xt769p2w6g7n https://exploreuk.uky.edu/dips/xt769p2w6g7n/data/mets.xml Arkansas United States. Works Progress Administration Lowe, Robert C. (Robert Chapin), 1907- Lander, David S. 1937 14 p.; 27 cm. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call Number  Y 3. W 89/2:36/Ar 4k books English Washington DC: Works Progress Administration This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. Arkansas Works Progress Administration Publications Public welfare -- Law and legislation -- Arkansas Social workers -- Legal status, laws, etc. -- Arkansas Constitutional law -- Arkansas Analysis of Constitutional Provisions Affecting Public Welfare in the State of Arkansas text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Arkansas 1937 1937 2019 true xt769p2w6g7n section xt769p2w6g7n ,3 ,-
[ W O R K S P R O G R E S S A D M | N I S T R A T I O N

(I I

A 1 HARRY L. HOPKINS, ADMINISTRATOR
1 CORRINGTON GILL, ASSISTANT ADMINISTRATOR .

. ? HOWARD B. MYERS, DIRECTOR

1 , DIVISION OF SOCIAL RESEARCH

: ANALYSIS OF CONSTITUTIONAL PROVISIONS i
: AFFECTING PUBLIC WELFARE IN THE STATE OF
: a I ARKANSAS 1
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‘1' 7 MARCH 1, 1937
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PREPARED BY
ROBERT C. LOWE AND DAVID S. LANDER
LEGAL RESEARCH SECTION a a
UNDER THE SUPERVISION OF
A. Ross ECKLER, COORDINATOR OF SPECIAL INQUIRIES
DIVISION OF SOCIAL RESEARCH

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i s. PREFACE
1
f S This bulletin is one of a series presenting '1
1 State constitutional provisions affecting public wel— 1 1
1 fare, prepared to supplement the State by State digests 1
of public welfare laws so as to provide in abstract 1 1
form the basis for the public welfare services of the 1
a 9, several States. 1
The provisions quoted are those concerned 1
directly with public welfare administration and such 1
' others as may substantially affect a public welfare 1
program, even though only indirectly related. It would
.3. a, be impossible to consider within the limits of this 1‘
study every remotely connected constitutional provi— ;
' sion. The indirectly related provisions included, 1
. . therefore, have been restricted to those concerning 1
finance, legislation, and the methods of constitutional 1
,1 amendment.
0‘ .9,
An attempt has been made, by a careful selec—
tion of the most recent cases decided by the highest
courts of the States, to indicate wherever possible how
these provisions have been construed. These cases are
i included in footnotes appended to the constitutional
' I
' provisions shown.
It is hoped that these abstracts will be
useful to those interested in public welfare questions
in indicating how State and local public welfare admin—
_ istration may be affected by constitutional powers and
' ’3' limitations.
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Q CONTENTS L
Page
Incidence of Responsibility for Welfare Program.................. 1
9 Financial Powers and Limitations................................. 1
Taxation and Assessments.................................... 1
. Exemptions.................................................. 4
Borrowing and Use of Credit 5
a» OtherIncome................................................ 10
'9 Appropriations and Expenditures............................. 10
Provisions Affecting Legislation................................. 10
Constitutional Amendment or Revision............................. 13
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Arkansas
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/ ANALYSIS OF CONSTITUTIONAL PROVISIONS AFFECTING
PUBLIC WELFARE IN ARKANSAS1
i
. I. Incidence of Responsibility for Welfare Program ;
, A. It shall be the duty of the General Assembly to provide by ‘
. - law for the support of institutions for the education of‘ the deaf and dumb i
" and of the blind, and also for the treatment of the insane.2
{ II. Financial Powers and Limitations 2
A. Taxation and Assessments
e (1) State
(a) The General Assembly shall not have power to levy
State taxes for any one year to exceed in the aggregate one percent of the
assessed valuation of the property of the State for that year.3
(b) All property subject to taxation shall be taxed
9 according to its value, that value to be ascertained in such manner as the
General Assembly shall direct, making the same equal and uniform throughout
. the State. No one species of property from which a tax may be collected
shall be taxed higher than another species of property of equal value,
provided the General Assembly shall have power from time to time to tax
s ,3! hawkers, peddlers, ferries, exhibitions and privileges in such manner as
may be deemed proper/1‘ * * * _ ‘
‘ ’ ' 1Constitution (1874), with all amendments to March 1, 1937.
