When states take on debt, it’s usually for large infrastructure projects that may benefit multiple generations — for example, replacing bridges, building hospitals, or expanding highways and transit systems.
“Unlike the federal government, states generally limit the use of debt to support capital projects, not operating expenditures,” says Kathryn Vesey White, director of budget process studies at the National Association of State Budget Officers and co-author of a recent paper on federal and state fiscal processes.
News reporters are often assigned to cover big capital projects, and that includes understanding the debt that funds those projects. While…