AN ACT PROPOSING AN AMENDMENT TO ARTICLE VIII OF THE CONSTITUTION OF THE STATE BY IMPOSING A LIMITATION ON THE BORROWING POWER OF THE STATE.
Be it enacted by the General Assembly of the State of Delaware (two-thirds of all Members elected to each House thereof concurring therein):
Section 1. Article VIII of the Constitution of the State of Delaware, is amended by adding thereto a new Section 3A to read:
§ 3A. Limitations on borrowing power
Section 3A. The General Assembly shall not authorize the borrowing of money or the creation of a debt by or on behalf of the State, which under § 3 of Article VIII of this Constitution requires an Act of the General Assembly passed with the concurrence of three-fourths of all the Members elected to each House which, together with all authorized but unissued and all outstanding borrowed money or debt, shall be in excess of an amount to be fixed by the General Assembly which amount shall not exceed 3.4 times the amount of the total General Fund revenues of the State for the fiscal year immediately preceding the date of adoption of the authorizing act by the General Assembly. The General Assembly shall prescribe a method for determining whether or not the amount to be borrowed or the debt to be created pursuant to an authorization act about to be adopted is within the limitation fixed by the General Assembly, and the determination made pursuant thereto shall be conclusive.
In computing the amount of General Fund Revenue for the purposes of this Section, the net receipts of the State from inheritance, estate or other death succession taxes exceeding 2 million dollars in any fiscal year shall be excluded.
All bonds or the borrowing of money or the creation of a debt under § 3 of Article VIII of this Constitution requiring
an act of the General Assembly passed with the concurrence of three-fourths of all the Members elected to each House heretofor authorized by the General Assembly but not issued, borrowed or debt created, may be issued, borrowed or created, notwithstanding the limitation fixed in accordance with this Section. Such authorized but not issued bonds, borrowing or debt authorized but not issued shall be included in determining the amount which may be authorized within the limitations fixed in accordance with this Section.
The limitations imposed by this Section shall not apply to moneys borrowed to be used for rehabilitation as a result of a disaster, proclaimed as such by the Governor.
Proposed: June 4, 1965.