' ‘ All citations and quotations are to the Constitution or the State of Arkansas
1 published by the Secretary or State (1935).
( 'It is a fundamental and universally recognized cannon or construction that the
i 9 Constitution of this state is not a grant, but a limitation, or power, * * *. There-
! tore a statute will be upheld unless it is clearly prohibited by the Constitution,
‘3 and, where it is doubtful whether an act comes within the inhibition or the Constitu—
I _ tion, the doubt must be resolved in favor of the constitutionality of the act." Cobb
1 vs. Parnell, 185 Ark. 429, 56 S. w. (2d) 388 (1951).
!
é ZConstitution, Art. XIX, Sec. 19.
. | 3Constitution, Art. XVI, Sec. 8.
t 9’ The limitation or this section applies exclusively to a property tax; and there
.f is nothing in this section which prevents the Legislature from selecting other sub-
; Jects of taxation and prescribing the amount or rate or tax that it may see fit to
? levy thereon. Baker vs. Hill, 180 Ark. 587, 21 S. w. (2d) 867 (1929).
i “Since the Constitution contains no restriction on the power or the Legislature
, to levy taxes except as to property as such, the Legislature has full and complete
6 power in the levy of taxes for state purposes as to other recognized subjects or tax-
? . ation.‘ Ibid.
1 ~' 4
l ._ Constitution, Art. XVI, Sec. 5.
J 3 The requirement or uniformity of this section applies only to property taxes,
1 { and the latter part or the section granting the right to tax “hawkers, peddlers,
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2 Arkansas
II. Financial Powers and Limitations—Continued
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A. Taxation and Assessments—Continued ,
(1) State—Continued ‘ /
(c) None of the rates for property, excise, privilege
or personal taxes, now levied shall be increased by the General Assembly
except after the approval of the qualified electors voting thereon at an ‘ : 0
election, or in case of emergency, by the vote of three—fourths of the ‘
members elected to each House of‘ the General Assembly.5 ~
I
(d) No State tax shall be allowed, or appropriation
1
of money made, except to raise means for the payment of‘ the just debts ’g
of the State, for defraying the necessary expenses of government, to sus— ‘
tain common schools, to repel invasion and suppress insurrection, except
by a majority of two—thirds of both houses of the General Assembly.6 a
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(e) No tax shall be levied except in pursuance of
law, and every law imposing a tax shall state distinctly the object of
the same; and no moneys arising from a tax levied for one purpose shall
be used for any other purpose.7
(f) The General Assembly shall provide by the general « ’
laws for the support ofcommon schools by taxes, which shall never exceed
ferries, exhibitions and privileges' does not by negative implication prevent. the v 4
Legislature from providing for other forms of taxation. Stanley vs. Gates, 179 Ark.
886, 19 S. w. (2d) 1000 (1929).
An income tax was held not to be a property tax and so a net income tax statute a
which provided for a progressive rate of taxation and for exemption of incomes below ‘ 9
certain amounts did not violate this section. Stanley vs. Gates, 179 Ark. 886,19
' S. w. (2d) 1000 (1929).
An inheritance tax statute providing for progressive rates was held valid and
not violatiVe of this section, such a tax not being on property but on the privilege -
- of succession. State vs. Handlin, 100 Ark. 175, 139 S. w. 1112, (1911). Followed in
Gates vs. Bank of Commerce & Trust Company, 47 S. w. (2d) 806 (1951).
A tax on retail sales being an excise tax was held not to violate this section. A
Wiseman vs. Phillips, 191 Ark. 63, 84 s. W. (2d) 91 (1935). 1
5Constitution, Amendment 19, Sec. 2 (1934).
6Constitution, Art. V, See. 31.
‘ The word 'allowed' as used in this section means 'allowed' by law or permitted
. by statute. Stanley vs. Gates, 179 Ark. 886, 19 S. w. (2d) 1000 (1929).
