keeping stateNASACT fiscal officials informed news Volume 31, Number 8 August 2011 NASACT Members Meet in Burlington for the 2011 Conference By Glenda Johnson, Communications Manager ASACT President Nancy K. Kopp, state treasurer of Maryland, governors. The session was taped for later airing by Vermont Nrecently welcomed members, corporate partners and guests to Public Television. Participating in the discussion were: Burlington, Vermont, for NASACT’s ninety-sixth annual conference. Gov. Peter Shumlin (current) The event was held on August 13-17 at the Burlington Hilton. Hon. James H. Douglas (2003-2011) Attendees were also welcomed by hosts Jim Reardon, commissioner Hon. Howard Dean (1991-2003) of the Department of Finance and Management; Beth Pearce, state Hon. Madeleine Kunin (1985-1991) treasurer, and Thomas M. Salmon, state auditor. Hon. Thomas P. Salmon (1973-1977) The conference began with a number of meetings and networking opportunities. On Saturday, August 13, many The session was moderated by Chris Graff, former head of the participated in the annual golf scramble, which was held at Basin Vermont Associated Press. Harbor Golf Club. On Saturday evening, attendees were treated The governors discussed challenges during their years in to refreshments at the welcoming hospitality reception after offi ce and how those obstacles were overcome, as well as their a day of golf or travel. The annual 5K fun run/walk was held views on the political landscape in the states and in the country Sunday, August 14, where participants enjoyed a brisk morning today. Although they were not in consensus on every point, walk or run along the banks of Lake Champlain. Also on Sunday, all were in agreement that the political atmosphere and the NASACT’s Executive Committee met from 1:00-4:00 p.m. and partisan gridlock in Washington today is not meeting the nation’s the Committee on Accounting, Reporting and Auditing held current leadership needs. They each cited instances from their its annual in-person meeting. Sunday night, all attendees were experiences in state government where tough challenges were invited to the President’s Reception at the Barn at Lang Farm. overcome through the spirit of compromise and moving forward The conference featured fi ve general sessions and 18 for the good of the majority. The willingness to compromise in concurrent sessions covering a wide range of topics, with over order to conduct the business of the people seems to be lacking 77 speakers and moderators participating. There were over 260 today at the federal level. They all agreed that more and better attendees at the conference and an additional 50 participants in leadership and a healthy dose of political courage will be needed the guest program. PowerPoint presentations from the sessions to guide the country out of its current situation. Additionally, the may be downloaded from NASACT’s website at www.nasact.org/ governors were in agreement that government in general needs to conferences_training/nasact/annualconference.cfm. A complete be more inclusive and more truly representative of those which it list of the sessions and speakers can be found on page 4. serves, both in terms of demographics and socioeconomic status. The fi rst general session on Monday morning was a historic panel discussion by Vermont’s current governor and four past (continued, next page) 2011 Annual Conference Features Historic Panel of Five Vermont Governors ive Vermont governors participated in a panel to kick off the F2011 NASACT Annual Conference held recently in Burlington. Shown left to right: Current Vermont Gov. Peter Shumlin, James H. Douglas, Madeleine Kunin, Howard Dean and Thomas P. Salmon. The full video of the panel discussion can be viewed at the Vermont Public Television website at www.vpt.org. NASACT News August 2011 page 1 NASACT Annual Conference Recap (continued from page 1) The fi rst day of the conference ended with a general session The Tuesday afternoon general session was presented by Dr. presented by Ernest Almonte, lifetime member of NASACT, David A. Colander, the C.A. Johnson distinguished professor former auditor general of Rhode Island and current chairman of economics at Middlebury College. He provided an economic and CEO of The Almonte Group LLC. Mr. Almonte discussed overview. In his view, the country is not in a recession, but “From the Private Side Looking In: A Different Perspective.” He in a “depressed depression.” He said that no politician, from emphasized the importance of establishing professional networks either political party, has been forthright about the seriousness of peers through NASACT and other such organizations. He of the economic problem; until that happens, the U.S. will not encouraged attendees to keep foremost in their minds, regardless be addressing its underlying problems. In his view, the federal of their affi liation with the public budget needs to be cut not by $1.5 or private sectors, the importance trillion, or $4 trillion, but more of adhering to basic principles like like $10 