-By Warner Todd Huston
Sheila Weinberg, Institute for Truth in Accounting founder & CEO, joined WTTW-TV’s Chicago Tonight reporter Elizabeth Bracken on an October 15th panel to discuss the proposed 2011 $32 billion budget, which includes a possible $12 billion deficit. When asked about the exact size of Illinois budget shortfall, Ms. Weinberg stated, “There are a lot of numbers floating around.We want transparency, and they want to continue the accounting gimmicks. “One gimmick identified is when the state “borrows $2 billion and then claims it as revenues.”
Ms. Weinberg’s recommendation is for Illinois to switch from cash based to FACT based, or accrual accounting methods. “Cash based accounting worked when Illinois was each year paying for current services, but when longer-term services such as government employee pensions were added, the accounting became an absolute mess.”
When discussing new Illinois revenue programs to avert this crisis, the best intentions can also backfire. Ms. Weinberg warned, “You have to be careful because the politicians have a tendency when fixing these programs to actually make the problems worse.”
The program will cost the state more than $200 million, to pay for scholarships for thousands of low-income students, and questions remain about where the money is to come from.
The governor plans to pay for the move by borrowing some $1 billion from surpluses in the state’s road fund and other unspecified accounts. The money would not only be used to pay for the scholarships but also to pay down some of the state’s other debt.
“We either need to raise revenue somehow, or we need to cut expenditures. Switching money from one pocket to the other is not going to solve it,” said Ms. Weinberg, who was interviewed on WLS-TV about the governor’s decision.
Governor Quinn has been clear that he thinks the best way to pay for the grants is by increasing the state’s income tax, which is unpopular among lawmakers, especially with the February 2 primary election around the corner.
See Sheila on WLS TV
See Sheila on WTTW TV
For more information go to Truth in Accounting and www.truthin2010.org/.
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Warner Todd Huston is a Chicago based freelance writer, has been writing opinion editorials and social criticism since early 2001 and is featured on many websites such as RightWingNews.com, CanadaFreePress.com, StoptheACLU.com, TheRealityCheck.org, RedState.com, Human Events Magazine, AmericanDailyReview.com, and the New Media Journal, among many, many others. Additionally, he has been a frequent guest on talk-radio programs to discuss his opinion editorials and current events and is currently the co-host of “Life, Liberty, and the Pursuit of Conservatism” heard on BlogTalkRadio. Warner is also the editor of the Cook County Page for RedCounty.com.
He has also written for several history magazines and appears in the new book “Americans on Politics, Policy and Pop Culture” which can be purchased on amazon.com. He is also the owner and operator of PubliusForum.com. Feel free to contact him with any comments or questions : EMAIL Warner Todd Huston
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