The portion of a tax appropriated to the State charities fund was conceded to be
appropriated to one of "the necessary expenses of government, " and so did not require a
a two-thirds vote for its passage. Ibid. 9
Money raised and expended for the promotion of public health was held to be for
a “necessary expense of government' within the meaning of this section. Central
States Life Insurance Company vs. State, 80 S. w. (2d) 628 (1955).
‘ A statute, taxing the privilege of operating pool tables and appropriating the
revenues therefrom to a fund for the indigent blind, was held not to require a two—
thirds vote of the Legislature. Thompson vs. Wiseman, '75 S. w. (2d) 593 (1954).
7Constitution, Art XVI, Sec. 11. - " o
A temporary diversion of money from one State fund to another was held not to .
violate this section because this section was intended to refer to the permanent di- '1
version of money from one fund to another. Cobb vs. Parnell, 185 Ark. 429, 56 s.w. 4'
‘ (2d) 388 (1951). g
This section has no application to municipal ordinances. Shepperd vs. City of E
‘ Little Rock, 183 Ark. 244, 35 S. w. (241) 361 (1951). O 1 g
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‘ II. Financial Powers and Limitations—Continued
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1 / A. Taxation and Assessments—Continued
. (1) State—Continued
in any one year three mills on the dollar on the taxable property in the
. State, and by an annual per capita tax of one dollar, to be assessed on 1
l every male inhabitant of this State over the age of twenty—one years.8 3
1 a e e. .
Q , (g) Excepting monies raised or collected for educa— 1
tional purposes, highway purposes, to pay Confederate pensions and the Just i
debts of the State, the General Assembly is hereby prohibited from appro—
priating or expending more than the sum of Two and One—Half Million Dollars
for all purposes, for any biennial period; provided the limit herein fixed
‘ a may be exceeded by the votes of three—fourths of the members elected to
I each House of the General Assembly.9
(2) Counties
No county shall levy a tax to exceed one—half of one
per cent for all purposes, but may levy an additional one—half of one per
3‘ cent to pay indebtedness existing at the time of‘ the ratification of this
‘ Constitution.10
1’. (3) Other Local Units
(8.) The General Assembly shall provide, by general
a. . laws, for the organization of cities (which may be classified) and incor—
porated towns, and restrict their power of taxation, assessment, borrowing
money and contracting debts, so as to prevent the abuse of such power.11
‘ (b) No municipal corporation shall be authorized to
, pass any laws contrary to the general laws of the State; nor levy any tax
‘ n on real or personal property to a greater extent, in one year, than five
mills on the dollarof the assessed value of the same. Provided, that, to
pay indebtedness existing at the time of the adoption of this Constitution,
1 an additional tax of not more than five mills on the dollar may be levied. 12
" 9 8Constitution, Amendment 11 (1926). amending Art. XIV, Sec. 3.
4 9Constitution, Amendment 19, Sec. 3 (1954), amending Art. V.
10Constitution, Art. XVI, Sec. 9.
Amendment 17 to the Constitution, adopted in 1928, authorizes any county to levy
an additional tax of not to exceed one—half of one percent on the dollar of the val-
uation of the property therein, for the purpose of constructing or improving any
county courthouse or county jail, upon the approval of a majority of the voters of
* .g_ the county.
‘1. Amendment 3 to the Constitution, adopted in 1898, authorizes counties to levy a
: tax not exceeding three mills on the dollar on all taxable property in the county,
{ to be used for road purposes.
“Constitution, Art. x11, Sec. 3.
‘ T, K. IZConstitution, Art. x11, Sec. 4.
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II. Financial Powers and Limitations—Continued L <
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A. Taxation and Assessments—Continued L Q
(3) Other Local Units—Continued L i
(c) * * * Provided, that the General Assembly may, L
by general law, authorize school districts to levy by a vote of‘ the qual— ?
if‘ied electors ofsuch districts 3. tax not to exceed eighteen mills on the ’5
.9
dollar in any one year for the maintenance of schools, the erection and
equipment of school buildings and the retirement of existing indebtedness A
for buildings.13 * * *. g
I ((1) Nothing in this Constitution shall be so construed L;
as to prohibit the General Assembly from authorizing assessments on real ' if
property for local improvements in the towns andcities, under such regu—
lations as may be prescribed by law, to be based upon the consent of‘ a a
majority in value of the property holders owning property adjoining the _ 1!
locality to be affected; but such assessments shall be ad valorem and
uniform.”
