Bourne finance panel is already wary of pension-liability reporting
The consequences of Americans’ lack of know-how with finances are reflected in everything from the subprime meltdown to our dismal savings rate. And such lack of understanding has more ramifications. Without grasping the implications, many young people are saddling themselves with college debt that often reaches into the tens of thousands of dollars. They are being asked “to make some of the most important decisions of their life, whether to invest in education at an early time, and whether to take out debt,” said Annamaria Lusardi, professor at the George Washington University School of Business.
This is a complex issue. Finance member Mary Jane Mastrangelo said there are two aspects of the town beginning to face its post-employment obligations beyond the annual fiscal lip service they command; that is, she said, the overall impact and the actuarial side of it. Member John Redman said the Massachusetts Municipal Association might be able to make a consultant available to help the town broach the inevitable; that is, how it will deal with post-employment realities as they affect the municipal finances and the bottom line of Bournes overall fiscal health. Finance panel chairman Michele Ford said she would discuss the issue with Town Administrator Thomas Guerino. Guerino, Finance Director Linda Marzelli and selectmen have been routinely advised about how annual audits in the near future will carry post-employment totals as an accounting measure. This is a formal change in upcoming audits. Such pension-accounting impacts have not been included in year-ending financial reporting that scrutinizes and announces the towns overall fiscal condition.