Fund Balance

From: James M. JewellHarford County TreasurerBel AirI have reviewed Harford County Council President Jeffrey D. Wilson's letter, published in The Harford County Sun March 31, and offer the following comments. These comments are necessary to clarify several misconceptions in the letter to provide a clear understanding of accepted governmental accounting procedures and practices.Harford County is experiencing the impact of the economic recession. These difficult times require sound financial management and planning.

When first-year Superintendent Renee Foose presented her first operating budget for Howard County public schools, she lauded the proposal as being just a $7 million increase over last year's budget and said it meets the primary objective of protecting the classroom with no furloughs or decreases to staff. The $721.1 million plan also addresses such concerns as a new elementary school, accommodating 550 new students throughout the system and implementing several program enhancements.

The County Council has denied County Executive Eileen M. Rehrmann's request to transfer nearly $1 million from delayed or deferred capital improvement projects into the operating budget.Rehrmamn sought the transfer to help build a fund balance before the end of the fiscal year on June 30 in order to preserve the county's strong bond rating.Council members denied the request Tuesday on the advice of newlyappointed Council Attorney H. Edward Andrews III of Bel Air. He saidsuch a transfer of money would violate the county's charter.

Two years ago, just after Gov. Martin O'Malley won his second term, Maryland's Spending Affordability Committee got a sobering briefing from state fiscal analysts. Thanks to federal stimulus funds, Maryland had been scraping by despite the deepest recession in decades, the collapse of the housing market, and a disappointingly slow start to the state's slots program. But that money was about to run out. The next budget year promised a $1.6 billion shortfall, and things were only expected to get worse from there.

BEL AIR -- Harford County Executive Eileen M. Rehrmann, saying a recession has left the fiscal cupboard bare, imposed a 30-day freeze on hiring and purchases yesterday and indefinitely delayed plans for a $16 million county office building."

The new budget proposed by Harford County Executive Eileen M. Rehrmann provides something for everybody, reflecting not only an improved economy and increased beneficence of the state, but also deferred needs from two years of enforced frugality.County employees will get a 3 percent cost of living increase after two years of freezes, sheriff's deputies will see pay parity, two new schools will open, two firehouses will be built, and a water treatment plant will start up. The county will also pay $6 million in Social Security taxes formerly funded by the state, plus $1.1 million in added employee health coverage obligations.

Comptroller Peter Franchot urged Thursday that the state bank about $229 million in unexpected money with which it closed out the books on its last budget year, contending that Maryland's economy remains "exceedingly fragile. " The comptroller, whose office released the final numbers for the budget year that ended June 30, recommended that the General Assembly add remaining fund balance to the state's Rainy Day Fund. The figures the comptroller released were in line with a report in The Sun Thursday that reported the state had ended fiscal 2012 with roughly $225 million more than had been expected.  The additional funds will give Gov. Martin O'Malley additional flexibility as his administration prepares next year's budget, which will go to the legislature next January.

Maryland will begin the process of planning its next budget with about $450 million more than previously projected - mostly as a result of a rebound in revenue collections. According to a document obtained by The Baltimore Sun, the Board of Revenue Estimates has found that the state ended the fiscal year on June 30 with $225 million more than previously estimated. The board also projects that the state will close the current fiscal year with another $225 million more than anticipated.

Harford County ended fiscal 1994 on June 30 with a surplus of more than $18 million, according to an independent audit released last week.County Treasurer James Jewell said the surplus included $8.634 million in unappropriated funds, a 5 percent account that is held aside from year to year as a savings account for emergencies.Another $8.78 million was appropriated but unspent money that was rolled into the fiscal 1995 operating budget for use after July 1.Year-end bills not paid until fiscal '95 accounted for the remaining $666,000 in surplus.

Bank depositors all know they are protected up to $100,000 per account. For many, that's the only piece of security they have as they watch the banking industry writhe through wrenching losses and pending mergers.But what happens if the dwindling Bank Insurance Fund, or BIF, runs dry?"When we run out of money, we can print some more," quipped Caryl A. Austrian, a spokeswoman for the Federal Deposit Insurance Corp., the agency that oversees the insurance fund.The most recent projection from the FDIC is that the fund balance will fall to between $1 billion and $3 billion by the end of the year, depending on the size and number of bank failures in the next few months.

Comptroller Peter Franchot urged Thursday that the state bank about $229 million in unexpected money with which it closed out the books on its last budget year, contending that Maryland's economy remains "exceedingly fragile. " The comptroller, whose office released the final numbers for the budget year that ended June 30, recommended that the General Assembly add remaining fund balance to the state's Rainy Day Fund. The figures the comptroller released were in line with a report in The Sun Thursday that reported the state had ended fiscal 2012 with roughly $225 million more than had been expected.  The additional funds will give Gov. Martin O'Malley additional flexibility as his administration prepares next year's budget, which will go to the legislature next January.

You stumble upon some extra money lying around the house - some spare change behind the sofa cushions or the equivalent. You might be pleased with your unexpected good (albeit only modestly so) fortune, but you probably wouldn't be looking to spend it immediately or think it significantly changes your family finances. Yet it appears that in Annapolis, the presence of about $229.7 million more in revenue at the final close-out of the last fiscal year, which ended June 30, may actually prompt that kind of thinking.

Maryland will begin the process of planning its next budget with about $450 million more than previously projected - mostly as a result of a rebound in revenue collections. According to a document obtained by The Baltimore Sun, the Board of Revenue Estimates has found that the state ended the fiscal year on June 30 with $225 million more than previously estimated. The board also projects that the state will close the current fiscal year with another $225 million more than anticipated.

"Run it like a business" is the mantra every now and again when people are running for election. Never mind that not every business is successful and never mind that not every business turns a profit or manages to stay on top of the latest industry trends, just run it like a business. Of course what is meant when the run-it-like-a-business critique is applied to government is simple: run it efficiently and don't be wasteful or outlandish. Curiously, a lot of businesses would do well to abide by this general rule.

The Anne Arundel County Council has approved $1.1 million to expand cybersecurity programs at the county's community college, which have attracted scores of students hoping to win jobs associated with the expansion of Fort Meade. The bill authorizes Anne Arundel Community College to use $1.1 million of its fund balance from the fiscal year 2010 budget to expand the program, which will create a new lab at Glen Burnie Town Center. The county will reimburse the college by floating bonds in the fiscal year 2012.

Anne Arundel County Executive John R. Leopold plans to introduce legislation to the County Council this week that would authorize funding for the expansion of the Cyber Center at Anne Arundel Community College. The bill, which will be presented to the council Tuesday night, authorizes the community college to use $1.1 million of its fund balance from the fiscal year 2010 budget for the program's expansion. The county will reimburse the college by floating bonds in the 2012 fiscal year.

WASHINGTON -- More than half of the nation's cities expect to end up in the red ink this year but Baltimore isn't one of them.A study released by the National League of Cities yesterday found that 54 per cent of 620 cities, regardless of size, spent more money than they took in and 78 percent were less able to meet their financial needs this year than last.The study analyzed the cities' general funds, which finance most government operations.The league, an organization of mayors, council members and other municipal officials representing cities and towns of all sizes, announced the findings in its annual survey of city fiscal conditions.

State government pulled in less revenue during fiscal year 2009 than at almost any time in four decades — but still outperformed its bleak financial forecast, state Comptroller Peter Franchot reported Wednesday. The state's revenue collections, which include sales and property taxes and various fees, amounted to $12.6 billion in the fiscal year that ended June 30, Franchot said. That represents a year-over-year decline of 3.7 percent, the third-worst performance in the past 40 years.