B. Exemptions
(1) * * * Provided further, that the following property A
shall be exempt from taxation: Public property used exclusively for public ’5
purposes; churches used as such; cemeteries used exclusively as such;
school buildings and apparatus; libraries and grounds used exclusively for Ki 1
school purposes, and buildings and grounds and materials used exclusively
for public charity. 15 . h
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Under this section where a municipal ordinance conflicts with a State statute.
the statute will prevail. City of Morrilton vs. (Comes, 75 Ark. 458, 8'7 8. W. 1024
‘ (1905). ~
' It was held that a city was not authorized to levy a property tax in excess of _ ,
the five percent limit for the purpose of building a city hospital. Watkins vs.
Duke. 28 s. H. (2d) 248 (1955).
Amendment 15 to the Constitution, adopted in 1926, authorizes cities of the a 7
first and second class to levy an additional tax of not to exceed five mills on the L 9‘
‘ dollar of taxable property for the purpose of paying certain municipal bonds with
the additional proviso that for the purpose of improving or constructing water works
or light plants a second additional tax up to five percent may be levied. See page
9. par. (b).
Under Amendment 18, adopted in 1928. cities of the first class may, if author-
ized by special vote, levy a special tax not exceeding fiVe mills for the purpose of
securing the location of factories, industries, etc. "‘

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1aConstitution. Amendment 11 (1926), amending Art. XIV. Sec. 3. ‘
“Constitution, Art. XIX, Sec. 27.

”Constitution, Art. XVI, Sec. 5.
The Legislature cannot exempt property from taxation unless it comes within the
. exceptions mentioned in the Constitution. Tedford vs. Vaulx, 183 Ark. 240, 35 S. w. _
(2d) 346 (1931). a.
.hhere a statute authorized cities to issue revenue bonds to pay for a water 5
works system, to be payable solely out of the revenues of the system, it was held to .L
’ violate this section insofar as it attempted to exempt such bonds from taxation 3‘
while in the hands of any person or agency whose property was not otherwise exempt 3
from taxation, because such an exemption was not authoriZed by any of the exceptions é
enumerated in this section. Jernigan Vs. Harris, 187 Ark. 705, 62 S. w. (2d) 5 (1953). S 1
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1 II. Financial Powers and Limitations—Continued
1 ‘ Q ;
1 B. Exemptions—Continued '
1 .
1 j (2) All laws exempting property from taxation other than I
1 as provided in this Constitution shall be void. 16 ‘
‘ (3) That all capital invested in a textile mill in this
3 State for the manufacture of cotton and fiber goods in any manner shall
be and is hereby declared to be exempt from taxation for a period of seven
years from the date of the location of said textile mill. 17
0. .
(4) The homesteadof each and every resident of the state,
, whether ornot such resident be married or unmarried, male or female, shall .
1 .
’ be wholly exempt from all state taxes * ‘3 * 1n all cases where such 1
homestead does not exceed the assessed valuation of One Thousand Dollars 1
($1,000.00). Where the assessed valuation of such homestead exceeds One 1
.9
- Thousand ($1,000.00) this exemption shall apply to the first One Thousand
Dollars ($1,000.00) of such valuation.
Within a maximum limit of Two Thousand Five Hundred
Dollars ($2,500.00) and a minimum limit ofOne ThousandDollars ($1,000.00),
the legislature is hereby authorized and empowered from time to time to
a fix the amount of the exemption hereby provided.18 * * *
C. Borrowing and Use of Credit
f. (1) State
‘ (a) * ’5 ’3 Except for the purpose of refunding the
a ‘ existing outstanding indebtedness of the State and for assuming and
‘ 3 —
Automobiles owned by a county and used for public purposes, while they are not
subject to a property tax under this section, were held to be subject to a State
license fee. Blackwood VS. Sibeck, 180 Ark. 815. 23 S. H. (2d) 259 (1930).
. ' Likewise, gasoline used by cities in propelling their motor vehicles was held
subject to the State gasoline tax. City of Fort Smith vs. Watson, 187 Ark. 830. 62
S. w. (2d) 965 (i935). '
, n The language of this section "churches used as such' was held to mean that
1 ’ church buildings and the ground necessary to the proper use and occupancy of the
same were exempt. Where a. church owned two adjoining lots, the church building being
located on only one of them, the adjoining lot was held not exempt from taxation.
