A round-up of public finance news stories from the US and Canada you might have missed this week (May 27–31).

US GDP in Q1 revised lower as austerity measures bite

A drop in government spending dragged more on the US economy than initially thought in the first three months of the year, a sign of increasing pain from Washington's austerity drive. (Huffington Post)

Audit questions $23m in benefits for New Jersey inmates

A clunky computerised data system that maintained information on inmates in New Jersey's county jails was largely responsible for $23.6m spent on unemployment benefits, Medicaid coverage, food stamps, and cash assistance received by those behind bars, according to state comptroller A. Matthew Boxer. (Philly.com, Philadelphia)

Report calls for more public private partnerships

Canada’s Fraser Institute think-tank has said greater use of public-private partnerships for major infrastructure projects could deliver better value-for-money to taxpayers. (news1130.com)

More trouble at IRS as audit finds misuse of credit cards

A new report by the Treasury Inspector General for Tax Administration, the Internal Revenue Service’s own auditor, points to a ‘lack of aggressive steps’ to address misuse of the credit cards IRS employees use when traveling. (Hawaii Reporter)

Former audit chief named Arkansas treasurer

Former legislative auditor Charles Robinson will replace Martha Shoffner as Arkansas state treasurer, governor Mike Beebe has announced. Shoffner resigned last week. (Baxter Bulletin)