Idaho Constitution Article VIII - Public Indebtedness and Subsidies
Idaho Constitution – Article VIII: Public Indebtedness and Subsidies – Summary
Article VIII of the Idaho Constitution governs the borrowing power of the state and local governments, the issuance of bonds, and restrictions on subsidies. Here's a section-by-section summary:
Section 1: Limitation on State Debt
The state cannot incur debt exceeding $2 million except in cases of war, invasion, or insurrection unless authorized by a constitutional amendment approved by voters.
Section 2: Loan of State's Credit Prohibited
The state cannot loan its credit, or make donations/grants to individuals, corporations, or associations.
This prohibits state subsidies to private entities.
Section 3: County and Municipal Indebtedness
Local governments (counties, cities, school districts) cannot incur debt beyond their annual income without two-thirds voter approval.
Debt must be for specific purposes, and repayment provisions must be outlined.
Section 4: Municipal Ownership of Utilities
Cities may own or operate utilities (like water or power systems).
They may issue revenue bonds without a vote, provided repayment comes from utility income, not taxes.
Section 5: State Highway Indebtedness
The state may issue highway bonds, backed by highway user revenues (gas taxes, etc.), not general tax funds, with voter approval.
Section 6: Guarantee of School Bonds
The state may guarantee school district bonds to help reduce borrowing costs, under specific legislation ensuring responsible issuance.
Section 7: Bond Bank Authority
A state bond bank authority may be created to assist local governments with financing public projects by pooling bond issuances.
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