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The Business of Government:
Uncovering Good Stories in Local
Government Budgets, Taxes and
           Contracts



               John Cheves
       Lexington (Ky.) Herald-Leader
        jcheves@herald-leader.com
The Business of Government

   Follow the money
    What I learned in Liberty County:
Get the records, data and numbers, and
         then ask your questions.
Try to understand the budgets as well as
     your sources do. Poke, prod, ask.
    Don’t apologize: It’s our money.
The Business of Government

Compared to what?
The need for context
Budgets

   Up or down,
winners and losers
Budgets
How do the biggest departments spend it?
   •  Salaries, pensions and benefits

        What do outside agencies get?
•  Deficit spending, debt and debt service
         •  State and federal money
     •  Pools for discretionary spending
   •  One-time spending – land, projects
          (And read the footnotes!)
Budgets
“Wait. What’s that?”
Ask about everything.




     Photo by Flickr user Victor1558
Budgets
     The Los Angeles Times and
   the city budget of Bell, California:
   a $1.5 million/year city manager.

Two years of reporting, eight criminally
charged public officials, millions of dollars
  in tax refunds and one Pulitzer Prize.
Taxes
Who pays, who doesn’t, and how?




          Photo by flickr user Victor1558
Taxes
  What is taxed and at what rate?
  What doesn’t get taxed? Why?
What revenue is growing? Shrinking?
        Who is delinquent?
 How’s the recession treatin’ ya?
     Are tax breaks justifiable?
 Special taxing districts or entities
Taxes
  Helpful hint: “The rule of PUNG”

Probably, usually, normally, generally

   (Thanks to R. Thomas Herman,
        former tax columnist,
      The Wall Street Journal)
Contracts
Who are we paying
  to do what?



    Photo by flickr user Erik ERXON
Contracts
Who approves contracts? How and when?
    Where should you be checking?
      Competitive bidding – really?
 Cost overruns: “Oh, one more thing …”




         Photo by flickr user Victor1558
Contracts
  Who are these
   contractors?
 (Family, friends,
campaign donors,
  past or present
 public officials?)

Do we really need
this? At that price?
                         Photo by flickr user Victor1558
Spending more on
contracts? Less?
Contracts

“How would this look
  on the front page
 of the newspaper?”
The Business of Government
The Open Records Act (or Public Records
  Act, Sunshine Law, etc.) is your friend.
Submit requests regularly. Don’t settle for
  what public officials voluntarily give you.
  You don’t know what you didn’t know
  until you know it.
In most states, the twin of ORA is the Open
  Meetings Act, which requires governments
  to conduct nearly all business in public.
The Business of Government
Anyone can file an Open Records Act
  request asking a public entity for existing
  documents, including budgets, invoices,
  contracts, credit card statements, email,
  correspondence and payroll records.
In Kentucky, you can appeal a denial of the
  Open Records Act to the Office of Attorney
  General in Frankfort – at no cost. Go to
  http://ag.ky.gov/civil/orom for more info.
The Business of Government - John Cheves (Kentucky)

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The Business of Government - John Cheves (Kentucky)

  • 1. The Business of Government: Uncovering Good Stories in Local Government Budgets, Taxes and Contracts John Cheves Lexington (Ky.) Herald-Leader jcheves@herald-leader.com
  • 2. The Business of Government Follow the money What I learned in Liberty County: Get the records, data and numbers, and then ask your questions. Try to understand the budgets as well as your sources do. Poke, prod, ask. Don’t apologize: It’s our money.
  • 3. The Business of Government Compared to what? The need for context
  • 4. Budgets Up or down, winners and losers
  • 5.
  • 6. Budgets How do the biggest departments spend it? •  Salaries, pensions and benefits What do outside agencies get? •  Deficit spending, debt and debt service •  State and federal money •  Pools for discretionary spending •  One-time spending – land, projects (And read the footnotes!)
  • 7. Budgets “Wait. What’s that?” Ask about everything. Photo by Flickr user Victor1558
  • 8.
  • 9. Budgets The Los Angeles Times and the city budget of Bell, California: a $1.5 million/year city manager. Two years of reporting, eight criminally charged public officials, millions of dollars in tax refunds and one Pulitzer Prize.
  • 10.
  • 11. Taxes Who pays, who doesn’t, and how? Photo by flickr user Victor1558
  • 12. Taxes What is taxed and at what rate? What doesn’t get taxed? Why? What revenue is growing? Shrinking? Who is delinquent? How’s the recession treatin’ ya? Are tax breaks justifiable? Special taxing districts or entities
  • 13. Taxes Helpful hint: “The rule of PUNG” Probably, usually, normally, generally (Thanks to R. Thomas Herman, former tax columnist, The Wall Street Journal)
  • 14. Contracts Who are we paying to do what? Photo by flickr user Erik ERXON
  • 15. Contracts Who approves contracts? How and when? Where should you be checking? Competitive bidding – really? Cost overruns: “Oh, one more thing …” Photo by flickr user Victor1558
  • 16. Contracts Who are these contractors? (Family, friends, campaign donors, past or present public officials?) Do we really need this? At that price? Photo by flickr user Victor1558 Spending more on contracts? Less?
  • 17. Contracts “How would this look on the front page of the newspaper?”
  • 18. The Business of Government The Open Records Act (or Public Records Act, Sunshine Law, etc.) is your friend. Submit requests regularly. Don’t settle for what public officials voluntarily give you. You don’t know what you didn’t know until you know it. In most states, the twin of ORA is the Open Meetings Act, which requires governments to conduct nearly all business in public.
  • 19. The Business of Government Anyone can file an Open Records Act request asking a public entity for existing documents, including budgets, invoices, contracts, credit card statements, email, correspondence and payroll records. In Kentucky, you can appeal a denial of the Open Records Act to the Office of Attorney General in Frankfort – at no cost. Go to http://ag.ky.gov/civil/orom for more info.