Everything is bigger in Texas—including government debt.
According to the Bond Review Board’s latest local government annual report, Texas’ state-local debt totaled nearly $325 billion (principal only) in 2021, which was the 4th highest among the top ten most populous states. On a per capita basis, Texas governments have borrowed so much that every man, woman, and child effectively owe $10,821 for his or her share of the debt burden.
The vast majority of indebtedness—or 83.8% of the total amount borrowed—was due to the excesses of local governments, i.e. cities, counties, school districts, and special districts. Combined, these entities’ debt totaled $272.3 billion (principal only) or $9,068 owed per person. Texas’ local debt per capita ranks as the 3rd highest among the mega-states, only outstripped by New York ($10,835) and California ($10,170).
Of course, such a pronounced level of indebtedness is not without consequence—the most obvious impact being the need to pay higher taxes. That’s a point that voters should bear in mind come election time.
Source: Bond Review Board’s 2023 Local Government Annual Report