"Use it or Lose It" Funds
Use it or lose it funds. What are these?
This is a slang term used to describe when an agency has money to spend before the new fiscal year begins. If an agency (i.e. school) does not spend the money they have, then in theory the agency could operate with less funds the following year. Imagine if you gave your child a $10 weekly allowance and next week you took any money back that they did not spend. You know your kid would find a way to spend the full $10 instead of giving it back. They would buy a slice of pizza, download songs from iTunes, or purchase extra rounds of Candy Crush. It was their money to spend and the same principle applies to a government budget.
Most government agencies don’t like to talk about this “use it or lose it” money. But, just like police officers have a certain quota to reach at the end of the month for tickets written, this unspoken quota is just like budget cycles.
The federal government's fiscal cycle runs from October 1st to the end of September, but most state and local municipalities run from July 1st to the end of June. Currently, there is a lot of “use it or lose it” money being spent... usually 4 times the amount of spend happens in the last month of their fiscal year.
July 1 seems far away, but in order to leverage these agencies, you need to start NOW. There is still time to win some of these funds from the government, because again, they want to spend them and it's already been allocated to them. They need to spend these funds.
Go check out GovQuote.us, where you'll be able to see all of these use it or lose it funds in the database. Money agencies are trying to spend before the end of their fiscal year. You'll see a variety of quotes that government agencies have out there trying to spend this money.
Remember, the government buys everything.
If you're trying to reach a specific agency, contact us at GovSales University. We'll give you the contacts at a particular agency.
There is an enormous amount of money being spent by state and local agencies as they end their fiscal year. You have until the end of June. Do not miss these, use it or lose it funds!