State and Local Government Debt: An Analysis

Summary

This report examines state and local government debt. It provides an overview of state and local government finances and how these governments incorporate borrowing into their budget, reports data on state and local government debt and how that debt has changed over time, and discusses different economic perspectives on the use of debt by governments and if governments are intrinsically biased toward borrowing more than is considered economically optimal. Issues related to state and local government finances, such as government pensions and health benefits, are also addressed.