Thursday, February 15, 2007

$5,000,000 over five years, or 0.7% reduction

The Olentangy District is now recording cost reductions as if the district is a teenage federal government.

No longer do we hear the district report a one-year reduction of x dollars, now we hear reductions multiplied over five years as the district reports 5x dollars worth of reductions. It certainly makes the reductions look bigger.

Of course, the district could go the adult federal route and multiply by 10 for an even greater effect. But neither multiples - reductions over five years or ten - show the true net effect. For that you have to also sum the expenditures over the same period, and divide.

In the case at hand, the district's reported reductions are only 0.7% of the five years worth of expenditures. When viewed in those terms, the reductions are just a drop in the big tax bucket.

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