Arizona's Debt Status - Essay Example

Does the of Arizona issue debt The of Arizona issues debts to the people through meticulous ities. Theseauthorities provide funds for community bond issues. This helps provide leverage, in terms of payment of Arizona’s debt to the state. By the Arizona state-giving loans to the communities for infrastructure construction and improvements, the community assumes the debt service payments (MacClory 2010). The Arizona state does not give out money to its members as unadorned loans that are going to be paid with interest.

The state mostly gives out money in the form of bonds; this is a way of transferring the accountability of bond payment to the community. With the issue of loan, the pressure could have fallen mainly on the state of Arizona, but with the bond idea, the community takes all the culpability if the community as agreed does not pay the money. It is therefore, essential to note that the state of Arizona does give loans to its members although it gives loans in a different indirect way. The state of Arizona owes so much to the government, and to other states to the point that state houses had to be leased to help with payment of the state’s debt.

It has been noted that states and local governments in Arizona owe a total of $66.5 billion and more in terms of outstanding debt and unfunded commitments. To cut down the debt to every individual in Arizona, it is disturbing to know that every citizen owes the state a total of $10,258 in terms of outstanding debt and unfunded obligations. When it comes to the national debt owed by Arizona to other states and countries, the debt shoots up to $15.6 billion. The government’s debt in Arizona sums up to a total of $44 billion.

This is in bonds that Arizona issues to communities like for instance, the bond on construction and the bond on students loan. The legal authorities calculate all these bonds. It does not help that the authorities giving out the bonds to individuals are also in debts, Industrial Development Authorities that are required to give out tax-free bonds have an outstanding debt of more than $5 billion. There are other debts that Arizona owes other states that are not tallied in the government debt reports; these are like the civil litigation claims.

The debt Arizona owes other states and countries is not decreasing; on the contrary, it is increasing with every passing day. It beats the logic of how such debts are going to be paid. Every income tax profit made by the state is used to pay its debts (Porter 2011). There is no room for development in Arizona, or even a chance of developing because of the about of debts it has incurred. Arizona offers individuals and other states financial assistance in the form of bonds through authorities, when it comes to housing finance Arizona has The Arizona Housing Finance Authority.

This authority offers bond programs and a mortgage for prospective homebuyers in Arizona. There is the Water Infrastructure Finance Authority, which is in charge of financing construction, rehabilitation and improving anything that deals with water, from wastewater to drinking water (Zajac 1996). The authorities provide the needed funds by the members of the state and the fund be distributed in the form of bonds, from the funds needed for school activities to funds needed for development of the state.

References MacClory, T. (2010). Understanding the Arizona Constitution. Tucson, Ariz: University of Arizona Press. Porter, G. A. & Norton, C. L. (2011). Using financial accounting information: The alternative to debits and credits. Mason, OH: South-Western/Centgage Learning. Zajac, T. M. & Myler, C. E. (1996). Arizona real estate: Practice & law. Chicago, IL: Real Estate Education Co.