BILL REQ. #: S-0228.1
State of Washington | 62nd Legislature | 2011 Regular Session |
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.