In a Feb. 10, 2021, letter to David R. Bean, GASB director of research and technical activities, Institute Executive Vice President Joe Kent urged that Bean and his colleagues dismiss the proposals, “so government officials will have to deal honestly with public interest groups such as ours that seek sound budgeting practices and accountability.”
As explained by Kent, the proposed new accounting standard and accounting concept would require general and other state budgeted funds to have a “short-term” focus, such as recognizing long-term transactions only “when payments are due.” That would allow lawmakers to continue sweeping long-term liabilities off the books.
“For example,” said Kent, “Hawaii’s latest general fund budget proposal listed $750 million of borrowing as proceeds under ‘other revenues’ being used to balance the budget. We would expect the state Comprehensive Annual Financial Report to highlight this fact, but instead the CAFR’s governmental funds statements support the false claim that the budget has been balanced.”
Author(s): Grassroot Institute
Publication Date: 15 February 2021
Publication Site: Hawaii Free Press