Opinion ID: 1124495
Heading Depth: 1
Heading Rank: 2

Heading: Prohibition on Deficit Spending

Text: ¶ 22 Article 10, section 26 of the Oklahoma Constitution provides: Except as herein otherwise provided, no county, city, township, school district or other political corporation, or subdivision of the state, shall be allowed to become indebted in any manner, or for any purpose, to an amount exceeding, in any year, the income and revenue provided for such year without the assent of three-fifths of the voters thereof. . . . The purpose of this provision is to force cities and municipalities to operate on a cash basis, and to prevent indebtedness extending beyond one year. Del City v. FOP, Lodge No. 114, 869 P.2d 309, 311 (Okla.1993). The question, therefore, is whether the economic development plan obligated the City of Warr Acres to incur a financial obligation after the year 1992 to be paid from taxes levied and collected in subsequent fiscal years. It did not. ¶ 23 The City's sole financial obligation under the plan was the purchase of the United States Strip Security which was placed in escrow. The City fulfilled this obligation during the same fiscal year in which the obligation arose. Therefore, the economic development plan complied with article 10, section 26.