10.2190/0U5M-J29B-PY3N-G9E9 0U5MJ29BPY3NG9E9 0 THE ABILITY TO PAY: ACCOUNTING AND COLLECTIVE BARGAINING IN THE PUBLIC SECTOR 20020509 20020509 20020509 20020509 http://baywood.metapress.com/link.asp?target=contribution&id=0U5MJ29BPY3NG9E9 3 DYNE PFEFFENBERGER, MAX LAUDEMAN, LAWRENCE J. HABER, AND DAVID A. DILTS Even though there are at least three major standards used in wage arbitration in the public sector, the ability to pay standard is fundamental to the application of other criteria in negotiations. This article examines issues surrounding the impact of accounting regulations upon this critical standard and how evolving accounting principles dealing with the public sector have not yet developed to the same degree as those influencing the private sector. The lack of fully developed public sector accounting principles has resulted in questionable benefit to negotiators as they apply the ability to pay standard.