Principles. Texas state and local governments exist to provide necessary services to the public that are not available from the private sector. Programs created in support of that mission should be periodically reviewed to ensure that they are efficient and effective to address an ongoing public need. Funding should be based on whether an imperative public need exists, and not simply on whether money is available. Budgeted expenditures should be aligned with current revenues to minimize structural gaps in subsequent years. Debt is an acceptable method of financing infrastructure needs, but should be used carefully and sparingly and the period to retire the amount borrowed should not exceed the useful life of the property being financed. Texas governments should evaluate their capacity to issue debt based on appropriate measures of their economic ability to retire the debt in a prudent term.