 CONTACT: Nancy Mathieson, 847-226-8589, NancyMath1@aol.com
TRUTH IN ACCOUNTING EXPOSES "UNBALANCED" BUDGETS
Report Identifies Five Sinkhole States and Five Sunshine States
Chicago, (August 3, 2011) –
While Congress debated legislation that includes a federal balanced
budget amendment, many pointed out that 49 out of the 50 states have
that same legal requirement. However, a new comprehensive study by
non-partisan Institute for Truth in Accounting reports most state
balanced budget laws have not worked, because past governors and
legislators have not used truthful accounting to calculate their
budgets. This lack of transparency has concealed a total of $1 trillion
of outstanding bills.
"State officials say their budgets are balanced but do
not include employee pension and healthcare obligations in their
calculations," stated Sheila Weinberg, Founder and CEO of the
Institute. "Unlike the federal government, states can't 'print money'
to cover costs and shore up their financial conditions."
The Institute's "Financial State of the States" Report
reviewed each state's Comprehensive Annual Financial Report (CAFR) to
offset assets against liabilities. For the first time, a detailed
analysis of pension and healthcare liabilities was completed which
uncovered the states' actual obligations. From these calculations, the
Institute was able to determine the true Taxpayer's Burden for all fifty
states. Click here to download the full report.
Based upon extensive research, the Institute for Truth
in Accounting has found most states are sinking in debt. Despite the
existence of a balanced budget requirement in all but one state,
governors and legislatures have dug these financial holes. The Institute
has identified Connecticut, New Jersey, Illinois, Hawaii and Kentucky
as the top five "Sinkhole" states, each with a per taxpayer burden more
than $23,000. Conversely Wyoming, North Dakota, Nebraska, Utah and
South Dakota are considered "Sunshine" states, because a per taxpayer's
surplus or minimal per taxpayer's burden exists in these states.
About the Institute for Truth in Accounting
The Institute for Truth in Accounting (IFTA) is dedicated to
promoting honest, accurate, and transparent accounting at all levels of
government and business. As a non-partisan, non-profit organization,
the IFTA works to expose accounting deficiencies while promoting better,
more accessible delivery of accurate government financial data—and, in
turn, providing a foundation for more informed public policy. The IFTA
provides its expertise to develop more effective accounting standards
and deliver accurate government financial information to policymakers,
opinion leaders, and citizens, so they can all work for a more secure
financial future. 
1500 Skokie Boulevard, Suite 304 Northbrook, IL 60062 Tel (847) 835-5200 Fax (847) 835-3470
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