In this issue:

1. Truth in Accounting report says states have $900 billion in off-balance sheet debt:

2. Sheila Weinberg quoted in USA Today cover story :

3. Institute hosts balanced budget talks at Illinois Chamber:

4. Sheila Weinberg speaks at Colorado State University:

5. Institute awarded Rauner Family Foundation grant:

The Institute released its second annual Financial State of the States report of all 50 states' assets and liabilities, including pension and retirement healthcare obligations.  The states together have more than $900 billion in off-balance sheet liabilities, and the taxpayer burdens in most states continue to grow due to poor budgeting rules and outdated accounting principles.

The report identifies the top five 'sinkhole' states, or the states in the worst financial condition, as well as the top five 'sunshine' states, so named since they have adequate assets to pay their obligations.  A download of the full report is available on truthinaccounting.org.

USA Today reported on June 24 that the typical American household would have paid nearly all if its income in taxes last year to balance the budget if the government used standard accounting rules to compute the deficit. Under those accounting practices, the government ran red ink last year equal to $42,054 per household -- nearly four times the official number reported under unique rules set by Congress.

'By law, the federal government can't tell the truth,' said Sheila Weinberg, founder and CEO of the Institute.

Illinois Sen. Heather Steans (D-Chicago) and Rep. David Harris (R-Mount Prospect) joined the Institute at an April 2nd Legislative Workshop at the Illinois Chamber of Commerce in Chicago.

Illinois pension funds have oversight by Trustee Boards and are monitored by both Senate and House Pension Committees.  'There is not a strong oversight role by the legislators,' commented Sen. Steans.  By some some accounts, state of Illinois employee pension plans are underfunded by more than $80 billion.

Workshop presenters, from left: Thomas White, Esq., Rimon, PC; Allan Ettinger, Morgan Stanley Smith Barney; Andy Shaw, Better Government Assn.; Sheila Weinberg, Inst. for Truth in Accounting; Sean McShea, Ryan Labs Asset Mgmt.

Sheila Weinberg presented 'The Secrets of Political Math and Government Budgeting' on April 25 as part of the Daniels Fund Ethics Initiative at Colorado State University in Fort Collins.

The Daniels Fund Ethics Initiative seeks to strengthen the teaching of principle-based ethics to foster a high standard of ethics in students and ultimately beyond the campus and into the community.  The Initiative is a partnership with seven business schools in Colorado, New Mexico, Utah and Wyoming whose executive leadership makes ethics a high priority.

During May, the Institute was awarded a $50,000 grant from the Rauner Family Foundation.  The Foundation is administered by Bruce Rauner, Chairman of GTCR Golder Rauner LLC and Mrs. Diana Rauner, President of the Ounce of Prevention Fund.

The grant support the Institute's mission and ongoing projects.  These projects include studies on the financial condition of state and local governments and the advancement of uniform statutory standards for government financial reporting.  The grants will also support development of State Data Lab website, a new resource of non-partisan data to develop solutions to America's fiscal crisis.