Debt & Borrowing


Debt & Borrowing

States issue debt and maintain widely accepted debt policy standards to borrow money primarily for capital intensive infrastructure projects. Annual debt service expenditures represent a relatively small but important component of state budgets. Current municipal market trends suggest states will continue to have the sufficient financing necessary for large scale public works and improvement projects.

Staff Contact: Michael Streepey

NASBO Publications

  • This report shows that state budgets are expected to continue on a path of stable, moderate growth, with 42 governors recommending spending increases for fiscal 2016. However, progress is slow, and structural issues and long-term spending pressures will require difficult budget choices for many states. States’ spending proposals continue to be cautious as they plan for limited revenue growth.
  • This report shows that state fiscal conditions are moderately improving in fiscal 2015 as the economic recovery enters its sixth year. Consistent annual growth in the economy, while not as robust as many would like, is leading most states back to budget growth. States have replenished some spending for areas cut back during the recession, such as K-12 education and higher education. In addition to bolstering state spending, economic growth has produced higher revenue collections.

Recently Released Reports