With the Commonwealth Comes CommonDebt.

By James Williams
August 5th, 2010

Long-term, direct debt held by the public has enlarged by 4.56 percent annually in the Commonwealth from 2002 to 2009.  That increase trails closely behind total revenue growth of 4.65 percent over the same time period.* Bond caps have been placed on long-term debt to contain the growth of capital investments somewhat, and, in 2009, a new fiscal policy established a ceiling on public debt service – a limit of 8 percent of budgeted revenues.   While the cap and ceiling are in place to ensure “stable and sustainable” levels of debt that grow in proportion to revenue, per capita debt is not likely to decrease any time soon.

Click here to see a current map of per capita state debt across the country: CNN – Your share of the State debt†

Source: Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2009, Commonwealth of Massachusetts. www.mass.gov/osc

*Determined from the Fund Perspective, which includes accrual for Medicaid and tax revenue, as well as compensated absences, claims and judgments.

†Moody’s Investment Service is the original source, which accounts for debt by its own methodology.  The 2010 Comprehensive Annual Financial Report has not been released yet.