Dear Editor,
I smiled when Mohave County claimed it was facing a whopping $18.5 million deficit for 2024. Because I knew how much money is in the County’s General Fund. I also know how much operating surplus the County has incurred over previous years. But my smile gave way to consternation when I recalled how the County leaders wanted, but failed to continue the ? cent sales tax for capital projects that ended in 2019. Perhaps that’s the motivation for their “Woe is We!” cry.
The tried-and-true method for governments to raise taxes is to declare an emergency, cajole the citizens into approving tax increases and/or more spending to “solve the problem and end the emergency.” The COVID-19 “pandemic” taught that in living color. While the County says inflation worries, though serious, ‘might’ lead to a huge deficit; the actual numbers on the financial reports tell a far different story.
I’ll keep the numbers basic, so your eyes won’t glaze over; but they present a clear picture of the County’s decidedly robust financial situation. First, on the revenue side: In the five years, through last June 30th, the General Fund’s annual revenue increased from $82 Million to $114 Million, in 2023, a startling $32 million increase; through the COVID scare! Ask yourself: did your family see a 40% increase over that time?
Further, the General Fund Balance reserves grew from $12 Million in 2015 to a whopping $50 Million last June. However, that doesn’t include $33 Million the County transferred to their Capital Improvement account in the last three years, nor $50+ Million in the other sub-funds; the actual General Fund Balance is over $100 Million!
Instead, the word “deficit” focuses closely on the revenues versus expenditures. The County stated that spending “might” exceed revenues by $18.5 million; which had Supervisors in a panic. Let’s look at the actual numbers because they tell a much different story. In the past three fiscal years, 2021-2023, the County’s surplus revenues in the General Fund, has averaged $17.5 Million. For the County to have that huge deficit, the expenditures would need to grow $35 Million, or revenues decreased substantially. That has NOT happened. In fact, the latest (March 31st) Treasurer’s report shows that the County’s “official” General Fund has grown to $67 Million. There is NO deficit!
When a government prepares a budget, as they currently are for FY2025, you should include cash reserves in estimating whether you’ll have a deficit. Since there is over $50 (really over $100) Million in reserves last year according to the County’s recently released audit, how could they claim there would be a deficit? Simple; ignore existing reserves and revenue surplus, just focus on the potential spending due to inflation concerns, while ignoring everything else. Only then can the County cry “DEFICIT!”
I recently stated that the County had more than sufficient funds to cover any excess costs. A week later, the County declared they “avoided” a deficit. Perhaps that was just a coincidence. The fact is: there is no deficit.
There’s much more I could say about the County’s robust financial picture, but I’m certain your eyes are crossed. Lest you doubt my numbers, they come from the County’s audited financial reports. However, when the leadership looks at the numbers, they do so with simple mindset of “needing” more money to fulfill their goals. They tend to forget the people they serve. It’s not their “fault”, it’s just how government-thinks.
I’ve spoken with both Manager Sam Elters and CFO Luke Mournian, They’re decent, honorable people; I like them. They are much more pleasant than their predecessors. It pains me to write this article. But I simply give facts, not hype. Government, especially at the local level, has an important role in securing our God-given rights to life, liberty, and pursuit of happiness. We might need more spending to preserve those rights, especially in law enforcement. I’m more than willing to support such spending priorities in our County. But first let’s have an accurate analysis of our financial situation; a more transparent presentation, and less fearmongering.
Steven Robinson, Candidate for Mohave County District 4 Supervisor
