Nebraska Constitution Article XIII (State, County, and Municipal Indebtedness)
Nebraska Constitution – Article XIII: State, County, and Municipal Indebtedness
Overview:
Article XIII of the Nebraska Constitution sets the rules and limitations regarding the incurrence of debt by the state, counties, municipalities, and other public entities. Its goal is to ensure fiscal responsibility and prevent excessive or irresponsible borrowing by government units.
🔹 Key Provisions:
Limit on State Debt:
The state may not contract debt exceeding a specified limit unless authorized by law and sometimes subject to voter approval.
Generally, state debt must be within the ability to pay and serve public purposes.
County and Municipal Debt:
Counties, cities, and other local governments have constitutional debt limits, often expressed as a percentage of their taxable property valuation.
These entities must adhere to legal procedures and often require approval by voters before incurring debt beyond certain thresholds.
Purpose of Debt:
Debt can only be contracted for public purposes, such as infrastructure, schools, and essential public projects.
Speculative or improper borrowing is prohibited.
Restrictions on Borrowing and Repayment:
Debt must be issued with a plan for repayment, including interest.
The constitution may require debt issuance to be approved by the Legislature or by voters.
Special Districts and Authorities:
Public authorities and special districts (e.g., school districts, utilities) have similar but distinct restrictions.
They often must follow state law governing their indebtedness, subject to constitutional limits.
🏛️ In Summary:
Nebraska limits debt by the state and local governments to maintain fiscal prudence.
Debt must be for public benefit and have a clear repayment plan.
Often requires legislative or voter approval before exceeding limits.
Applies to counties, cities, school districts, and public authorities.
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