Media & Press

Thursday, April 18 2013

Press Release: Newly Released Report: Connecticut at Risk

FOR IMMEDIATE RELEASE

April 18, 2013

 

Newly Released Report Highlights Connecticut's Fiscal Troubles; Propose Path to Renewed Prosperity

Report jointly issued by the Comeback America Initiative and the Connecticut Center for Economic Analysis at the University of Connecticut

  A new report entitled "Connecticut at Risk: Will the State Navigate to Prosperity?" explains the deep fiscal hole Connecticut has dug for itself and the competitiveness challenges it faces. It also proposes ways to revive the state's prosperity. The report was jointly issued by the Comeback America Initiative and the Connecticut Center for Economic Analysis and released at a briefing in Hartford on April 17 by co-authors David M. Walker, CEO of the Comeback America Initiative, and Fred Carstensen, Director of the Connecticut Center for Economic Analysis. "Connecticut has a proud history dating to the Revolutionary War," said David Walker. "But the state faces serious financial and competitiveness challenges that need to be addressed." The report makes clear how Connecticut wound up in its present financial and economic shape. Among the critical missteps that are highlighted in the report. Connecticut failed to adapt to changes in the global economy (for example, maintaining a reliance on industry sectors that no longer drive the larger economy); the state adopted tax and other policies that led to perceptions that Connecticut is unfriendly to business; and Connecticut allowed a huge growth in debt and unfunded liabilities, especially with regard to underfunded government pensions and retiree healthcare obligations. The direct evident of Connecticut's fiscal mismanagement is also spelled out in the report. The telling date included the following: 1. The cost per taxpayer of Connecticut's pensions and retiree healthcare is among the nation's highest; 2. The state has the worst job creation of all 50 states sine 1990; 3. Connecticut has the highest achievement gap in education in the country; 4. Connecticut is tied (with Illinois) for worst roads in America. The list of poor performance metrics goes on. But Walker and Carstensen offer possible solutions in an effort to ignite candid discussions that can lead to real results. They present three main areas where reforms are urgently needed. The first is that Connecticut must put its finances in order, especially with regard to restructuring pension and healthcare plans to make them fair, affordable, and sustainable. Putting out finances in a sound track will also require comprehensive tax and revenue reform. The second is the state must take steps to attract businesses in the sectors that can grow Connecticut's economy in the future - such as digital technology, biomedical innovation and pharmaceuticals. The third is the need to create a culture of transparency, accountability and transformation at all levels of government, in order to address economic inefficiencies and disparities that arise, in part, from the fact that Connecticut is one of only two states without county government. David Walker and Fred Carstensen are available for interviews to elaborate on the report's findings and proposals. Learn More

Friday, January 18 2013

Statement from the Hon. David M. Walker, Founder and CEO of the Comeback America Initiative and former U.S. Comptroller General, on the Consolidated Financial Report for the U.S. Government

FOR IMMEDIATE RELEASE January 18, 2013 Statement from the Hon. David M. Walker, Founder and CEO of the Comeback America Initiative and former U.S. Comptroller General, on the Consolidated Financial Report for the U.S. Government The Consolidated Financial Report for the U.S. Government for the fiscal year ended September 30, 2012 was released late yesterday afternoon. Each year the Secretary of the Treasury is required to submit financial statements for the U.S. Government to the President and the Congress, and these statements are audited by the U.S. Government Accountability Office (GAO). This year's annual report was issued a month late of its target date and without any fanfare. Very few people will read this important annual report but it is important that the American people understand the key points in it. Once again the GAO was unable to express an opinion on the federal government's financial statements and emphasized that the federal government's fiscal outlook is unsustainable. In addition, the government did not include the financial results of Fannie Mae and Freddie Mac in its consolidated results even though it has provided significant and extended assistance to ensure the viability of these Government Sponsored Entities. The financial reports would have been significantly worse if this consolidation had occurred. The government uses the cash rather than accrual basis of accounting for budgeting purposes. This method can serve to substantially understate annual deficits. In contrast, the federal government's annual financial statements use the accrual basis of accounting, which presents a fuller and fairer view of the federal government's financial condition and future outlook. According to the report for fiscal 2012, the cash basis unified deficit was $1.09 trillion, while the accrual basis deficit was $1.32 trillion. Furthermore, the way the federal government reports its liabilities obscures its true financial position by excluding debt owed to the Social Security and Medicare Trust Funds and the related unfunded obligations for these important social insurance programs. When the above amounts and various other commitments and contingencies are included, the federal government's total financial hole was about $69.8 trillion as of September 30, 2012, up from $65.5 trillion a year earlier. The current estimate of the federal financial hole is about $70.7 trillion and it is growing by an estimated $8.2 million a minute and about $350 billion a month. It is important that the President and the Congress work together to achieve a fiscal Grand Bargain in 2013. Failure to do so could have serious adverse consequences for our country's and families' futures. Learn More

