CPAs Teach Reporters About State Budget and Corporate Earnings

By Lillie Balinova

Journalists covering the state government gained insights on reading the New York state budget at an NYSSCPA-sponsored seminar held in Albany on January 26, the day before Governor George E. Pataki released his 1999­2000 proposed budget. In addition, the Society's Cooperation with Financial Media Committee organized a February seminar on earnings statements for reporters from the New York Daily News.

Led by Dwight Hadley (Northeast), an NYSSCPA government relations director, the Albany session used the 1998­99 state budget as the basis for discussion. Hadley guided participants through the budget's four books: the executive budget summary, summaries for each state agency, financial plan, and tax expenditure report.

Among the information covered were how to understand the complete spending plan, estimated revenues, major initiatives, economic outlook, and legislative proposals required to implement the budget. Hadley also explained the summaries for each state department or agency, state debt service requirements, appropriations, the financial plan overview, receipts estimates, and the capital program and financial plan.

He concluded with a look at tax expenditures--the exclusions, exemptions, deductions, allowances, credits, deferrals, preferential tax rates, or other devices that reduce the taxpayer's liability and, therefore, the state's revenues from a specific tax source.

Attendees included reporters from the Buffalo News, Daily Gazette of Schenectady, New York Daily News, New York Times, Troy Record, Watertown Times, and PBS's "Inside Albany." The Legislative Correspondents Association made the Legislative Building press room available to the Society.

The Cooperation with Financial Media Committee's seminar for the New York Daily News, led by committee member Francine Mellors, used corporate press releases on fourth quarter financial results to take reporters through the process of understanding earnings statements.