May 2, 2014 – Yesterday was “Law Day.”  The American Bar Association chose “American Democracy and the Rule of Law: Why Every Vote Matters” as its theme for the day.  Every vote should matter, but Truth in Accounting believes the right to vote has long been undermined by the absence of truthful, relevant government financial information. 

The Association of Government Accountants (AGA) said it best:

"AGA believes that it is difficult to overstate how efficient reporting of government financial information contributes to a healthy democracy.  Without accurate fiscal information, delivered regularly, in an easily understandable format, citizens lack the knowledge they need to interact with—and cast informed votes for—their leaders.” 

Government accounting standards have played a key role denying citizens the tools they need.  For example, 49 states have balanced budget laws.  These laws exist to hold elected officials accountable.  They are designed to prevent politicians from spending more (i.e. get votes) without the pain of taxing (i.e. loss votes.)  If these laws are followed then states would not go into debt, except debt related to the purchase of long term assets. 

Unfortunately, many states have built up large debts off their reported balance sheets, despite these laws.  Truth in Accounting’s calculations indicate that over $1 trillion in “Taxpayer Burdens” have accumulated in 42 states.  There are only 8 states in the Union that have developed surpluses.

If citizens had to pay increased taxes for the spending that led to these debts, would they have voted for the incumbents?  Many of these citizens were continually being told their governments were ‘balancing the budget.’  Would those citizens have changed their vote, had the truth been told?

How is our American Democracy affected if our elected officials do not follow the Rule of Law?

Every vote matters.  Every vote cast by a misinformed citizen also counts.