For Immediate Release
Legislation Calls For An End To Budget Shenanigans
Pew Study Confirms Urgent Need For Truth in Accounting Act
Contact: Darlene Porteus 847-835-5200 - dporteus@truthinaccounting.org
February 18, 2010 -- On
February 3rd State Representative Mike Tryon (IL-64th District)
introduced the Truth in Accounting Act of 2010. The proposed
legislation, which was written with the help of the Institute for Truth
in Accounting, calls for increased disclosure during the state
budgeting process.
“We can’t allow our Governor and
legislators to continue to make long term decisions with only short
term information,” says Sheila Weinberg, founder and CEO of the
Institute. “This bill calls for disclosure of the State’s true
financial condition and requires estimates of the long term financial
consequences of current budget decisions. The public needs to know the
full cost of government employees’ compensation, including retirement
benefits.”
Yesterday, in a study of the retirement benefits,
the Pew Center on the States called for such disclosure. The study
states, “Forcing policy makers to responsibly identify the cost and
potential funding sources for benefit increases can help states avoid
offering unfunded benefit hikes.” The Pew study also declared Illinois
as the worst state when it comes to funding its retirement systems.
The
Act lays out guidelines on the rules for reporting state revenues and
expenses, which are in line with FACT -- Full Accrual Calculations and
Techniques. This accounting is similar to that used by corporation and
provides a more complete financial picture, including the full cost of
government services and benefits. The Act requires the State’s
Comprehensive Annual Financial Report be produced within 90 days of the
fiscal year end.
“For years governors and legislators have
been claiming they have met the State constitution’s balance budget
requirement,” said Roger Nelson, chair of the Institute and former vice
chair of Ernst and Young, “Then how are we now more than $93 billion in
debt? This Act would provide budget transparency and disclose the
money being borrowed, the bills not being paid and the pension
contributions being delayed.”
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The Institute for
Truth in Accounting was created by distinguished financial and public
policy experts concerned with the quality of public and private
organizations' financial reporting. It is the mission of the IFTA to
encourage private and public entities to produce financial reports that
are comprehensive, comprehensible and transparent and to inform the
public of the importance of truthful accounting.
IFTA actively
seeks association with other public interest groups that recognize the
need to improve financial reporting or want to better understand the
financial effects of current accounting practices. The Institute is a
non-profit, public interest group that does not advocate public policy
beyond better, and thereby, more truthful, accounting. For more
information about the Institute, visit www.truthinaccounting.org, www.truthin2010.org, www.StateBudgetWatch.org.
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1500 Skokie Boulevard, Suite 304
Northbrook, IL 60062
847-835-5200
