Tuesday, June 05, 2007

Connecticut Attempts to Nutmeg GASB

Subtle pun alert: In soccer, to nutmeg means to move around a defender with the use of fancy footwork. Connecticut is referred to as the Nutmeg State.

The state senate of Connecticut is considering a bill which would allow the state auditor to establish GAAP which would supercede Governmental Accounting Standards Board generally accepted accounting principles (GASB GAAP). At present, Connecticut state law requires a balanced budget and GASB GAAP would put the state about $1 billion in deficit. Compliance with GASB GAAP would require about $150 million per year in some combination of increased revenue or decreased spending. Connecticut's proposed legislation, coming on the heels of Texan resistance to disclosing post-retirement health benefits, drew sharp criticism from Financial Accounting Foundation (parent organization of GASB) head Robert DeSantis, who said that the legislation would be a step backwards for public trust and accountability.

N.Z. Bear and fellow porkbusters--be alert! DeSantis' criticism is appropriate; in fact, private businesses already must take responsibility for their post-retirement benefits. Perhaps FAF, FASB and GASB should reconsider their home base of Stamford, CT if the legislation passes.


Blogger Interested Observer said...

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3:33 PM  

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