Utah Constitution Article 14 Public Debt
Utah Constitution – Article XIV: Public Debt focuses on how the State of Utah may incur debt, what limitations are placed on such debt, and the procedures to follow. Here's a summary of the key provisions of Article XIV:
Utah Constitution – Article XIV: Public Debt – Summary
Section 1 – State May Not Incur Debt Except
The state may not contract debt unless:
It is for ordinary governmental expenses, or
In case of war, to repel invasion or suppress insurrection.
For other purposes, debt must be authorized by law and approved by a majority vote of the people.
Section 2 – Debt Limit
Total state debt (not including those for ordinary purposes) cannot exceed 1.5% of the value of taxable property in the state, unless:
A law is passed specifying the purpose and amount.
It is approved by a majority vote of qualified electors.
Section 3 – Local Political Subdivisions May Incur Debt
Counties, cities, towns, school districts, and other local governments may incur debt, but:
Total indebtedness must not exceed 4% of the taxable property within their area.
An additional 4% (making 8% total) may be incurred for water supply or sewer projects, again with voter approval.
Section 4 – Election Required for Debt
No debt (beyond ordinary expenses) can be created by the state or subdivisions without a two-thirds vote of the legislature and approval by a majority of voters in an election.
Section 5 – Debt Must Have Repayment Plan
Any authorized debt must include a tax sufficient to pay the interest and principal within 20 years.
Section 6 – Exceptions
Debt obligations like bonds issued for refunding existing debt or for revenue-producing projects (e.g., toll roads, water systems) that pay for themselves may be excluded from constitutional limits.
Purpose and Implication
Article XIV is designed to:
Promote fiscal responsibility,
Require voter input for major borrowing decisions,
Prevent the state and local governments from overextending financially.
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