As the federal government grinds to a halt today, it’s not just a temporary inconvenience; it's a stark reminder of the chronic fiscal irresponsibility that elected officials on both sides of the aisle have perpetuated for decades, hiding the true cost of government behind opaque accounting practices.
Truth in Accounting refuses to dwell in the shadows of frustration. We know you're as exasperated as we are by this recurring spectacle of partisan brinkmanship. The numbers from our reports—chronic deficits, ballooning debt now surpassing $35 trillion, and trillions in unfunded liabilities—speak for themselves. You're smart enough to see the fire raging in our fiscal house without us hammering the alarm again.
Instead, let's cut through the noise and focus on solutions.
What must change to drag our government into the light of transparency, accountability, and true fiscal responsibility?
What rules and procedures need codification and modernization to prevent these manufactured crises?
Congress is behaving like two teenagers fighting over the remote control while their house is on fire [no pun intended] from a cigarette they stole from their dad. It falls to "We, the People, to be the firefighters.”
Federal employees must report to work without pay if deemed "essential," only to wait weeks or months for back wages. Yet, in a cruel irony, the very politicians engineering these crises continue to draw their salaries uninterrupted, shielded by the perks of power. This isn't leadership; it's hypocrisy wrapped in self-preservation.
This shutdown isn't merely disruptive; it's a symptom of deeper rot. Elected officials posture as guardians of the taxpayer purse, all while presiding over a pension system that's a ticking time bomb of broken promises.
Consider the irony: Public servants who've devoted lifetimes to service discover their pensions are underfunded by over $2.5 trillion at the federal level alone, per our analyses, with state and local governments adding another $5 trillion in hidden shortfalls. These aren't footnotes in a budget; they're shattered retirements for air traffic controllers, VA caseworkers, and countless others now caught in the crossfire of the shutdown. Elected officials, however, enjoy plush, overfunded retirement packages—often 2-3 times richer than those doled out to the workers they oversee—enabled by accounting sleight-of-hand that buries long-term debts. Cash-basis budgeting lets them tout "balanced" books today, ignoring tomorrow's reckoning, where benefits could be slashed by 30% or more. They demand sacrifice from public employees during these standoffs, yet refuse the transparency that would force real fixes. This isn't fiscal prudence; it's elite entitlement masquerading as governance.
But here's the good news: Solutions exist, and they're gaining quiet traction. In our latest Financial State of the Union report, we unpack these truths.
We must amplify ideas like our amendment to ERISA, the 1974 law that excluded governments from the strict pension funding and reporting rules it placed on corporations. The outcome has led to terrible underfunding of pensions, putting workers and taxpayers at risk.
Also, our Financial Transparency and Accountability Act requires accrual-based reporting to expose the full scope of liabilities, such as pensions, upfront. No more hiding $7.5 trillion in unfunded retiree obligations behind rosy projections. Shutdowns like this one—fueled by disputes over spending caps and subsidies—don't just cost billions in immediate economic drag; they rack up higher long-term expenses through outdated rules that reward delay over discipline. Perhaps it's time to reconsider those rules entirely.
Our final word: Truthfully, only when our collective voice thunders will these theatrics turn to action. Join Truth in Accounting in urging Congress to pass the Financial Transparency and Accountability Act. As responsible citizens, let's keep our elected officials informed—and accountable. Demand the elevated standards they owe us: Transparent accounting that honors public servants' pensions, secures our fiscal future, and puts out the fire before it consumes us all.
The American people aren't spectators; we're the solution. Let's make our voices heard.