CAFR Review Guide - Print and save for your use
 Courtesy the late Gerald Klatt - CAFRMan

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Introduction

The review process is very simple. It involves only two forms (schedules). These forms are shown below with explanations on how to prepare them. A computer program is not necessary but there is a spread sheet program that can be downloaded that does the computations for both of these forms. However a spreadsheet program such as Microsoft Excel, Lotus 1-2-3, StarOffice Calc, Quattro Pro , etc. is required to run the program.

A computer is not needed to conduct a review or do an economic impact analysis. All that is needed is:

   -A copy of the CAFR
   -Print this page from your browser
   -Print the two forms listed below
   -A sharp pencil
   -A calculator.

However, there is a better way. Sun Microsystems, the large computer company, has developed and available StarOffice 6.0. This is a complete office series of programs that is too large to list here. It only costs about $70. Microsoft XP Office with the same series of programs costs $479. StarOffice performs 80% of the functions that Microsoft XP Office performs. More about this is covered below.

NOTE: This page can be printed from your browser or converted to your word processor to use like a manual. In addition, the blank forms can be printed using the following pages:
   -Part A of the Review Form;
   -Part B of the Review Form;
   Economic Impact Analysis Forms:
      -State Review
      -County Review
      -City Review
      -School District - Located in County
      -School District - Located in City


Steps in conducting a review and preparing the economic impact analysis

1. Determine the accounts that are investment or holding accounts (Look at one page in the CAFR). 

2. Go to each fund/subfund section , locate the accounts in Step 1. above, total them for each subfund, and write them down as in the Exhibit A in each of the State reports provided in this site. The Exhibit A is the complete review. So a person has about 40 examples to use in the learning process. For a list of the reports .

3. Total the list of subfund potential surpluses (Step 2) to arrive at the total potential surpluses for the government.

4. Divide the result in Step 3. by the population and you have the per capita potential surpluses.

5. Take the total surplus amount to the proper economic impact form and complete the computations shown for each cell in the economic impact form. The computations are very simple.

That's it. The next step is preparing a report on the results of the review and economic impact analysis.


The Two Forms

The two forms are the Review Form containing Parts A and B and the Economic Impact Analysis Form.

The forms and parts are shown first. Below the form the explanation on completing the form is provided. To assist in understanding the entries the designation column and row will be shown as column-row. Column A, row 5 will be shown as [A-5].


Determine the Investment accounts to use in the review.

The first step is to locate the Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units. It is usually the first schedule in the Financial Section of the CAFR. It will look something like this:

Statement of Net Assets
[State or Commonwealth]
(Expressed in thousands)

  General Special Revenue Debt Service Capital Projects etc. Total Reporting Entity
Assets and Other Debits            
Cash and cash equivalents           2,048,497
Cash and Securities with Fiscal Agents           322,826
Investments           3,470,120
Due from Other Funds           851,120
Due from Federal government           551,321
Receivables:            
   Accounts           245,748
   Taxes           548,147
   Notes           158,987
Restricted Assets:            
   Cash and cash equivalents:           1,254,458
   Investments           551,478
   Loans receivable           124,452
   Other           52,142
Other assets           14,745
etc.            

In the above schedule the assets shown in red are considered investment accounts and are entered in the Part A of the Review Form below. The schedule almost always is shown on two or more pages.

Here is a partial list of the types of names that are given to cash and investment type accounts. There are more in the reports on this site:

Amounts on deposit with U.S. Treasury
Cash and cash equivalents
Cash and Investments
Cash and pooled investments
Cash and securities held in trust
Cash and temporary investments
Cash equity with Treasurer
Cash held by trustee
Cash on deposit with agents
Cash with fiscal agents
Collateral on lent securities
Dedicated Investments
Equity in pooled cash and investments
Investment in [certain fund or project]
Investments Investments held by trustee
Investments net amortization
Investments, noncurrent
Net investment in direct financing assets
Other assets
Pooled Investments with State Treasury
Securities lending cash collateral
Restricted cash and cash equivalents
Restricted investments

Part A of Review Form

   A B C D
Row Part A Name of Government  
1    State of Happiness    
2 CAFR Page Investments From the Combined Balance Sheet Amount Notes
3   Cash and cash equivalents...  2,048,497  
4   Cash and Securities with Fiscal Agents...  322,826  
5   Investments... 3,470,120  
6   Restricted Assets:    
7   Cash and cash equivalents...  1,254,458  
8    Investments...  551,478  
9    Other...  52,142  
 10    Other assets...  14,745  
    Total Investments…  7,714,266  

The Part A is prepared so that a person will be able to use this list in reviewing each fund/subfund in Part B below.

