Has someone been listening?!

Posted on December 22, 2010. Filed under: Uncategorized |

This certainly doesn’t qualify as good news, but it is encouraging to see that someone in our government is taking a more realistic look at our current situation and echoing one of our most critical stances: we cannot have a balanced budget without GAAP.

Check out this article in today’s New Haven Register, “Malloy disputes Conn. surplus, says future is ‘gloomy’

Time will tell where this all goes for us, but read the beginning of that article.

Gov. M. Jodi Rell’s budget office is projecting the state will end the fiscal year with a small surplus, but Gov.-elect Dan Malloy rejected that characterization.

The Office of Policy and Management, in its mandated report to the comptroller’s office, said the General Fund should see a surplus of $1.2 million out of a $19.1 billion budget.

“We are not in a surplus. We just simply have to stop using that term in an environment where we don’t apply GAAP (generally accepted accounting principles),” Malloy said at a press conference Tuesday.

Malloy said there is a way to interpret the books that will show, under certain circumstances, the budget is balanced, but without GAAP it is meaningless.

“Do we have balanced books in the state of Connecticut? The obvious answer is ‘no,’ and we haven’t had them for a long time,” Malloy said, as he readies a two-year budget that is projected to be $3.6 billion in deficit by 2012.

Comptroller Nancy Wyman, lieutenant governor-elect, said she does not know if the comptroller’s report, which will be out next month, will match OPM’s projections, but she agreed with Malloy that not using GAAP makes it problematic.

“We all know it is not built on solid ground,” Wyman said of the state budget. “There are still so many holes in the budget.”

Now go read Marcia Marien’s analysis, if you haven’t.

Perhaps we’ve found some common ground we can start from!

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