by:  Diane Benjamin

While reviewing the Trial Balance received under the Freedom of Information Act for the BCPA, an entry under advertising looked suspicious.   For the non-accountants out there, a Trial Balance lists every entry, both income and expenses.  Below is the entry – see the one for $193,835.00.  It is labeled Like-Kind exchange.
What is a Like-Kind exchange? In this case, the businesses listed below agree to advertise for the City and in return the City agrees to advertise for them by including their business in BCPA programs, literature, etc.  Some of the businesses receive tickets they can give away.  Remember, this is ONLY for the BCPA.  The businesses will report income for the amounts listed, but they will also report expenses for the same amount, therefore nothing is taxable.  No money exchanges hands.

There is a term for this practice:  CRONY CAPITALISM!  Here are the participating businesses:

Radio Bloomington is WJBC, B104 etc.  Also listed: WGLT and WMBD.  WWHP is a radio station in Farmer City.

Radio Bloomington has a Like-Kind exchange with the City of Bloomington/BCPA for $160,000!  They also have the an agreement with the Coliseum, but I don’t have the details.

How are the amounts calculated?   What is expected under the agreement?

Besides these, 2 questions that must be answered:

1) Can these media source be trusted to investigate and accurately report on the City of Bloomington?  Is the local press acting as watchdogs for your money, or lap dogs?

2)  Did City officials intentionally enter into these agreements to shut the media up?

Maybe the media in Bloomington has been gone for so long it never occurred to anyone.

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