Four-Part Series about the Budget

 This is a series by Sue Lively about simple ways we can analyze financial information.

Ready or not, it’s town budget season again.  The town of Heath is preparing for Fiscal Year 2022 (7/1/21-6/30/22).  The complexities of town finance can leave us confused and disengaged but decisions have to be made.   In order to make sound decisions it is important to look more carefully at the facts and figures and how they are presented.  Over the past three years of reviewing financial information, I’ve noted four common trends we need to pay attention to.

1. Tax Panic:  When we tend to shut down the moment taxes enter the conversation.
2. Apples to Oranges: When we accept a quick visual impact without looking at what is really being represented.
3. Penny-wise Pound-foolish:  When short term expense overrides consideration of long term value.
4. Evidence Bias:  When a preferred outcome leads to providing data in support instead of data leading to an unbiased judgment.

Starting with the first trend, Tax Panic, I have a series of short explanations and examples for each of these common trends.  I hope this will give you the tools you need to do simple, quick assessments of upcoming town finance information.