Texas public policy foundation
TPPF Releases Paper on Texas’ State Debt and Public Pensions
 
PRESS RELEASE
 

AUSTIN – The Texas Public Policy Foundation today released the paper Reducing the Burden of Texas’ State Liabilities on Current and Future Generations by the Center for Fiscal Policy’s director The Honorable Talmadge Heflin, economist Dr. Vance Ginn, and research associate Melissa Schlosberg. The paper explains the rising burden of state liabilities (i.e., debt and pensions) on Texans and makes recommendations to alleviate this burden.

          “As Texas families must limit their reliance on debt, so must the Texas Legislature,” said Mr. Heflin. “Although state government performs relatively well in measures of financial stability, there are increasingly signs of fragility regarding the growth of state debt and rise of unfunded liabilities in state pensions. Passing ballot box transparency for issuances of state debt, converting pensions to defined-contribution plans, and prioritizing surplus funds to cut taxes will best serve Texans.”

          “Texas’ state debt service outstanding, which includes the principal and interest owed over the life of debts, amounts to $80.8 billion in FY 2016, or almost $3,000 owed per Texan,” said Dr. Ginn. “The state’s two largest pension systems of TRS and ERS have combined unfunded liabilities of $41 billion that will put an additional burden on taxpayers if not fully funded. These state liabilities represent a rising burden on Texans that must be addressed by increasing debt transparency and assuring pension sustainability by moving to defined-contribution plans.”

To read the full report, visit: http://www.texaspolicy.com/content/detail/reducing-the-burden-of-texas-state-liabilities-on-current-and-future-generations

To schedule an interview with Mr. Heflin or Dr. Ginn, please contact Caroline Espinosa at cespinosa@texaspolicy.com or 512-472-2700.

The Honorable Talmadge Heflin is Director of the Center for Fiscal Policy at the Texas Public Policy Foundation, a non-profit, free-market research institute based in Austin. In the 78th Session, Heflin served as chairman of the House Committee on Appropriations and navigated a $10 billion state budget shortfall through targeted spending cuts that allowed Texans to avoid a tax increase. 

Vance Ginn, Ph.D., is an Economist in the Center for Fiscal Policy at the Texas Public Policy Foundation.

The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas.

 

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