Media
134 Billion Reasons to Embrace Debt Reform
Every Pennsylvanian’s share of state and local debt increased by 20 percent over the last twelve years. In 2002, per capita debt totaled $8,693. Today, the total is a shade under $10,450.
This trend must be reversed. Future generations should not be forced to shoulder the consequences of present-day overspending. A greater debt burden means a lower standard of living and quality of life.
| Pennsylvania State & Local Government Debt | ||
| Debtor | Debt Outstanding | Per Person |
| Total State | $50,371,095,000 | $3,939 |
| State | $10,899,795,000 | $852 |
| State Agencies & Authorities | $39,471,300,000 | $3,087 |
| Total Local | $83,229,451,000 | $6,509 |
| School Districts | $26,382,245,737 | $2,063 |
| County/Municipal/Twp/Other | $56,654,115,000 | $4,431 |
| Total | $133,600,546,000 | $10,448 |
| Sources: Governor’s Executive Budget (http://www.budget.state.pa.us) December 2014 data; PA Dept of Education (http://www.pde.state.pa.us) June 2013 data; U.S. Census Bureau (http://www.census.gov) 2012 data | ||
Acknowledging the importance of reining in state debt, a group of lawmakers introduced four pieces of legislation to begin chipping away at the nearly $134 billion behemoth. The following bills are the result of work done by the House GOP’s Debt Working Group:
- House Bill 928: Establishes annual borrowing limits on Redevelopment Assistance Capital Projects (RACP) and Public Improvement Projects (PIP).
- House Bill 929: Brings transparency to the debt issuance process by requiring the governor to provide a detailed report to the General Assembly describing the capital budget projects financed with debt.
- House Bill 930: Lowers the RACP debt ceiling by $50 million each year starting in 2018 until it reaches $2.95 billion in 2027. A similar reform passed back in 2013.
- House Bill 931: Requires legislative approval before entering into a leased-back debt or installment purchase agreement.