Wisconsin Constitution Article VIII - Finance
Wisconsin Constitution – Article VIII: Finance
🔹 Overview:
Article VIII of the Wisconsin Constitution governs the financial management of the state. It establishes principles of fiscal responsibility, limits on public debt, taxation rules, and budgetary procedures to ensure accountability and balanced budgeting.
🔹 Key Sections & Provisions:
§1 – Rule of Taxation Uniform; Income, Privilege, and Occupation Taxes:
Taxation must be uniform within a class of property.
Allows for progressive income taxes and other non-property-based taxes.
§2 – Appropriations; Limitation:
Money can only be drawn from the treasury by law.
No money may be paid out except in pursuance of an appropriation by law.
§3 – Credit of State:
The state may not contract debt or give its credit to aid any individual, association, or corporation.
Prohibits the state from acting as a financial backer of private enterprises.
§4 – State Debt Limit:
Limits state debt to $100,000, except in cases of:
War
Rebellion
Suppression of insurrection
Defense of the state
Public works (with specific limitations and procedures)
§5 – Annual Tax to Pay Debt:
Whenever state debt is incurred, the Legislature must levy a specific annual tax sufficient to pay both the interest and the principal.
§6 – Purposes of Borrowing Money:
Outlines allowable purposes for borrowing, mostly relating to public defense, infrastructure, or extraordinary circumstances.
§7 – Special Fund for Public Debt:
Requires creation of a special fund to repay state debts from taxes levied for that purpose.
§8 – Statement of Finances:
The Governor must annually submit a statement showing the condition of the treasury and estimates for revenue and expenditures.
§9 – Public Debt for Veterans’ Housing (Amendment):
Authorizes public debt to be incurred for providing housing to veterans, under specific circumstances.
§10 – Transportation Fund:
Revenues from transportation-related fees and taxes must be deposited into a segregated transportation fund and used only for transportation-related purposes.
🔹 Summary:
Article VIII is designed to:
Ensure fiscal responsibility.
Prevent irresponsible debt accumulation.
Maintain transparency and accountability in financial management.
Allow for targeted borrowing only under defined conditions (e.g., emergencies, infrastructure, veterans).
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