Wyoming Constitution article 16. Public Indebtedness.
Wyoming Constitution – Article 16: Public Indebtedness
Overview:
Article 16 of the Wyoming Constitution outlines the rules and limitations on public debt incurred by the state, counties, cities, towns, and other local government entities. Its primary goal is to protect taxpayers and ensure fiscal responsibility in public finance.
Key Provisions:
General Debt Limit (Section 1):
The state may not contract public debt exceeding $200,000, except for:
Defending the state in times of war or insurrection.
Repaying existing debts.
Local Government Debt Limit (Sections 2–4):
Counties, cities, towns, and school districts may incur debts up to a certain percentage of their taxable property value, usually no more than 2%–4%.
Any larger debt must be approved by a two-thirds vote of qualified electors.
Special Purposes and Exceptions (Section 5):
Allows for special indebtedness for constructing water works, sewer systems, or electric systems if approved by the voters.
Sinking Funds (Section 6):
Any public debt must include provisions for a sinking fund — a method to systematically pay off debt through annual contributions.
Revenue Bonds and Enterprise Projects (Modern Interpretation):
While Article 16 restricts general obligation debt, revenue bonds (repaid from project revenues) have become common and are often exempt from the strict debt limits under certain conditions.
Purpose and Significance:
Ensures that Wyoming governments do not overextend financially.
Requires voter approval for major borrowing, promoting democratic accountability.
Encourages responsible budgeting and long-term financial planning.
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