The Board Room newsletter distributed this week confirmed what we predicted in November: the board used inflated flip tax revenue forecasts last year to hide a $1.5 million deficit for 2015-2016.
With the fiscal year now over, flip tax revenue will ring in at $4,126,450, over $1.5 million less than the $5,700,000 published in the board’s budget.
As was clear at the time, that inflated income was used to make the budget look better before the election. Once the incumbent slate was re-elected, board president Gary Altman admitted the flip tax income would fall short and announced a $1000 annual maintenance increase (average) for all shareholders.
Since that maintenance increase did not take effect until the end of the fiscal year, it has not yet been explained how this deficit will be covered. As usual, we will not find out until hours before the annual meeting, when the year’s fiscal report is released — too late to hold Altman and other incumbents accountable.