For many years, Virginia had a reputation for avoiding debt. But recent years have seen the commonwealth taking on increasing amounts of debt.
Back in the 1920's, a young state senator by the name of Harry Byrd made a name for himself opposing a bond referendum to pay for building roads. His mantra was pay as you go, a slogan that got him elected governor and ultimately won him a spot in the United States Senate, where he ran Virginia politics for half a century. Frank Shafroth at George Mason University says times have changed.
“If you and I go back to the Byrd Machine, it was any kind of debt is bad. I think that has changed substantially because there’s a recognition that there is the kind of debt that I would define as investment — making commitments that are going to produce economic growth and opportunity.”
These days, Virginia has a fair amount of local government debt and state government debt. It’s true that Virginia needs to balance its books every year. But as Michael Cassidy at the Commonwealth Institute says, population growth has created acute needs.
“With that comes the need to have an infrastructure to meet the needs of that growing community. That includes things like schools and roads and bridges and hospitals power systems and sewer systems.”
Virginia’s per capita state debt is $3,400. The local government per capita debt in Virginia is $4,400. By way of comparison, the federal per capita debt — hold your wallets — is about $63,000.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
