Article XI-O of the Oregon State Constitution

In this post, we will look at Article XI-O of the Oregon State Constitution.  This article is entitled "Pension Liabilities".  The article authorizes that the state can incur indebtedness in order to finance pension liabilities of the State.  The monies raised can also pay for the costs of issuing bonds which is a provision that seems to be a change to the standard text that has been used in previous amendments.  The demographics of Oregon are very similar to the demographics of the USA in general and the baby boom has created pension related issues for all organizations in the USA.  As a large cohort of State employees get to retirement and start taking benefits, the funds do not have enough income to pay out everything.  So rather than pay it out of the general funds, this allows the State to use debt.  The Article has 4 sections.

Section 1

This section first states the purpose of the Article and any indebtedness incurred.  Then it authorizes that the State can guarantee the bonds but also states that the repayment of such cannot be sourced from ad valorem property taxes.

Section 2

This section authorizes rolling over of the bonds issued under this Article.

Section 3

This section directs the Legislature to enact laws to implement this Article.

Section 4

This section is a catchall to prevent the striking down of this article in view of any other parts of the Constitution with which it might conflict.