The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1909-08-20
WILL NOT. ISSUE BONDS
State Treasurer Opposes
Scheme Of Legislature.
MORTCAClNC THE FUTURE
Question Of Constitutional Limit to
be Tested.

l
Has the Legislature the right to
provide for the issuance of state
bonds in an amount in excess of the
constitutional limit at the time Of
their authorization. conditioned upon
the state board OF equalization in.
credsing the total tax valuation to
an amount at some future date
sufficient to bring the bond issue
within the constitutional limit at
the time of issuance?
In other words may the Legislature
mortgage the future of the state in
order to raise funds for immediate
expenditure?
This is the question that is to be
tested in a suit to be brought against
the state treasurer because of bis re.
fusal to issue such bonds, says the
Capital News.
The legislature last winter provided,
among other other bond issues, for
the issuance of $4,000 worth OF
bonds for certain improvements at
the state university. At the time
the bill passed the full constitutional
limit of bonded Indebtedness had
been reached and no further bonds
could therefore be provided without
endangering the entire issue uf bonds
by that legislature. Accordingly II
was provided in the bill. which was
passed, signed by the governor and,
therefore, became law, unless de-
clared unconstitutional by the su.
preme court, that the bonds should
not be issued until September ], 1909.
The state board of equalization
! meets in August, 1909, after which IL
was presumed the tax valuation of
the state would be Increased so that
when the bonds were issued, the
constitutional limitation would not
be exceeded. If the state board of
equalization increases the total tax
valuation of the state $4,000. 900
then. on September /, the total bond
that may be issued may be increased
$75, 900, or $4,000 more than Deces-
sary to provide for the tonds as
required by the legislature, but the
state treasurer takes the position
that the legislature may not thus
"mortgage the future'' but that
bonds authorized by it must come
within the constitutional provision
at the time they are authorized.
Otherwise, he points out that The
legislature might provide for bonds
to be issued any number of years In
advance dependence being placed
upon the board Of equalization to in
crease the valuation so as to make ii
possible to issue the bonds.
The position of the state treasurer
is believed to be that such permissiuI
granted to the legislature nullifies thu
intent of the constitution by proyid
ing for bond issues beyond the limit
specified, and hampers the state II
providing for emergencies. Shoult
the issue provided for be made, th'
next legislature would fnd that i
could issue bonds only by "mortgag
ing the future" the last two year
having been discounted by the pre-
yious legislature. Then ii the stat
institutions should suffer loss by fire
as happened at the state university
few years ago, the legislature woult
J he powerless to pro"ide bond issu
5 TO meet the pressing present need
j. but the institution would have /
wait until the assessed valuation Q
the state grows to an amount tina
would permit the bonds to be issned
, The issue Of $73 900 provided b
= the recent legislature is divided int
two series. the first of $50, ZOO an
e the second Of $43. 900, so that IL tn
j total valuation of the state is not Ia
t creased sufficient to permit the entir
: issue. there is a chance that it wi
: be increased to an amount sufficieu
to permit the issuance Of the frs
series.
j. Richards s. Haga of Boise hay
N been retained by the regents of tn
i university to represent that institt