The national debt, which has grown to almost $20 trillion in recent years, has been a topic of conversation for decades. What many Americans aren’t aware of is the looming debt crisis with many state and local governments. In 2013, the Census Bureau estimated that $1.13 trillion of the debt is on a state level and about $1.82 trillion is local debt. As you can imagine, this is just the tip of the iceberg…as the American population grows and ages spending will as well, especially with retirement, healthcare and education.
In order to combat our growing debt, government entities and agencies can benefit by taking a few tips from the private sector:
The bottom line is government budgets are consistently getting reduced or cut, but they’re still asked to accomplish the same goal with diminished resources. By operating more like a corporation and leveraging innovation to maximize returns they can increase productivity and save taxpayer dollars in the long run.