonwealth acts as a trustee or fiduciary to hold resources for the benefit of others. These funds are pension trust funds, investment trusts, and agency funds (which are for assets held for distribution by the government as an agent for other governmental units, other organizations, or individuals). Component Units reportedly are legally separated organizations for which the government is financially accountable. Usually fees, charges for services or goods, assessments, fines, penalties, licenses, etc. are the major revenue source. The budget, as commonly known to the public, only involves the Governmental Funds and may not even include all of the governmental-type funds. The remainder of the Funds shown above are not part of the budget and are commonly called "off-budget" items. 2. Next year's budget consists only of next year's estimated revenues and next year's estimated expenditures. Previous years' revenues not used (spent) are normally not considered in the next year's budget, but should be. In other words, the previous years' revenues (as shown in the CAFR) are not recycled back to the budget process. Historically, a budget consists of three parts: 1) Funds brought forward (funds not previously spent); 2) Next year's estimated revenues; and 3) Next year's estimated expenditures. But somewhere along the way the funds brought forward category was lost. In accounting, the previous years' revenues are no longer called revenue but have been converted to Cash and Investments. Since they no longer called Revenues governments have forgotten about them to the public. They are there but not considered in the budget process, but should be. Note: Although there are other reasons the State of Washington has surpluses, they still use the balance brought forward in their budget process. 3. The budgeted items and non-budgeted items (off budget) should be budgeted to zero (usually referred to as zero-based budgeting). In addition, the government should be on a pay-as-you-go basis, no reserves for future years. What this means is that you budget to have a zero fund balance. If you plan to spend $100 you budget for $100 with no excess or reserve allowed. For example, there are two of the Commonwealth of Virginia Special Revenue Funds (Governmental Funds), part of the budget, that illustrate the problem. Dedicated and Other are the two. Dedicated budgeted for a fund balance of $115,123 (in thousands). It had an actual fund balance at year end of $181,309. The $181,309 will probably not be considered in the next year's budget. Other budgeted for a fund balance of $110,222 but had an actual fund balance of $308,697. Both of these fund balances, $181,309 and $308,697, will probably not be considered in the next year's budget. If there is a "budget deficit" ask about these funds not being considered or used. 4. Budgeted expenditures should be last year's expenditures (as shown in the CAFR) with an adjustment for increase in requirements (costed out) or reductions in requirements. In most cases the CAFR expenditures are not considered in the next year's budget because the CAFR in many cases is published after next year's budget is considered and sometimes approved. Running Surpluses is Stealing Although taxation is legitimate, running a government surplus isn't. It represents a taking by the Commonwealth, because it exceeds the government's contract with the community. It is no different than if a federal agency were to take a person's land or possessions without just compensation (an activity barred by the Fifth Amendment). Excess taxation isn't what the people bargained for. In presuming entitlement or authority not ceded by the community, the Commonwealth abrogates its moral pact with those it governs. Its power is no longer derived from the people, whose rights to liberty and property it boldly denies. The Governor and the Legislators The Governor and the legislators should include in the next year's budget the previous years revenues not spent as indicated by the CAFR. These were once a revenue and should still be considered revenue for budgetary purposes. Also, they should consider a zero-balance budget concept for all budget and non-budgetary items in the CAFR including the College and Universities and the Component Units. Budgeted expenditures (for the budget) should be last year's expenditures (from the CAFR) adjusted for demonstrated requirement changes in project, program or services. An increase in requirements should include the costs of these additional requirements. Conversely, a decrease in requirements should result in a decrease in costs associated with the decreased requirements. The Governor and legislators should take into consideration the entire financial condition/status of the Commonwealth in the budgetary process by including all of the funds in the CAFR as being a part of the budget. This system is covered in the CAFR Budget System. This system needs to be implemented in all governments. If the Commonwealth holds the excesses/surplus, it will earn 4% to 5% on that money. If the Commonwealth returns the money to the people it will receive 20% in revenue because of the increased economic activity. This is elementary economics. Laws need to be changed. Every thing done by governments is by law. There are laws that state this or that regarding the use of some of the funds. Man made the laws, man can change the laws. How much effort would it be to include at the end of every law "...or if considered excess or not needed for the current operation that the funds will be refunded to the taxpayers?" See how easy it is. At one time every law had its place, but things change. The laws need to be reviewed for change to meet the current needs of the government and the people to release these funds for use/refunded. If this were accomplished, the Commonwealth would have a huge surplus to refund (rebate or tax reductions) to the taxpayers. Such a refund would create considerable wealth and jobs, increase wages, increase Commonwealth and local government revenues, dramatically increase the economy, and create the greatest economic expansion in the history of the Commonwealth. Everyone wins. If you want to know the financial condition of your government(s), do not look at the budget. Get the CAFR. The Synergistic Magic of Economics. What happens when the government holds the $10.85 billion. (In Thousands) Investment Income Per Capita Family of 4 The government holds and investments the surpluses at 4.5%. 