You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don't you call me 'cause I can't go
I owe my soul to the company store — Sixteen Tons as sang by Tennessee Ernie Ford
 
Change that last line to "government" and you'd have the modern version of that song.
 
The crushing level of debt being assumed by the federal government is well known. David Wessel said today in the Wall Street Journal, "For the fiscal year that ended Sept. 30, the final deficit tally will be about $1.4 trillion. Measured against the size of the economy, that's 9.9% of gross domestic product, bigger than any year since 1945. As a share of GDP, tax and other revenues are lower (15%) and spending higher (25%) than anytime in the past 50 years." Read the whole article to get a clearer understanding of where we are and where we are headed. Don't have time? Then just take a moment to look at the chart at that link.
 
A recent television report on the budget shortfalls in Iowa also mentioned that 48 states are in similar positions. Not mentioned in the report: Texas.
 
Locally, we've been digging a deeper hole as I've mentioned many times. How fast have we been digging that hole? First, we're always going to be carrying some debt. It doesn't make sense to try to finance government strictly from cash. The problem comes from so much debt that there is no room for more because the payments are taking a significant part of our resources. Of the property tax dollars collected by the city, 45% goes to pay debt.

Tax-supported debt per capita

 
According to the September 30, 2008, Comprehensive Annual Financial Report (page 109), city debt in 2002 was $1,511 per person. By 2008 it had grown to $2,980, almost double. In those figures are debt for governmental activities (tax supported) and business-type activities (supported by utility fees). The debt on the utility side has been for landfill improvements, water and sewer line improvements, and GP&L improvements, many because of federal requirements. Those projects are covered in your utility bills.
 
On the tax-supported side, capital improvements that were approved by the voters in 2004, such as streets (56.7%) and the new fire facilities, have been increasing rapidly, too. Councils in the last three years have been slow to authorize all the 2004 approved projects or the situation would be much worse than it is. I have argued against unrestrained increases in the debt since being elected. The voters did approve the projects and the increase but we are still obligated to act prudently. I don't support the argument that "the voters approved it so it's okay." I interpret the voters to have said, "These are our priorities and we would like them, but we leave it to you to act wisely and to proceed with caution."
 
The chart on this page shows the increase in tax-supported debt per capita. Count the number in your household and multiply by about $1300 to see your family's share. Sobering.
 
The new CAFR for this year should be available soon. Another year older and deeper in debt.