States being pressured to disclose actual debt

Posted: February 1, 2011 by tennesseetree in IL in Fiscal Ruins

Governor Quinn and the State legislature just got the tax hike they needed to mollify Wall Street for all of two seconds. Now attention is focusing on the accounting practices of states and the calculations they use to determine their debt. Pressure for true accounting practices from monitoring agents such as Moody’s and full disclosure is going to motivate a lot of legislative decisions this session in the General Assembly, given the indications below:
“…As I’ve said before, when New York says “Jump!” Illinois, with its huge bonded indebtedness, has no choice but to ask “How high?” If I had to bet, it would say we’ll see more pension reform stuff soon, including forcing government employees to pay lots more into the system.”

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