trillion (and perhaps integrity, honesty and leadership. even $12 trillion). He said that the Also on Monday, breakout desires of citizens and the realistic meetings were held to allow the capabilities of our economy National Association of State will need to reach some level of Comptrollers and the National convergence to address the issues. State Auditors Association to He used an analogy to convey this conduct brief business meetings. idea: America needs to exercise NASACT’s treasurer constituency more and eat less. also met that afternoon. Recaps As customary, Tuesday night from these meetings will appear ended with the State Night Dinner, in the September issue of the which included entertainment NASACT News. On Monday night, and the presentation of awards to conference participants enjoyed a winners of the golf tournament and cruise on Lake Champlain aboard the 5K fun run. the Ethan Allen III. Above: NASACT President Nancy Kopp addressed A fi fth general session was held The conference re-convened on Wednesday morning, August the group during opening ceremonies. Below: Lead on Tuesday morning, with David 17, focusing on “The Current State Walker, founder and CEO of the conference host Thomas M. Salmon with his father, of Pensions: Are Things as Bad Comeback America Initiative, Thomas P. Salmon, a participant in the opening general As Advertised?” Charles Millard, sharing his presentation “The session featuring governors from Vermont. managing director of Citi Global Nation’s Fiscal Challenge and a Markets and former director of Way Forward.” Mr. Walker, who the U.S. Pension Benefi t Guaranty is the former U.S. comptroller Corporation, opened the session by general, provided an updated assuring the group that things are version of some of the same not as bad as advertised; the current warnings he has been offering funded status of public pensions the public for several years. He is very similar to that of private identifi ed several key systemic funds. Additionally, states have challenges for the countrythe fi rst done a number of things to respond being expansion of government at to the recession and the fi nancial all levels. Other challenges include crisis. First, they have adopted more health care costs, retirement aggressive investment allocations income and disability/welfare than the private sector in recent costs, critical infrastructure needs, years. They have also reduced education and corrections costs, benefi ts and/or raised contributions outdated and inadequate revenue and many are looking into defi ned systems, and the continued and contributions. Next, John Chiang, growing infl uence of special interests and self-interest. He said state controller of California, and Thomas P. DiNapoli, state that Congress and our federal-level leaders, in both parties, are controller of New York, provided an overview of the pension not being honest about the true nature of the crisis, nor are they situations in their states. Both of these states have taken actions to exhibiting the leadership needed or taking the actions needed. He ensure the solvency of their pension systems, further supporting the encouraged attendees to visit the Comeback America Initiative’s notion that some of the negative press received by public pensions website at www.tcaii.org to fi nd resources showing an honest lately is unwarranted and misinformed. depiction of the dismal state of the federal government’s fi nances The fi nal session of the conference was a roundtable session as well as a plan to address the huge problems. (continued, next page) NASACT News August 2011 page 2 NASACT Annual Conference Recap (continued from page 2) moderated by Martin J. Benison, comptroller of Massachusetts, special thanks go to Vermont State Auditor Thomas M. Salmon, and Harvey C. Eckert, former commonwealth comptroller of whose offi ce served as the lead host offi ce, and all his staff. Pennsylvania. Members were surveyed prior to the conference Dale Schaft from the State Auditor’s Offi ce was the host state to gather questions for discussion among the group. Some of the coordinator; without her patience, dedication and excellent topics discussed include: capacity for getting the job done, this conference would not have been possible. Special thanks also go to the state co-hosts, Planning, performance and prioritizing: how to improve Department of Finance and Management Commissioner Jim communication, coordination and collaboration between states Reardon and State Treasurer Beth Pearce and their staffs. and the federal government to improve the effectiveness of NASACT acknowledges with appreciation all the speakers government. and moderators who helped continue the association’s tradition of How to foster a longer-term focus among state government program excellence. leaders and politicians to address fi scal issues. Without the knowledge, expertise and fi nancial support of our Transparency initiatives in the states. corporate partners, the conference would be truly lackingwe What states are doing to resolve audit fi ndings.