In an article in the York Daily Record, and scores of other newspapers, Pennsylvania’s governor laid some blame for school budget crunches on the doorsteps of the districts when he said, “And the school districts have their own financial decisions that they have to make. I would note that many of them took the federal money, (were) told that the federal money would go away, made their budgets in the past based upon that, and now that money is not there.” [Read the article here.]

It may be unpopular to say it, but we think he speaks the truth. Every small-business owner knows that just because the business was there last year, there is no certainty that it will be here this year. Each year’s business plan includes ideas and ways to generate revenues and assign expenses according to the revenues. Windfall revenues (let’s call them “grants”) are never included in realistic budgets. Prudent financial advisors would never allow it.

A major problem is that people, schools and local governments have become “grant addicted” – – – they continue to think that the proverbial golden goose “owes them a continuing supply of eggs” after a one-time fluke or grant. And then they become “grant junkies.” You owe me this, even though I may have squandered or misused previous grant dollars!

They wring their hands and sob, “… but, but, but … you promised us. We counted on the grant funding again. We budget for it”

Gosh, why can’t these people, these agencies, these organizations understand that there is no spigot with an endless stream of cash. It is a non-renewing resource, pretty much like oil and potable water. Without prudent conservation efforts, it begins to slow to a trickle.

Look at it this way: A grant is kind of like “special day, special accomplishment or special event money” from your grandparents. It is a one-time gift; to preclude that grandma and grandpa will have the financial wherewithal or inclination to “grant” you the money next year is just plain bad logic.

Situations change and we need to understand that a grant is a situational “gift” that cannot be included in future-year revenue budgeting.

THERE WAS ONCE A Countryman who possessed the most extraordinary goose you can imagine. Every morning when he went to visit the nest, the goose had laid one single beautiful, glittering, golden egg.

The Countryman took the eggs to market and soon began to get rich. But it was not long before he grew impatient with the goose because she gave him only a single golden egg each day. He was not getting rich fast enough and was becoming quite greedy.

Then one day, after he had finished counting his money, the idea came to him that he could get all the golden eggs at once by killing the goose and cutting it open. But when the deed was done, not a single golden egg did he find, and his precious goose was dead.

Moral: Those who have plenty and want more may lose all they have.