by Roger Nelson, IFTA's chair

The Saturday/Sunday edition of the WSJ front page article—STATES TO FACE NEW PRESSURE OVER PENSIONS highlights the revamped accounting standards that will be approved this Monday by the Government Accounting Standards Board (GASB). This new standard will force Government entities to book pension costs and liabilities correctly starting in 2013. We all know what happen when corporations were required to do the same ( they restructured benefits and paid down the liabilities). This change will show that under the new accounting guidelines the state funding ratios dropped from a reported 87% to below 57%. States like Illinois and Connecticut will be under even greater pressure to take action. Yes it is just “accounting” be it will impact the attitudes of legislators, treasurers, governors, bond rating agencies, and the of the taxpayer. This is timely in that it is prior to the November election and the release of our updated STATE OF THE STATES—50 STATE REPORT….your comments would be appreciated—or better yet just send a check to the Institute for Truth in Accounting.