Texas Budget Source

Curt W. Olson
COlson@TexasBudgetSource.com

The combined debt of local governmental entities in Texas is fast approaching $200 billion.

The Texas Bond Review Board has compiled data for fiscal year 2011 showing cities, towns and villages, community and junior colleges, counties, health or hospital districts, public school districts and special districts have $192.7 billion debt.

It’s an increase from $183.8 billion in 2010.

There are multiple charts in the report at this website: http://www.brb.state.tx.us/lgs/lgspubs2011.aspx

This report focuses on the trends in bonded debt from 2005 to 2011, where bonded debt rose 61.4 percent while population and inflation rose about 33 percent during this time.

Aside from increases in all areas of local government tax-supported and revenue debt, a couple of trends emerge from the data.

ISDs have surpassed cities, towns and villages for the total amount of bonded debt.

In 2008 and 2009, cities, towns and villages and ISDs were about tied for the most debt. Cities, towns and villages had the lead in 2008, $55.1 billion to $54.3 billion. In 2009, ISDs had $58.8 billion in debt compared to $58.4 billion for cities, towns and villages.

However, cities, towns and villages reclaimed the lead in 2010, $61.1 billion compared to $60.2 billion for ISDs.

They flipped again in 2011, with ISDs having $63.6 billion in bonded debt, compared to $62.9 billion for cities, towns and villages.

ISDs far surpass any governmental entity in tax-supported debt, with only $3.4 million of the more than $63.6 billion coming from revenue bonds.

Jenny LaCoste-Caputo spokeswoman for the Texas Association of School Administrators, said public schools add 85,000 new students a year.

“Our population is growing and some districts are feeling it more than others,” she said. “You literally have to a have a place to put those kids.”

She said this requires bricks and mortar or portable buildings.

Additionally, bonded debt from special districts (water districts and authorities, road, power, housing) has vaulted since 2007 when they had $27.3 billion in debt. They now have $45.1 billion in debt.

For the fiscal year that ended August 31, the Bond Review Board or State Comptroller’s Office identified 462 issues in cities, towns or villages at $8.4 billion.

Meanwhile, there were 393 issues for ISDs at $7.6 billion; 341 issues for water districts-authorities for $2.7 billion; 72 county issues for $1.4 billion; 23 issues for junior colleges at $503 million; and eight hospital district issues for $270.3 million.

Elna Christopher, spokeswoman for the Texas Association of Counties, also noted the state’s explosive population growth.

She also said the state has passed mandates to counties, which hinder their ability to do what needed in light of the population growth.

Don Lee, executive director of the Conference of Urban Counties, has complained that state government requires local governments to do more.

His primary concern is road construction, with counties footing a larger portion of this expensive bill that has been done in the past by the state.

Texas Budget Source is a non-profit journalism project of the Austin-based Texas Public Policy Foundation, with funding from the Franklin Center for Government and Public Integrity. Like Texas Budget Source on Facebook or follow TXBudgetSource on Twitter. Curt Olson’s Twitter name is olson_curt. His phone number is 512-472-2700.