December 26, 2021,
Whether it is our personal life or with an organization that we are a part of, achieving a balanced budget is an incredible accomplishment.
To place that in perspective, all you have to do is look at how other prominent groups are not able to do so.
The national debt of the United States is the total national debt owed by the federal government of the United States to Treasury security holders. The national debt at any point in time is the face value of the then outstanding Treasury securities that have been issued by the Treasury and other federal government agencies.
On December 7, 2021, the global news sources reuters.com posted, “The U.S. House of Representatives late on Tuesday approved a measure allowing Congress to fast-track legislation raising the federal government's debt limit and stave off a potential unprecedented default.”
For good reason.
As of August 31, 2020, federal debt held by the public was $20.83 trillion and intragovernmental holdings were $5.88 trillion, for a total national debt of $26.70 trillion. At the end of 2020, debt held by the public was approximately 99.3% of GDP, and approximately 37% of this public debt was owned by foreigners.
That is staggering.
Most of us may have forgotten, but it wasn’t always that way.
President Bill Clinton oversaw a very robust economy during his tenure.
The U.S. had strong economic growth (around 4% annually) and record job creation (22.7 million). He raised taxes on higher income taxpayers early in his first term and cut defense spending and welfare, which contributed to a rise in revenue and decline in spending relative to the size of the economy.
These factors helped bring the United States federal budget into surplus from the fiscal year 1998 to 2001, the only surplus years after 1969.
It can be done.
Financial challenges still abound.
The team at valuepenguin.com explain, “Our researchers found the median debt per American family to be $2,700, while the average debt stands at $6,270. The average balance for consumers is $5,315, although some of that debt may be held on joint cards and thus double-counted. Overall, Americans owe $807 billion across almost 506 million card accounts.”
fciwomenswrestling.com, femcompetitor.com, fciwomenswrestling2.com fcielitecompetitior.com andrea-pexels.com-photo-credit.
Not as bad as we thought but still, the budget for the average American is not in balance.
The news group at twincities.com reported on December 22, 2022, “The Biden administration on Wednesday extended a student loan moratorium that has allowed tens of millions of Americans to put off debt payments during the pandemic.
Under the action, payments on federal student loans will remain paused through May 1. Interest rates will remain at 0% during that period, and debt collection efforts will be suspended.”
This is sorely needed.
The news and information source cnbc.com researched, “The Federal Reserve estimates that in quarter two of 2021, Americans owed a startling $1.73 trillion in student loans.”
Due to the 2020 Covid-19 crisis and severe job loss, many major American cities struggled to meet budget because of a severe loss in revenue due to business closures and a shrinking tax base.
When we view these statistics, it helps us to understand that balancing a budget is not easy.
Thus, what the city of San Francisco has done is amazing.
Not only, under the leadership of Mayor London Breed, have they balanced the budget, they actually have a surplus.
It’s okay if you stand and applaud.
San Francisco Projects Two-Year Budget Surplus for First Time in Over 20 Years
fciwomenswrestling.com, femcompetitor.com, fciwomenswrestling2.com fcielitecompetitior.com LBStaff-sfbos.org-supervisor-breed-district-Wikipedia
Wednesday, December 15, 2021,
Surplus results from a mix of revenue improvements, record returns in the City pension system, and responsible budgeting decisions over the last two budgets
San Francisco, CA — Mayor London N. Breed today issued Budget Instructions to department heads to guide the budget process for Fiscal Years 2022-23 and 2023-24. For the first time since 1998, San Francisco is projecting a surplus for the next two years. This surplus is the result of a mix of revenue improvements, record returns in the City pension system, and efforts to constrain major cost growth over the last two budgets during the pandemic.
In an effort to continue the budgeting decisions that have helped the City avoid a deficit for the first time in twenty years, the Mayor asked departments to get “back to basics” and focus on better service delivery. The Departments are not being asked to make any proposed cuts, but instead to reprioritize existing funding towards programs and services that will deliver results and meet the top priorities of the City. These priorities, on top of continuing the historic recent investments in homelessness, mental health, and anti-poverty programs like the Dreamkeeper Initiative, include:
- Restoring the vibrancy of the City, including improving public safety and street conditions;
- Focusing on economic recovery;
- Delivering on accountability and equity in city spending.
“Over the last two years, while we’ve invested heavily in key priorities impacting this City like our pandemic response, homelessness, and mental health, we’ve also made smart budgeting decisions, and this surplus is a result of that work,” said Mayor Breed. “We have an opportunity with this surplus to build on what we’ve been creating over the last two years – to move forward, not backwards, and to continue to invest in the programs and ideas that are making a real difference in people’s lives. We also need to continue down the path of making smart, long-term decisions about delivering services for the people of this City in the best way possible.”
Budget Instructions are delivered every year in December, informed by the estimated two-year projection for the upcoming budget cycle, which is based upon the four-year financial forecast for long-term planning jointly projected by the Mayor’s Budget Office, the Controller, and the Budget and Legislative Analyst’s Office. The instructions inform departments how to prioritize their proposed budgets for the upcoming two-year budget process.
Mayor Breed announced that the City is projecting a budget surplus of $108 million over the upcoming two budget years, out of an annual general fund budget of approximately $6 billion. The surplus is the result of:
- Stronger Revenues, including local taxes like property tax and transfer tax, and federal funding through FEMA reimbursements and the American Rescue Plan
- Record Returns in the City Pension System, which help reduce the City obligations over the next four-year period and beyond
- Constraining Cost Growth, including focusing on one-time investments during the difficult budgets of the pandemic to prevent long-term obligations
San Francisco still has a projected deficit in years three and four of the long-term financial projection.
Budget proposals from departments are due on February 22, 2022. Following submission of the budget proposals, the Mayor’s Budget Office will evaluate the requests and develop the Mayor’s proposed balanced budget to submit to the Board by June 1, 2022. At that point, the Board of Supervisors then considers the budget and must send a balanced budget back to the Mayor for signature by August 1, 2022.
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OPENING PHOTO fciwomenswrestling.com, femcompetitor.com, fciwomenswrestling2.com fcielitecompetitior.com Vlada-Karpovich-pexels.com-photo-credit.
https://en.wikipedia.org/wiki/National_debt_of_the_United_States
https://www.valuepenguin.com/average-credit-card-debt
https://www.twincities.com/2021/12/22/pause-on-student-loan-payments-is-extended-through-may-1/
https://en.wikipedia.org/wiki/Economic_policy_of_the_Bill_Clinton_administration
https://www.fcielitecompetitor.com/
https://fciwomenswrestling.com/
