New Mexico and Arizona joined the Union in 1912, despite the opposition from some of their residents. The Fiscal Case against Statehood examines the concerns of the people who lost the battle over statehood in the two territories. Moussalli examines their territorial and early state governments' fiscal behavior and reveals that while their fears of steep increases in the cost of government were well-founded, statehood also significantly improved their governments' accountability for their use of the public purse. She concludes that fiscal officials enabled statehood's growth in government by improving the financial reports and processes. Moussalli examines New Mexico's and Arizona's financial reports before and after statehood, and compares them to the state of Nevada's reports as a control. Through detailed, systematic analysis, Moussalli reveals the fiscal costs and accountability gains of statehood for the residents of New Mexico and Arizona.

Table of Contents

Acknowledgments Introduction Part I. The Money Chapter 1. Statehood and Leviathan Chapter 2. New Mexico's Rocky Fiscal Road to Statehood Chapter 3. Arizona's Rocky Fiscal Road to Statehood Chapter 4. The Statehood Gamble Chapter 5. The Birth of Leviathan Part II . The Books Chapter 6. Accountability and Statehood Chapter 7. The Talk: Management's Discussion and Analysis Chapter 8. Accountants at the Service of the State: Reforming Property Tax Administration Chapter 9. Funds, Assets, Liabilities, Fiscal Years, and Report Timing Chapter 10. Interfund Transfers, Federal Subsidies, Revenues and Expenditures, Tax Rates, and Budgets Chapter 11. The Elements of Accountability Chapter 12. Conclusion: Statehood and Accountability, Leviathan and Accountants Appendix

About the Author

Stephanie D. Moussalli is assistant professor of accounting at Rhodes College.

Reviews

"The Fiscal Case against Statehood is an interdisciplinary delight. Moussalli deftly blends accounting, history, economics, and public administration into a compelling story about the effects of statehood. Scholars interested in better understanding the growth of government or the evolution of accounting standards will benefit from a close read." -- Joshua Hall, Beloit College "This book is both history of accounting as well as accounting for history. Through her meticulous research into interplay between political structure, politics, fiscal management and accounting, Moussalli's work makes an impressive contribution to the sparsely populated branch of scholarship--political accounting. Although accounting is often depicted as an afterthought to structure of business and political organizations, Moussalli's work tells the story of their co-evolution. Students of accounting, organizations, politics, and history will find it a rewarding reading and source of rich examples. A hundred years after creation of the states of New Mexico and Arizona out of territories, this highly readable book could inform the on-going political debate in India on breaking up large states of the union into smaller ones." -- Shyam Sunder, Yale University