Issued Outstanding Debt

Why it Matters: Like households, governments borrow to pay for large expenditures or to address cash flow problems. Reducing state government debt ensures financial stability, takes the burden of debt off of future generations and helps fuel economic recovery and job creation.

When it borrows, state government issues general obligation bonds, which are backed by the full faith and credit of state government, or revenue bonds, which are backed by designated revenue streams. Independent authorities, such as the Michigan Finance Authority, also issue revenue bonds.