Ohio Constitution Article VIII - Public Debt and Public Works
Ohio Constitution – Article VIII: Public Debt and Public Works
Article VIII of the Ohio Constitution governs the state’s authority to incur public debt and finance public works. It establishes the rules for issuing bonds, managing state debt, and funding infrastructure and economic development projects.
🔹 Purpose of Article VIII
To:
Maintain fiscal responsibility.
Clearly define when and how the state can borrow money.
Ensure voter approval for certain types of state debt.
Fund public improvements, including roads, education, and economic development.
🔹 Key Sections & Provisions of Article VIII
Section 1 – Limit on State Debt
The state may not incur debts exceeding $750,000, except for:
Repelling invasions
Suppressing insurrections
Defending the state in war
This section enforces debt limits to avoid unchecked state borrowing.
Section 2 – Debt Authorization by Voter Approval
Any additional debt must be approved by Ohio voters through a statewide election.
Bonds issued for public works or economic projects need constitutional amendments or voter-approved issues.
Sections 2i – 2s (Multiple Bonding Authorities)
These sections (added over the years) authorize specific types of bond issues approved by voters. Examples include:
Section 2i: Capital improvements (roads, bridges, public buildings, etc.).
Section 2l: Low-income housing.
Section 2m: Job creation and economic development (e.g., research and innovation).
Section 2n: School construction and renovation.
Section 2o: Environmental and conservation projects, including clean water.
Section 2p: Infrastructure for local governments (roads, sewer systems, etc.).
Section 2r: Veterans' bonuses and support.
Each section includes:
Purpose of the borrowing
Maximum borrowing limits
Terms for repayment
Requirements that the General Assembly may pass laws to implement each section.
Section 11 – Revenue Bonds
Allows the state to issue revenue bonds without using general tax revenue for repayment (e.g., toll roads or utility services).
These bonds are repaid from the revenue generated by the funded project, not from taxes.
🔹 Debt Safeguards
Voter approval ensures democratic oversight.
Bonds are often issued with fixed limits and expiration dates.
The Constitution requires regular accounting and fiscal responsibility.
🔹 Summary
Article VIII is a comprehensive framework that:
Limits Ohio’s general debt
Requires voter approval for most borrowing
Supports critical infrastructure and economic growth
Protects citizens from excessive public debt through constitutional controls
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