Tuesday, January 1 2013

Fiscal Cliff Deal Fails to Address Greatest Deficit—Political Leadership

David M. Walker: Fiscal Cliff Deal Fails to Address Greatest Deficit—Political Leadership David M. Walker, former US Comptroller General and CEO of the Comeback America Initiative, has released the following statement regarding the fiscal cliff agreement: BRIDGEPORT, Conn., Jan. 1, 2013 --  While it is good that the President and Congressional leaders have reached an agreement to avoid the full impact of the fiscal cliff, and the Senate has passed it with an overwhelming bipartisan vote, the inexcusable fact is that our elected officials did take us over the fiscal cliff. Hopefully, reasoned and reasonable Democrats and Republicans will come together and pass the bill in the House today. Even if legislation is passed today, the way the negotiations unfolded is an utter embarrassment to the United States and our nation's founders. It demonstrates that the biggest deficit we face as a nation is a leadership deficit. It's time for our elected officials to become leaders rather than laggards. In this regard, the new Congress should not take any breaks—or recesses, as they are called on Capitol Hill—until they reach a meaningful fiscal “grand bargain” in 2013. The American people should tell their elected officials "Don't Come Home: No Deal, No Break." The President and Congressional leaders created the "fiscal cliff’ in the first place, and had over 16 months to come up with a resolution. The fact they once again showed they were incapable of addressing the huge and self-made cliff makes it clear that our current political system is broken. We now have a republic that is no longer representative of, nor responsive to, the general public. The announced fiscal cliff agreement is very modest and does not come close to addressing our greatest fiscal challenge - unsustainable social insurance programs, especially health care programs, defense and other spending, and an outdated and inadequate tax system. Therefore, this deal is only a first step in what will need to be a multi-step road to restore fiscal sanity. We can only hope it serves as a wake up call and results in both parties coming together in ways that show they are still capable of responsible governance. We can now expect a major battle over spending in early 2013 as part of the debt ceiling, continuing resolution and/or sequester debates. In addition, achieving a meaningful fiscal grand bargain in 2013 will require more Presidential leadership, as well as an essential element that has been totally lacking so far: a serious citizen education and engagement effort. It will take pressure from “We the People” to get our elected officials to start acting in the interest of the country and the general public rather than their party and special interests. And our elected representatives should work like every other American and stay in session until a meaningful fiscal deal is reached—one designed to address the huge structural deficits that threaten our collective future.”     Learn More

Friday, September 14 2012

Saturday Town Hall Outside Cleveland to Feature Candidates in Hotly Contested 16th District