Pulaski County vs. First Baptist Church, 86 Ark. 205, 110 S. W. 1034 (1908).
The constitutional exemption from taxation of school buildings and grounds used
exclusively for school purposes was held to apply to private as well as to public
.-. schools. Phillips County vs. Sister Estelle, 42 Ark. 536 (1884).
n The language of the Constitution"buildings and grounds and materialsused ex-
“' clusively for public charity' leaves no room for doubt that it was not the intention
to exempt any other property from taxation save such as is used exclusively for pub—
lic charity,and that the exemption cannot be extended to property leased or rented,
and from which revenue is derived, though the same be applied solely to support the
charity." Property, the income from which was used entirely for the support of a
_ public charitable hospital, was held not exempt from taxation. Brodie vs. Fitzgerald,
a 5'7 Ark. 445. 22 S. W. 29 (1895).
1 5 16Constitution, Art. XVI, Sec. 6.
The Legislature cannot exempt property from taxation unless it comes within the
; exceptions mentioned in the Constitution. Tedford vs. Vaulx, 183 Ark. 240. 35 S. W.
' (2d) 346 (1931).
\ 1'7Constitution, Amendment 12, Sec. 1 (1928). 1
\ 1
1 0 18Constitution, Amendment 23. Secs. 1 and 2 (1936).
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II. Financial Powers and Limitations—430ntinued N e
C. Borrowing and Use of Credit—Continued
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(1) State-Continued '
refunding valid outstanding road improvement district bonds, the State of‘ 1
Arkansas shall issue no bonds or other evidence of indebtedness pledging i
the faith and credit of the State or any of its revenues for any purpose ,.~. ; '
whatsoever, except by and with the consent of the majority of the qual— )
ified electors of the State voting on the question at a general election A ‘ g
or at a special election called for that purpose.19 * * * I
(b) * * * Neither the State nor any city, coun- . g‘j
ty, town or other municipality in this State, shall ever lend its credit 1
for any purpose whatever; nor shall any county,city, town or municipality %
ever issue any interest—bearing evidences of indebtedness, except such fl 1 c
bonds as may be authorized by law to provide for and secure the payment ‘
of the indebtedness existing at the time of the adoption of the Constitu— ‘
tion of 1874, and the State shall never issue any interest-bearing treas—
ury warrants or scrip.2° * * *
”Constitution, Amendment 20 (1934). e ‘ ’9
Bonds, which were to be obligations of the State Board of Education, and not ;
general obligations of the State, were held not to be State bonds within the meaning 1
of this section and so did not require the approval of the electors. The court 0 g 1
stated that Since the credit of the State was in no waypledged for these bonds '
they did not come within the meaning of this section. Davis vs. Phipps, 85 S. w. (2d)
1020 (1936). '
A contract was entered into prior to the adoption of this section, between the
State and the Federal Government and provided for the issuance of State bonds, to w 3’
be delivered to the Federal Government. At the time of the adoption of this section
the bends had not been delivered. It was held that the issuance of the bonds was ;
unaffected by'this section. Walton vs. Arkansas Construction Commission, 80 S. W. ’
(2d) 927 (1935). ‘ -
, ZOCQnetitution, Amendment 15 (1926), amending Art. XVI, Sec. 1.
In construing this section or the Constitution llthis court has refused to take ‘
a. narrow view' buthas kept in mind the evil which this section was intended to rem- A g n
edy which was the looting of the State treasury by the lending of the credit of the 1
State to private enterprises, particularly railroads. Therefore it has become rec- 3
ognized that the State, although prohibited from lending its credit in the further-
ance of private enterprises, may still use that credit for the promotion of the com-
mon good. A statute, which authorized the lending of State funds to farmers and ‘
stock raisers who were in dire need because of drought and depression was held not
to violate this section, because this was lending the credit of the State for the
purpose of promoting the general welfare rather than to foster an individual enter- g, , a
prise. Cobb vs. Parnell, 183 Ark. 429, 36 S. w. (2d) 588 (1931). a
A statute authorizing the State to borrow money to cover deficiencies in the 3
general revenue fund was held not to violate this section. (1) The statute did not i .
