Financial reporting rule could put strain on budget

We understand that the budget will be effected by having to include current healthcare costs and provide for such future obligations. Howerver, these are actual costs that are being and will be incurred. Not including costs may improve the look of the books but does NOT show the true situation.

OAM

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Governor Ruth Ann Minner is creating a panel
of experts to size up new financial reporting guidelines that
threaten to put a strain on future state budgets.
The national guidelines announced recently by the independent
Governmental Accounting Standards Board says states should include
the health care costs for retired state workers with future pension
costs submitted in financial statements to bond agencies.
The rule takes effect in July 2007. If Delaware complies, it
would have to set aside (m) millions of dollars for the health care
costs.
Minner's committee of state lawmakers, administration officials
and businesspeople will have to make recommendations by October
16th.