Local government interest on debt in Michigan accounted for 3.8 percent of direct state expenditures in 2015. The state ranked on par with the average of “Top Ten” states and slightly better than the peer state average.
What It Is: Local government interest payments on debt, divided by local government direct expenditures (both in current dollars).
Why It Matters: Maintaining debt service at low levels is an indicator of fiscal sustainability.
Note: This measure does not include debt service on principal since the Census of Governments does not report a direct debt service measure.