Know you RW talking points: Issue 3889 "Excessive UW Surplus"

[Viking12]

In yet another attempt to damage the UW System, right-wing nuts are on the offensive concerning a supposed $648 million surplus. As with every other right-wing lie, that surplus does not exist. Nearly $450 million is earmarked for ongoing programs, research, facilities, and re-investment into the system, the remaining $200 million accounts for only about 3% of the System's $5.6 Billion budget. The System has managed their budget wisely to create a small cushion in a new era of volatile revenue streams created by the State's dwindling financial support of the System (ironically, while they increase their micro-management). If we're supposed to operate government institutions like a 'household budget' as the nutters are so fond of saying, isn't a 3% rainy day fund a wise thing to have?

[Scuba]

1. Yes, but if that $648 million dollars was transferred to the Koch brothers ...

... they could buy the rest of Congress and the Blue States Governorships!

Or some newspapers. Whatever.

[midnight]

2. A RW technique: build up profits and then harvest... Bain style...

[ewagner]

3. Generally speaking.....

public institutions need to maintain a certain amount of "unrestricted, unreserved" funds for cash flow purposes. Without it, those institutions would be forced to borrow funds, short term to cash flow otherwise budgeted operations. Public institutions do not receive a steady flow of cash. Some receive their allocations in one lump sum annually or maybe semi-annually coinciding with State/Federal/Local budget cycles.

Bonding agencies INSIST that local units of government carry a "surplus" (unrestricted, unreserved funds) of at least 15% of their operating budget.

[Viking12]

4. Precisely. It's only prudent.

If it were the opposite, the System haters would be screaming that the System didn't have a surplus and were fiscally irresponsible. Can't reason with that type of hostility toward education and public institutions.