backdoor borrowing

Backdoor Borrowing

The act of a government borrowing without voter approval. This may or may not occur after the voters have refused to authorize a bond issue. The practice is controversial as it implies a lack of transparency in government actions and forces taxpayer money to be used to repay debt that voters did not want.

backdoor borrowing

Borrowing by a public authority without voter approval. Public authorities often use backdoor borrowing when voters reject proposed debt issues. Taxpayer funds are used to repay debt accumulated in backdoor borrowing.
References in periodicals archive ?
Some of the issues that could be considered during a People's Convention include much-needed fiscal reforms, such as a property tax and state spending cap, debt reform, and a ban on backdoor borrowing.
New York's chance for change
The least we could do is to admit to this backdoor borrowing.
How the government cooks the books; the budget deficit is bigger than you think
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