Under recently enacted Federal Government Accounting Standards, state and local governments are required to report their unfunded pension liability as part of their overall fiscal position.
This has placed many of these governments in the red, including Danville, which is looking at pension shortfalls. Danville Mayor Scott Eisenhauer says the new standards were adopted here last year…
The inclusion of the pension obligation makes it harder to take out bonds and loans for long term debt as interest rates would be higher.
Eisenhauer says the newer system skews the current outlook of the city’s budget condition.
He says looking at audits now can be tough to understand…
Eisenhauer said that the newer, redder audits have not impacted businesses coming to the community.
