An accounting watchdog group says Idaho does not have a balanced budget after all.

Click here for the radio interview with Institute for Truth in Accounting CEO, Sheila Weinberg.

Every Idaho taxpayer would need to pony up almost $3,000 to pay off the state government’s debts, as of two years ago, according to a new study that compares debt across the American states.  Idaho ranks above the national average in the amount of debt per taxpayer, but trails neighboring Wyoming and Utah, which both have a surplus, as well as Montana and Oregon, which have smaller debt shares.

The Institute for Truth in Accounting examined financial records for all states, using information from 2008 and 2009.  The non-partisan group, based in the suburbs of Illinois, said in its Financial State of the States report that budgets aren’t being balanced since some costs, including employees’ retirement benefits, are being shifted to the future.

“State officials say their budgets are balanced but do not include employee pension and healthcare obligations in their calculations,” said Sheila Weinberg, the head of the Institute.  “Unlike the federal government, states can’t ‘print money’ to cover costs and shore up their financial conditions.”

Click here to continue reading.

2009 Idaho Financial State of the State

But that 52 percent figure was boosted by a small increase from 2005 to 2007; 11 states actually saw greater declines from 2005 to 2009, according to the national Youth Risk Behavior Survey.

A separate, similar survey of teen meth use in Idaho – with a much larger sample size – shows smaller, steadier drops, similar to drops seen for the past decade nationwide.

That survey, the Idaho School Climate Survey, has been conducted every other year since 1996. It would have been administered to 15,000-plus Idaho teens again next month – except that state budget cuts have eliminated funding that covered its $57,000 cost.

School districts, state agencies and nonprofits across the state use the school climate survey data to win grants for various prevention programs.

Idaho is required to pass a “balanced budget”. Article 7, Section 11 of the 1890 Constitution, entitled “Expenditure Not Exceed Appropriation,” states no appropriation shall be made that exceeds the total revenue, unless the legislature causes for that expenditure to be paid within the fiscal year. Even with this provision in place, Idaho reported budget deficits in two of the three years studied. As with most states, an exception is given for the need to suppress insurrection, defend the state or assist the nation in time of war. Idaho law forbids the carrying over of a deficit from one year to the next.

Governmental funds include the General fund, special revenue funds, permanent funds and a capital projects fund. The state budgets on a cash basis. The State reports 5 major governmental funds: the General, Health and Welfare, Transportation, Public School Endowment, and Pooled Endowment Funds. Idaho budgets all of the major funds in addition to several non-major funds. From the information presented in the CAFR it seems as though most, if not all, of the governmental funds are budgeted. Although some information is missing from the Budgetary Comparison Schedules (beginning and ending balances), the information is presented efficiently (with inclusion of “Total” columns).

* The GAAP Basis balance is not an accurate representation the State’s financial condition, because significant liabilities are not included. These liabilities for the pension plans and for other post employment benefits, such as health care.