Ballot Measure 72 would amend the state constitution to add a new exception to allow the state to issue general obligation bonds to finance acquisition, construction, remodeling, repair, equipping or furnishing of state owned or operated property. Currently, the state constitution forbids lending the state’s credit or borrowing in excess of $50,000, with some exceptions. General obligation bonds are the cheapest method of borrowing the state may use and would cost less than the certificates of participation the state currently uses. The bonds would save an estimated $5 million on interest costs for each $100 million issued. The measure does not authorize any specific bonds, but authorizes the Legislative Assembly to enact implementing legislation. The measure prohibits the levy of property taxes to repay the bonds and limits the amount of outstanding bonds to one percent of the real market value of property in the state.
Committee Members: / Appointed by:
Senator Diane Rosenbaum / President of the Senate
Representative Chris Harker / Speaker of the House
Senator Ted Ferrioli / Secretary of State
Representative Dennis Richardson / Secretary of State
John Rakowitz / Members of the Committee
(This committee was appointed to provide an impartial explanation of the ballot measure pursuant to ORS 251.215.)