El Paso Governments Issue Too Much Debt Without Voter Consent

By Enrique Romero, Grassroots Engagement Director, LIBRE, Texas. 

In El Paso, local governments have stopped asking their constituents whether they agree to new expensive projects, all the while using taxpayer money to fund them. This time, it’s to the tune of $54 million in taxpayer dollars that the county is seeking without any voter input.

Originally intended for emergencies, certificates of obligation have become a tool for sidestepping democratic processes, forcing taxpayers to cover the tab for the local government’s whims.

Texas law generally mandates voter approval for public debt repaid through taxes. However, since 1971, an exception has allowed local entities to issue COs without approval. This was designed for urgent situations where immediate funding was essential and yet, in El Paso, they have become frequently used for non-emergency projects — undermining the spirit of the law and eroding public trust.

Between 2013 and 2022, Texas municipalities saw a 48% increase in CO-issued debt, amounting to over $6 billion statewide. El Paso alone has accumulated more than $851 million in COs, often for projects that should have undergone public scrutiny and approval.

A notable example is University Medical Center’s 2022 proposal to issue $345.7 million in COs for hospital expansions. My organization, The LIBRE Initiative, mobilized community efforts, collecting over 35,000 signatures to force the matter onto the ballot, ensuring voters had a say in this significant financial decision.

Recently, El Paso County Commissioners Court approved a notice of intent to issue up to $54 million in COs for infrastructure projects, including water and sewer services, roadway improvements, flood control, and upgrades to heating, ventilation and air conditioning. However important these projects may be, they do not constitute emergencies that justify bypassing voter approval.

Commissioner Iliana Holguin rightly emphasized that COs should be reserved for genuine emergencies. The misuse of COs reflects a broader issue of governmental overreach and lack of transparency. By avoiding voter input, local governments erode public trust and accountability.

The focus of the county government should be on creating more economic opportunities for its residents, rather than burying them in non-voter-approved debt. Our local county government should remember that 18.5% of the county population lives below the poverty line. The vast majority of El Pasoans do not make six-figure salaries, nor do they get to vote on salary raises like our local officials do.

The LIBRE Initiative has been meeting with members of the Texas Legislature about this issue and remains committed to advocating for fiscal responsibility and transparency. We urge El Paso’s leaders to respect the democratic process by seeking voter approval for significant spending. It’s time to restore integrity to public finance and ensure that taxpayers have a say in how their money is spent.

… Originally published in El Paso Matters.