Gov Blagojevich uses creative financing according to Institute for Truth in Accounting

FOR IMMEDIATE RELEASE July 9, 2008
CONTACT:Darlene Porteus, 847-835-5200dporteus@truthinaccounting.org
GOVERNOR USING CREATIVE ACCOUNTING TO COME UP WITH "REVENUE" Truth in Accounting issues Illinois' Financial State Of the State

Northbrook, IL - Today, to educate legislators during the continued budget process, the Institute for Truth in Accounting released its annual "Financial State of the State," a roundup of the Illinois' true debt numbers. These numbers are based on the Illinois' 2007 financial report, which was released 363 days after the fiscal year end.

"Our report indicates that the state is almost $70 billion in the hole," noted Sheila Weinberg, founder & CEO of the Institute. "We hope by issuing this report now, the legislature and governor will stop using creative accounting to pretend they are balancing the budget, while drastically increasing the state debt."

In a June 2, 2008 press release, Gov. Rod Blagojevich admonished the state House for failing to adopt two "new revenue sources." Those revenue sources included $530 million through transfers from special purpose funds, and $400 million which would be freed up through a refinancing of the state's pension debt.

"Calling transfers from special purpose funds 'revenue' is like you believing you make money when you transfer funds from your college savings account to your checking account," commented Weinberg. "And to take $400 million from funds generated by issuing state government bonds equals recording loan proceeds as revenues. This is the type of creative accounting that has put Illinois $70 billion in debt and got the Enron executives thrown in jail."

The Institute's Financial State of the State can be found at: http://www.truthinaccounting.org/2007_illinois_fsos.pdf
About the Institute for Truth in AccountingThe Institute for Truth in Accounting (IFTA) is dedicated to promoting honest, accurate, and transparent accounting at all levels of government. As a non-partisan, non-profit organization, the IFTA works to expose accounting deficiencies while promoting better, more accessible delivery of accurate government financial data-and, in turn, providing a foundation for more informed public policy. The IFTA provides its expertise to develop more effective accounting standards and deliver accurate government financial information to policymakers, opinion leaders, and citizens so that they can work for a more secure financial future. To learn more, please visit our website at www.truthinaccounting.org.
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