Truth in Accounting (TIA) is a think tank that analyzes government financial reports. As part of its mission, it encourages public entities to produce financial reports that are comprehensive, clear, and transparent; and which inform the public of the importance of truthful accounting.
Click Here to Subscribe to the California Political Review
Last year, this column reported on TIA’s fifteenth annual Financial State of the States report, which ranks all 50 states by financial health. No one was shocked by California’s less-than-stellar fiscal health rating.
Earlier this month, TIA released a new report, The States Financial Transparency Score 2025, focusing specifically on financial transparency noting that, while “state budgets receive most of the public and media’s attention, their outcomes are detailed in each government’s Annual Comprehensive Financial Report (ACFR), which is audited annually by certified public accountants.” TIA’s transparency score is based on key criteria outlining best practices, offering government officials and citizens a roadmap to enhance fiscal transparency and accountability.
For a state to achieve a top score of 100 points, its ACFR must meet the following criteria:
- 50 points: Receive a clean opinion from an independent auditor (This criterion also applies to the annual report of the state government’s largest pension plan.)
- 15 points: Include a net position not distorted by misleading and confusing deferred items.
- 10 points: Report all retirement liabilities on its balance sheet (Statement of Net Position).
- 10 points: Be published within 100 days of the government’s fiscal year-end.
- 5 points: Be searchable with useful links from the table of contents and bookmarks.
- 5 points: Be audited by an independent auditor who is not an employee of the government (This criterion also applies to the annual report of the state government’s largest pension plan.).
- 5 points: Measure the net pension liability using the same date as the annual report.
For government entities, a major impediment to assessing both financial health and transparency is that the data is frequently delayed for periods much longer than that found in the private sector. For this report, TIAs data was based on information available as of August 31, 2024. For Arizona, California, Illinois, Mississippi, Oklahoma, and Nevada, fiscal year 2022 data was used, as 2023 data was not yet available. For the other 44 states, 2023 data was available.
California’s inability to provide timely financial data is legendary. As TIA’s earlier report noted, as of August 31, 2024, California had not released its fiscal year 2023 annual financial report, making it the fifth year in a row California has been late submitting critical information.
For TIA’s Transparency Report, California ranked an abysmal 44th out of 50 states. Here’s the breakdown:
- Auditor Opinion: 35 out of 50 points.
- Deferred Items: 14 out of 15 points.
- Off-Balance Sheet Liabilities: 10 out of 10 points.
- Timeliness: 0 out of 10 points.
- Navigation: 4 out of 5 points.
- External Auditors: 2 out of 5 points.
- Pension Data Timing: 0 out of 5 points.
I waited years for the: “gruesome nuisance limited,” bullet train to come into the station but it turned out to be a dud.
The issue of RHNA, forced stupidity of Stack’m & Pack’m building, the obvious now financial deficit spending that is throwing the State into long term bankruptcy, allowing illegals to vote through no ID requirements, and more has to stop.
Anyone notice the sudden open streets and more parking with the emigration enforcement?
The point is the Democrats for over 40 years (4 decades) have intentionally hidden from the taxpayers the truth of spending and more. e.g. For every $50Cent increase in gas cost it cost the average Joe $100 dollars a MONTH. That then gives the radical Left the excuse for more welfare and freebies, while not demanding a time limit on the government handouts.
Mr. Coupal has always done a good job.
Faced with with most likely will be a $20 Billion deficit where will Slick, Weenie, Limon, and the rest get the money? (oh another large corporate headquarters is leaving – the revolving door of wealth walking away from the uncaring Socialist)
And you vote Dem. why??????