The county of Edvic is facing a General Fund deficit in 2013 because actual tax collections are lagging behind estimates. At a staff meeting, the village manager tells the chief of public works that the chief will need to terminate one employee in April to help keep the budget in balance. The chief of public works says: “I have a better idea. You know that state grant the finance commissioner put into a Special Revenue Fund because it could be used only for planting trees along the highways? Why don’t I just tell one of my boys to fill out his time sheets so that the time he spends changing street light bulbs is charged against the Special Revenue Fund. Neither our finance commissioner nor the state will ever know the difference.” How should the village manager respond?

  • CreatedDecember 30, 2014
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