Go to Each Fund/Subfund and record the total of the accounts in Part A.

The Combined Balance Sheet schedules for each of the major fund categories shown in Part B below look something like this: (This is for the Special Revenue Funds.)

State of Net Assets Funds            
Special Revenue Funds            
June 30, 2001 (In thousands)            
  Highways Conservation Public Broadcasting Foundation Waste Management Education etc.
ASSETS            
   Cash and cash equivalents 5,204 12,011 18,915 25,058 32,999  
   Receivables:            
      Taxes            
      Notes   19,420 145,518      
      Federal Government       25,600    
   Due from Trust and Agency    Funds 3,462          
   Investments 178,734 53,387 139,479      
   Other 154     12,429 24,753  
Total Assets… 187,554 84,818 303,912 63,087 57,752  
             
Potential Surpluses… 184,092 65,398 158,394 37,487 57,752  

The above shows how the potential surpluses are computed for each fund using the accounts previously decided upon. Now, we will enter these amounts on Part B of the Review Form. The major fund categories are pretty much standard in most CAFRs.

Part B of Review Form

A B C D
CAFR Page List of Investments By Fund (In thousands) Potential Surpluses Notes
  Governmental Funds and Activities:    
28    General  487,245  
28    Health and Social Services 343,934  
28    Public Transportation 521,949  
29    Environmental Management 200,370  
     Special Revenue:    
108       Agricultural Resources 15,594  
108       Business Development 66,839  
108       Community Protection 35,670  
109       Consumer Protection 52,690  
109       Educational Support 65,302  
109       Employment Services 284,216  
109       Nutritional Support 294  
109       Residential Assistance 74,171  
109       Other Special Revenue 17,792  
     Debt Service:    
110       Revenue Bond Fund 76,024  
110       Certificates of Participation 36,793  
110       General Obligation Bond 4,527  
        Capital Projects:    
110       Capital Projects 73,264  
     Permanent Fund:    
111       Education Endowment 228,197  
111       Housing Guarantee 15,680  
111       Other Permanent 12,712  
  Proprietary Funds:    
     Enterprise Funds:    
36       Housing and Community Services 641,478  
36       Veterans' Loan 838,727  
36       Lottery Operations 272,266  
37       Unemployment Compensation 1,598,155  
37       University System 637,467  
        Nonmajor Funds:    
118          Energy Loan 72,216  
118          Water Resources 3,767  
118          Business Development 6,192  
119          Special Public Works 63,029  
119          State Hospitals 9,357  
119          Liquor Control 18,310  
119          Veterans' Home 527  
119          Water 48,627  
119          Other Enterprise 38,265  
     Internal Service: 311,569  
128       Central Services 286,456  
128       Legal Services 11,485  
128        Banking Services 1,995  
129       Audit Services 1,350  
129       Forestry Services 3,412  
129       Other Internal Service 6,871  
  Fiduciary Funds:    
     Pension:    
138       Public Employees Retirement    
138       Postemployment Healthcare    
138       Deferred Compensation    
     Private Purpose Trust:    
140       Common School 732,479  
140       Other Private Purpose Trust 35,308  
     Investment Trust    
         
  Discretely Presented Component Units:    
48    SAIF Corporation 2,987,722  
48    Oregon Health and Science University 596,529  
48    Children's Trust Fund of Oregon    
  Total Potential Surpluses… 11,349,577  
  Per Capita… 3,236  
  Family of 4… 12,945  

The computations for the above are to add up all the potential surpluses in Column C. For the Per Capita amount, divide the Total Potential Surpluses by the Population. For the Family of 4 amount, multiply the Per Capita amount by 4. NOTE: The population for a county is the unincorporated population and not the total population of the county.


