Proposed Legislative Amendment on Budget

Summary of Amendment:
  • Provides broad authorization for economic and community development programs, incorporating the present housing article.
  • Permits the state and local governments to grant or lend money to persons, associations or private corporations for public purposes.

Article X

State Taxation and Finance

Section 6. The article permits public monies to be granted or loaned to any person, association or private corporation for economic and community development purposes, as therein defined. Economic and community development purposes include the renewal and rebuilding of communities, the development of new communities, and programs and facilities to enhance the physical, environment, health and social well-being of, and to encourage the expansion of economic opportunity for, the people of the state.

Section 7. The state and local governments are prohibited from granting or lending their monies to or guaranteeing the obligations of any person, association, or private corporation except for a public purpose. However, if they borrow money, such borrowed money may be loaned only for capital construction purposes.

Section 8. The article authorizes the legislature to create a public corporation for the purpose of insuring and guaranteeing loans of persons, associations, and public and private corporations for economic and community development purposes. Each local government is authorized to guarantee the obligations of any public corporation for such purposes within such local government.

Legislative Amendment Text:

Article X

State Taxation and Finance

§ 12. a. Wherever used in this constitution, economic and community development purposes shall include the renewal and rebuilding of communities, the development of new communities, and programs and facilities to enhance the physical environment, health and social well-being of, and to encourage the expansion of economic opportunity for, the people of the state.

b. The state, any local government and any other public corporation may grant to any person, association or private corporation in any year or periodically by contract, or loan its money for economical and community development purposes, but the proceeds of indebtedness contracted for any such purpose shall be used only for loans for capital construction, as defined in section eleven of this article.

c. Notwithstanding the restrictions on the power of the legislature to enact special laws or any other inconsistent provisions of this constitution, the legislature may enact general or special laws for economic and community development purposes.