DES MOINES — The excellent debt for state and native governments topped $17.9 billion within the fiscal 12 months that ended final June, the state treasurer reported Friday.
That’s a 4.8% enhance from the earlier fiscal 12 months, Michael Fitzgerald mentioned, although Iowa stays among the many states with the bottom debt within the nation.
“Often, for Iowa, you’ll see 3 (%) to five% progress within the debt,” he mentioned. “Iowa is a pay-as-you-go, low-debt state, and it’s persevering with to be that method, however native governments are making some investments.
However low debt, he mentioned, “contributes to a slow-growth state, too. So which one would you like? In the event you’re going to speculate, now could be the time to do it.”
This can be a good time for public models to borrow cash — given low rates of interest — “to pay for capital tasks that profit Iowans, similar to public buildings, colleges and utility enhancements,” Fitzgerald mentioned.
Borrowing by native governments represented greater than 60% of the entire debt reported in fiscal 2020, he mentioned.
Cities recorded the biggest share of excellent debt at $6.556 billion, which accounted for 36.6% of the debt reported and represented a rise of greater than $259 million in contrast with fiscal 2019, he mentioned.
Faculties issued $4.45 billion in excellent debt, whereas state authorities adopted with $2.84 billion.