Wednesday, July 25 2012

Announcing the $10 Million a Minute Bus Tour

The Hon. David M. Walker, former U.S. Comptroller General, today announced a first-of-its-kind national bus tour to engage Americans about our nation's deteriorating financial condition — and show them what they can do to help restore fiscal sanity. The "$10 Million a Minute Tour" will help voters understand that we face a fiscal cliff in January 2013 and a possible U.S. debt crisis within the next two years. No matter what progress we make to improve economic growth and generate jobs, our nation’s current fiscal path puts our collective future severely at risk: jobs, education, health care, a secure retirement, infrastructure, national security, mortgage rates, an effective social safety net to prevent more poverty, and the success or failure of thousands of businesses. Yet every minute, our nation's financial hole gets deeper by about $10 million. The Comeback America Initiative (CAI) has developed a U.S. Financial Burden Barometer (Burden Barometer) to supplement the "National Debt Clock." The Burden Barometer is a far more accurate measure of our financial situation, since it includes both total liabilities and unfunded promises (e.g., Social Security and Medicare). "We are at a crossroads in America. Our political leaders can keep hiding their heads in the sand and continue toward economic catastrophe. Or, they can take an honest look at our situation, and lead us by pursuing nonpartisan solutions, that can address our challenges in an effective, equitable, moral and sustainable manner," said Mr. Walker. Mr. Walker will kick off the tour in Manchester, N.H. on Sept. 7. From there, the bus will make its way to New York City, then on to at least 16 states, including swing states and key districts. A who's who of national leaders support the tour, including: • Former Senators Alan Simpson (R-Wy), Pete Domenici (R-NM), Sam Nunn (D-Ga.), and Judd Gregg (R-N.H.) • Former Rep. Harold Ford, Jr. (D-TN) and Tom Coleman (R-MO) • Hon. Erskine Bowles • Former Director of the OMB and CBO Alice Rivlin • Former Chairmen of the Federal Reserve Alan Greenspan and Paul Volcker • Former DNC Chairs and Governors Ed Rendell and Roy Romer • Former RNC Chairs and Senators Bill Brock and Mel Martinez • Former Presidential candidate H. Ross Perot, Sr. • Former AARP CEO Bill Novelli • Former Lockheed Martin CEO Norm Augustine • Former SEIU CEO Andy Stern • Former Deloitte CEO Mike Cook • Sojourners CEO Rev. Jim Wallis • Former HP CEO Carly Fiorina One measure of the enormity of our problem is that things have actually gotten worse since H. Ross Perot Sr. spotlighted the issue during his presidential campaign. "Our nation's debt is about four times higher than when I first ran for president in 1992. It's time to defuse our ticking debt bomb," said Mr. Perot. The former Comptroller General of the United States and a former Trustee of Social Security and Medicare, Mr. Walker is currently CEO of the Comeback America Initiative. Mr. Walker will be joined by various other fiscal experts at various stops on the tour. Please visit the bus tour's web site at www.10MillionaMinute.com for graphics of the Burden Barometer, a full list of high-profile bus tour supporters, and the tour itinerary. CONTACTS: Sarah Small Comeback America Initiative Ssmall@tcaii.org 203-382-1000 Bill Beaman OnPoint Strategies bbeaman@onpoint-strategies.com 301-767-7807 ### Learn More

Thursday, July 5 2012

Former Comptroller General David M. Walker and the Institute for Truth in Accounting Release “The Financial State of Connecticut” and “The Financial State of Bridgeport, CT” reports

FOR IMMEDIATE RELEASE

July 5, 2012

Former Comptroller General David M. Walker and the Institute for Truth in Accounting Release “The Financial State of Connecticut” and “The Financial State of Bridgeport, CT” reports

