« Trivia Tidbit of the Day: Part 716 -- Buying Power. | WILLisms.com | Trivia Tidbit of the Day: Part 718 -- How Blue Are Blue Dogs? »

Trivia Tidbit of the Day: Part 717 -- Debt.

Debt Trajectory-

Trillions in federal debt and growing:

Compare these trillions in federal debt to the states' debt burdens, which are generally far more under control. Texas, for example, has the second lowest state debt per capita and the second lowest state debt as a percentage of personal income.

It is important to distinguish between "general obligation" debt and "revenue" debt. Also "self-supporting" debt versus "not self-supporting" debt. Self-supporting debt, in a sense, is not even real debt, assuming it is structured to pay for itself with program revenue. Non-self-supporting debt is the "bad" debt-- it doesn't pay for itself, and it must be paid for by taxpayers.

Non-self-supporting debt in Texas has decreased from $3.40 billion in FY1999 to $2.85 billion FY2008, a 16% decrease (.pdf).

Because of Texas' fiscal responsibility and strong economy, Texas' S&P Bond Rating is now one of the highest in the country, at AA+.

Previous Trivia Tidbit: Buying Power.

Posted by Will Franklin · 16 December 2009 12:57 PM

Comments

Posted by: TofPafChoto at December 22, 2009 05:14 AM