Connecticut Gov. Dan Malloy’s first official act after being sworn in Wednesday was to issue an executive order requiring the state to craft budgets using generally accepted accounting principles.
The state currently uses a modified cash basis that includes expenditures, receipts, and capital spending but does not follow GAAP or provide an analysis of the state’s overall fiscal position.
“By signing an order mandating that our state begin to transition into generally accepted accounting principles — the same standard used in other states, Fortune 500 companies, and required of municipalities — we will begin to move toward honest budgeting and fiscal responsibility,” Malloy said in a news release.
Malloy, a Democrat, is expected to propose a budget for Connecticut’s biennium early next month.
Municipalities and school districts in the state have been required to follow GAAP since 1989.