violate the first clause of the section because it did not contemplate any loan of ‘.
the State's credit. (2) It did not violate the second clause of the section that no
'county, city, town or municipality ever issue any interest—bearing evidence of in- :
debtedness' because the word 'municipality' did not include the State so the State
was not subject to this restriction. The court said: I'The state, acting through f. - 3
its Legislature, may borrow money for its own uses unless that right is denied to it .
by the Constitution, and the only inhibition against the state there contained, in E.
this respect, is that it shall not issue any interest-bearing treasury warrants or 7:
scrip.‘ Hays vs. McDaniel, 130 Ark. 52, 196 S. W. 934, 956 (1917). Followed in: §
Tspley vs. F‘utrell, 187 Ark. 844, 62 S. W. (an) 52 (1935). 1
By an amendment adopted in 1954, borrowing by the State must be approved by a ' fi 1 (I
majority vote of the electors. See page 5, par. (21). ‘ i A
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‘ Q II. Financial Powers and Limitations—Continued
} /’ C. Borrowing and Use of Credit—Continued
‘ (1) State—Continued
1
§ (c) Except as herein otherwise provided, the State
1 . shall never assume or pay the debt or liability of any county, town, city,
or other corporation whatsoever, or any part thereof, unless such debt or
i a liability shall have been created to repel invasion, suppress insurrection
I or to provide for the public welfare and defense. N-or shall the indebt—
1 g} edness of any corporation to the State ever be released or in any manner
J discharged save by payment into the public treasury.21
‘ ((1) Except as herein provided, the State shall never
‘ ‘9 ' become a stockholder in, or subscribe to, or be interested in, the stock
§ of any corporation or association.22
(2) Counties and Other local Units
(3.) * * * The fiscal affairs of counties, cities
‘ (g and incorporated towns shall be conducted on a sound financial basis, and
‘ no county court or levying board or agent of any county shall make or au-
1 , thorize any contract or make any allowance for any purpose whatsoever in
’ O excess of the revenue from all sources for the fiscal year in which said
contract or allowance is made; nor shall any county Judge, county clerk
, a or other county officer, sign or issue any scrip, warrant or make any a1-
lowance in excess of the revenue from all sources for the current fiscal
5 year; nor shall any city council, board of aldermen, board of public af-
§ _ fairs, or commissioners of any city of the first or second class, or any
incorporated town, enter into any contract or make any allowance for any
: purpose whatsoever or authorize the issuance of any contract or warrants,
E "' scrip or other evidences of indebtedness in excess of the revenue for such
1 city or town for the current fiscal year; nor shall any mayor, city clerk '
or recorder, or any other officer or officers, however designated, of any
‘ city of the first or second class or incorporated town sign or issue any
scrip, warrant or other certificate of indebtedness in excess of the rev-
. e enue from all sources for the current fiscal year.
Provided, however, to secure funds to pay indebtedness
f i outstanding at the time of the adoption of this amendment, counties, cit-
’ ies, and incorporated towns may issue interest—bearing certificates of
5 indebtedness or bonds with interest coupons for the payment of which a
3 “Constitution, Art. XII, Sec. 12.
7. Road improvement districts, either created by the Legislature itself or created
; under the authority of the Legislature, are not corporations within the meaning or 1
_‘ O 22this section. Tapley vs. mtrell, 187 Ark. 844, 62 S. w. (241) 32 (1953). 1
; . Constitution, Art. XII, Sec. 7. I
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II. Financial Powers and Limitations—Continued ‘ E .
A. -,
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C. Borrowing and Use of Credit-——Continued 'i
(2) Counties and Other Local Units—Continued I 1
county or city tax in addition to that now authorized, not exceeding three !
mills, may be levied for the time as provided by law until such indebted— A ’
ness is paid.23 * ‘5‘ *. o
__________.._-—
H.
25 - 5"
Constitution, Amendment 10 (1924), amending Art. XII, Sec. 4.
For limitations upon taxation of counties and cities see pages 3 and 4.
