Texas’ local governments are awash in a sea of red ink. In fiscal year 2018, the unpaid principal balance owed by cities, counties, school districts, and special districts grew to $228.6 billion or more than $8,000 owed for every man, woman, and child in the Lone Star State. When both principal and interest are accounted for, local government debt surges to $354.6 billion or a staggering $12,500 owed per capita.