The financial reporting principles used by the private sector andstate and by local governments should be applied to the federalbudget to give policymakers a clearer picture of the nation'sfinancial health. Congress should change the federal budget processto reflect changes in long-term liabilities and obligations as thefirst step in addressing $36 trillion in unfunded entitlementobligations.
Social Security and Medicare are a growing threat to the federalbudget, and providing better information about their liabilitieswill help the public and policymakers to address them seriously.