Description

Government started out as a "pay as you go" structure. By transforming into a corporate liability company over the decades, this gave them the ability to use "advance projections" to strip annual operating funds and create advance forward liability accounts whereby in doing so they were able to, by stealth, build numerous "wealth bases" of equity in many designated fund balances separate from the budget reports that were exclusively presented for public viewing.

When looking at the "whole picture" through the CAFR and sub investment fund reports noted per gross income, only 1/3rd is tax income whereas when you look at a budget report for the year it gives the impression per gross income that nearly 100% is tax income. Very deceptive when only one side of the coin is presented.

Budget reports are presented giving the false impression that it "is" the true financial picture and it is far from it. What is shown is primarily tax income for a "selective grouping" of accounts where tax income is collected and expended.

Compare your state's 1997 CAFR and the current CAFR to see the difference. I have included Maine's CAFR for 1997 and 2008 for research and comparison purposes.