Amends Constitution: Authorizes Exception to $50,000 State Borrowing Limit for State's Real and Personal Property Projects

Oregon Ballot Measure - Measure 72

Election: Nov. 2, 2010 (General)
Outcome: Passed

Yes: 774582  (59.09%) Argument For
No: 536204  (40.91%) Argument Against

Categories:

Summary

Ballot Measure 72 would amend the state constitution to add a new exception to allow the state to issue general obligation bonds to finance acquisition, construction, remodeling, repair, equipping or furnishing of state owned or operated property. Currently, the state constitution forbids lending the state's credit or borrowing in excess of $50,000, with some exceptions. General obligation bonds are the cheapest method of borrowing the state may use and would cost less than the certificates of participation the state currently uses. The bonds would save an estimated $5 million on interest costs for each $100 million issued. The measure does not authorize any specific bonds, but authorizes the Legislative Assembly to enact implementing legislation. The measure prohibits the levy of property taxes to repay the bonds and limits the amount of outstanding bonds to one percent of the real market value of property in the state.

Measure Text

    Currently, the state constitution forbids lending the state's credit or borrowing in excess of $50,000, with some exceptions. The measure would amend the state constitution to add a new exception to allow the state to issue general obligation bonds to finance acquisition, construction, remodeling, repair, equipping or furnishing of state owned or operated property. General obligation bonds are the cheapest method of borrowing the state may use and would cost less than the certificates of participation the state currently uses. The bonds would save an estimated $5 million on interest costs for each $100 million issued. The measure does not authorize any specific bonds, but authorizes the Legislative Assembly to enact implementing legislation. The measure prohibits the levy of property taxes to repay the bonds and limits the amount of outstanding bonds to one percent of the real market value of property in the state.

    Result of "Yes" Vote: "Yes" vote authorizes exception to $50,000 state borrowing limit for state to issue lowest-cost bonds to finance state real and personal property projects. Prohibits property tax for repayment. Limits amount borrowed.

    Result of "No" Vote: "No" vote retains state borrowing limit prohibiting state from issuing lowest-cost general obligation bonds except for certain purposes.