States’ Debt at an All-Time High of $265 Billion in ’87

WASHINGTON — State governments were more than $265 billion in debt last year, a record, the Census Bureau reported Tuesday.

State government debt at the end of fiscal 1987 totaled $265.7 billion, up from $247.7 billion a year earlier, the bureau reported in its annual analysis of state government finances.

That amounted to a debt of $1,094.32 for every man, woman and child on a national basis, although indebtedness varied widely from state to state.

Alaska had the greatest amount of debt per person, at $11,788.18. Kansas has the smallest amount, with $149.41 of debt per person; California was 35th, with $809.93 per person.

At the same time, the bureau reported, revenue received by state governments climbed to $517.0 billion, while spending rose to $455.8 billion. Both were up 7.4% from the year before.

State governments issued $49.8 billion in new long-term debt, while retiring $33.2 billion.

State government debt includes both general obligation bonds, backed by the taxing power of the state, and what is known as nonguaranteed indebtedness, which pledges only some non-tax source such as rents or tolls to pay off the bonds.

In recent years, government activity has grown dramatically in providing financial assistance to private and nonprofit organizations through the issuance of bonds. Included have been such activities as industrial development, assistance to commercial and retail developers, housing, hospital and health care projects and pollution abatement plant and equipment expenditures.