“The states are broke, and like many consumers, they’re borrowing big time to get out of their fiscal binds.” CNNMoney.com reporting.
The amount of debt that states are carrying spiked 10.3% last year to $460 billion, according to Moody’s Investors Service. The debt is paid for through taxes and fees, making residents ultimately responsible.
Imagine that. State governments are plunging into the red and the tax payer ends up footing the bill. Who would have guessed?
The article notes that “not every state is ratcheting up its borrowing” though. “Many states have strict laws governing their debt issuance. Some places, such as Nebraska and Wyoming, have virtually no debt.” If they manage, why can’t the rest?