Monday, November 26, 2018

#TXLEGE: APPALLING New ##'s on Local Debt

"The rich rules over the poor,
And the borrower is servant to the lender."
Proverbs 22:7

[Note: TPPF has a longer analysis here.]

Disgraceful, from TPPF:
AUSTIN – Preliminary data released by the Texas Bond Review Board found cities, counties, school districts, and special districts owe a total of $354.6 billion as of fiscal year 2018.

James Quintero, Director of the Texas Public Policy Foundation's Think Local Liberty initiative, issued the following statement:

“Texas’ local governments are awash in a sea of red ink. New estimates show that total local debt grew to $354.6 billion in FY 2018 or more than $12,500 owed for every man, woman, and child in Texas. That’s an enormous sum of money to have to repay, and it has major public policy implications.

“Local governments are addicted to debt. Such a heavy dependence is right now forcing higher property tax bills, bigger government, and slower economic growth. In the future, it’ll mean that the Texans of tomorrow must bear a heavy burden. It’s time for the Texas Legislature to get a handle on the problem—before it’s too late.”
Keep in mind: That number is up $12 BILLION in two years and $32 BILLION in five.

Bottom Line: There are any number of long-term challenges, but local government debt WILL destroy Texas' economy if it's not addressed before too much longer....

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