1.2.1 Debt Limit

1.2.1 Debt Limit

The debt limit provisions in the California Constitution require two-thirds voter approval of certain forms of “indebtedness” and “liabilities” of certain public agencies so as to limit their ability to incur unfunded, long term obligations. Article XVI, Section 18 of the California Constitution reads as follows: 

No county, city, town, township, board of education, or school district, shall incur any indebtedness or liability in any manner or for any purpose exceeding in any year the income and revenue provided for such year, without the assent of two-thirds of the voters of the public entity voting at an election to be held for that purpose.

The limitations of Article XVI, Section 18 cannot be overridden by statute. Furthermore, these provisions are a limit on the exercise of power and do not allow a public agency to incur obligations without independent constitutional or statutory authority.