Article VIII, Section 2h | Bond issue for development

The State may, from time to time, borrow not to exceed two hundred ninety million dollars and issue bonds or other obligations thereof for any one or more of the following purposes: acquiring, constructing, reconstructing or otherwise improving and equipping buildings and structures of the state and state supported and assisted institutions of higher education, including those for research and development; acquiring lands and interests in lands for sites for such buildings and structures; assisting in the development of the State, to acquire and develop lands and interests in lands and develop other state lands for water impoundment sites, flood control, parks and recreational uses, or conservation of natural resources; to develop state parks and recreational facilities including the construction, reconstruction and improvement of roads and highways therein; to assist the political subdivisions of the state to finance the cost of constructing and extending water and sewerage lines and mains; for use in conjunction with Federal grants or loans for any of such purposes; and for use in conjunction with other governmental entities in acquiring, constructing, reconstructing, improving, and equipping water pipelines, stream flow improvements, airports, historical or educational facilities. The aggregate total amount of such borrowing outstanding under authority of this section shall not, at any time, exceed such sum as will require, during any calendar year, more than $20,000,000 to meet the principal and interest requirements of any such bonds and other obligations, and the charges for the issuance and retirement of such bonds and other obligations, falling due that year. No part of such borrowing shall be contracted after the last day of December, 1970. All bonds or other obligations issued pursuant to this section shall mature within thirty years from the date of issue.

The faith and credit of the state are hereby pledged for the payment of such bonds or other obligations or the interest thereon, and they shall be payable from all excises and taxes of the state, except ad valorem taxes on real and personal property, income taxes, and fees, excises or license taxes relating to the registration, operation, or use of vehicles on the public highways, or to fuels used for propelling such vehicles, after making provision for payment of amounts pledged from such excises and taxes for payment of bonds issued under authority of Sections 2e and 2f of this Article.

During the period beginning with the effective date of the first authorization to issue bonds or other obligations under authority of this section and continuing during such time as such bonds or other obligations are outstanding, and so long as moneys in the Development Bond Retirement Fund are insufficient to pay all interest, principal and charges of such bonds or other obligations issued under authority of this section and becoming due in each year, a sufficient amount of moneys derived from such excises and taxes of the state is hereby appropriated in each year for the purpose of paying the interest, principal and charges for the issuance and retirement of bonds or other obligations issued under authority of this section becoming due in that year without other appropriation but according to law. The moneys derived from such excises and taxes and hereby appropriated shall be paid into a distinct bond retirement fund designated "Development Bond Retirement Fund," hereby created. Such moneys shall be expended as provided by law for the purpose of paying interest, principal and charges for the issuance and retirement of bonds and other obligations issued under authority of this section.

Sufficient amounts of such moneys in the Development Bond Retirement Fund are hereby appropriated for the purpose of paying interest, principal and charges for the issuance and retirement of bonds or other obligations issued under authority of this section, so long as any of them are outstanding, without other appropriations but according to law.

Any balance remaining in the Development Bond Retirement Fund after payment of all interest, principal and charges for the issuance and retirement of bonds and other obligations issued under authority of this section, shall be disposed of as shall be provided by law.

As long as any of such bonds or other obligations are outstanding there shall be levied and collected, in amounts sufficient to pay the principal of and the interest on such bonds or other obligations, excises and taxes, excluding those above excepted.