Art. VII, Sec. IV, Para. II. State general obligation debt and guaranteed revenue debt; limitations.

In light of the similarity of the provisions, decisions under former Ga. Const. 1976, Art. VII, Sec. III, Para. I and antecedent provisions are included in the annotations for this paragraph. Current provisions on the same subjects and cases construing them now appear in this paragraph and Paragraphs I, III, and IV of this section. An authority, being an agent of the state but not the state, is not reder this paragraph. Rich v. State, 237 Ga. 291, 227 S.E.2d 761 (1976) (see Ga. Const. 1983, Art. VII, Sec. IV, Para. II). Section 32-10-9 not violative of debt restriction and limitation provision

1976 Constitution.

Art. VII, Sec. III, Para. I.

stricted by state’s debt limitation unof state Constitution.

Neither Ga. L. 1953, Jan.-Feb. Sess., p. 626 (see now O.C.G.A. Art. 1, Ch. 10, T. 32), nor the lease contract which the state highway department (now Department of Transportation) made with the State Bridge Building (now Georgia Highway) Authority under and pursuant to Ga. L. 1953, Jan.-Feb. Sess., p. 626, § 8 (see now O.C.G.A. § 32-10-9) for the use of its facilities or services violates the debt restriction and limitation provision of the Constitution. On their face they do not run counter to the Constitution; and the Supreme Court will not attribute to state lawmakers a purpose to circumvent the provisions of that instrument. McLucas v. State Bridge Bldg. Auth., 210 Ga. 1, 77 S.E.2d 531 (1953). An obligation incurred by the Board of Regents of the University System of Georgia, is not a debt of the state, and therefore is not affected by constitutional limitations upon state indebtedness. State v. Regents of Univ. Sys., 179 Ga. 210, 175 S.E. 567 (1934). It cannot be said that creation of a debt by the Regents of the University tional. Villyard v. Regents of Univ. Sys., 204 Ga. 517, 50 S.E.2d 313 (1948).

System of Georgia is unconstitu-Editor’s notes.

In light of the similarity of the provisions, opinions under former Ga. Const. 1976, Art. VII, Sec. III, Para. I and antecedent provisions are included in the annotations for this paragraph. Current provisions on the same subjects and cases construing them now appear in this paragraph and Paragraphs I, III, and IV of this section.

Construction of paragraph.

This paragraph is construed as prohibiting incurring a fiscal liability not to be discharged by taxes levied within the year in which the liability is undertaken. 1971 Op. Att’y Gen. No. 71-103. (see Ga. Const. 1983, Art. VII, Sec. IV, Para. II).

‘‘Debt’’ defined.

Debt, as used in this paragraph and Ga. Const. 1976, Art. IX, Sec. VII, Para. I (see Ga. Const. 1983, Art. IX, Sec. V, Para. I), which forms the basis of the restriction upon public debt, means the incurring of a fiscal liability not to be discharged by taxes levied within the year in which the liability is undertaken. 1975 Op. Att’y Gen. No. 75-19 (decided under Ga. Const. 1945, Art. VII, Sec. III, Para. I; see Ga. Const. 1983, Art. VII, Sec. IV, Para. II). State contracts in excess of one year are not enforceable. 1970 Op. Att’y Gen. No. 70-8. As a general rule, a contract which fiscally obligates the state for a period longer than one year is invalid. 1972 Op. Att’y Gen. No. 72-132. An Area Vocational-Technical School Board may not borrow money to be repaid to the lender over a period of time extending beyond the fiscal year in which the loan was made. 1975 Op. Att’y Gen. No. 75-19 (decided under Ga. Const. 1945, Art. VII, Sec. III, Para. I). A golf-cart lease contract creating state liability for over a year is in violation of this paragraph. 1972 Op. Att’y Gen. No. 72-59. (see Ga. Const. 1983, Art. VII, Sec. IV, Para. II).

ALR.

Conclusiveness of official determination of existence of emergency within the contemplation of constitutional or statutory provisions permitting excess of maximum limit of tax or indebtedness in an ‘‘emergency’’, 90 ALR 328. Obligation payable from special fund created by imposition of fees, penalties, or excise taxes as a ‘‘debt’’ within constitutional debt limitation, 100 ALR 900. Bonds issued by state officer or board payable solely out of proceeds of obligations of political subdivisions pledged as security as within constitutional or statutory provisions which impose a limit on state indebtedness or require consent of electors, 100 ALR 1114. Power of Legislature to add to or make more onerous the conditions or limitations prescribed by Constitution upon incurring public deeds, 106 ALR 231. Obligation to meet which money is appropriated at the time of its creation as an indebtedness within limitation of indebtedness, 134 ALR 1399. Presumptions and burden of proof as to violation of or compliance with public debt limitation, 16 ALR2d 515.