Re: “Could this be the idea that will fix the budget?” (TNT, 3-22).
So, state politicians think and hope they found an additional $238 million to spend. As an accountant, I agree it could help cash flow, but the article stated that local governments would get their money at the same time as they have been, so there is no cash flow benefit.
The article also states that this scheme will strengthen the state’s balance sheet. It will increase the state’s cash account. but at the same time the offset would be a liability on the balance sheet to pay the localities their share of the sales tax, even if the money is put in a separate account. In effect, it is a zero gain.
The politicians need to realize there is no additional revenue in this scheme. It always amazes me how easy it is for the political class to spend taxpayers’ money.