New Policy Brief: State debt limit debate misses the point
We released a new policy brief today by Kim Justice and Andy Nicholas that discusses the current debate in Olympia over our state debt limit. That is, the amount of debt accrued from the loans used to fund building projects such as public schools and colleges, water and sewer plants, prisons and parks.
Missing from the recent debate in the legislature has been a frank discussion about Washington’s flawed revenue structure and its failure to meet the many needs of our state – from current demands for health care and education services to long-term investments in new schools and other public infrastructure.
Proponents of lowering the debt limit are rightfully concerned that growing state debt payments will hamper our ability to maintain public services like health care, education, and public safety. Opponents of lowering the limit are equally justified in their concern that lowering the limit will impair our ability to make needed long-term investments in schools, correctional facilities, water treatment facilities, and other important infrastructure.
However, both sides are ignoring the fundamental problem: this type of budget tug-of-war is one of the many consequences of not having an adequate revenue stream, which is essential for the state to carry out its necessary functions. Ideally, the state should have the resources it needs to pay the bills on our investments in needed infrastructure as well as invest in our shared values of economic security, healthy people and environment, thriving communities, and education and opportunity.
Read our full policy brief here.
