The GAAP in Wisconsin state finances

Steve Prestegard:

The Wisconsin Policy Research Institute's George Lightbourn on the correct way to assess state finances (which is not now being done by the Walker administration, nor was it done by the Doyle, McCallum, Thompson, Earl, Dreyfus, Schreiber or Lucey administrations, and so on, and so on, and so on):

Sheila Weinberg from the Institute for Truth in Accounting coined the term, "political math." When politicians delay a payment and refer to the delay as a "savings," they're using political math. Or when no money is set aside for a bill they know is coming due, practitioners of political call the IOU a "savings." It's political math that allows state government to meet the balanced budget requirement while state accountants show it to be running a $3 billion deficit (according to the official tally released over the Christmas holiday).

Both Republicans and Democrats have used political math to make budgets balance over the years. Political math allowed my former boss Scott McCallum to balance the budget using one-time tobacco money and it was political math that green lighted Jim Doyle to "borrow" over $1 billion from the transportation fund. Thanks to political math, Governors and legislatures of all political stripe have been able to buy more government than they could really afford.

Posted by Jim Zellmer at February 8, 2012 2:01 AM
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