February 15, 2014 - We celebrated Abraham Lincoln’s birthday last Wednesday.  This coming Monday we will celebrate George Washington’s birthday.  Both presidents were known for telling the truth.  Washington ‘could not tell a lie,’ and Lincoln was ‘Honest Abe.’ 

But today our governments are not telling the truth in their annual financial reports.  States are only reporting 25% of their total debt.  Hidden from public view are the full amounts owed to their pension and other retirement plans. 

Truth in Accounting has identified 5 "dishonest" states.  These states have the most trouble telling the truth about their hidden debt.  The 5 "dishonest" states with highest hidden debt are California, Illinois, New York, Michigan and Texas.

Five "honest" states have the least amount of hidden debt.  These states are North Dakota, Nebraska, South Dakota, Wisconsin and Wyoming.

Government accounting rules have helped all of our states to be untruthful about the size of their debt.  We teach our children about Honest Abe and George Washington not telling a lie.  But our states are not being honest about the accumulating debt the kids will be expected to pay in the future.  Our governments aren’t telling our kids they are chopping down the cherry trees they might need in the future. 

Truth in Accounting urges states to be like Washington and Lincoln by honestly reporting their true pension and other retirement promises.