Springfield…With the battle over the state budget looming, state Rep. Mike Tryon (R-Crystal Lake) has proposed legislation to drastically reform the state budget process by making it more accurate, accountable and transparent.
“To those not familiar with state government and even some within state government, the state budget process is backwards and confusing,” said Tryon. “If we truly want to reign in spending, put an end to borrow-and-spend budgeting, and address the massive debt facing this state, we must reform the budget process through accountability and transparency.”
To accomplish those goals, in cooperation with the Institute for Truth in Accounting and the Americans for Prosperity, Tryon has introduced House Bill 5212, which would create the Truth in Accounting Act of 2010. Among other things, the legislation would:
- Require all state government agencies to switch to full accrual accounting standards as promulgated by the Governmental Accounting Standards Board (GASB);
- Prohibit the General Assembly from approving any appropriations bill during a fiscal year until both houses of the General Assembly have adopted a joint resolution scrutinizing, accepting, and if necessary amending the budget estimates generated by the Commission on Government Forecasting and Accountability (COGFA);
- Require the electronic publication of all appropriation bills;
- Requires the Comptroller to publish a Consolidated Annual Financial Report (CAFR), prepared in accordance with the principles of full accrual accounting, no more than 90 days after the end of each fiscal year. This report must explain any differences that exist between the estimates accepted by the General Assembly prior to the fiscal year, and the actual outcomes achieved by the State during that fiscal year;
“These changes will have little effect on the actual legislative budgeting procedures,” said Tryon. “But it will put everyone involved in the process on the same page by giving offering a real look at the fiscal condition of the state annually. This will allow the legislature to focus on long-term, responsible budgeting, instead of the ineffective, piecemeal approach that the legislature currently takes.”
Tryon explained that since 2000, Illinois’ annual spending has grown by more than 20 percent while the economy has grown by only 12 percent. Illinois’ debt has grown by more than 57 percent over the same period. Every man, woman, and child in the state now owes the state’s creditors $4,125.
“The legislature is constitutionally required to pass a balanced budget each year, but by looking at the debt clearly that isn’t happening,” said Tryon. “The Truth in Accounting Act of 2010 is the first-step in accomplishing the budgetary reforms that are desperately needed in Illinois.”
