Deltek Sr. Manager Chris Dixon reports.
In recent years the federal Government Accountability Office (GAO) has released an annual report, State and Local Governments’ Fiscal Outlook. The most recent April 2012 update declares that “base case simulations show that the fiscal position of the sector will steadily decline through 2060 absent any policy changes.” Of course, we all know when we drive our cars that we are destined to crash absent any use of the steering wheel. Unfortunately, this 60 year projection leads to many breathless headlines in the major media, such as this one from Reuters: “Outlook still grim for US state, local budgets-GAO”
That’s not to say the GAO report is not of value. However, it must be understood within its context. It is a long-range planning document based on the Congressional Budget Office’s (CBO) projections. The GAO report justifies its projection as follows:
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