Connecticut Commentary: Red Notes from a Blue State

Much fuss was made during the gubernatorial campaign by former Mayor of Stamford Dannel (then Dan) Malloy concerning the adoption of Generally Accepted Accounting Principles (GAAP), the subject of Governor Malloy’s very first Executive Order. The old way of accounting, which had given rise to budget finagling that allowed governors and legislators less scrupulous than Mr. Malloy to fudge budget figures, was supposed to give way to GAAP, an accounting process that would scrub politics of distasteful gimmickry. “An implementer bill passed Tuesday by the House,” according to a story in CTNewsJunkie, “postpones the full implementation of GAAP until 2014 and eliminates the $1.5 billion deficit a transition to GAAP would create. But it also promises to spend about $100 million a year over the next 15 years starting in 2014 to pay down the $1.5 billion GAAP deficit and in order to ensure that deficit doesn’t grow it allocates about $75 million in fiscal year 2013 and $50 million in 2014.”...