From the Institute for Truth in Accounting…
Chicago (January 6, 2011) — Today, the Institute for Truth in Accounting released Michigan’s “Financial State of the State.” After an intensive review of the State’s 2009 audited financial report the Institute determined the State is in a precarious financial position because it does not have the funds available to pay more than $50.1 billion of the State’s commitments as they come due. Each taxpayer’s share of this financial burden equals $16,400.
Michigan state law requires a balanced budget. “If governors and legislatures had truly balanced the state’s budget, no taxpayer’s financial burden would exist,” said Sheila Weinberg, founder and CEO of the Institute for Truth in Accounting (IFTA). She continued, “A state budget is not balanced if past costs, including those for employees’ retirement benefits, are pushed into the future.” The Institute reviewed 2009 data because the September 30, 2010 financial reports for Michigan have not yet been made available. Weinberg added, “How can legislators and the governor be making decisions without timely financial data?”
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Truth in Accounting Issues: Michigan’s ‘Financial State of the State,’ True Burden $50.1 Billion”