What do all those numbers mean?

Due to the inconsistencies of my Toyota Corolla, I was unable to attend Preston Trigg’s second visit to the Public Affairs Class. However, from the information in his power point presentation, I have all the tools I need to get my point across.

Trigg stressed to the class that anyone who wants to succeed in journalism must know how to identify, read, and understand government budgets. According to Trigg, money is what drives everything and it’s a key to politics. Government budgets are the root of all good—or evil. Every government agency is required by law to have one, and most of them—including all in Florida—are public. Nearly every government budget is obligated to be balanced by the end of the fiscal year (October 1st to September 30th), with few exceptions. One exemption Trigg gave was the federal budget of California. Because California is in the midst of severe economic stress, as well as other factors, they are not required to get their budget balanced.

Government budgets are helpful, but the information is useless if the reader has no idea what numbers correspond to what part of the budget. Trigg mentioned that because government budgets are rather lengthy, and often confusing, his advice is to ask questions if you don’t understand. Don’t fall into the trap of, “I’ll find out the information from a friend or someone I work with.” If you are unclear on something, just ask and help will be provided.

Here are the basics of understand government budgets: money comes in, money goes out. Trigg said that people tend to complicate things and make them more complex than they ever should be. Secondly, budgets must always consist of two (2) parts, Revenues and Expenses. Occasionally, if a budget is spending more than what is coming in, a third category called Debt will be added. The beginning of the budget is like a summary of the fiscal year. Trigg made clear to the class that journalists shouldn’t simply rely on the budget summary because sometimes that is exactly what the agency wants the journalist to report on. Many times, intriguing information will be revealed about a company’s expenses if the reporter is willing to do a little extra research.

The second part of the budget often deals with Revenues, which means the money coming in. Examples of revenue are taxes, fines, user fees, utility payments (electricity, water), and state and federal grants. Expenses are money coming out. Examples include office supplies, education, and travel expenses. According to Trigg, there are three (3) types of expenses: personnel, capital, and operating. Personnel expenses are money associated with people, such as salaries, and benefits. Capital expenses include any purchase made that exceeds $1,000. Operating expenses relate to the things that keep the company going, so to speak. Leases, utilities, and office supplies are all examples.

Overall, Trigg made clear that asking questions is the best way to gather information about a confusing budget. So, whenever you’re asked to cover and write a story on a city or state budget, remember to follow these simple guidelines: keep your writing simple for the reader. Say what you mean, but put it in terms everyone can understand. Second, review all the expense and revenue reports, not just the summary. You never know, with a little extra research, you could find a diamond in the rough. Finally, and most importantly, remember to ask questions if you don’t understand something. A great mystery could be uncovered simply by asking a few questions and getting the right answers.