ARTICLE XI-P
SCHOOL DISTRICT CAPITAL COSTS
Sec. 1. State empowered to lend credit for grants or loans to school districts to finance capital costs; general obligation bond proceeds as matching funds
2. Sources of repayment
3. Refunding bonds
4. School capital matching fund
5. "Capital costs" defined
6. Legislation to effectuate Article
7. Relationship to conflicting provision of Constitution
Section 1. State empowered to lend credit for grants or loans to school districts to finance capital costs; general obligation bond proceeds as matching funds. (1) In the manner provided by law and notwithstanding the limitations contained in section 7, Article XI of this Constitution, the State of Oregon may loan its credit and incur indebtedness, in an aggregate outstanding principal amount not to exceed, at any one time, one-half of one percent of the real market value of the real property in this state, to provide funds to be advanced by grant or loan to school districts to finance the capital costs of the school districts. Bonds issued under this section may not be paid from ad valorem property taxes.
(2) Indebtedness incurred under this section must be in the form of general obligation bonds of the State of Oregon containing a direct promise to pay the principal, interest and premium, if any, of the bonds in an aggregate outstanding principal amount not to exceed the amount authorized in subsection (1) of this section. The bonds are the direct obligation of the State of Oregon and must be in such form, run for such periods of time, have such terms and bear such rates of interest as may be provided by statute. The State of Oregon shall pledge its full faith and credit and taxing power to the payment of the principal, interest and premium, if any, of the bonds. However, the State of Oregon may not pledge its ad valorem taxing power to the payment of the bonds.
(3) The proceeds from bonds issued under this section may be used only to provide matching funds to finance the capital costs of school districts that have received voter approval for local general obligation bonds and to provide for the costs of issuing bonds and the payment of debt service.
(4) The proceeds from bonds issued under this section may not be used to finance the operating costs of school districts. [Created through H.J.R. 13, 2009, and adopted by the people May 18, 2010]
Section 2. Sources of repayment. The principal, interest and premium, if any, of the bonds issued under section 1 of this Article must be repaid as determined by the Legislative Assembly from the following sources:
(1) Amounts appropriated for repayment by the Legislative Assembly from the General Fund, including taxes levied to pay the bonds except ad valorem property taxes;
(2) Amounts appropriated or allocated for repayment by the Legislative Assembly from other sources of revenue; or
(3) Any other available moneys. [Created through H.J.R. 13, 2009, and adopted by the people May 18, 2010]
Section 3. Refunding bonds. Bonds issued under section 1 of this Article may be refunded with bonds of like obligation. [Created through H.J.R. 13, 2009, and adopted by the people May 18, 2010]
Section 4. School capital matching fund. (1) There is created a school capital matching fund. Moneys in the fund may be invested and the earnings shall be retained in the fund or expended as provided by the Legislative Assembly.
(2) The Legislative Assembly may by law appropriate, allocate or transfer moneys or revenue to the school capital matching fund.
(3) The Legislative Assembly may appropriate, allocate or transfer moneys in the school capital matching fund and earnings on moneys in the fund for the purposes of providing: