Spending Trend Explains $7.5 Million Budget Shortfall

An expenditure analysis by tallahasseereports.com indicates that spending per capita by the city of Tallahassee has increased approximately 7.5%  over the period from 2005 to 2008.

The city of Tallahassee reports that the median family income increased from $59,700 to $59,900 during this same period.

The analysis indicates that in 2005, the city of Tallahassee spent $699.55 per city resident for core services provided through the general fund. In 2008, the per capita spending was approximately $751.54.

During this period the general fund expenditures increased from $119 million in 2005 to $133 million in 2008.

Implications

The magnitude of the increase in spending is not apparent without looking at the money that would have been saved if the per capita spending in 2005 would have held steady through 2006, 2007, & 2008.

An analysis by TallahasseeReports indicates that if the city would have spent $700 per city resident during 2006,2007, & 2008, the city would have saved $23.3 million.

Adjusting the analysis to take into account for a 2% annually compounded increase still would have saved the city approximately $9 million, more than enough to cover the budget short fall. 

The driving factor behind the increase in spending seems to have been the dramatic 27% increase in revenue collected from taxes and franchise fees during this period. This category is projected to only increase 5% over the next three years.

  capita, expenditures, Tallahassee