According to data released in the “Financial State of Connecticut” report, Connecticut resembles the Greece of the U.S. from a state financial perspective. BACKGROUND The reports use financial results extracted from the official comprehensive annual financial reports filed by the respective governments for the fiscal year ending June 30, 2011. The burden per taxpayer figures are driven largely by unfunded pension and retiree healthcare benefits. Absent meaningful reforms these amounts will continue to increase over time, and once the new pension accounting standards by the Governmental Accounting Standards Board take effect, the unfunded pension amounts for both entities are likely to increase dramatically. CONNECTICUT Connecticut’s unfunded burden per taxpayer as of June 30, 2011 was $50,900, up from $49,000 in 2010. Connecticut is by far the worst of all 50 states in its unfunded burden per taxpayer. See CAI’s blog post for a list of states. According to the state’s audited financial statements, Connecticut’s unfunded retiree’s health benefits exceeded $29 billion as of June 30, 2011. Based on a subsequent actuarial report issued by the state’s outside actuarial firm, Segal Company, these unfunded obligations were reduced by about $5 billion in the latest round of bargaining and another $6 billion through changes in various assumptions. These new assumptions may or may not prove valid over time. In any event, the remaining approximate $18 billion in unfunded obligations are still too high, and much work remains to be done to make them reasonable, affordable and sustainable. BRIDGEPORT Bridgeport, Connecticut’s unfunded burden per taxpayer as of June 30, 2011 was $28,400, an increase from $27,100 in 2010. The city’s unfunded burden per taxpayer is worse than 46 of the 50 states, based on the Institute for Truth in Accounting’s latest “State of the States” report. Bridgeport’s unfunded retiree health benefits alone exceeded $900 million, and are four times the amount of its reported unfunded pension obligations. This may be the highest unfunded per person retiree health obligation in the world. According to David M. Walker, former U.S. Comptroller General and founder and CEO of the Comeback America Initiative, “The city of Bridgeport and the state of Connecticut are both in poor financial condition. They must restructure their finances in order to improve their competitive posture and avoid a future debt crisis. The numbers are clear and compelling. These two governmental entities need to achieve major transformational reforms soon. Their fiscal clocks are ticking and time is not working in their favor.” ADDITIONAL INFORMATION “The Financial State of Connecticut” and “The Financial State of Bridgeport, CT” were a joint effort by the Institute for Truth in Accounting (IFTA) and the Comeback America Initiative (CAI). Additionally, IFTA recently released its “Financial State of the States Report.” These reports can be found here and here. CONTACT: Sarah Small or Rachel Vierling Comeback America Initiative, ssmall@tcaii.org or rvierling@tcaii.org or 203-382-1000 or Bill Beaman OnPoint Strategies, LLC, bbeaman@onpoint-strategies.com or 301-767-7807 ABOUT CAI: CAI is a non-profit organization that promotes fiscal responsibility and sustainability by engaging the public and assisting key policymakers on a non-partisan basis in order to achieve solutions to America’s fiscal imbalances. Additional information can be found at keepingamericagreat.org. ABOUT IFTA: IFTA is dedicated to promoting honest, accurate, and transparent accounting at all levels of government and business. As a non-partisan, non-profit organization, IFTA works to expose accounting deficiencies while promoting better, more accessible delivery of accurate government financial data—and, in turn, providing a foundation for more informed public policy. IFTA provides its expertise to develop more effective accounting standards and deliver accurate government financial information to policymakers, opinion leaders, and citizens, so they can all work for a more secure financial future. www.truthinaccounting.org Learn More

Thursday, June 28 2012

The Hon. David M. Walker Comments on the Supreme Court’s Affordable Healthcare Act ruling

FOR IMMEDIATE RELEASE

June 28, 2012

The Hon. David M. Walker Comments on the Supreme Court's Affordable Healthcare Act ruling

The Hon. David M. Walker today issued the following statement regarding the Supreme Court's ruling on the Affordable Healthcare Act:

"While the Supreme Court said the mandate was not constitutional under the commerce clause, they upheld it as a tax. It appears they used a ‘substance over form doctrine’ to call the penalty what it was, a tax increase. Regardless, while the Supreme court affirmed the Affordable Care Act as constitutional, Washington policymakers will ultimately need to pass new health care reform legislation. We cannot afford or sustain the ACA in its present form. The Office of the Chief Actuary of Medicare estimates that it will cost trillions more than claimed. The new health care legislation must focus on rationalizing current promises and subsidies, limiting annual federal health care expenditures, modernizing existing payment systems and malpractice approaches, and reforming Medicaid. Any future health care reform legislation must also receive meaningful bipartisan support in order to stand the test of time." Mr. Walker served as a Social Security and Medicare trustee from 1995 to 2000. He is therefore intimately familiar with how poorly Medicare—one of the nation's largest health programs — is financed. Mr. Walker also served as the seventh Comptroller General of the United States and head of the U.S. Government Accountability Office (GAO) for almost ten years (1998-2008). Mr. Walker currently serves as the founder and CEO of the Comeback America Initiative (CAI). In this capacity, he leads CAI’s efforts to promote fiscal responsibility and sustainability by engaging the public and assisting key policymakers on a non-partisan basis to help achieve solutions to America’s federal, state and local fiscal imbalances. If you would like additional analysis, Mr. Walker and his research staff are available for interviews. Please contact: Christie Findlay 301-848-2234 cfindlay@onpoint-strategies.com Sarah Small 203-382-1000 ssmall@tcaii.org Learn More

