I've been following the latest sturm und drang surrounding Judy Green, Metro Council, Mayor Jer, and those dangerous Discretionary Funds, and I've got a few thoughts to share.
First of all, discretionary funds are not bad in and of themselves. They exist in lots and lots of places: our pastor has one, the deacons as well. Some school principals have them. So do some non-profits, as well as some for-profit businesses.
They exist for two simple reasons: (1) no one can predict the future, and (2) trying to prepare for every possible budgetary need will make your budget and your accountants crazy.
So, if a family needs assistance, or there's a possibility of getting a really good speaker, or you need some T-shirts at the last minute to cap off a big event, or some big-wig drops in and you want to take them to eat ... well, you've got some money you can spend without having to adjust the budget, or get the Finance Committee together over the holidays, or get a check cut and co-signed.
If such funds are relatively common-place, then what went wrong in the cases of Green, Metro Council, and Abramson? It's simple -- three basic mistakes were made, and that made a lot of difference. Here they are:
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