Posted on 07/13/2011 6:34:35 AM PDT by harpu
For all the controversy over the national debt ceiling, here's a surprise: Since 2001, the debt load in conservative Texas has grown faster than the federal debt.
Texas has been borrowing more than most other states, too. And local entities, from cities to school districts to transit authorities, have been piling up even more debt.
From 2001 to 2010, state debt alone grew from $13.4 billion to $37.8 billion, according to the Texas Bond Review Board. That's an increase of 281 percent. Over the same time, the national debt rose almost 234 percent, with two wars, two tax cuts and stimulus spending.
The sets of numbers are not easily comparable, and not just because one is counted in billions and the other in trillions. National figures exclude some obligations, and the Texas total includes so-called conduit bonds, for which the state is not necessarily liable if the borrowers default.
Still, the trend is undeniable. While Texas lawmakers have refused to raise taxes -- and often criticize Washington for borrowing and spending -- the state has been paying for much of its expansion with borrowed money.
- - - BIG Snip; Lot's more in the Article - - -
(Excerpt) Read more at star-telegram.com ...
Is this the opening Salvo against the potential candidacy of Gov. Perry?
Yup, they used to throw free trial papers into driveways every couple of months in pink or yellow plastic sleeves. Most went straight into the trash or recycle bins. I'd hate to be the delivery driver these days with the cost of fuel. Not much profit for them with the few I see laying when I go walking early on weekends.
Texas also has 6 billion in a rainy day fund that offsets some of the debt
Kind of reminds me of that Far Side cartoon where these two goldfish are standing on their tails on a table just outside their bowl while inside their little castle is completely engulfed in flames.
One goldfish says to the other, "Whew! That was close. We barely made it out in time", and then after a moment's reflection continues, "Of course, now we're equally screwed."
I noted it included school bonds (having to build schools to meet a growing population while hamstrung by class size requirements). It also included road debt. This was done to get ahead on road costs to avoid inflation. As opposed to borrowing to fund “shrimp on treadmill” spending.
Apples and oranges
The San Antonio Express-News went to a tabloid size and format a couple of years ago. Appropriate. And since they bought out the Light (20+ years ago), there’s been no alternative. We stopped taking it over a decade ago and only (barely) miss the coupons.
Colonel, USAFR
Given the following quotes from the article:
“Texas’ population grew almost twice as fast as the nation’s in the past decade, so it needs new highways, schools, prisons and more”
and
“Local borrowing accounts for almost 85 percent of public debt in Texas, because the government is so decentralized. Combine state and local borrowing, and Texas ended fiscal 2008 with $216 billion in total debt, up from $98 billion in 2001, according to census figures. (The latest census data for local debt is 2008.)”
I don’t think Rick Perry has anything to do with it.
In CA, bonds go before the voters. If voters decide to grow the debt, it's on them, not elected officials.
As far as our little Texas town goes our city charter does not allow for anything other than a balanced budget and also requires a multi-million dollar "emergency" fund. The same applies to the state which has billions in its rainy day fund. Read here.
Because of the Texas Rainy Day Fund which actually contains real money (not IOU's) the comparison here between percentages of debt owed by the federal government and debt owed by Texas is absurd. Texas is in great shape compared to the federal government. We have a positive cash flow and money in the bank. We really don't need the federal government and would indeed be better off being our own country. Or better yet, maybe Texas should just buy the rest of the country:)
This is a very silly comparison and seems to be motivated by a liberal rag who had their "editors" sit down and see if they could find something negative to print because Perry might have another office to run for.
Sure it will. With the growth comes more necessary buildings and other long-term investments. Additional schools, hospitals, roads, and other infrastructure is necessary. Such debt is not a sign of overspending.
There is both "good debt" and "bad debt". Incurring debt to provide services for a growing population is not in and of itself wrong. The problem with the federal debt is there is no corresponding healthy growth in the economy or infrastructure (ie dams, roads, ports, hospitals, etc) that justifies going further into debt. And unlike Texas, the Federal gov't has pretty much tapped out their potential income sources. Unlike Texas which gets by without income taxes.
The Star Telegram is a leftist pile of steaming cow poop. No one I know anymore subscribes to it. They throw free papers on Sunday and Wednesday that has ads and coupons in it.
We take those out and trash the rest. The paper is full of liberals and never accurately reflects the citizens.
Soon it will have to merge with the Dallas propoganda rag to stay afloat. They already share a lot of facilities.
bookmark
A&M had GSS (gay student services) when I was there in the 80’s.
One of my friends in the dorm found out when he got the yearbook that his weightlifting partner in PE was a GSS member.
Poor guy spent a semster with homojunk WAY to close to his noggin at times.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.