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advocacy community education
5
Fixing Our Future in Connecticut
By Marcia L. Marien, CPA, CSCPA President
Connecticut is broke. Not going broke,
but broke right now. Connecticut's fis-
cal condition, based purely on an
analysis of the state's audited financial
statements, has been deteriorating for
years. There is no political party to
blame. We, as citizens of Connecticut,
are all to blame. None of us want
our services cut. None of us want our
taxes increased.
Short-Term Financial Health
Governments measure their short-term
financial health using the "modified
accrual" basis of accounting. This is,
essentially, measuring our working
capital. The equity is called a "fund bal-
ance" and is a measure of the cash
that we would have 60 days after the
end of the fiscal year if the government
were to stop doing business.
At June 30, 2009, the state's audited
financial statements showed $2.3 bil-
lion of short-term assets and $3.1 bil-
lion of short-term liabilities. Our fund
balance was a deficit of $800 million. In
addition, some of this fund balance
was already committed. When we
account for that, we had a deficit of
available fund balance of $922 million.
A
s you may know from attending the CSCPA annual meeting, reading Connecticut
CPA
, or attending one of the events of the Governmental Issues Task Force, the CSCPA
has become involved in promoting fiscal responsibility for the state of Connecticut.
I wanted to give you a better understanding of what we are doing and why.
(continued on next page)
Connecticut's Current Fiscal Crisis:
Analysis from CSCPA President Marcia L. Marien
CSCPA President Marcia Marien leads an audience of first selectmen, treasurers, city managers, comptrollers, business managers, members of boards of
education and finance, and school superintendents from southeastern Connecticut through her presentation "Connecticut's State and Local Governments'
Financial Crises: A Countdown to 2012" at the Courtyard by Marriott in Norwich on October 26, 2010. The session was one of many President Marien has
delivered to similar audiences around the state this fall.