TOPIC: Miami, Dade County School District - Financial Wealth

REF SOURCE: Miami, Dade County School District 2012 Comprehensive Annual Report (CAFR)

LINK TO REPORT DOWNLOAD: http://gfoa.net/cafr/COA2012/MiamiDadeCountySchoolBoardFL.pdf

POINTS OF INTEREST:

1. Revenue INCOME for the year (revenue in)  $2,729,539,000 [2.7 Billion Dollars] page 27 of the .pdf document / page 9 of the report. EXPENDITURES (revenue out): $2,729,539,000 Note: the figures expressed on the page as stated are "in thousands' so add tree zeros to the figures shown.

2. Page 216 of the .pdf document / page 184 of the report - Column: "2003" - line item category  "Excess of revenues over (under) expenditures", line item: "Proceeds from issuance of debt" $574,214,000. Note: the figures expressed on the page as stated are "in thousands' so add tree zeros to the figures shown. Here "proceeds" from " issuance of debt" are listed as income and not a liability. For 2006 it was: $462,895,000. It clearly notes in the report that the school district is actively involved in derivative "hedging" towards their "debt" instruments (can profit or take a loss from the same). Under the same category as noted above (now on page 185 of the report) for 2008 during the real-estate bubble burst leading to the devastation of many real-estate owners in Miami, Dade County, the School District shows an increased income for that line item of $1,058,545,000.  [ $1.058 Billion Dollars]

The School District, page 192 of the report for the year 2008 lists their "Total Bond Debt" as $479,440,000 which reflects the $1.058 Billion Dollar as "income"  per "Proceeds from issuance of debt", is just that, income. The School District in most probabilities is "Funding" their own debt with "their own" investment capital and based on the numbers, investing substantially more monies for profit in others debt, of which it appears that in 2008 they made a windfall.

Generally what is reported to the taxpaying population of Miami, Dade County per School District Funds is the "Beginning Balance" and "Ending Balance" of the School Districts General Fund which is a "very small fraction" of the actual money "coming in" and "going out". This is very deceptive in effect when the taxpayers just hears the  "Beginning Balance" and "Ending Balance" figures. {ENDING BALANCE: $144.1 million, page 21 of the .pdf document / page 3 of the report} They noted the General fund was operating at a $77.6 million shortfall from the previous year's fund balance.

In perspective personally, it would be the same if you just told your neighbor at the beginning of the year your checking account balance was $12,000 and at the end of the year your checking account balance was $9,000. The first thought from your neighbor is: "Oh, your down $3,000". (You just happened to omit you moved $4,000,000 through your checking account throughout the year and ended your balance with $9,000)

With the taxpaying public just hearing that data "promoted" by the School District" and then "Parroted by the News Media" , to the taxpaying public it would appear that the School District was in dire-straits. "In reality" with the fact that the annual revenues in 2012 of over 2.7 "Billion" dollars came in, that $77.6 million shortfall for the ending fund balance in comparison to the actual income is "Pocket Change".

What the School District promoted to the population at the end of 2012 was that they were operating at a $77.6 million shortfall.

Seeing how that money comes in and then goes out is a "Must know" for the taxpaying residents of Miami, Dade County.

Total enrolled students Kindergarten through 12th grade over the last 5-years averaged 347,000 students and as of 2012 at an average cost of $8,631 per student. Page 201 of the report.

The School District's CAFR report additionally shows excellent statistical information throughout it's pages in the last section towards many aspects effecting the population of Miami, Dade County and again, seeing how that money comes in and then goes out combined with that data shown is a "Must know" for the taxpaying residents of Miami, Dade County. The "selective presentation" the taxpaying population of Miami, Dade County has been hearing over the years is "definitely" not (emphasis added) in their interests.

A show specifically focused on this topic would without equal catch the ear of all listeners, create the best ratings of unprecedented proportions, and be of an educational and  practical enhancement to the understanding by those listeners as to how their government is operating and how that operation directly effects their lifestyles and children's education.

As of 2015 as noted in the Miami Dade County School District CAFR,  the money coming in is now in excess of 3.58-Billion dollars income per year, larger than or equal to many Fortune 500 Companies net annual income. Page 40 of the .pdf file / page 7 of the report  http://www.myflorida.com/audgen/pages/dsb_efile%20rpts/2015%20miami%20dade%20county%20dsb.pdf

I, and I am sure a multitude (the majority) of your listeners would be profoundly grateful if a show on this topic was scheduled as soon as possible. 

For an in-depth example listing of local government CAFRs in the USA, and Florida they can be viewed and downloaded here - http://CAFR1.com/listings/Listings.html 

Walter J. Burien, Jr. 

Tel. (928) 458-5854

My BIO - http://CAFR1.com/BIO.html