The article Texas’ Fast-Growing Debt Tops That Of U.S. Government’s shows one way to get around Constitutionally mandated balanced budgets.
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.
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Local borrowing accounts for almost 85 percent of public debt in Texas, because the government is so decentralized.
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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.
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Texas doesn’t appear to be overextended. In a May report, Standard & Poor’s gave the state an AA+ rating, citing its outperforming economy, strong cash management and constitutional limits on debt.
The Texas state government finds it east to stay within its constitutionally mandated balanced budget limits. The state just pushes off the task of coming up with the money onto the local governments within the state.
You don’t suppose that if we had a federal balanced budget constitutional amendment, the state and local governments would be forced to pay for what the federal government could no longer fund?