Basic Formula
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PDF versionReference Number: CTAS-2097
Estimated Beginning Fund Balance | + | $1,000,000 | (A) |
Estimated Revenue | + | 5,000,000 | (B) |
Transfer Into the Fund | + | 0 | (C) |
Total Available Funds | = | 6,000,000 | (A+B+C=D) |
Estimated Expenditures | - | 5,500,000 | (E) |
Transfer Out of the Fund | - | 0 | (F) |
Estimated Ending Fund Balance | = | 500,000 | (D-E-F=G) |
Effect on Fund Balance (Est Revenues + Transfers In Less Est Exp + Transfers Out) |
| (500,000) | ((B+C)-(E+F)=H) |
Assuming 1 penny generates $50,000 $500,000/$50,000 = $0.10
Assuming $1 million dollars is the optimal fund balance
desired, divide the effect on fund balance by the
value of the penny. This determines the tax increase needed.