Municipalities will have a greater need for efficient technologies like dual-purpose cash and check scanners if they embrace alternative revenue strategies in the face of insufficient tax income.
With many local governments experiencing difficulties in raising enough income to keep their budgets running smoothly, some experts have looked to new concepts and ideas to secure needed finances. One recent development is the growing interest in so-called "payments in lieu of taxes," or PILOTs, in which churches, hospitals, private schools and other institutions pay governments directly in the absence of a more regular tax framework.
According to a press release from the Indiana University School of Public and Environmental Affairs, 41 percent of local government officials in Indiana agree PILOT programs are a good idea for municipalities in need of income - especially during difficult economic times.
"Given the importance of property taxes for local government finances - about 23 percent of total local government revenue in the state and 80 percent of all tax revenues under local government control - many local governments face major budgetary challenges as a result of the property tax cap implemented by Indiana in 2010," Kirsten Grønbjerg, associate dean for faculty affairs at the school and the Efroymson Chair in Philanthropy at the Indiana University Lilly Family School of Philanthropy in Indianapolis, said in the press release.
Tapping into new sources of income isn't the only strategy that works for cash-strapped governments. These organizations must also take a look at their internal processes and search for ways to maximize efficiency and reduce overhead costs. Collecting property tax payments or fines from tickets or violations is often a busy task at the municipal level. Establishing PILOT programs could further complicate the systems these offices have in place for quickly and accurately scanning checks and depositing them into bank accounts.
With an advanced dual-purpose cash and check scanner, employees have the opportunity to significantly cut the time it takes to perform these important tasks. The machines scan more than 400 checks per minute and decrease the need to invest in costly equipment maintenance and training. Remote deposit capture creates additional benefits by reducing the time between receiving a check and having the credit in the bank.
July 21, 2016