Monday, April 23 2012

CAI’s Statement On The 2012 Trustees’ Reports

Statement on the 2012 Trustees' Reports

By Hon. David M. Walker, Founder and CEO of the Comeback America Initiative, former U.S. Comptroller General, and former Public Trustee

David Walker, Founder and CEO of the Comeback America Initiative, former Comptroller General, and former Public Trustee, issued the following statement today on the 2012 Trustees’ Reports: "The release of the 2012 Social Security and Medicare Trustees' Reports is a sober reminder that, while our leaders in Washington are focused on the next election, our nation’s financial hole continues to deepen by over $10 million per minute. It’s clear from the reports that our elected officials must take responsibility and address the huge deficits that lie ahead for these programs—or be held accountable for the consequences to us all if they continue to shirk their duty. According to the reports, both the combined Social Security programs and Medicare's Hospital Insurance program experienced negative cash flows in 2011, meaning that more money went out in benefits and expenses than came in through dedicated tax revenue. As a result, Social Security and Medicare are adding to the federal deficit. The Trustees project that this will continue until the related trust funds are exhausted in 2033 and 2024, respectively.  At that point, the programs will be unable to pay promised benefits in full, and will be required to either dramatically cut benefits or impose large tax increases on America’s workers. As is always the case with these reports, it is important to separate the politics from reality. For the third year in a row, the independent Office of the Chief Actuary of Medicare gave the equivalent of an adverse opinion on the Medicare Trustees' Report. Translation: the true financial state of the Medicare programs is much worse than the politicians and trustees claim. These reports have been showing the deteriorating financial condition of these programs for years, yet our elected leaders have failed to act, have not passed a budget in three years, and seem to be more interested in scoring political points than addressing the serious sustainability challenges facing our nation. The federal government cannot, and should not, continue to promise more than it can deliver, when in reality they are mortgaging the future of our country, children and grandchildren." ABOUT CAI The Comeback America Initiative (CAI) is a Bridgeport, CT based non-profit organization that promotes fiscal responsibility and sustainability by engaging the public and assisting key policymakers on a non-partisan basis in order to achieve solutions to America’s fiscal imbalances. CAI's goal is to foster a national discussion around the themes in the book "Comeback America," with an emphasis on various specific policy, operational and political reforms to put government on a more prudent, sustainable and accountable fiscal path. The organization’s primary focus is federal fiscal issues; however, it will also highlight the larger national fiscal challenge and engage in certain reform initiatives in selected states (e.g., Connecticut) and cities (e.g., Bridgeport, CT). CONTACT Sarah Small Comeback America Initiative, Ssmall@tcaii.org or 203-382-1000 Or Bill Beaman OnPoint Strategies, LLC, bbeaman@onpoint-strategies.com or 301-767-7807    

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Tuesday, April 17 2012

CAI’s Statement from the Hon. David M. Walker regarding the Draft Dave Walker for President movement

Statement from the Hon. David M. Walker regarding the Draft Dave Walker for President movement

