ON-Lion Letter
"Across America, elected officials have, taxpayer groups, and other researchers have launched a forensic accounting of state and municipal debt, and their fact-finding mission is rewriting the country's balance sheet," according to an article in the Summer 2013 issue of City Journal, which is published by the Manhattan Institute for Policy Research in New York City.

"Just a few years ago, most experts estimated that state and local governments owed about $2.5 trillion, mostly in the form of municipal bonds and other debt securities," writes Steven Malanga in "The Indebted States of America."  "But late last year, the States Project, a joint venture of Harvard University's Institute of Politics and the University of Pennsylvania's Fels Institute of Government, projected that if you also count promises made to retired government workers and money borrowed without taxpayer approval, the figure might be higher than $7 trillion."

Malanga is City Journal's senior editor, a Manhattan Institute senior fellow, and a RealClearMarkets.com columnist.  The Lynde and Harry Bradley Foundation in Milwaukee substantially supports the Manhattan Institute.

"Most states have restrictions on debt and prohibitions against running deficits," Malanga continues.  "But these rules have been no match for state and local governments, which have exploited loopholes and employed deceptive accounting standards in order to keep running up debt.

"The jaw-dropping costs of these evasions have already started to weigh on state budgets; as the burden grows heavier, taxpayers may decide that it's time for a new fiscal revolt."
Actions: E-mail | Permalink |