Generally, filing statements of financial disclosure is mandatory for individuals running for public office. Also, those already occupying positions in public office must also submit their financial disclosure statements. This is essential for any office on a state, federal, as well as the local level. These statements often show politicians’ income sources, their investments, gifts, businesses in which they are interested in or hold a position, and the property they own. Additionally, financial disclosure highlight politicians’ honorariums they have gained. Thus, these statements facilitate information transparency. Financial disclosures are vital as they help in avoiding conflicts of interests on the part of public officials. As such, the public can identify whether the personal economic interests of a politician might impact one’s action as a holder of public office. Similarly, non-elected officials of government are also mandated to file financial disclosures. These officials mostly hold top positions on a state, federal, as well as local level.
Markedly, California uses financial disclosure forms. For the most part, California refers to these forms as statements of economic interests commonly referred to as Form 700. Those holding or running for a local office – school board, city council, or board of supervisors – or a state elected position must file these forms (Grabowicz, 2014). In addition, numerous non-elected local and state officials must file these financial statements. These officials may include heads of department or county administrators such as directors of the redevelopment of agency, the chiefs of police. City managers are also required to file financial disclosure statements. The statements of economic interests detail public official’s income source, real estate owned, loans received, business investments, and gifts. More so, it reveals the income sources to a business in which the politician is a partner. In this case, the public official has to gain at least an annual income of $10,000 from the income source (Grabowicz, 2014).
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Similarly, in Florida, employees, along with public officials, are required to file financial disclosure statements. This is because it allows the public to examine apparent conflicts of interests. It further impedes corruption and increases the confidence of the people in government. Likewise, public officials in Florida have to disclose their income sources, gifts, honoraria information, as well as income sources to a business. However, in Florida, a public official has to file his or her income source to a company if the individual acquired over $5,000 from the business (NCSL, 2019). Additionally, public officials in Florida must file their property, and if it is not for investment but is over $1,000 in value, then he or she as personal effects and household goods. In California, however, the form 700 does not include a provision for personal effects and household goods.
Notably, the information demands of financial disclosure statements are related to ethics. As stated earlier, the primary rationale behind filing a financial disclosure statement for public officials is to prevent corruption and avoid conflicts of interest which will, in turn, enhance public trust. Subjecting public officials to disclose their income, business interests, as well as assets, is an effective way of ensuring that they think critically about wanting to profit illegally from their duties in public office. Moreover, with these financial statements, it will be unlikely that politicians will allow their interests to influence their official duties, or rather, conflict with their duties in the office. The fear of detection will motivate politicians to refrain from corruption. Thus, financial disclosures benefit the public ethically as it makes it hard for politicians to hide illicit gains.
To sum up, financial disclosures are often used by cities to prevent public office holders from engaging in corruption and enhances public trust. Therefore, these statements facilitate transparency in financial information, making it hard for politicians to hide their illicit gains. California and Florida use financial disclosure statements to monitor the financial information of public officials.
References
Grabowicz, P. (2014 ). Financial Disclosure Statements - Berkeley Advanced Media Institute . Retrieved from https://multimedia.journalism.berkeley.edu/tutorials/financial-disclosure-statements/
NCSL. (2019). Personal Financial Disclosure for Legislators: Income Requirements . Retrieved from http://www.ncsl.org/research/ethics/financial-disclosure-for-legislators-income.aspx
