Local Debt
What to Know: School districts across Texas continue to push bond issues, even as local debt skyrockets, revenues are up and student enrollment drops.
The TPPF Take: Local governments are addicted to debt.
“The borrowing binge continues in spite of widespread economic misery, business closures, and joblessness,” says TPPF’s James Quintero. “State lawmakers must do more to wean local governments from their debt dependency. Legislative reforms should focus on: maximizing public participation by requiring bond elections to be held in November, encouraging stakeholder engagement via the elimination of certificates of obligation, and promoting efficiency through the use of third-party audits. Now is the time for big, bold reforms.”