Relates to debt contracted by the state and the authorization thereof

BILL NUMBER:A299

Title of bill

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY propos- ing an amendment to section 11 of article 7 of the constitution, in relation to debt contracted by the state and authorization thereof

Purpose or general idea of bill

The proposed Constitutional amendment would permit the electorate to choose among multiple bond acts in a single year and thereby enhance public input into the bonding process.

Summary of specific provisions

Section 1 of the resolution would amend section 11 of Article 7 of the Constitution to eliminate the prohibition against submitting multiple bond acts for consideration by the voters in a single year.

Justification

Eliminating the constitutional provision preventing more than one bond act from appearing on a ballot would allow voters to pick and choose those types of projects to which they think the allocation of general tax revenues is most important. Permitting multiple issues on the ballot in any year would encourage the use of voter-approved debt because there would be a greater chance of approval of some projects if voters could choose among projects with discrete, well defined purposes. Voter-ap- proved debt is, of course, far preferable to "back-door borrowing" from a purely economic viewpoint, since voter-approved debt generally has a lower interest rate. In addition, although the courts have pronounced back-door borrowing to be legal as a technical matter, back-door borrow- ing offers little accountability to the electorate and breeds suspicion and distrust in the public.

Prior legislative history

2007-2008: A.4247 1999-2000; Contains elements of A.6513 2001-2002: Contains elements of A.5214

Fiscal implications

EFFECTIVE DATE: Resolved (if the Senate concur), That the foregoing amendments be referred to the first regular legislative session conven- ing after the next succeeding general election of Members of the Assem- bly, and, in conformity with section 1 of article 19 of the constitu- tion, be published for 3 months previous to the time of such election.