Question 2: Elimination of Small City School Districts from Constitutional Debt Limitations

Question 1: Exclusion of Indebtedness Contracted for Sewage Facilities

Official Text
The proposed amendment to Article 8, section 5 of the Constitution would extend for ten years, until January 1, 2014, the authority of counties, cities, towns and villages to exclude from their constitutional debt limits indebtedness contracted for the construction or reconstruction of sewage facilities. Shall the proposed amendment be approved?

Official Summary
The purpose of the proposed amendment is to continue the authority of counties, cities, towns, and villages to exclude from their constitutional debt limits indebtedness incurred for the construction or reconstruction of sewage facilities. The State Constitution currently provides that indebtedness contracted on or after January 1, 1962 and before January 1, 2004, for the construction or reconstruction of facilities for the conveyance, treatment, and disposal of sewage shall be excluded from the constitutional debt limits of counties, cities, towns and villages. The effect of the proposed amendment would be to extend for ten years, until January 1, 2014, the period during which sewer debt shall be excluded from the constitutional debt limits of counties, cities, towns and villages.

Question 2: Elimination of Small City School Districts from Constitutional Debt Limitations

Official Text
The proposed amendment to Article 8, section 4 of the Constitution would eliminate School districts that are coterminous with, or partly within, or wholly within a city having less than one hundred twenty-five thousand inhabitants, from the entities subject to a general constitutional debt limitation. Shall the proposed amendment be approved?

Official Summary
The purpose of the proposed amendment is to eliminate school districts coterminous with, or partly within, or wholly within, a city having less than one hundred twenty-five thousand inhabitants, from general constitutional debt limitations.

The State Constitution currently provides that these small city school districts are not allowed to contract indebtedness for education purposes that would exceed an amount equal to five percent of the average full valuation of taxable real estate in the school district. This limitation may be exceeded in relation to specified projects with voter approval, and the consent of the Regents of the University of the State of New York and the State Comptroller. Similar constitutional debt limitations are currently provided for counties, cities, towns and villages, but no other school districts. School districts are currently subject to a statutory debt limitation of ten percent of full valuation of taxable real property in the school district. The proposed amendment would eliminate the constitutional debt limitation applicable to small city school districts.