Different UCR Approaches - Part 2

Unregistered Carriers on 10/21/2009 - 1841
Unregistered Carriers on 10/22/2009 - 1831

Yesterday, we talked about doing the least amount possible. Today, we're going to discuss:

WE’LL REGISTER UNTIL WE HIT OUR CAP

Obviously, this can only happen in a state that is looking forward to actually hitting their cap – which is clearly the exception rather than the rule these days. More power to you on hitting that cap! But we need to talk.

This approach – like Approach #1 - is perfectly understandable from the standpoint of the state adopting this approach. Why continue to collect revenue that you can’t keep? Heck with that!

But this approach flies in the face of a - no, make that THE - central premise of UCR participation – if Donor States don’t keep collecting after they’ve hit their cap, then many Recipient States are doomed to remain in a deficit situation. We’re in this together, folks!

Consider the plight of a small state that has a legitimate entitlement of $2MM dollars.

Suppose that even if every carrier in their state registered - that's EVERY CARRIER (100% Registration) - they would only collect $1.5MM from their own carriers. Where does the other $.5MM come from? You guessed it - you!

“That’s not my problem” says the state taking this approach (you). Au contraire, mon frère! (That’s French for “What are you thinking???”) It is, in fact, your problem. You … and every other Donor State.

If your state is considering the "We'll keep collecting until we hit our cap" approach, consider how you will feel about this same issue if you don’t hit your cap next year. I predict that you will pray like crazy that all those Donor States will keep collecting money so that you will keep getting checks from the depository generated from the excess collections of – you know who - those wild and crazy Donor States!

Tune in tomorrow for Approach #3 - "We'll Register Everybody Who Shows Up At Our Door."