Cash flow management represents an alternative to transportation agencies to obtain more product without introducing new revenues and an opportunity to make better utilization of transportation trust funds. Cash flow management involves risk, particularly in the transportation sector which is dependent on worldwide oil policy. Cash flow management also requires an entirely different management philosophy and management technology from accrual/encumbrance management. There are legal and political barriers to cash flow management. The decision as whether to embark upon cash flow management from an accrual/encumbrance is one which will be unique for each government agency and should only be done after careful review of the advantages, disadvantages, constraints, and resources required. It is, however, an alternative which should be explored in order to get the most from the tax dollar. A paper describing Florida's experiences is attached. In Florida, the conversion to a cash flow system permitted it's DOT to draw down $85 million of the $100 million primary cash balance. This resulted in an accelerated capital improvement program. Cash flow management has allowed Florida to obligate federal-aid funds early each fiscal year. Although Florida's experiences have been mostly favorable, a recent problem due to uneven revenue flow and a downturn in revenue resulting in an over-appropriation by the Legislature in the 1979 biennial session has been encountered.

Media Info

  • Features: Figures; References;
  • Pagination: 24 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00342071
  • Record Type: Publication
  • Files: TRIS, USDOT
  • Created Date: Oct 28 1981 12:00AM