Fund Amounts Not Included as Potential Surpluses

Not all funds fall into the category of having surpluses. Here is a list of funds or fund-types that should be listed above but no potential surpluses should be entered in Column C. The determinate factor is the revenue source for the fund. Usually the revenue source is clearly stated in the CAFR for each fund.

-Retirement/Pension Funds - I do include 1/2 of the actuarially determined excesses but it is not necessary to include these amounts for the initial review. The explanation of how to do this a little detailed and not needed. If you want to know how, then contact cafrman@cafrman.com.

-Deferred compensation plans for employees. These are plans in which the employee contributes to his/her retirement over and above the normal employee retirement contribution.

-Any fund that is 100% supported by donations, gifts, endowments, etc. The taxpayers do not participate in these funds.

-For Colleges and Universities. All endowment and similar-type funds should not be included as potential surpluses. Sometimes these funds are combined with other college/university funds. We are interested in potential surpluses, so in these cases the total amount should not be included; however, there should be a Note that states some of these funds are potential surpluses.

-Funds in which the revenues/contributions are 100% held for another government.

However, what they usually do though is include a catch-all type fund that includes funds held for other governments, organizations, and/or other funds. We would consider this a potential surplus because it includes apples, oranges, and lemons, all in one fund.

-Funds that are required by law in which a bank, financial institution, insurance companies, etc. are required to deposit with the government a certain amount for insurance against the entity going bankrupt. These are not taxpayers' money.

-Employee health and benefit funds (not retirement) and risk management funds (unemployment compensation, liability coverage, etc.) we usually consider potential surpluses. My experience of 15 years working with State and local government financial data has shown that these funds tend to be over funded. We'll let on-site auditors determine the exact amount, if any, that should be held in these funds. It depends on the budgeting for these items.

There may be some others but they have to be covered on a case-by-case basis. So if you read the revenue source for a fund or it is not stipulated its funding or what it does, then type it up and send it to cafrman@cafrman.com and we will help you make a determination.


Economic Impact Analysis Form

The last form to prepare is the Economic Impact Analysis. Although below there are 5 forms shown, only one is required. The form used must correspond to the type of government that you are reviewing, a State, county, city, school district-located in a county, or school district-located in a city.

The instructions on preparing each form follows the form. (Note: All of the following forms assume the data presented is in thousands of dollars.)

Economic Impact Analysis - State Review

  A B C D E
Row   Name of Government    
1    [B1]      
2 Economic Principle Explanation Amount (In Thousands) Per Capita Family of 4
3 Actual Refund Total Potential Surpluses [C3] [D3] [E3]
4 Economic Output Multiplier (EOM) For every $1 of refund to the people the economic activity increases by $2. This is the increase in Gross State Product (GSP). Results in increased sales for local businesses. [C4] [D4]
5 Economic Earnings Multiplier (EEM) For every $1 of refund to the people the wages paid to each household wage earner increases by $.50. [C5] [D5] [E5]
6 Increase in State Revenues resulting in a Reduction in Taxes exceeding governments holding and investing the funds. All governments earn revenue based on the economic activity in their respective taxing jurisdiction. For every $1 of economic activity, the State receives revenue of approximately $.10. This increase in revenue should result in reduced taxes. [C6] [D6] [E6]
7 Increase in local government revenues. For every $1 of economic activity, the local governments receive revenue of approximately $.08 because of increased economic activity. [C7] [D7] [E7]
8 Increase in Federal Revenues The Federal government earns approximately $.20 on every $1 in economic activity. [C8] [D8] [E8]
9   TOTAL BENEFITS THE FIRST YEAR… [D9] [E9]
10          
11 Employment Ratio (ER) For each $100,000 in increased economic activity, one additional job is created. [C11] Jobs Created  
12   State Population… [C12]    

Instructions on Preparation - Economic Impact Analysis - State Review

[B1]    Enter name of government and CAFR fiscal year  
[C3]    Enter the Total Potential Surpluses from Part B of the Review Form  
[C11]    Enter population from Part B of the Review Form  
[D3]    Divide [C3] by [D3]  
[E3]    Multiply [D3] by 4  
[C4]    Multiply [C3] by 2  
[D4]    Divide [C4] by [C12] times 1,000  
[C5]    Divide [C3] by 2  
[D5]    Divide [C5] by [C12] times 1,000  
[E5]    Multiply [D5] by 4  
[C6]    Multiply [C4] by .10 (10%) minus [C4] times .05 (5%)
   Note: This assumes the government earns 5% on its investments.
 
