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The Right Note: Surplus Questions Remain

By WTOP Staff

The Right Note is a weekly opinion column. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Mark Kelly

This past week, Treasurer Frank O’Leary updated a chart showing county cash-on-hand. According to the Treasurer, over the past five years, the County’s April cash-on-hand has approximately doubled.

O’Leary caused a splash with last year’s version. Initially he called for using a growing cash surplus to provide taxpayers with a rebate. Within days, O’Leary explained his comments were meant as a private citizen, not as an elected official.

Spending less money than you take in is a laudable goal. Creating a rainy day fund from taxpayer surpluses is important when our local government has to actually balance its budget every year. At the same time, the trend line is moving in a direction that should concern Arlingtonians.

We currently have about $360 million in the bank — an amount equal to roughly one-third of our annual budget. O’Leary picked April to study because it is typically the lowest cash-on-hand month of the year. The monthly cash-on-hand has peaked at over $600 million in the fall.

At the very least, a transparent government should provide an accounting and an explanation for the overflowing coffers. Here are four questions the County should answer about the surplus.

  1. What are the surpluses earmarked for, if anything? Trolley, aquatics center, school construction, anything at all? If the money is in the accounts, presumably the County can tell us about the intended purposes.
  2. Will the County Manager reveal the process by which they estimate revenue projections since they continuously underestimate actual revenue collections? I have written about this on multiple occasions, and this year the Board used the revenue surplus as its rationale for the token tax rate cut.
  3. Why didn’t the growing surpluses warrant a larger tax rate cut? Many fiscal watchdogs have called for a rebate to taxpayers, not just Treasurer O’Leary.
  4. Will you publish the county’s “check register” online? Arlingtonians should be able to track revenues, expenditures, and accounts on a regular basis without relying on annual reports from the Treasurer. This can be done in a manner that would both provide maximum transparency while protecting privacy.

Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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