Sounding tired but sharp and determined, Democratic nominee for governor Dan Malloy this morning said he wants to adopt what is known as “Generally Accepted Accounting Principals” (GAAP)—a method that would keep lawmakers “honest” when it comes to budgeting. It also means the last several state budgets could not have been adopted as approved because they relied heavily on one-time revenue and borrowing.
Malloy told Ray Dunaway on the WTIC-AM morning show this morning that he wanted the adopt GAAP as one means to avoid gigantic budget deficits such as the $4 billion current one. The question is, will that put Malloy at odds with the Democratic-controlled General Assembly that crafted the budgets that would be unacceptable under GAAP? A probably better way to view it is that Malloy wants to set a tone that he will provide real leadership in the governor’s office.
In the past, the legislature considered adopting GAAP but the bills doing that always failed to become law. That makes sense since they would be limiting themselves in passing a budget.
Legislation dealing with GAAP has a long history in the General Assembly. But the bottom line is, it has never been enacted for the state budget process and Nancy Wyman, the Democratic nominee for lieutenant governor, has always supported GAAP.