What You Can Control
By Joe Rulison, Executive Chair and Co-Founder
Changes in Washington—whether related to inflation, interest rates, or regulations—can feel overwhelming and beyond our control. However, as public officials, you do have control over one critical area: your entity’s liquidity and how it is managed.
Effective liquidity management can create new revenue streams that help offset budget gaps and inflation, all while remaining under local control.
For years, I’ve emphasized the distinction between liquidity management and cash-flow management. The best analogy is an ocean: cash-flow management is like observing the surface of the water, tracking the rise and fall of waves. Liquidity management, however, encompasses everything from the surface to the ocean floor—revealing deeper opportunities that might otherwise go unnoticed.
When applied to financial management, this distinction can translate into significant new revenue sources, ranging from hundreds of thousands to millions of dollars annually. These additional funds can help bridge budget shortfalls and address financial pressures that might otherwise seem beyond your control.
By prioritizing liquidity management, public entities can maintain local control while uncovering new revenue opportunities, thus providing greater financial stability and flexibility in uncertain times.
