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A report focusing on state government's debt level ought to grab leaders' attention like a repo man banging on the door.

The state has "substantially exhausted" its general fund debt capacity until 2011, a statement issued last week by State Treasurer Janet Cowell's office said. And combined debt capacity for the highway fund and highway trust fund has been "more than utilized."

That means the same for state government as it does for a consumer who's hit his credit card limit: Don't borrow more until you pay down some of what you owe.

But, as anyone with a credit card knows, that's easier said than done thanks to high payments due, plus interest, for purchases already made with borrowed money.

"Over the last five years, the amount the state spends on debt service has increased, both on an absolute basis and as a percentage of general tax revenues," a report from the state's Debt Affordability Advisory Committee said. "This trend is expected to continue, as the absolute amount of outstanding debt increases."

Cowell heads the group, which also includes the state auditor, controller, budget director, revenue secretary and others. The panel recognizes the tough economy but says it's time to "promote long-term budgetary stability."

Unlike the federal government, North Carolina is bound by a constitutional requirement to balance its budget. The state constitution also stipulates that borrowing must be approved by the voters. How did the taxpayers allow such an accumulation of debt?

They didn't. Since 2000, the legislature has found other avenues to continue borrowing without taxpayers' consent -- a practice the advisory committee faults.

The "special indebtedness" incurred over the last decade -- through certificates of deposit, lease-revenue bonds and other mechanisms -- draws lower ratings than the general obligation bonds generally approved by voters and carries higher interest rates, "which increases the cost of projects so financed," the committee reported.

Which means that the public pays more for borrowing that it never approved in the first place.

Cowell is likely responsible for adding another recommendation to the report because it furthers her argument in a dispute she's had with Gov. Bev Perdue over a new borrowing strategy for advancing the I-485 loop around Charlotte. It says the General Assembly should clarify whether individual state agencies are allowed to enter into "alternative financial arrangements that may include debt and debt-like obligations," or whether those should be issued only by the treasurer. Good question.

Ideally, state government should have one authority for taking on debt, and that authority should act almost always with the direct approval of the voters. Allowing various agencies to borrow money with little oversight seems likely to invite a visit from the repo man.