"I'm afraid that we're pretending we have a surplus when we don't," said Treasurer Kennedy. "We actually have a $141 million deficit if we use the accounting method we've always used. The division needs to explain why that method is suddenly wrong."
The Division of Administration announced last week that the 2014 fiscal year ended with a $179 million surplus. The division did not explain how it arrived at that figure for the state fiscal year that ended in June. The Joint Legislative Committee on the Budget is scheduled to discuss the surplus .
"It appears that the division used the same kind of math that drove the Office of Group Benefits into financial ruin," said Treasurer Kennedy. "We need to a call a timeout before we start spending this money. We need to see the methodology."
Treasurer Kennedy cancelled conference calls with bond rating agencies until the questions surrounding the surplus are resolved.
"I want to make sure we don't have a manufactured surplus," said Treasurer Kennedy. "I would be thrilled if we have a surplus. My fear is that we used funny math to create a surplus that doesn't exist."