WBGZ Radio 2/19/2021 |
By Kevin Bessler - Illinois Radio Network
A nonpartisan think tank is taking issue with the way state and local governments present their budgets.
The Illinois-based Truth in Accounting is opposed to governments using cash-based accounting, so budgets that appear balanced are anything but.
With cash-based accounting, financial reports show expenses only when money is paid, not when debt or future expenses are incurred. The organization is demanding that state and local governments institute full accrual calculations and techniques, or FACT-based accounting.
CEO and founder Sheila Weinberg said borrowing money is not a way to reduce a deficit.
Normal, IL, USA / www.cities929.com
Feb 17, 2021 10:52 AM
(The Center Square) – A nonpartisan think tank is taking issue with the way state and local governments present their budgets.
The Illinois-based Truth in Accounting is opposed to governments using cash-based accounting, so budgets that appear balanced are anything but.
With cash-based accounting, financial reports show expenses only when money is paid, not when debt or future expenses are incurred. The organization is demanding that state and local governments institute full accrual calculations and techniques, or FACT-based accounting.
CEO and founder Sheila Weinberg said borrowing money is not a way to reduce a deficit.