You simply can't get good data for these. If a public company were to cook their books like the states do, someone would actually go to jail. This is a remarkable bar to reach, but the states are that wacky
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You simply can't get good data for these. If a public company were to cook their books like the states do, someone would actually go to jail. This is a remarkable bar to reach, but the states are that wacky.
They don't cook their books; it's just that there is a large difference between public sector accounting and private sector accounting, and further, cash method and accrual method. Any accountant will tell you this. Most often, people are trying to make the financial data for a state government operate in accordance with private sector accrual method, when they should actually be using public sector cash method. Accrual method should really only be used with corporations and LLCs.
The unions aren't driving the current round of budget shortfalls, declining revenues are mostly behind that. They are driving the long term problems of public sector wages which rise faster than private sector ones and also pensions that will cause some long term budget shortfalls. The current budget problems are just bringing this to the surface.
The wages of the average American has dropped in the last 30 years, whilst wages for the wealthy have skyrocketed. You can't say that the fact that public wages are growing quicker than private wages is a bad thing. If anything this is proof that one of the main things that is hurting middle America is the destruction of private sector unions.
I'm thinking it is pretty legitimate to ask why public employees are paid more, have better job security, have pensions, and pay so little of their health care than those they serve.
Re: civilitywhoasksfindsFebruary 24 2011, 05:43:09 UTC
absolutely. im not really offended by hitler signs. i just thought it was a little ironic considering all the hand wringing that went on during the tea party protests.
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They don't cook their books; it's just that there is a large difference between public sector accounting and private sector accounting, and further, cash method and accrual method. Any accountant will tell you this. Most often, people are trying to make the financial data for a state government operate in accordance with private sector accrual method, when they should actually be using public sector cash method. Accrual method should really only be used with corporations and LLCs.
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