Comprehensive Annual Financial Report - Media Coverage & Misconceptions

Media Coverage & Misconceptions

News stories covering financial issues of government cite "rainy day funds" or special "ear marked" funds, loans between government entities, sales of government holdings in, for example, shares of a health care insurance company and the "budget" is often referred to, along with mentions of pension funds investments, but the full accounting of assets of government entities, the "CAFR" is typically not mentioned. "Alternative" media, since the late 1990s, has exposed segments of the public to the subject of the (U.S.) CAFR contributing to the topic being labeled as "conspiracy theory" or "soap box" issue. Reporting on government financial issues can be seen as sensationalized in dealing with alleged excesses in spending. A $10,000 dollar Christmas tree for example, or vague mentions of "many billions" in referring to issues around the pension funds managed by a state. In one recent series of reports, the Kentucky Association of Counties whose spending came under scrutiny by the Lexington Herald-Leader provided some awareness of these types of entities as well as their surpluses and the claimed spending excesses while using money acquired from government fees for products like municipal insurance at premium rates, which build surpluses beyond the needs of the entity. Typical topics of the alternative media may include examples of: government entities financing each other's bond issues; Orange County California's or other divisions of government investments in derivatives; financial deals that are kept from the public to entice businesses to locate in a state, which may include tax incentives in exchange for stock assets in a company. Much of both the mainstream and alternative media coverage of the topic of government financial issues must be considered a factor in public's confidence towards issues of government Accountability.