Vote Smart's Synopsis:

Vote to pass a concurrent resolution that submits a constitutional amendment to the voters that prohibits the total state debt from exceeding 5 percent of the net assessed property value of the state, regardless of when the debt was incurred, whereas existing law prohibits the total state debt from exceeding $350,000.

Highlights:

• Requires the legislature to provide for a source of revenue other than the State General Fund to pay principal, interest, and issuance, redemption, and administrative costs of debts that are authorized by any law enacted after December 31, 2011 (Sec. 1).

• Requires bond issues and other obligations that are secured by the full faith and credit of this state to be approved by a majority of voters (Sec. 1).

• Specifies that the provisions of this Act apply to the following (Sec. 1):
• Any obligation of Arizona or of any department, office, agency, commission, board, or other instrumentality of state government, regardless of the source of revenues or funds pledged for the payment of the obligation, including general obligation bonds, revenue bonds, long-term notes, and obligations and certificates of participation and other instruments of indebtedness pursuant to lease-
• purchase agreements;
• Any obligation incurred for the acquisition of any major capital asset by the state or any department, office, agency, commission, board or other instrumentality of state government; and
• Bonds and other obligations secured by state revenues that are diverted from the state General Fund for distribution to a political subdivision or other entity established for a specific purpose.

• Exempts the following from the provisions of this Act (Sec. 1):
• Counties, cities, towns, school districts, and other municipal corporations that are subject to debt limits;
• Property improvement assessment districts, improvement districts, and other special purpose taxing districts and political subdivisions of this state that have the authority to independently impose or levy taxes or assessments for their respective purposes;
• Bonds and other obligations issued or incurred by public authorities established by law if the bonds and obligations are not secured by state General Fund revenue;
• Short-term warrant notes that are used solely for cash management purposes;
• Any obligation for the restoration of payments deferred from one fiscal year to another;
• Bonds and other obligations that are secured by fees, excises, or license taxes relating to registration, operation, or use of vehicles on the public highways, or to fuels or other energy sources used for the propulsion of vehicles on the public highways or streets;
• Bonds and other obligations issued or incurred by universities under the jurisdiction of the Arizona Board of Regents or by community colleges; and
• Obligations incurred by the following:
• Any retirement system established for state officers or employees;
• Any unemployment compensation fund or successor entity established by law; and
• Any workers' compensation system.

• Specifies that any decrease in the net assessed property value in Arizona has no effect on the validity of debt obligations that were within the prescribed limit at the time they were issued or incurred (Sec. 1).

• Specifies that if any debt obligation is refinanced, the outstanding principal amount of the obligation before refinancing continues to apply with respect to the obligation for the purposes of determining compliance with the prescribed limit (Sec. 1).

• The text of this legislation was replaced by a substitute amendment sponsored by the Senate Committee on Appropriations.

Full Bill Text