BILL REQ. #:  S-0228.1 

Read first time 01/17/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to a limitation on state debts; and adding a new section to chapter 39.42 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 39.42 RCW to read as follows:
     (1) No bonds, notes, or other evidences of indebtedness for borrowed money may be issued by the state that will cause the aggregate debt contracted by the state to exceed that amount for which payments of principal and interest in any fiscal year would require the state to expend more than the following percentages of the arithmetic mean of its general state revenue, as defined in Article VIII, section 1 of the state Constitution for the three immediately preceding fiscal years as certified by the treasurer in accordance with RCW 39.42.070:
     (a) 8.75 percent during the 2011-2013 fiscal biennium;
     (b) 8.25 percent during the 2013-2015 fiscal biennium;
     (c) 7.5 percent during the 2015-2017 fiscal biennium; and
     (d) 7.0 percent thereafter.
     (2) It is the duty of the state finance committee to compute annually the amount required to pay principal of and interest on outstanding debt. In making the computation, the state finance committee must include all borrowed money represented by bonds, notes, or other evidences of indebtedness that are secured by the full faith and credit of the state or are required to be paid directly, or indirectly, from general state revenues and that are incurred by the state, any department, authority, public corporation or quasi-public corporation of the state, any state university or college, or any other public agency created by the state, but not by counties, cities, towns, school districts, or other municipal corporations, but must not include obligations for the payment of current expenses of state government, nor must it include indebtedness incurred pursuant to RCW 39.42.080 or principal of and interest on bond anticipation notes or any indebtedness that has been refunded. To the extent necessary because of the constitutional or statutory debt limitation, priorities with respect to the issuance or guaranteeing of bonds, notes, or other evidences of indebtedness by the state is determined by the state finance committee.