488,427 67 269 Here is what happens when the $10.85 billion is returned to the taxpayers (the private economy). (In Thousands) Surplus Effect Per Capita Family of 4 The surplus is returned to the taxpayers. 10,853,944 1,492 5,968 Wages are increased. 5,426,972 746 2,984 Commonwealth government revenues increase. 2,170,789 298 1,194 Local government revenues increase. 1,736,631 239 955 Federal government revenues increase. 4,341,578 597 2,387 Total Benefits... 3,372 13,487 In addition, 217,079 jobs are created. This is why it is disastrous for governments to hold excesses/reserves of the taxpayers money. Note: The economic impact analysis is further explained at Economic Impact Analysis. The business community suffers the most. Before the 9-11 tragedy, President Bush and Congress provided tax rebates which averaged $427 for every American. This was to create an additional $60 billion in consumer (economic) spending, turn the economy around and create jobs for the unemployed. However, 9-11 change that. As the above economic impact chart shows, if the Commonwealth returned the $10.85 billion in surpluses to the people the Commonwealth economy would grow by $2,984 per capita. That is 7 times the amount the Federal government used to stimulate the U.S. economy. Businesses net incomes could double or triple. This is elementary economics. Examples The Commonwealth Transportation, a Special Revenue Fund, made a profit of $24 million. It also had reserves (cash and investments) of $1.3 billion. The Dedicated Fund, a Special Revenue Fund, had net expenses equal to 71 years of cash/investment reserves. Other Fund, a Special Revenue Fund, had net expenses equal to 257 years in reserves. Commonwealth Health Research Board, a Permanent Fund, made a profit of $295 thousand. But it also had cash and investment reserves of $25 million and actual expenditures of $1.2 million. The reserves represent almost 21 years of expenditures. These only represent four of the 77 funds shown below that had cash and investment reserves not being used. What to do? Unless the budget flaws are corrected and the entire Commonwealth finances are used in the budget process, the problems that created the surpluses will continue to exist. The budget deficits reported by the Governor and legislatures will be used year after year for the excuses for tax increases and/or to reduce needed services. Just stopping a tax increase or a reduction in services will not solve the problems. The problems will come back the next year. I have provided the details of the surpluses and explained the ways the surpluses are accumulated. The data is accurate because it comes directly from the government's own financial statement, the CAFR. You must provide the where-with-all to convince the Governor and legislatures that the surpluses exist and what should be done about it. I live in Arizona. It is not my money that is at stake. Exhibit A The 2003 CAFR is located at: http://www.doa.state.va.us/docs/Publications/CAFR/cafr.htm#2002%20Annual%20Report Items not Included The following items are not included in the amount of surplus shown: -Buildings, roads, bridges, land (not for sale), and equipment. -Deferred compensation plans for employees. These are plans in which the employee contributes to his/her retirement over and above the normal employee retirement contribution. -Any fund that is 100% supported by donations, bequests, gifts, endowments, etc. These are not taxpayers money. -For Colleges and Universities. All endowment and similar-type funds should not be included as surpluses. Sometimes these funds are combined with other college/university funds. We are interested in surpluses, so in these cases the total amount should not be included. -Funds in which the revenues/contributions are 100% held for other individuals, organizations or another government. -Funds that are required by law in which a bank, financial institution, insurance companies, etc. are required to deposit with the government a certain amount for insurance against the entity going bankrupt. These are not taxpayers' money. -Retirement/Pension Funds - only included are 1/2 of the actuarially determined excesses, the taxpayers portion. The other 1/2 is the government employees portion. Please go to http://cafrman.com/Articles/Art-VA-S1.htm to see;Review of The Commonwealth of Virginia CAFR- FY 2003
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#1. To: *CAFR* (#0)
CAFR ping
The Light travels faster than sound. This is why some people appear bright until you hear them speak.
Funny. Minnesota has a few billion dollar surplus as well, and guess what they're going to do with it??? THEY'RE GOING TO PUT IT INTO EDUCATION AND OUR ROADS!!! This means, there is NO surplus, they're blowing the money because they have it. It will be wasted if it's spent on education because the children being educated are not getting a REAL education for their money, and to spend it on roads, means they'll build more pointless light rail. Any state that has a budget surplus should be giving it back to the taxpayers, instead of blowing it.
#2. To: richard9151 (#0)
 | This country's priorities are all fucked up. |
#3. To: TommyTheMadArtist (#2)
Ya think, Tommy? See, that is the problem when all you listen to is the media. Go here to learn the facts; http://cafrman.com/Articles/Art-MN-S1.htm Minnesota Has At Least $10.53 Billion In Surpluses of the Taxpayers Money it is not using. The few billion you are referring to IS FROM THIS YEAR! The amount listed above is from PRIOR years, and this HAS NOTHING TO DO WITH LOCAL CITY, COUNTY AND SCHOOL DISTRICT SURPLUSES. This is just what the State of Minn. has hidden away, FROM YOU. AND, what is being discussed here is public awareness of what is going on, so that taxes can be reduced! It is has nothing to do with spending the money.
