Minnesota Constitution Article XI. Appropriations and finances
Minnesota Constitution – Article XI: Appropriations and Finances
This article governs the financial operations of the State of Minnesota, including how public funds are appropriated, managed, and controlled. Here's a section-by-section summary:
🔹 Section 1: No money paid without appropriation
No money can be drawn from the state treasury except in pursuance of appropriations made by law. This ensures legislative control over state spending.
🔹 Section 2: Credit of state not to be given or loaned
The state cannot loan its credit or subscribe to or be interested in the stock of any company, association, or corporation. This prohibits state backing of private entities.
🔹 Section 3: Public debt limit
The state may contract public debt for general purposes only up to a specific limit (often tied to a percentage of assessed property value) unless a larger amount is approved by a vote of the people.
🔹 Section 4: Temporary borrowing
Allows the state to borrow temporarily to meet deficits or emergencies, as long as it’s paid back within the fiscal year.
🔹 Section 5: Debt for public defense
Permits the state to incur debt beyond the usual limit for the purpose of repelling invasion, suppressing insurrection, or defending the state in war.
🔹 Section 6: Highway bonds
Allows the issuance of bonds for the construction and improvement of highways, subject to constitutional limitations and voter approval.
🔹 Section 7: Additional bonding purposes
Permits bonds for specific public purposes such as acquiring and improving public lands, buildings, and institutions — often subject to voter approval.
🔹 Section 8: Permanent school fund
Details how income from public lands and other sources must be used solely for the benefit of public schools. Principal is preserved; only interest can be used.
🔹 Section 9: Investment of permanent funds
Directs the management and investment of the permanent school fund and other similar funds. Investments must be prudent and for the public benefit.
🔹 Section 10: Public pension funds
Protects public retirement funds from being used for purposes other than retirement benefits, ensuring fiduciary responsibility.
🔹 Section 11: Cancellation of state bonds
Provides for the process to cancel state-issued bonds once they are redeemed or legally deemed void.
RELATED Blog
0 comments