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Medical problems off limits

Editor: What started out to be a brief comment or two about your November 1994 "Question of the Month" found me going on for several sentences.

"HEALTH AS A CAMPAIGN ISSUE: In covering political campaigns, should the media publish and broadcast news accounts of candidates' medical problems such as heart surgery and cancer?"

This question raises several issues, paramount of which is that of "journalistic ethics" as it relates to "fair play." Is it really appropriate (or even "fair") to dig about in a person's past health record on the chance of discovering a titillating tidbit relating to a bygone malady? I suggest, as do most insurance companies, it is not, and that it should be off limits to drag up old medical problems that occurred prior to around five years before. These companies don't, and they are selling odds on longevity.

As a public servant, any current major health problem that could impact directly on a person's potential to serve probably is fair game for informative media investigation. However, the media must remain objective. To sensationalize or turn such a revelation into political hay (especially for the sake of a few votes), in my conviction, is dirty pool. When I encounter this kind of not-so-discrete "campaigning," my immediate internal reaction is just the opposite from that which the perpetrator had hoped. On the other hand, we all are human. We must remember that, "a word once uttered. ..."

Kenneth J. Garry
Station Manager
WUSI TV/FM
Olney

Americans are turning their backs on the poor

Editor. Americans hate the poor.

We have failed to train our youth to be self- supporting through the creation of technical high schools in every county in our nation, and then we blame the youth for not working.

We force teenage mothers to leave home and then blame them for applying for public assistance.

In most states we force unemployed fathers to leave home in order for their wives to apply for public assistance and then blame them for family breakdown.

We put little value on human life on our deathtrap roads, creating many widows and disabled people, which results in increased public expense and heartache.

We encourage addiction to tobacco, alcohol and other substances resulting in death, grief and greed for profit.

We force all dropouts off welfare rolls and then blame them for living on the streets and in parked cars.

Aren't we as a nation creating more problems than we are solving?

Richard Nixon reminded us during his administration when he introduced his Family Assistance Plan that we solve our national problems by throwing money at them. Why don't we take the road of prevention like all other industrialized nations?

Why don't we provide counseling and support at times of crisis in the lives of our fellow-men and fellow-women?

Lillian M. Snyder
Professor Emeritus
Western Illinois University
Macomb

State's financial condition worse than reported

Editor: Your story on page 23 of the October 1994 Illinois Issues distresses me. The thrust of the story is that there is no interest in the race for state comptroller. How wrong you should be.

The June 30, 1993, financial condition of the Illinois General Fund is overstated by $17 billion. The total state financial condition (all funds) is overstated by $40 billion (based on state audit reports). These overstatements are certified as fairly presented in accordance with Generally Accepted Accounting Principles (GAAP). This is a serious issue in the race for state comptroller and may have implications in the governor's race.

Financial reporting for state government under GAAP is seriously flawed. Borrowed money counts as revenue. Expenses incurred, but not requiring cash outlay within a year, are not counted. Through a series of Generally Accepted Accounting Tricks (GAAT), current accounting practices overstate the financial position of state government general funds. The overall appearance of solvency of state government is also exaggerated by GAAT within GAAP.

True general fund financial condition is hidden from public view by splitting the fund into three separate sets of books. These are named General, General Fixed Assets and General Long Term Obligations. But, adding all three sets of books together, eliminating nonexistent assets and admitting to all liabilities exposes this subterfuge.

Unfunded liabilities that can be pushed off for more than one year do not show on the General Fund books. They appear on the General Long Term Obligation books—if they appear at all (see later comments on pension liabilities). Here liabilities are offset by an item called "Amounts to be Provided." "Amounts to be Provided" looks like an asset on the government's GAAP financial reports. Is it not odd that something that has yet to be provided counts like an asset? The truth is, the funds are not there.

In addition, the actuarially calculated unfunded pension liability is not required to be shown in full on the face of the GAAP balance sheet. Under GAAP, a significant portion of the liability can be disclosed in a footnote buried in the back of the financial statements.

In viewing the overall appearance of solvency of state or local governments, the above GAAT also applies. However, a General Long Term Obligation item called "Available in Debt Service Fund" also needs to be removed because it is a double counting of debt service fund assets. Finally, current GAAT within GAAP includes pension trust fund balances as part of the government's overall "memorandum only" fund balance. This is actually a part of the government's pension liability. This GAAT only serves to enhance the overall appearance of solvency.

It scares me that both Sangamon State University and the University of Illinois are turning out accountants who believe today's government financial reports are fairly presented. It angers me that the Fourth Estate has failed to educate itself on government finances. With its lack of understanding, all the media can supply is misinformation, as you have aptly done with your October 1994 issue. I encourage you to understand the application of GAAP in state government before deciding that there are no important issues in the state comptroller race.

Richard H. Skiba Jr.
Palatine

How to write to us

Your comments on articles and columns are welcome. Please keep letters brief (250 words): We reserve the right to excerpt them so that as many as space allows can be published. Send your letters to:

Letters to the Editor
Illinois Issues
Sangamon State University
Springfield, Illinois 62704-9243

e-mail address on Internet:
plong@eagle.sangamon.edu

e-mail address on Access Illinois:
peggy.long@accessil.com or: dial (217) 787-6255 for free access

December 1994 / Illinois Issues / 11