Answer: Badly, according to the Texas Bond Review Board’s 2014 Annual Report.
Among the top ten most populous states in the nation, local debt in the Lone Star State was the second highest overall, at $219.7 billion. Only California’s local governments had amassed more, at $269.2 billion.
On a per capita basis, local debt in Texas ranked as the second highest ($8,431 owed per person), with only New York in tougher shape ($10,204 owed per person). The average local debt burden among all mega-states was $5,956 owed per person.
As a percentage of the overall amount owed, local debt in Texas makes up about 85 percent of the total, which is the highest percentage of any of its peers. In fact, local debt in the average mega-state comprised just 66 percent of the total owed.
The data is clear: Texas is among the worst in the nation when it comes to local government debt—a critical point that the Texas Legislature ought not to forget.
Source: Texas Bond Review Board’s 2014 Annual Report