[Vision2020] HJR 4 and 5

[ringoshirl]

Visionaries:

I support both of these.  It's very limiting for these entities to need a 2/3 favorable vote every time they need to make these purchases that they need for their operations. This does not affect Gritman.

Shirley

H.J.R. 4

"Shall Section 3C, Article VIII, of the Constitution of the State of Idaho be amended to authorize

public hospitals, ancillary to their operations and in furtherance of health care needs in their service

areas, to incur indebtedness or liability to purchase, contract, lease or construct or otherwise acquire

facilities, equipment, technology and real property for health care operations, provided that no ad

valorem tax revenues shall be used for such activities?"

Proposed Amendment to the Constitution of the State of Idaho: Section 3C, Article VIII

Legislative Council's Statement of Meaning, Purpose and Result to be Accomplished of Proposed

Amendment:

This proposed amendment will allow public hospitals to acquire facilities, equipment, technology and

real property through a variety of means that aid the public hospital operations, as long as the acquisitions

are paid for solely from charges, rents or payments derived from the existing or financed facilities and

are not funded by property taxes. Under current Idaho constitutional provisions, public hospitals, as

subdivisions of the state of Idaho, have limited ability to incur debt without the approval of a two-thirds

vote at an election held for that purpose. This proposed amendment will provide a limited alternative

to that two-thirds vote requirement. The use of tax dollars to finance these kinds of investments is

prohibited.

Statements FOR the Proposed Amendment

1. The proposed amendment will allow Idaho's public hospitals, which are primarily located in

small towns and rural areas, to invest in new medical equipment, facilities and technology to

better meet the health care needs of patients in their communities, strengthening Idaho's entire

health care system.

2. The proposed amendment will help give public hospitals the resources they need to attract the

best medical personnel, spur the economy by creating jobs, and increase operational efficiency

through long-term contracts.

3. The proposed amendment keeps in place the safeguards provided in the Idaho Constitution in

two ways. First, no tax dollars can be used to finance these investments. Second, the amendment

strictly forbids obligating taxpayers or any state, county or other governmental entity with these

investments.

Statements AGAINST the Proposed Amendment

1. The existing Idaho constitutional requirement mandating a two-thirds assent of the voters before

a public hospital can enter into long-term debt is an important safeguard for all Idaho citizens.

2. Adoption of the proposed amendment will limit the right of voters to approve certain debt

incurred by the public hospitals.

3. Changes to the Constitution should be made only for major issues of interest to the state or in the

event of a constitutional crisis.

H.J.R. 5

"Shall Article VIII, of the Constitution of the State of Idaho be amended by the addition of a new

Section 3E, to provide for the issuance of revenue and special facility bonds by political subdivisions

of the state and regional airport authorities as defined by law, if operating an airport to acquire,

construct, install, and equip land, facilities, buildings, projects or other property, which are hereby

deemed to be for a public purpose, to be financed for, or to be leased, sold or otherwise disposed of

to persons, associations or corporations, or to be held by the subdivision or regional airport authority,

and may in the manner prescribed by law issue revenue and special facility bonds to finance the costs

thereof? provided that any such bonds shall be payable solely from fees, charges, rents, payments,

grants, or any other revenues derived from the airport or any of its facilities, structures, systems, or

projects, or from any land, facilities, buildings, projects or other property financed by such bonds,

and shall not be secured by the full faith and credit or the taxing power of the subdivision or regional

airport authority?"

Proposed Amendment to the Constitution of the State of Idaho: New Section 3E, Article VIII

Legislative Council's Statement of Meaning, Purpose and Result to be Accomplished of Proposed

Amendment:

Currently, local governmental entities that operate airports and regional airport authorities cannot

incur indebtedness without the approval of a two-thirds vote at an election held for that purpose. This

proposed amendment will allow local governmental entities that operate airports and regional airport

authorities to issue revenue and special facility bonds to acquire, construct, install and equip land,

facilities, buildings, projects or other property. Voter approval will not be required to incur such

indebtedness, as long as the bonds are paid for by fees, charges, rents, payments, grants or other

revenues derived from the airport or its facilities. The use of tax dollars to repay such bonds is

prohibited.

Statements FOR the Proposed Amendment

1. Public airports should have the ready ability to construct needed facilities, such as terminals,

runways, parking structures and hangars, which provide travelers with better services and

accommodations and attract industries to Idaho as long as the users pay for these facilities.

2. Political subdivisions and regional airport authorities need the ability to efficiently address

operational needs as they arise. Adoption of this amendment will provide this ability without the

use of tax dollars to repay any debt or liability incurred.

3. The inability of political subdivisions and regional airport authorities to incur indebtedness and

liability without voter approval has been a contributing factor in driving regional aviation-related

industries to conduct business in neighboring states. If the proposed amendment is not adopted,

Idaho could continue to lose similar economic development opportunities.

4. Public airports are a vital part of economic development and commerce in the state of Idaho. In

2009, aviation contributed an estimated $2.1 billion to Idaho's economy. Properties and facilities

funded by special facility bonds will attract and expand industries, such as maintenance, manufacturing

and cargo operations, which will create new jobs and foster economic development in

Idaho. Modern and efficient airports are essential to Idaho's prosperity.

Statements AGAINST the Proposed Amendment (H.J.R. 5 Continued)

1. The existing Idaho constitutional requirement mandating a two-thirds assent of the voters before

a political subdivision or regional airport authority can incur debt is an important safeguard for

all Idaho citizens.

2. Adoption of the proposed amendment will allow political subdivisions and regional airport

authorities to acquire, construct, install and equip land, facilities, buildings and projects that are

not specifically limited to airport operations.

3. Buildings and land owned by the government are not taxed and therefore provide no revenues to

schools, cities, counties or other levying authorities. Adoption of the proposed amendment could

result in an increase in property exempt from taxation.

4. Changes to the Constitution should be made only for major issues of interest to the entire state

or in the event of a constitutional crisis.
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