Does not think Malloy should get re-elected

To the Editor:

“If I run for reelection, whether I’ll be reelected… it won’t be on GAAP,” Gov. (Dannel) Malloy told an audience at Fairfield University recently. Malloy said, “It (GAAP) takes too damn long to explain it to people.”

GAAP stands for Generally Accepted Accounting Principles and it really should not take that long for a state governor to explain to people. GAAP means, quite simply, that you only count revenues when they are in your hand and you acknowledge all costs as you accrue them and not wait until you pay them.

Connecticut does not practice GAAP and as a result our state has a structural deficit of $1.8 billion, on top of the deficit you hear in the headlines, that needs to be closed. When balancing the state books, the state counts revenues it has yet to receive and it ignores costs it has already accrued but not yet paid out.

The state even has a name for this ridiculous practice and calls it — modified cash basis accounting.

At home, you can not count your paycheck as income until it is in the bank. A payday loan does not count as income because you have to pay it back. You can’t let those bills pile up on your desk and think you don’t owe anybody any money either. And you certainly can’t promise to sneak away with your girlfriend for the weekend without stashing some cash under the seat in the car ahead of time to pay for it. State government gets away with all of that but none of us can get away with at home — not for long anyway.

Malloy’s problem with GAAP isn’t that he does not want to explain it. Malloy’s problem is that he wants the issue to go away by the time the next election runs around. Malloy promised, in 2010, that, if elected, he would go “cold turkey” to close the $1.8 billion, and growing, GAAP gap. He might have even fulfilled that promise when  he raised taxes on all of us had he not turned around and handed out billions in corporate welfare using our hard earned tax money.

After two years in office, and the biggest tax increase in state history, Malloy has managed to contribute a paltry $75 million to close the GAAP gap. That hardly deserves a mention.

And Malloy hardly deserves re-election

 

Jim Brown

982 S. Pine Creek Road

Fairfield, CT 06824

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