How did I miss this one? Ah, one of those friday press releases perhaps. Governor Rell vetoed the bill that would have made Connecticut leap into the reality based community and account for revenues the way they should be, after they’ve been collected. Instead Rell had this to say:
Governor M. Jodi Rell today vetoed a bill that would have authorized the State Comptroller to prescribe the use of generally accepted accounting principles (GAAP). Current law requires the Governmental Accounting Standards Board (GASB) to prescribe the use of GAAP.
“I have serious concerns about the potential fiscal impact this bill may have on the state,†Governor Rell said. “The plain language of this bill would allow the Comptroller to issue financial statements using whatever standards she prescribed. While our current Comptroller does not intend to deviate from GAAP for financial reporting purposes, there is nothing in the bill that would prevent a future Comptroller from doing so.â€
GASB is an independent, private-sector, not-for-profit organization that establishes standards of financial accounting and reporting for state and local governments. Governments and the accounting industry recognize the GASB as the official source of GAAP for state and local governments.
“Transparency and confidence in government financial reporting are based on adherence to uniform standards that are independently established and free from commercial and political influence,†Governor Rell said. “Bond investors and those making economic decisions have a clear understanding of statements prepared in conformity with GAAP. To deviate from this standard would jeopardize the financial standing of our state. As Governor, I cannot risk that possibility.
Can’t risk that possibility? Borrowing Matt Miklave’s words here, what about the certainty of each year the legislature spending projected tax revenues over and over? The certainty of digging Connecticut into deeper debt?
“I understand the intended purpose of this legislation and I have no objection to providing the Office of the Comptroller and the Office of Policy and Management the flexibility they need in preparing our state budget. This bill, however, goes well beyond providing that flexibility.â€
The bill, HB 7338, An Act Concerning the Implementation of Generally Accepted Accounting Principles (GAAP), is the sixth of the 2007 Legislative Session that the Governor has vetoed. Rell’s press Release
Rell has essentially said to the legislature, “ya know, I kind of like it when you spend more than I do. Makes me look like a fiscal conservative”.
The drunken sailors esteemed and honorable up at the state house must be thrilled with this one.
h/t A.L.