Funny. Minnesota has a few billion dollar surplus as well,
The Light travels faster than sound. This is why some people appear bright until you hear them speak.
#4. To: richard9151 (#3)
Actually, it was a big deal on the news 3 weeks ago when this was made known to the people of Minnesota. There were people clamoring for a refund for the people of Minnesota, and Governor Pawlenty said that he and the government of Minnesota were going to use that money on Education and improving our roads. It's funny, because they want that money for a rainy day fund, and they're not thinking about lowering taxes, they just want things to stay the same. People get taxed obscenely, while the state collects revenues building wealth for whom??? Who reaps the benefit of a wealthy Minnesota government???
| This country's priorities are all fucked up. |
#5. To: TommyTheMadArtist (#4)
Actually, Tommy, the people in the news business have known about this for years. In fact, many, many of those same people end up in really, really good jobs with lots of perks for keeping silent about what is going on. The problem, Tommy, is that you permit the news business PEOPLE (all men are liars, Tommy) to make the disclosures, instead of looking into the info yourself. For instance, as listed above as Post 5, I have posted the name and history of the man who developed much of this info, after Watlter Burien, and his resumè is real impressive. But almost no one in Minn. knows about the real source of the info; all they know is what the news is willing to report, which is next to nothing. Things will change, Tommy, when you and those like you, start to learn how to use the info that has been provided to you in order to change things. And hey, it directly affects your pocketbook.... ain't that neat? Oh, and the pocketbooks of your friends, family and neibhors as well.... which just maybe is a clue as to how this can be done.
Actually, it was a big deal on the news 3 weeks ago
The Light travels faster than sound. This is why some people appear bright until you hear them speak.
#6. To: richard9151 (#5)
I'm no stranger to this information. I've been very active in getting people's attention to the facts at hand.
| This country's priorities are all fucked up. |
#7. To: TommyTheMadArtist (#6)
Why did you not say so first? Tommy, generally, the way you post, I always suspected that you took a completely hands-off, stand back and observe (and complain) approach to things. I am very glad to be wrong! Had you been to this particular site, which explains each and every state surplus, before? And, how are people reacting to the info? Do they understand how many lies they are being told about taxation? Or, do most of them care?
I'm no stranger to this information. I've been very active in getting people's attention to the facts at hand.
The Light travels faster than sound. This is why some people appear bright until you hear them speak.
#8. To: richard9151 (#7)
I don't just complain about stuff, I only point out things and complain on the internet. My real life is a lot more interesting. I had not seen this site before, but am glad I know about it now. The people I've talked to about this, have either one or two different responses. The first response, is indifference. They could care less, and in fact, in some cases they'd be happy to pay more in taxes if they thought they'd get more of a return on them. The other response is anger, but... Have no desire to see that money come back to them, because if it does, they'll get taxed on that money as well, and of course the government, in a time of crisis will raise their taxes yet again, so it's a crapshoot. I'm of the mind that if you were to do away with the tax system, and make an across the board 1 percent VAT tax, it would ramp up our economy in ways we've never dreamed of, and still have money extra to pay off the national debt. I'd rather it go back to the days of our Constitution where we taxed and tarriffed the living shit out of foreign made goods. Imagine the people of this country keeping all of their money, and being able to invest it, rather than hand it over to the government. You'd have a nation of empowered people who didn't need to worry about their futures. Then again, it's not what the elites want. They want people to depend on the government for everything, and people who are dependent are easily controlled. Most of the people I talk to about this sort of thing do not give a shit at all. The reason is that they think that they're doing a favor to the country, when in fact they are being lied to, and stolen from.
| This country's priorities are all fucked up. |
#9. To: TommyTheMadArtist (#8)
I can see that you are a work in progress, Tommy. Glad to know what is behind you, BUT.... The so-called national debt is a fraud. It is unpayable, and it was intended to be such, as a continuing excuse to tax tax tax tax and tax some more. Look at it this way; there is about 6 trillion dollars in circulation (no one knows for sure any more cause the government stopped printing the figures). But, the known debt of the federal government exceeds that, and if you add in corporate, local government and personal debt, the figure exceeds 60 trillion. So, where is the support for all of that debt? How can more debt exist than there be dollars in circulation? The answer is... fraud. It is the primary problem with using credit as an operating medium of exchange. And, it is why this system WILL collapse. It is just a matter of time, cause you can not keep inflating the baloon forever. I think you will find that what you need to do is start with a candidate, non- attorney, independent, and craft his campaign around the CAFR info, WITH a guarentee, that if he is elected, this is his program, to bring the State of --- back into the hands of the people of the state by reducing taxes and etc. (following the program outlined on this site). Once you begin to see the info that is presented on this site, and how the reductions would impact each community, it is awsome! Correctly done, by exposing the lies, and explaining the benefits to the people/community, no one who supports this program should be beatable in an (honest) election. BUT, there will be opposition, and it will need to be a hands on, person to person campaign. And not just a TV extravaganza.
still have money extra to pay off the national debt.
The Light travels faster than sound. This is why some people appear bright until you hear them speak.
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