The state of states’ debts

State Budget Solutions, a DC-based non-profit, has put together a report on the large debts the states have accumulated.

Now, you might say that most states can not run deficits. Remember that the meaning of the terms “deficit” and “debt” are legal and that state legislatures write the law. This means that the people in charge of the budget are also in charge of the loopholes. A recent column in the Fort Worth Stat Telegram (“Legislature still using gimmicks to balance Texas budget“) and State Budget Solutions prides themselves on finding and revealing these gimmicks. As Texas Watchdog reports, Texas has about $282 billion in debt.

Having debt is not always bad. Companies borrow to invest in their future all the time. However, any debt you feel like you need to conceal is probably bad and a little more truth in accounting would be healthy.

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