Washington Constitution Article XXXII - Special Revenue Financing
Certainly! Here is a summary of Article XXXII - Special Revenue Financing from the Washington State Constitution:
Washington Constitution — Article XXXII
Special Revenue Financing
Purpose:
Article XXXII establishes the constitutional framework for the state of Washington to create special revenue financing entities. These entities are intended to finance public projects or facilities using revenues generated from those projects or other designated sources, rather than relying on general tax revenues.
Key Points:
Special Revenue Financing Entities:
The state or political subdivisions (such as cities or counties) may create special purpose districts or authorities. These entities have the power to issue revenue bonds or other obligations secured by revenues generated by a specific project or facility.
Revenue Bonds:
The bonds issued by these financing entities are paid back exclusively from the revenues derived from the project or facility they finance. They do not constitute a general obligation or indebtedness of the state or political subdivision.
Limitations on Indebtedness:
Because these revenue bonds are not backed by the full faith and credit of the issuing entity (like general obligation bonds), their repayment depends entirely on the revenue stream from the financed project.
Examples of Use:
These financing tools are commonly used for infrastructure projects such as transportation facilities, utilities, ports, hospitals, and other public service projects where revenue can be generated.
No Voter Approval Required:
Typically, because these are revenue bonds and not general obligation bonds, they do not require voter approval, making the financing process more flexible.
Practical Effect:
Article XXXII facilitates infrastructure and public service development by enabling entities to leverage future revenues for project funding without impacting taxpayers directly through increased taxes or general obligation debt.
This article promotes financial innovation and flexibility in public project funding in Washington State.
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