Sunday, September 15, 2013

Walker’s Debt Level Worst Since 1970

The Debtor Governor
As a result, the percentage of general tax dollars going to pay for debt has gone up significantly. Vinehout requested an analysis of this from the Fiscal Bureau, which issued a memo noting that, “Historically, the state’s debt management policy” has kept the debt service on its general obligation bonds “at no more than 4.0%” of annual general tax revenues. “This policy is intended to ensure that debt service does not consume an increasing share of the state budget.” 
But under Walker the level of indebtedness has jumped to “5.26% in 2013-14 and 4.88% in 2014-15 based (on) estimated revenues and debt service expenditures,” the memo noted. 
No governor, Republican or Democrat, has ever driven borrowing up this high. Going back to 1970, the Fiscal Bureau told Kertscher, the level of indebtedness was always below four percent. Typically the level was below three percent.
Walker’s Massive Borrowing Scheme

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