Joe Mysak writes in a column on Bloomberg, about the increasing use of borrowing to fund government spending by state governments. While general obligation bonds require voter approval, recent borrowing is being done more and more by special entities called “authorities” or “districts” that can issue bonds without voter approval. The entities then deposit the funds back into the general funds of the state. This process allows state governments to live beyond their means without having to fess up to the taxpayers of the state.
New Taxing Strategies at State Level
