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Senate approves bill to adopt Governmental Accounting Standards Board guidance for state financial reporting
Summary
SB 94 directs the Department of Finance to comply with forthcoming GASB accounting standards for measurement-focused accounting and post‑employment benefit reporting; senators estimated roughly $45 million in additional liabilities to appear on the state's books.
Senate Bill 94, presented by Senator Lorraine McAllister, directs the state’s Department of Finance to conform state financial reporting to standards set by the Governmental Accounting Standards Board (GASB), including measurement-focused basis of accounting and reporting of other post‑employment benefits (such as accrued sick and vacation pay).
McAllister said complying with GASB’s forthcoming statements will require the Department of Finance to report liabilities currently omitted from cash-based reports. When asked for a magnitude, McAllister and colleagues estimated an additional liability on the order of $45 million for accrued vacation and sick-leave obligations that would appear on the state’s financial statements under the accrual-oriented GASB standards.
Supporters argued the accrual reporting would provide a more complete and transparent financial picture; skeptics raised questions about timing, implementation effort and potential local-government impacts. McAllister said the bill is intended to prepare the state for GASB implementation and that the Department of Finance would use the new standards when GASB issues its final statements.
On a roll-call vote the Senate recorded 20 ayes, 0 nays, and 9 absent; SB 94 will be placed on the third-reading calendar.