Former U.S. Comptroller General David Walker today released the following statement: "Reports in the media have mentioned an effort to draft me as a candidate for President through the Americans Elect (AE) process, and I want to clarify my position. I am aware of this recent independent movement to draft me, which is an initiative by people who evidently share my views regarding the need for fiscal, political and other major reforms to keep America great. Importantly, their effort is unrelated to the Comeback America Initiative (CAI), No Labels, and AE organizations. "While I appreciate and am humbled by their efforts, I am not a candidate and don't expect to become one. Rather, I am focused on my many responsibilities, including serving as CEO of the non-partisan CAI, as a national co-founder of No Labels, and as a member of AE's Board of Advisors." Mr. Walker is CEO of the Comeback America Initiative, a nonprofit organization whose mission is to promote fiscal responsibility and sustainability by engaging the public and assisting key policymakers on a non-partisan basis in order to achieve solutions to America's fiscal imbalances. As part of his national campaign to educate Americans about important fiscal issues, Mr. Walker this week posted a video about two key fairness issues that are being ignored in the tax debate: fairness within income brackets, and intergenerational fairness. The tax video is the latest in CAI's Myth of the Month series. You can view the Myth videos here: http://keepingamericagreat.org/educate-yourself/learn-the-facts/myth-of-the-month/ Learn more about the Comeback America Initiative at www.KeepingAmericaGreat.org. Contact: Bill Beaman, bbeaman@onpoint-strategies.com, 301-767-7807 Sarah Small, ssmall@tcaii.org, 203-382-1000 Learn More

Friday, December 23 2011

CAI’s Statement on Issuance of the US Government’s Financial Statements

STATEMENT OF HON. DAVID M. WALKER, FOUNDER AND CEO OF THE COMEBACK AMERICA INITIATIVE AND FORMER U.S. COMPTROLLER GENERAL, ON ISSUANCE OF THE U.S. GOVERNMENT'S FINANCIAL STATEMENTS AND GAO's AUDIT REPORT FOR FISCAL 2011

“In yet another demonstration of just how out-of-touch Washington is with the concerns of the American people, and the lack of adequate attention to the nation's deteriorating finances, the Treasury Department issued the U.S. Government's Consolidated Financial Statements and the Government Accountability Office's (GAO) related Audit Report on the Friday before Christmas when the American people are focused on the holiday season. “The fiscal 2011 Consolidated Financial Statements showed that the federal government now has a negative net position of about $14.8 trillion, a deterioration of $1.3 trillion from the prior year. In addition, the federal government's financial hole got deeper and, based on reasonable and sustainable assumptions, was over $65 trillion (or over $550,000 per household) as of September 30, 2011, up from $61.2 trillion (or about $530,000 per household) last year. “The GAO's Audit Report included yet another Disclaimer of Opinion on the U.S. Government's financial statements with a special emphasis on the unsustainability of the federal government's current fiscal path. GAO also issued a lengthy management letter that serves to highlight the federal government's inadequate financial systems and internal controls. “If the U.S. Government was a public company, the Board would be calling an emergency meeting and the CEO would be conducting conference calls to calm nervous investors who might otherwise be shorting the stock and dumping their holdings in the company’s debt. It's time for both Congress and the President to get serious and focus their attention on addressing our country's deteriorating financial condition. “In order to help people understand the facts and the types of reforms that will be necessary to put the country on a prudent and sustainable fiscal path, CAI issued the Restoring Fiscal Sanity Report (http://www.tcaii.org/UploadedFiles/PlanAandBReport.pdf) and created the Fiscal IQ quiz. Every American, especially current and prospective elected officials, should complete the 5-10 minute online quiz at www.fiscaliq.net. “If we expect to avoid a debt crisis in the U.S., it is critically important that steps be taken to facilitate achievement of a grand fiscal bargain in 2013. This will require a meaningful public education and engagement effort in 2012. All of us at CAI are dedicated to doing what we can to make sure that it happens in order to keep America great and the American Dream alive.” ABOUT CAI: The Comeback America Initiative (CAI) is a non-profit organization that promotes fiscal responsibility and sustainability by engaging the public and assisting key policymakers on a non-partisan basis in order to achieve solutions to America's fiscal imbalances. Learn More