[D6]    Divide [C6] by [C12] times 1,000  
[E6]    Multiply [D6] by 4  
[C7]    Multiply [C4] by; .08 (8%)  
[D7]    Divide [C7] by [C12] times 1,000  
[E7]    Multiple [D7] by 4  
[C8]    Multiply [C4] by .20 (20%)  
[D8]     Divide [C8] by [C12]  
[E8]    Multiply [D8] by 4  
[D9]    Sum [D3] through [D8]  
[E9]    Sum [E3] through [E8]  
[C11]    Divide [C4] by 100  

Alternate Presentation of Economic Impact Analysis

Some people have difficulty looking at charts and tables. So it may be better to provide a narrative presentation of the economic impact analysis - benefits. Both tell essentially the same story. Something like this:

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report on each government.

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C10] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The State economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the State economy [name of government or locale] could have an economic explosion. Result is that businesses' net incomes could double, triple or more.

For the State government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the State will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - County Review

  A B C D E
Row   Name of Government    
1    [B1]      
2 Economic Principle Explanation Amount (In Thousands) Per Capita Family of 4
3 Actual Refund Total Potential Surpluses [C3] [D3] [E3]
4 Economic Output Multiplier (EOM) For every $1 of refund to the people the economic activity increases by $2. Results in increased sales for local businesses. [C4] [D4]
5 Economic Earnings Multiplier (EEM) For every $1 of refund to the people the wages paid to each household wage earner increases by $.50. [C5] [D5] [E5]
6 Increase in County Revenues resulting in a Reduction in Taxes exceeding governments' holding and investing the funds. All governments earn revenue based on the economic activity in their respective taxing jurisdiction. For every $1 of economic activity, the County receives revenue of approximately $.08. This increase in revenue should result in reduced taxes. [C6] [D6] [E6]
7 Increase in State Revenues resulting in a Reduction in Taxes For every $1 of economic activity, the State receives revenue of approximately $.10. This increase in revenue should result in reduced taxes. [C7] [D7] [E7]
8 Increase in Federal Revenues The Federal government earns approximately $.20 on every $1 in economic activity. [C8] [D8] [E8]
9   TOTAL BENEFITS THE FIRST YEAR… [D9] [E9]
10          
11 Employment Ratio (ER) For each $100,000 in increased economic activity, one additional job is created. [C11] Jobs Created  
12   Unincorporated County Population… [C12]    

Instructions on Preparation - Economic Impact Analysis - County Review

[B1]    Enter name of government and CAFR fiscal year  
[C3]    Enter the Total Potential Surpluses from Part B of the Review Form  
[C12]    Enter county population from Part B of the Review Form  
[D3]    Divide [C3] by [D3]  
[E3]    Multiply [D3] by 4  
[C4]    Multiply [C3] by 2  
[D4]    Divide [C4] by [C12]  
[C5]    Divide [C3] by 2  
[D5]    Divide [C5] by [C12]  
[E5]    Multiply [D5] by 4  
[C6]    Multiply [C4] by .08 (8%) minus [C4] times .05 (5%)
   Note: This assumes the government earns 5% on its investments.
 
[D6]    Divide [C6] by [C12]  
[E6]    Multiply [D6] by 4  
[C7]    Multiply [C4] by .10 (10%)  
[D7]    Divide [C7] by [C12]  
[E7]    Multiply [D7] by 4  
[C8]    Multiply [C4] by .20 (20%)  
[D8]    Divide [C8] by [C12]  
[E8]    Multiply [D8] by 4  
[D9]    Sum [D3] through [D8]  
[E9]    Sum [E3] through [E8]  
[C11]    Divide [C4] by 100  

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government. 

