Counties across Tennessee spent more money than they took in in every year back to at least 2007, according to a new state comptroller’s report.
In fiscal year 2011, counties collected more than $11.6 billion in revenues, but spent $12.1 billion, the report says. Counties are postponing making principal payments to bring down debt, the report says — a financial move akin to an individual only paying the minimum each month on a big credit card bill.
From the report:
Total county-related debt in Tennessee increased almost $1.41 billion from 2007 to 2011. This indicates that many county governments are deferring debt principal payments and other obligations to future years .