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The Business of Government: Uncovering Good Stories in Local Government Budgets, Taxes and Contracts John Cheves Lexington (Ky.) Herald-Leader [email protected]

The Business of Government by John Cheves

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John Cheves, investigative reporter at the Lexington Herald-Leader, presents during the Reynolds Center's free workshop, "Investigating the Business of Government," in Lexington, Ky. For more information on business coverage training for journalists, please visit http://businessjournalism.org.

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Page 1: The Business of Government by John Cheves

The Business of Government: Uncovering Good Stories in Local Government Budgets, Taxes and

Contracts

John Cheves Lexington (Ky.) Herald-Leader [email protected]

Page 2: The Business of Government by John Cheves

The Business of Government

Follow the money What I learned in Liberty County:

Get the records, data and numbers, and then ask your questions.

Try to understand the budgets as well as your sources do. Poke, prod, ask. Don’t apologize: It’s our money.

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The Business of Government

Compared to what? The need for context

Page 4: The Business of Government by John Cheves

Budgets

Up or down, winners and

losers

Photo by jjMustang_79

Page 5: The Business of Government by John Cheves
Page 6: The Business of Government by John Cheves

Budgets How do the biggest departments spend it?

•  Salaries, pensions and benefits

What do outside agencies get? •  Deficit spending, debt and debt service

•  State and federal money •  Pools for discretionary spending

•  One-time spending – land, projects (And read the footnotes!)

Page 7: The Business of Government by John Cheves

Budgets

“Wait. What’s that?” Ask about everything.

Photo: Office of Massachusetts Governor Deval Patrick

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Budgets

The Los Angeles Times and the city budget of Bell, California: a $1.5 million/year city manager.

Two years of reporting, eight criminally charged public officials, millions of dollars

in tax refunds and one Pulitzer Prize.

Page 10: The Business of Government by John Cheves
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Taxes

Who pays, who doesn’t, and how?

Photo by flickr user Victor1558

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Taxes

What is taxed and at what rate? What doesn’t get taxed? Why?

What revenue is growing? Shrinking? Who is delinquent?

How’s the downturn treatin’ ya? Are tax breaks justifiable?

Special taxing districts or entities

Page 13: The Business of Government by John Cheves

Taxes

Helpful hint: “The rule of PUNG”

Probably, usually, normally, generally

(Thanks to R. Thomas Herman, former tax columnist,

The Wall Street Journal)

Page 14: The Business of Government by John Cheves

Contracts

Who are we paying to do what?

Photo by flickr user Erik ERXON

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Contracts Who approves contracts? How and when?

Where should you be checking? Competitive bidding – really?

Cost overruns: “Oh, one more thing …”

Commonwealth Emergency operations Center in Frankfort, Ky. Photo: Kentucky National Guard Public Affairs Office

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Contracts Who are these contractors? (Family, friends, campaign

donors, past or present public officials?)

Do we really need this?

At that price?

Spending more on contracts? Less?

Wolf Creek Dam near Russell Springs, Ky. Photo: U.S. Army Corps of Engineers

Page 17: The Business of Government by John Cheves

Contracts

“How would this look on the front page

of the newspaper?”

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The Business of Government

The Open Records Act (or Public Records Act, Sunshine Law, etc.) is your friend.

Submit requests regularly. Don’t settle for what public officials voluntarily give you. You don’t know what you didn’t know until you know it.

In most states, the twin of ORA is the Open Meetings Act, which requires governments to conduct nearly all business in public.

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The Business of Government

Anyone can file an Open Records Act request asking a public entity for existing documents, including budgets, invoices, contracts, credit card statements, email, correspondence and payroll records.

In Kentucky, you can appeal a denial of the Open Records Act to the Office of Attorney General in Frankfort – at no cost. Go to http://ag.ky.gov/civil/orom for more info.

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