DALLAS — Texas led all states in the rate of increase in state and local government outstanding debt between 2007 and 2012, climbing 45%, from $186.7 billion to $270.7 billion, according to a Dec. 16
During that period, debt rose in the District of Columbia and every state except for Alaska, where it fell by 4.5%, from $9.9 billion to $9.5 billion, and Montana, where it fell 7.6%, from $6.2 billion to $5.8 billion, according to the report.
California's debt grew from $330 billion to $419 billion during the Great Recession and gradual recovery.
Nationwide, outstanding state and local government debt grew faster than both revenues and expenditures during the 2007-12 time frame, climbing 22% from $2.4 trillion in 2007 to $2.9 trillion in 2012. Cash and security holdings declined 1.7%, from $5.4 trillion in 2007 to $5.3 trillion in 2012.
Total expenditures for state and local governments increased by 18.2%, from $2.7 trillion to $3.2 trillion, while total revenue declined 1.1% over the same five-year period, from $3.1 trillion to $3 trillion, according to the report.
Two major contributors to the decline in total revenues were employee retirement revenue, which includes earnings on investments and contributions. Those fell 68%, from $533.3 billion to $172 billion. Interest earnings fell 45%, from $91.9 billion to $50.9 billion.
"State and local government revenues continue to be impacted by capital market fluctuations, especially employee retirement revenues," said Kevin Deardorff, chief of the Census Bureau's Economy-Wide Statistics Division.
Overall, education spending by state and local governments grew from $774.2 billion in 2007 to $869.2 billion in 2012, or 12.3%. However, capital spending for education fell by 7.9%, from $91.7 billion to $84.5 billion.
"This can be attributed to a 22% drop in elementary and secondary education capital spending, from $65.5 billion to $51.1 billion," the report said. Education represented 27.6% of state and local government expenses in 2012.
The District of Columbia had the highest rate of increase in education spending at 53%, growing from $1.5 billion to $2.4 billion. North Dakota was second at 35%, growing from $1.7 billion to $2.4 billion.
Tax revenue rose 8.2%, from $1.3 trillion collected in 2007 to $1.4 trillion in 2012. Taxes accounted for 53% of total state and local government general revenues in 2012.
North Dakota's state and local government general revenue more than doubled, from $4 billion to $8.4 billion, by far the largest rate of growth of any state. North Dakota also had the largest rate of growth in total tax revenue, up 156%, from $2.6 billion to $6.6 billion.
With a surge in oil production in the state through the use of hydraulic fracturing techniques, North Dakota's population rose by 7.4%, among the five fastest-growing states between 2007 and 2012.
Alaska revenues increased 34.3%, from $10.4 billion to $14.0 billion.
Nationwide, general sales tax revenue rose 4.7%, from $300.6 billion to $314.8 billion, and individual income tax revenues rose 5.9%, from $290.3 billion to $307.3 billion. Corporate income tax revenue fell 19.6%, from $61 billion to $49 billion.
Federal government grants increased 25.7%, from $464.9 billion to $584.5 billion.
State and local government spending on public welfare increased at a higher rate in Oregon than in any other state, growing 52% from $3.8 billion to $5.8 billion. Texas closely followed at a growth rate of 51%, from $20.4 billion to $30.8 billion.
In four states state and local government spending on unemployment compensation more than quintupled. Colorado's grew 431% to $1.5 billion. Texas' swelled 430%, to $5.4 billion. Utah's increased 412% percent to $439.0 million, and Arizona's grew 402%, to $1.1 billion.
In March 2012, local governments had 224,000 fewer employees than in 2007, the report said. Despite the lost jobs, state and local government payrolls increased by 9.6% during the same period.
