By Mike Norman
mnorman@star-telegram.com
State Comptroller Susan Combs looked at the growth in state and local government debt in Texas during the past 10 years and didn't much like what she saw.
State debt is pretty much under control, she says, but local government debt is growing at an alarming rate.
Local government debt outstanding jumped more than 122 percent during the period, Combs said during a Wednesday news conference where she released a report, "Your Money and Local Debt." It's the second in a series of reports that she calls
"Texas, It's Your Money." (
bit.ly/QzkHz4)
A local government debt load that has more than doubled in 10 years is indeed alarming. If the figures from Combs are correct, that debt grew at a rate more than twice the 53.3 percent combined measures of population growth and inflation.
Combs pegged the combined outstanding debt of cities, counties, school districts, hospital districts, water districts and other local governments at more than $192.7 billion as of 2011.
The largest share, $63.6 billion, almost a third of the total, is owed by school districts, she said. Cities added $62.9 billion, almost another third. Counties and special purpose districts make up the rest.
Those are big numbers, which are notoriously hard to comprehend. And they are statewide numbers.
A resident of Fort Worth has no control over how much debt they rack up in Houston or Midland or Tyler and even less interest.
What's more pertinent is the picture here at home. The numbers you need for that are in financial documents held by each city, school district and other government unit in the county. There are 23 overlapping governments in Fort Worth alone.
But take Fort Worth by itself. The place to look is the city's
Comprehensive Annual Financial Report. (
bit.ly/Q4ZhYM)
The city's general bonded debt (general obligation bonds and certificates of obligation), the debt supported by property taxes, grew 102 percent from 2002 through 2011, the latest CAFR report shows. The total went to $574.6 million, up from $284.3 million in 2002.
The city has other debt that's supported by water and sewer fees, parking fees, garbage fees and the like. But let's keep things as simple as possible for now.
The growth in tax-supported debt is huge. But it was a big decade, and the tax base also grew a lot.
The assessed value of Fort Worth property was $39.8 billion in 2011, up from $22.3 billion in 2002. That's a 79 percent change.
Oops. Outstanding debt up 102 percent, tax base up significantly less at 79 percent. That means taxpayers are carrying a heavier load than they used to be.
It would have helped a lot if there hadn't been a recession. The tax base grew at a rate of 11.3 percent from 2007 to 2008, but there was almost no growth from 2010 to 2011.
Who knew we were big spenders? The tax rate even dropped to 85.5 cents from 86.5 cents for each $100 in assessed value.
Still, the debt growth is hard to ignore. The city's population grew 33.9 percent, but faster debt growth meant debt per capita was up 27 percent.
So, what does Combs suggest? More thorough disclosure of financial information for each bond election so voters know the full impact of the extra debt being considered. That information would include how much debt already is outstanding, the effect of new bonds on annual debt service requirements and the proposed change in per capita debt.
Sometimes having more information makes things more scary, but it never makes things worse.
Editor's note: This column has been changed from the original version to reflect school district debt is $63.6 billion.
Mike Norman is editorial director of the Star-Telegram / Arlington and Northeast Tarrant County.817-390-7830Twitter: @mnorman9
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