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The county economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the county economy, [name of county government or locale] could have an economic explosion. Result is that businesses' net incomes could double, triple or more.

For the [name of county government or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

County governments earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the county would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the county will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - City Review

  A B C D E
Row   Name of Government    
1    [B1]      
2 Economic Principle Explanation Amount (In Thousands) Per Capita Family of 4
3 Actual Refund Total Potential Surpluses [C3] [D3] [E3]
4 Economic Output Multiplier (EOM) For every $1 of refund to the people the economic activity increases by $2. Results in increased sales for local businesses. [C4] [D4]
5 Economic Earnings Multiplier (EEM) For every $1 of refund to the people the wages paid to each household wage earner increases by $.50. [C5] [D5] [E5]
6 Increase in City Revenues resulting in a Reduction in Taxes exceeding governments' holding and investing the funds. All governments earn revenue based on the economic activity in their respective taxing jurisdiction. For every $1 of economic activity, the City receives revenue of approximately $.08. This increase in revenue should result in reduced taxes. [C6] [D6] [E6]
7 Increase in State Revenues resulting in a Reduction in Taxes For every $1 of economic activity, the State receives revenue of approximately $.10. This increase in revenue should result in reduced taxes. [C7] [D7] [E7]
8 Increase in Federal Revenues The Federal government earns approximately $.20 on every $1 in economic activity. [C8] [D8] [E8]
9   TOTAL BENEFITS THE FIRST YEAR… [D9] [E9]
10          
11 Employment Ratio (ER) For each $100,000 in increased economic activity, one additional job is created. [C11] Jobs Created  
12   Unincorporated County Population… [C12]    

Instructions on Preparation - Economic Impact Analysis - City Review

[B1]    Enter name of government and CAFR fiscal year  
[C3]    Enter the Total Potential Surpluses from Part B of the Review Form  
[C12]    Enter county population from Part B of the Review Form  
[D3]    Divide [C3] by [D3]  
[E3]    Multiply [D3] by 4  
[C4]    Multiply [C3] by 2  
[D4]    Divide [C4] by [C12]  
[C5]    Divide [C3] by 2  
[D5]    Divide [C5] by [C12]  
[E5]    Multiply [D5] by 4  
[C6]    Multiply [C4] by .08 (8%) minus [C4] times .05 (5%)
   Note: This assumes the government earns 5% on its investments.
 
[D6]    Divide [C6] by [C12]  
[E6]    Multiply [D6] by 4  
[C7]    Multiply [C4] by .10 (10%)  
[D7]    Divide [C7] by [C12]  
[E7]    Multiply [D7] by 4  
[C8]    Multiply [C4] by .20 (20%)  
[D8]    Divide [C8] by [C12]  
[E8]    Multiply [D8] by 4  
[D9]    Sum [D3] through [D8]  
[E9]    Sum [E3] through [E8]  
[C11]    Divide [C4] by 100  

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government.

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The city economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the city economy, [name of government or locale] could have an economic explosion. Result is that businesses' net incomes could double, triple or more.

For the [name of city government or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

City governments earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the city would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the city will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - School District Review - Located in County

  A B C D E
Row   Name of Government    
1    [B1]      
2 Economic Principle Explanation Amount (In Thousands) Per Capita Family of 4
3 Actual Refund Total Potential Surpluses [C3] [D3] [E3]
4 Economic Output Multiplier (EOM) For every $1 of refund to the people the economic activity increases by $2. Results in increased sales for local businesses. [C4] [D4]
5 Economic Earnings Multiplier (EEM) For every $1 of refund to the people the wages paid to each household wage earner increases by $.50. [C5] [D5] [E5]
6 Increase in County Revenues resulting in a Reduction in Taxes exceeding governments' holding and investing the funds. All governments earn revenue based on the economic activity in their respective taxing jurisdiction. For every $1 of economic activity, the County receives revenue of approximately $.08. This increase in revenue should result in reduced taxes. [C6] [D6] [E6]
7 Increase in State Revenues resulting in a Reduction in Taxes For every $1 of economic activity, the State receives revenue of approximately $.10. This increase in revenue should result in reduced taxes. [C7] [D7] [E7]
8 Increase in Federal Revenues The Federal government earns approximately $.20 on every $1 in economic activity. [C8] [D8] [E8]
9   TOTAL BENEFITS THE FIRST YEAR… [D9] [E9]
10          
11 Employment Ratio (ER) For each $100,000 in increased economic activity, one additional job is created. [C11] Jobs Created  
12   Unincorporated County Population… [C12]    

