Governments Expected to Issue More Debt for Infrastructure Projects
GFOA Newsletter January 29, 2015
As the economy expands at its fastest pace in more than a decade, state and local governments are once again issuing debt. “After a budget-cutting push led governments to pay off debt by the most on record, the $3.6 trillion municipal bond market may grow this year for the first time since 2010 because of borrowing for construction projects,” Bloomberg reports. State and local governments are expected to sell $357.5 billion in debt this year, an increase of $9.4 billion from 2014. “America’s governments would need to spend about $3.6 trillion through 2020 to put everything from roads and water to sewers and electricity networks into adequate shape,” according to the article.