2009-07-20

Accounting gimmicks have a cost

For several years, Wisconsin has used various accounting gimmicks and creative "solutions" to plug holes in our state budget. The reality is that these tricks were short term and easy solutions to a more serious fundamental problem with our state finances.

So what are the long term consequences of these budget gimmicks? Contrast how another state used its tobacco settlement compared to Wisconsin. Which state made the better investment?

Reprinted from Focus by the Wisconsin Taxpayers Alliance:

"After investing $1.2 billion in the past decade, North Carolina has over 54,000 people working in about 500 biotech firms, third only to California and Massachusetts. Part of Carolina's funding came from tobacco industry payments. Wisconsin used those funds to "balance" budgets."
June 29, 2009; No. 11

There is a cost for using accounting gimmicks to "balance" our state budget!