Instructions on Preparation - Economic Impact Analysis - School District - Located in County

[B1]    Enter name of government and CAFR fiscal year  
[C3]    Enter the Total Potential Surpluses from Part B of the Review Form  
[C12]    Enter county population from Part B of the Review Form  
[D3]    Divide [C3] by [D3]  
[E3]    Multiply [D3] by 4  
[C4]    Multiply [C3] by 2  
[D4]    Divide [C4] by [C12]  
[C5]    Divide [C3] by 2  
[D5]    Divide [C5] by [C12]  
[E5]    Multiply [D5] by 4  
[C6]    Multiply [C4] by .08 (8%) minus [C4] times .05 (5%)
   Note: This assumes the government earns 5% on its investments.
 
[D6]    Divide [C6] by [C12]  
[E6]    Multiply [D6] by 4  
[C7]    Multiply [C4] by .10 (10%)  
[D7]    Divide [C7] by [C12]  
[E7]    Multiply [D7] by 4  
[C8]    Multiply [C4] by .20 (20%)  
[D8]    Divide [C8] by [C12]  
[E8]    Multiply [D8] by 4  
[D9]    Sum [D3] through [D8]  
[E9]    Sum [E3] through [E8]  
[C11]    Divide [C4] by 100  

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government.

For [Name of school District] Residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of government or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The county economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the county economy businesses' net incomes could double, triple or more.

For the [name of county government or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

County governments earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the county would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the school district will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

Economic Impact Analysis - School District Review - Located in City

  A B C D E
Row   Name of Government    
1    [B1]      
2 Economic Principle Explanation Amount (In Thousands) Per Capita Family of 4
3 Actual Refund Total Potential Surpluses [C3] [D3] [E3]
4 Economic Output Multiplier (EOM) For every $1 of refund to the people the economic activity increases by $2. Results in increased sales for local businesses. [C4] [D4]
5 Economic Earnings Multiplier (EEM) For every $1 of refund to the people the wages paid to each household wage earner increases by $.50. [C5] [D5] [E5]
6 Increase in School District Revenues resulting in a Reduction in Taxes exceeding governments' holding and investing the funds. All governments earn revenue based on the economic activity in their respective taxing jurisdiction. For every $1 of economic activity, the school district receives revenue of approximately $.08. This increase in revenue should result in reduced taxes. [C6] [D6] [E6]
7 Increase in State Revenues resulting in a Reduction in Taxes For every $1 of economic activity, the State receives revenue of approximately $.10. This increase in revenue should result in reduced taxes. [C7] [D7] [E7]
8 Increase in Federal Revenues The Federal government earns approximately $.20 on every $1 in economic activity. [C8] [D8] [E8]
9   TOTAL BENEFITS THE FIRST YEAR… [D9] [E9]
10          
11 Employment Ratio (ER) For each $100,000 in increased economic activity, one additional job is created. [C11] Jobs Created  
12   Unincorporated County Population… [C12]    

Instructions on Preparation - Economic Impact Analysis - School District - Located in City

[B1]    Enter name of government and CAFR fiscal year  
[C3]    Enter the Total Potential Surpluses from Part B of the Review Form  
[C12]    Enter county population from Part B of the Review Form  
[D3]    Divide [C3] by [D3]  
[E3]    Multiply [D3] by 4  
[C4]    Multiply [C3] by 2  
[D4]    Divide [C4] by [C12]  
[C5]    Divide [C3] by 2  
[D5]    Divide [C5] by [C12]  
[E5]    Multiply [D5] by 4  
[C6]    Multiply [C4] by .08 (8%) minus [C4] times .05 (5%)
   Note: This assumes the government earns 5% on its investments.
 
