Pennsylvania Advisory Opinions March 21, 1916: AGO 6

Advisory Opinion Text

SCHOOL DISTRICT INDEBTEDNESS.

Until appropriate legislation is enacted to carry into effect the constitutional amendment of section 15, article 9 (adopted in November, 1913), raising the debt limit of municipalities from 7 to 10 per centum of the assessed valuation of their taxable property, a school district cannot increase its indebtedness to an amount in excess of 7 per centum of the assessed valuation of the taxable property therein.

School District Indebtedness, 23 Dist. 917, followed.

The Act of May 14, 1915, P. L. 493, was passed to validate proceedings held under the Act of April 20, 1874, P. L. 65, and sets forth no method for holding the election contemplated by the constitutional amendment.

Office of the Attorney General.

Doctor Nathan C. Schaeffer, Superintendent of Public Instruction, Harrisburg, Pa.

Sir: This Department is in receipt of your favor enclosing letter from the Solicitor of the School District of the Borough of Sykesville, Jefferson County, Pennsylvania, and requesting an opinion "as to whether the said School District has authority under Section 15 Article IX of the Constitution to increase its indebtedness to an amount not exceeding ten per centum of the assessed value of taxable property therein, provided three-fifths of the votes cast at a public election are in favor of such increase of indebtedness.

The Act of June 4, 1915; P. L. 844, amending Section 506 of the School Code of 1911, provides:

"That the total indebtedness of such school district, including the indebtedness of any sub-school or ward school district therein, if any, shall never exceed seven per centum upon the assessed value of the taxable property for school purposes therein."

Section 15, Article IX of the Constitution (amendment of November 4, 1913), provides:

"Any of the said municipalities or counties, may incur indebtedness in excess of seven per centum, and not exceeding ten per centum, of the assessed valuation of the taxable property therein, if said increase of indebtedness shall have beeu assented to by three-fifths of the electors voting at a public election, in such manner as shall be provided by law."

In an opinion rendered by Attorney General Bell to your Department on May 7, 1914 (Opinions of the Attorney General 1913-1914, page 266), he advised you that the amendment to the Constitution of November 4, 1913, was applicable to school districts, but that until appropriate legislation for carrying into effect the part of the amendment above quoted is enacted, no school district can avail itself of the power to increase its indebtedness, even with the consent of three-fifths of the electors, to an amount not exceeding ten per centum of the assessed value of the property therein taxable for school purposes.

Since that opinion, no legislation has been enacted for the purpose of carrying the clause of the amendment above quoted, into effect.

The Act of May 14, 1915, P. L. 493, referred to in the letter enclosed with your communication is not, strictly speaking, a statute enacted for carrying into effect the provisions of the amendment to the Constitution before referred to. Its purpose was rather to validate certain elections and proceedings theretofore had under the Act of April 20, 1874, P. L. 65, purporting to' have been held in pursuance of the amendment of Section 15, Article IX of the Constitution. It sets forth no method or machinery for holding the election contemplated by the Constitutional amendment.

Until, therefore, appropriate legislation is enacted for the purpose of carrying into effect the constitutional amendment of Section 15, Article IX, you are advised that the School District of the Borough of Sykesville, Pennsylvania, cannot increase -its indebtedness to an amount in excess of seven per centum of the assessed valuation of the taxable property therein.

Very truly yours,

WILLIAM H. KELLER, First Deputy Attorney General.