Public Money

Should Someone Audit Government Auditors?

The California state auditor’s office raised lots of eyebrows around Sacramento last spring. In an annual review of the state’s financial statements, auditors identified more than $30 billion worth of errors. They found faulty accounting assumptions, transactions recognized incorrectly and simple arithmetic mistakes, among other problems. Fortunately, these errors were corrected before the final financial report was published.

In a state with almost $300 billion of assets, enormous pension funds and dozens of quasi-independent entities under its purview, a few small mistakes can quickly add up to $30 billion. Controller John Chiang, whose office prepares the financial statements, characterized many of these as honest errors attributable to understaffing and a lack of clear internal procedures -- fixable problems. READ MORE

Can Governments Give the People What They Want?

Know what a trend gap is? It’s the difference between governments’ long-term ability to provide public services that the public demands, and citizens’ willingness to pay for those services.

That’s according to Bo Zhao and David Coyne, two economists who have been using the phrase as a measure of the long-term fiscal sustainability of states and localities. READ MORE

States Search for Retirement Security Beyond Obama’s myRA

In his State of the Union address this January, President Obama unveiled a "starter" public retirement savings account called "myRA," a play on the acronym IRA for individual retirement account. He argued it was an essential step toward addressing an enormous issue: Half of American workers (and 75 percent of part-time workers) lack access to employer-sponsored retirement plans.

When these Americans hit retirement age, they won't be tapping nest eggs but public social service programs. “It’s about seeing a change from welfare mom to welfare grandma,” says Lynea Hansen, executive director of the Colorado Coalition for Retirement Security. READ MORE

Public Health Funding May Get a Shot in the Arm

When you hear “public health,” you may think of flu shots. That’s one visible -- and briefly painful -- side of public health services. But if you’ve enjoyed tobacco-smoke-free air, thought twice about ordering a cheeseburger after seeing its calorie count on a menu, or not worried about tuberculosis in your community, you’ve also “used” public health services. These services are essential, ubiquitous and usually unnoticed.

They’ve also been hit hard by the recession. Since 2008 about 17 percent of the state public health workforce and 22 percent of the local public health workforce have been eliminated, according to a 2011 report from the Association of State and Territorial Health Officials. Several reports have enumerated how, as a result of these cuts, we’re more vulnerable to communicable diseases, water-borne infections and other health concerns. READ MORE

2 Reasons to Be Upbeat About the Muni Bond Market

Let's get the bad news out of the way first: Despite continued low borrowing costs, the first quarter of 2014 saw 26 percent lower issuance in the municipal bond market than last year. Moreover, there's not much optimism that things will improve. Market experts predict that 2014 activity overall will be down by 8 percent to 12 percent.

Still with me? Good, because there are two reasons to be positive. The first is bond insurance, which is making a comeback. READ MORE