[D6]    Divide [C6] by [C12]  
[E6]    Multiply [D6] by 4  
[C7]    Multiply [C4] by .10 (10%)  
[D7]    Divide [C7] by [C12]  
[E7]    Multiply [D7] by 4  
[C8]    Multiply [C4] by .20 (20%)  
[D8]    Divide [C8] by [C12]  
[E8]    Multiply [D8] by 4  
[D9]    Sum [D3] through [D8]  
[E9]    Sum [E3] through [E8]  
[C11]    Divide [C4] by 100  

Alternate Presentation of Economic Impact Analysis

Economic Impact

The economic impact if the $[C3] [billion or million] was returned to the people is tremendous. Everyone wins. The economic impact is based on elementary economic principles that can be found in any Economics 101 textbook and are explained in summary form in the report for each government.

For [Name of government] residents:

Each resident would receive an average of $[D3] or $[E3] for a family of 4.

Salaries and wages would increase by an average of $[D5] or $[E5] for a family of 4.

Approximately [C11] jobs would be created. No more unemployment. This means that unemployment compensation fund could also be refunded in the most part to the people.

Total taxpayer benefits of $[D9] per capita or $[E9] for a family of 4.

For [name of school distinct or locale] businesses:

Each business owner would receive the same benefits outlined above for all residents.

The city economy would grow by an additional $[C4]. This amount equals $[D4] per capita.

The amount of rebates ($60 billion) that we all received from President Bush equalled about $427 per capita. These rebates were to boost a slowing economy and start the economy growing again. With a $[D4] per capita increase in the city economy, businesses' net incomes could double, triple or more.

For the [school district or locale] government:

When governments lower taxes, government revenues increase. It is true. The returning of surpluses is the same as lowering taxes because in both cases the money flows from the government back to the people (the private economy).

School districts earn approximately 8 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the school district would earn $[C6] [billion or million] more than it is currently earning on the $[C3] [billion or million] of an estimated 5%.

This means that a year after the rebates are returned to the people, the school district will again have surpluses due to the increase revenues which could (should) generate tax/revenue cuts.

For the State government:

State governments earn approximately 10 cents on every dollar of economic activity. Since the [C3] [billion or million] will generate $[C4] [billion or million] in increased economic activity, the State would earn $[C7] [billion or million]

For the Federal government:

The Federal government earns 20 cents on every dollar of economic activity. The Federal government would earn an additional $[C8] [billion or million] in revenues.

That's it, 2 pieces of paper (forms) and you have conducted a review and prepared an economic impact analysis of a government's/school district's CAFR. Look at the reviews on this site. With these two items you are ready to prepare a report and start your campaign.


The StarOffice 6.0 Package

As stated in the Introduction, there now is a very inexpensive and very comprehensive computer package that will do everything needed to:

1. Conduct a review as outlined above using a very simple spreadsheet program instead of writing down everything with a pencil.

2. A calculator is not necessary because a few formulas as listed above can be entered and the computer will do the computations

3. The schedules can be saved as .html code for a web site or as attachments to emails or included in an email.

4. The word processor can prepare web pages for inclusion on web sites, as attachments to emails and/or included in emails. Also, the spreadsheets can be included in the web page data formats to enhance the presentation. Images, pictures and graphics can also be included.

5. It has a database program for email lists, address lists, home inventory and a host of other functions that are already set up in templates. It has some features that Microsoft XP Office does not have.

6. Much more that cannot be covered here. It can handle almost all of Microsoft XP Office files, edit them and convert them back to Microsoft XP Office format. If someone you now has Microsoft XP Office at $479 and you have StarOffice 6.0 at approximately $70, you can communicate and exchange files just like the big boys.

The reason I am telling you about this program is that I am selfish. I have the program and use it, but the main reason is that I want you to review your governments CAFR and do something about it. If you have the tools necessary to conduct a review, prepare a report, and do something about the surpluses, it is more likely that you will do something. That is what I want.

To learn more about StarOffice 6.0 go here: http://www.sun.com/software/star/staroffice/6.0/


 
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