2010-01-10

It is time to be honest with taxpayers

The state controller recently released Wisconsin's financial statements for the fiscal year ending last June 30. 

As a CPA and a taxpayer, I have an interest in this report because it more accurately reflects the state's financial condition. That's because it must follow what accountants call "generally accepted accounting principles" (or, GAAP for short). The beauty of GAAP is that it eliminates the creative accounting gimmicks that the career politicians have used for years to hide Wisconsin's true financial condition. 

According to the controller's new statements, the state general fund had a deficit of $2,711,626,000 on June 30, 2009. This means the state spent $2.7 billion more than available resources. What is even more disturbing is the underlying trend: The deficit has increased for five consecutive years. 

We cannot continue to mortgage our future--either in Washington or in Madison. It is time for the state legislature and governor to perform the duties for which they were elected. Taxpayers have every reason to expect that state government live within its means, that state spending be limited to what we, the people, can afford. 

Taxpayers recently received property tax bills with larger-than-average increases. Those tax increases are due, in large part, to state budget cuts in aids to our schools, municipalities, and counties. To avoid a repeat of that, state government needs to get its fiscal house in order, rather than shift the burden of their mismanagement to our school districts and local units of government. 

It is time to truly balance our state budget. It is time to be honest with taxpayers.