Tuesday, November 10, 2009

How Much Is Your Next $100,000 (Of UCR Revenue) Worth To You?

Unregistered Carriers on 11/09/2009 - 1778
Unregistered Carriers on 11/10/2009 - 1757

You know you've been blogging a while when you can't remember if you've written about a topic or not. You know you're lazy if you don't feel like going back through all of your previous posts to find out. And, since the chances are good that not many people will read this blog anyway, you know that I'm just going to "live on the edge" and tell you what's on my mind - and, if it sounds familiar, I'll chalk it up as a "refresher course".

With that grandiose introduction, I'd like to talk to you (again?) about a topic that is near and dear to my heart:

How much is your next $100,000 (of UCR revenue) worth to you?

(Don't get hung up on $100,000 - the number could be $250,000, 500,000 or even $1,000,000.)

In the midst of all the hoopla about the under-collection of UCR revenue, I have asked quite a few people, "How much money would you (or your boss or your agency) spend if you knew that, as a result of spending that money, you would collect an additional $100,000 in UCR revenue?" Again, we could just as well be talking about an additional $200,000 or $500,000 or $1,000,000 - you pick the number.

Quite honestly, the answers to this question have kind of shocked me... but not really. They fall into several categories - none of them seemingly very good from a UCR program standpoint.

1) "I don't understand the question." (This one troubles me a little!)
2) "I don't know - I'd have to think about it."
3) "I don't know - I'd have to ask my boss."
4) "$0. I can't spend any money at all - no budget appropriation for it."
5) "Is the $100,000 guaranteed?"
6) "Probably not more than $249. Above that, I have to go through 'hell and high water' procurement scrutiny.)

I understand every one of these answers - I just don't like the sound of them very much.

Contrast that question with this question:

"How much money did you spend this year to collect the amount of UCR revenue you collected?"

With a little thought, we can all probably take a shot at that question. In other words, we can calculate how much we have spent per $100,000 of revenue we've already generated ... it's that next $100,000 of revenue that gets tricky.

I could ask the question a different way - "Would you be willing to spend $15,000 every year to virtually guarantee an additional $100,000 in UCR revenue every year?"

From everything I've gathered anecdotally, the answer would probably be "No, thanks." I can then envision the person who answered the question walking off, mumbling, "Would I spend $15,000? Where am I going to get that kind of money? I'm a recipient state, for crying out loud!"

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