A Pitfall of Governmental Budgeting

Governmental budgeting incorrectly assumes that revenues will equal expenses and the budget will always be balanced. This is a “zero sum game” where shortfalls in one department or additional unexpected expenses (such as clean up from a hurricane or a burst sewer line) necessitate cuts to other programs in order to fund the emergency.

However, when faced with the reality of large operating surpluses where the Manatee County surplus since 2017 has averaged $218.3 million per year or the build-up of large unrestricted cash reserves which are now $824.8 million as of June 30, 2025, the “zero sum rules” no longer apply.

Thus, when Public Works came to the Commission earlier in the year with a request for additional funds beyond their budget for flood remediation, you were able to approve the request without negatively impacting other programs or departments.

Similarly, when you decided to restore funding to Our Daily Bread, ample funds were available due to the long-term operating surpluses and large cash position on the balance sheet.

The same ‘real world” logic should apply to your consideration of substantial millage cuts and property tax rebates for the upcoming budget year. You have ample funds and totally justifiable reasons for cutting the millage in order to bring revenues into line with expenses.

Similarly, your unrestricted cash of $824.8 million is way above what you are legally allowed to hold according to Florida statute 129.01 c1,c2 and should be returned to taxpayers via a property tax rebate in order to conform this figure to Florida statute and offer meaningful tax relief to cash-strapped Manatee County citizens.

Mike Meehan, CFA, MBA