Weak accounting standards enable Illinois budget deficits

Justin Carlson  |  February 22, 2021

By Justin Carlson, includes “Bad accounting has helped Illinois politicians avoid balancing the budget for 20 years, despite a constitutional requirement to pass a balanced budget each year. … the modified system effectively operates as cash-based accounting, in which revenues are counted when they are received but expenses are not counted until they are paid. … Imagine homeowners ‘balancing’ their monthly budget by refusing to pay their $100 electric bill, instead counting it toward next month’s expenses just because the bill went unpaid. …” 

Read the full article on: Illinois Policy Institute

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