North Dakota Constitution Article X - Finance and Public Debt
North Dakota Constitution – Article X: Finance and Public Debt outlines the state’s policies and limitations regarding financial matters, public debt, and fiscal responsibility. Here's a summary of its key points:
🔹 1. Limitation on State Debt
The state may not contract debt exceeding $2 million except for:
Repelling invasion
Suppressing insurrection
Defending the state in war
Any larger debt requires voter approval via referendum.
🔹 2. Sinking Fund Requirement
A sinking fund must be created when the state incurs debt.
This fund must be sufficient to pay interest and principal on the debt as it comes due.
🔹 3. Restriction on Lending Credit
The state is prohibited from lending its credit or making donations/grants to individuals, associations, or corporations.
Exceptions may apply to public purposes approved by law.
🔹 4. Local Government Debt Limits
Local governments (counties, cities, towns, etc.) are restricted from incurring debts exceeding 5% of the value of taxable property, unless approved by voters.
For certain projects (e.g., water, sewer, or streets), the limit can be extended up to 8% with voter approval.
🔹 5. Public Debt Transparency
Laws must be enacted to ensure public accountability and transparency of public debt and spending.
🔹 6. State Investment of Funds
The state may invest permanent funds (like school funds or trust funds) in a manner authorized by the constitution and statute.
🔹 7. Fiscal Responsibility
The constitution emphasizes the need for balanced budgets and sound financial practices to avoid unnecessary burden on future taxpayers.
RELATED Blog
0 comments