Vis Lupi Est Grex: Overappropriation of funds or overtaxation? Take your pick.

Monday, November 9, 2009

Overappropriation of funds or overtaxation? Take your pick.

Just a quick note about some figures that Shane put together (here). The total balance forward of all accounts in ASUN realized this fiscal year was $204,801.56 (I'll call this $205,000). The balance forward is basically any money left in an account at the end of the previous fiscal year.

Last fiscal year, ASUN collected about $1,326,000 in student fees (taxes). About 15.5 percent of what was collected was unspent. The table Shane put together demonstrates the balance forward as a percent of this fiscal year's allocations. I don't know what an appropriate figure is under governmental accounting theory, but the idea of government spending is to go from all of the money (all that is taken) and to go to none of the money; basically, be good stewards of the public's money and to not overtax and hoard the public's money. Now, since ASUN is not allowed to run a deficit, some underspending is natural, but 15 percent seemed awfully high to me. Turns out, it probably is.

According to the Nevada Governor's Executive Budget, for this biennium the balance forward statewide was 5.7 percent. The Washoe County School District's balance forward was 3.7 percent of revenues. The University of Nevada, Reno's balance forward last biennium was 0.2 percent--infinitesimally small in comparison to ASUN. Given these three examples that use the same accounting principles that ASUN does, fund accounting, 15 percent is a very large number.

Even when making a more relevant direct comparison to the student governments in the state, 15 percent is high. In FY08, the largest was 24 percent at Nevada State College; however, that is explained by the fact they were created in 2007 and were still building a reserve. TMCC was next at 17 percent. Most, however, were below 10 percent. Some governments overspent their fee revenues: UNR GSA, at 14 percent overspending, was the largest. ASUN's reported figure in that fiscal year was 5 percent. CSUN's figure (UNLV's undergrads) was 13 percent. The average for the NSHE as a whole was 6 percent.

Given the ideas behind governmental accounting, an increase from 4 to 15 percent is alarming.

[Updated historical figures to apply to only student fee revenues.]