Commonwealth indebtedness - Constitution Of Pennsylvania § 7
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Pennsylvania Laws > Constitution of Pennsylvania > Commonwealth indebtedness - Constitution Of Pennsylvania § 7
§ 7. Commonwealth indebtedness.
(a) No debt shall be incurred by or on behalf of the
Commonwealth except by law and in accordance with the provisions
of this section.
(1) Debt may be incurred without limit to suppress
insurrection, rehabilitate areas affected by man-made or natural
disaster, or to implement unissued authority approved by the
electors prior to the adoption of this article.
(2) The Governor, State Treasurer and Auditor General,
acting jointly, may (i) issue tax anticipation notes having a
maturity within the fiscal year of issue and payable exclusively
from revenues received in the same fiscal year, and (ii) incur
debt for the purpose of refunding other debt, if such refunding
debt matures within the term of the original debt.
(3) Debt may be incurred without limit for purposes
specifically itemized in the law authorizing such debt, if the
question whether the debt shall be incurred has been submitted
to the electors and approved by a majority of those voting on
(4) Debt may be incurred without the approval of the
electors for capital projects specifically itemized in a capital
budget, if such debt will not cause the amount of all net debt
outstanding to exceed one and three-quarters times the average
of the annual tax revenues deposited in the previous five fiscal
years as certified by the Auditor General. For the purposes of
this subsection, debt outstanding shall not include debt
incurred under clauses (1) and (2) (i), or debt incurred under
clause (2) (ii) if the original debt would not be so considered,
or debt incurred under subsection (3) unless the General
Assembly shall so provide in the law authorizing such debt.
(b) All debt incurred for capital projects shall mature
within a period not to exceed the estimated useful life of the
projects as stated in the authorizing law, and when so stated
shall be conclusive. All debt, except indebtedness permitted by
clause (2) (i), shall be amortized in substantial and regular
amounts, the first of which shall be due prior to the expiration
of a period equal to one-tenth the term of the debt.
(c) As used in this section, debt shall mean the issued and
outstanding obligations of the Commonwealth and shall include
obligations of its agencies or authorities to the extent they
are to be repaid from lease rentals or other charges payable
directly or indirectly from revenues of the Commonwealth. Debt
shall not include either (1) that portion of obligations to be
repaid from charges made to the public for the use of the
capital projects financed, as determined by the Auditor General,
or (2) obligations to be repaid from lease rentals or other
charges payable by a school district or other local taxing
authority, or (3) obligations to be repaid by agencies or
authorities created for the joint benefit of the Commonwealth
and one or more other State governments.
(d) If sufficient funds are not appropriated for the timely
payment of the interest upon and installments of principal of
all debt, the State Treasurer shall set apart from the first
revenues thereafter received applicable to the appropriate fund
a sum sufficient to pay such interest and installments of
principal, and shall so apply the money so set apart. The State
Treasurer may be required to set aside and apply such revenues
at the suit of any holder of Commonwealth obligations.
(Nov. 5, 1918, 1917 P.L.1264, J.R.1; Nov. 6, 1923, P.L.1118,
J.R.2; Apr. 23, 1968, P.L.App.5, Prop. No.3)
1968 Amendment. Proposal No.3 amended and renumbered former
section 4 to present section 7.
Prior Provisions. Former section 7 was repealed by amendment
of April 23, 1968, P.L.App.11, Prop. No.6.
Cross References. Section 7 is referred to in sections 15,
16 of this article.
Section: 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Last modified: November 27, 2007