The motto of the B/CS Tea Party is Teach. Empower. Act. and we take that seriously. That’s why we bring the best speakers we can find to give presentations at our monthly meetings and special events. Cindy Mallete of Americans for Prosperity – Texas is just one of these speakers. In continuing the research in local debt that Cindy began at our January meeting, we must learn the definitions and intent of the lexicon of municipal spending and borrowing.
A Certificate of Obligation is a form of debt available to governing councils in case of emergency – a God-created catastrophe – that needs immediate action without time for voter referendum. For example, when a hurricane destroys the police and emergency services building, there is no time to go through the process of voter referendum. The local council must be able to borrow the money to set up provisional buildings and necessary equipment for police and emergency services so that the community is served in continuity.
When used as intended, Certificates of Obligation (CO) are necessary in the continuity of civil society. In researching state and local debt, Tea Party groups all across the nation are learning that the intent of Certificates of Obligation have been abused, with state and local officials assuming debt for non-emergency needs without tax payer knowledge.
Using the instructions Cindy presented, we learn these facts about Certificates of Obligation here locally. It will take more research to learn what exactly the taxpayers are paying for, but this is one step toward understanding our local debt.
College Station, Texas