Accounting Government Style

For many decades this has been a serious problem (though some important reforms were adopted when the Republicans took over in 1995), but if the Republicans can finally get this reform through, it will have a major impact.

The set the government doesn't talk about is the audited financial statement produced by the government's accountants following standard accounting rules. It reports a more ominous financial picture: a $760 billion deficit for 2005. If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion.

Congress has written its own accounting rules — which would be illegal for a corporation to use because they ignore important costs such as the growing expense of retirement benefits for civil servants and military personnel. . . . . A growing number of Congress members and accounting experts say it's time for Congress to start using the audited financial statement when it makes budget decisions.