If adopted, the proposed amendment would:
Effect of Adoption:
The Legislature would be permitted to enact legislation allowing municipalities to sell their bonds to the state bond bank authority or obtain loans from the authority secured by the municipalitys bonds. The state could pool smaller bond issues, purchase municipal bonds or make loans to municipalities by issuing its own revenue bonds. The state could obtain better credit ratings, more attractive interest rates and lower underwriting costs than the municipalities could achieve individually. The bond bank authority would be able to pledge state funds or revenues as additional security for its bonds, further reducing interest costs. The bond bank authority would be relieved from state constitutional debt limitations and voter approval requirements, as well as constitutional restrictions upon the loan of the states credit to a municipal corporation.