Patents on tax strategies, interstate practice and peer review were just three of the hot issues discussed at the information-packed Members Advisory Forum, held on May 9, 2007 in Lansing. Though these national issues are critical, Michigan’s budget and business tax replacement problems took the limelight.
| Speaker Presentations Online While it’s not quite the same as being there, you can visit the MACPA web site to access detail-packed PowerPoint presentations from the May 9, 2007 Members Advisory Forum. |
A panel discussion moderated by MACPA Lobbyist Tom Hoisington further explored the state’s financial woes. Mitchell Bean, director of the House Fiscal Agency, offered a detailed look at where the state spends its money and predicted a 2008 FY budget shortfall of $1,432,300,000 – double the FY 2007 shortfall. Doug Roberts, director of the Institute for Public Policy and Social Research at MSU and former Michigan treasurer, shared recommendations from the Governor’s Emergency Financial Advisory Panel. Revenue increases, spending cuts, and reforming how public services are delivered are necessary, he said. Consolidation of local units of government and school districts should be considered, he suggested.
The third panel member, MACPA board member Greg Nowak, focused his attention on the various options for replacing the SBT. See State Tax Debate Heads into Extra Innings for more information.
AICPA President and CEO Barry Melancon provided a big-picture view of several issues, all of which are certain to have a major impact on the profession. (Some of these topics are covered in more detail in other Leaders’ Edge articles. Follow the links to read more.)
| Mobility Survey The AICPA is conducting an online survey as a part of its ongoing effort to communicate and educate members on the complexities associated with obtaining interstate practice privileges. Please, take a moment to fill out this survey |
While the AICPA could attempt to change mobility restrictions at the national level, Melancon said the AICPA and National Association of the State Boards of Accountancy are committed to working through state boards to affect change. He said the two groups want to amend the Uniform Accountancy Act and state CPA societies and state boards of accountancies have renewed their efforts to achieve a newly revised provision that will accomplish this goal. Several states have already adopted or are developing mobility legislation.
Melancon painted a promising picture of the number of students enrolled in and graduating from accounting programs, and the numbers of students taking and passing the CPA exam. He remains concerned, however, about retaining young professionals and attracting enough future accountants to fill demands as Baby Boomer CPAs retire over the next decade. The need for new PhDs is at a critical point. Melancon says the number of new PhDs over the next three years will meet only half of the demand.
Melancon also discussed concerns about the patenting of tax strategies and efforts to develop accounting standards for private companies. (Read Forces Shaping the Profession: The Four Ps for more information on both topics.)
The Institute continues to work on (tax) seasonality pressures. Meanwhile, Melancon says AICPA initiatives to support small firms and provide resources are growing. He called attention to succession planning resources and a new best practices white paper on staffing. Melancon also talked about the profession’s financial literacy efforts and the successful launch of the Feed the Pig public service campaign.
State Board of Accountancy Chair Beth Bialy recapped accountancy reform legislation passed in December 2005. Different aspects of the legislation are in various stages of implementation. She focused on the state’s new peer review mandate. Bialy said the MACPA and State Board worked together to secure an extension and phase-in for implementation of the requirement. The lead time needed to complete the peer review process and the need to spread out the influx of new participants were key considerations.
Bialy also said the State Board is reviewing the AICPA and NASBA proposals to determine what legislative changes would be required if Michigan were to follow suit with the mobility proposal.
Other highlights of the day included an entertaining look at politics and Lansing with Senior Capitol Correspondent Tim Skubick. In addition, participants enjoyed learning about MACPA initiatives, member activities and financial literacy efforts in an informative presentation from MACPA President and CEO Peggy Dzierzawski.