Spending the Surplus
Every year there is a warrant article that asks the taxpayers to spend the undesignated surplus on a specific item and presenter almost always says that this warrant article won’t raise taxes. This is a myth and as the frustrated stick figure on our home page is trying to point out, spending will raise your taxes. Spending the undesignated surplus just spends the money that suppose to lower your taxes.
The linked PDF file shows how much money would go back to the taxpayer if the undesignated surplus isn’t spent. The spread sheet is an analysis of raw data provided by the Bow School District. It highlights the million dollar surpluses of the last 2 years before an end of year spending spree (also known as end of year expenditures) that include the purchase of curtains and a $40,000 paving job. It also demonstrates how warrant articles that spend undesignated surplus really do hurt the taxpayer.
In all fairness the Bow school district isn’t the only entity that goes on end of the year spending sprees. The Selectmen have been known to buy police cruisers in the last few months of the fiscal year instead of returning the money to the taxpayers.
Taxpayers need to watch closely how their elected officials spend their money.
Documentation: Spending the Surplus