In holding a county prohibited from issuing bonds for the improvement of roads I ':
and bridges the court said 17* * * we are of the opinion that the people by the , :
adoption of Amendment No. 11 (this section) at the general election of 192,4, intended
to prevent the further issuance of bonds by counties, cities, and towns except for ‘
the payment of indebtedness existing at the time of the adoption of the amendment; A i
and this, by necessary implication, repealed all former amendments looking to the '3 Q
issuance of bonds by counties, cities, and towns.' The court further held that Amend— i.
ment 15, approved two years later (see page 9, par. (b)) did not impliedly repeal
this section, but modified this amendment only to the extent that it authorizes
cities of the first and second Class to issue bonds for the improvements enumerated '1
therein. Chesshir vs. Copeland, 182 Ark. 425, 52 S. w. (20) 501 (1930). '
"The history of the times shows that when Amendment No. ‘11 (this section) was ‘
adopted,many, if not all, the counties, cities, and towns of the state were heavily ,3 1
1 in debt. In order to enable them to pay off their indebtedness existing at the time : Q
E of the adoption of Amendment No. 11 and thus to get on a cash basis, they were author- 1 '
1 ized to issue bonds; and in order to keep them on a cash basis, they were prohibited f
3 from incurring any future obligations in any fiscal year which exceeded the revenue Q
1 for such a year.“ Lybrand vs. Wafford, 174 Ark. 298, 296 S. w. 729, 732 (1927). 1
j A later amendment authorizes counties to borrow and levy special taxes for the ‘
,‘ purposes of building a county courthouse or county Jail, upon the approval of the
1 voters. Constitution, Amendment 17 (1929). .2
This section must be construed literally which means that with the exception of 3 3
§ constructing courthouses or Jails, as set out above, a county cannot incur an ob— ; .
1 ligation in any one year which will be greater than the revenues for that year. So
3 it was held that the action of a county in assuming the obligation of buying a county
' 3 hospital should be enjoined because the cost could not be paid out of a single year's ‘ ,
‘ revenues. Luter vs. Pulaski County Hospital Association, 162 Ark. 1099, 34 8.11. (2d) i
770 (1951). 1
i 'There can be but one meaning for the language of the Constitution quoted, x
: (this section) i.e., that whatever the expense may be and for whatever purpose in- l r.
; curred, it falls within the prohibition of the amendment if in excess of the county ‘ i
: I‘evenue.‘I Consequently a claim against a county for expenses of a term of the cir- ‘1
i cuit court was held void, where the county revenues for the year had been exhausted. 1
; Miller County vs. Blocker, 90 S. w. (2d) 215 (1936). i
§ Whenever county expenditures have equalled revenues in any given year, allow—
5 ance of any sum in excess thereof is void, and any warrant issued on such allowance 1
j is also void. If there is a. surplus in any succeeding year such a claim may be paid A,
y from it. Skinner and Kennedy Stationery Company VS. Crawford County, 190 Ark. 883, , i c
2 82 S. w. (2d) 22 (1935). 1
1 Held that the claim of a State sanatorium against a county for maintenance of i
tubercular patients could not be allowed where it exceeded the revenue of the county
1 for the current fiscal year. Pulaski County vs. Board of Trustees of Arkansas Tu- ,
1 berculosis sanatorium, 186 Ark. 61, 52 S. w. (2d) 972 (1932). ;
1 Warrants issued by a city in excess of the revenues for the current year are
void. The law will presume that city warrants are valid, however, unless it is shown 7»
‘, that they were issued after the revenues for the current year had been exhausted. , - 3
3, Chesnutt vs. Yates, 177 Ark. 894., 9 S. W. (2d) 3'7 (1928). v
: A contract to build a light plant, which provided that the bonds to be issued
3 should not be city obligations but should be payable only out of the revenues accru— i
5 ing from operation of the plant,was held not to come within the restriction of this §
1 section. City of Siloam Springs. 185 Ark. 846, 49 s. w. (2d) 10:57 (1952). C 1 i f
1 3i ‘
‘» ’* i
l _ v 1
' m _~._V 'qui,:;;;§-9'aV .

 f 9
11
[.
1 Arkansas 9
1‘.
11 O
5 . II. F1nanc1al Powers and Limitations—Continued
‘1 " 1
1 . . .
1 i C. Borrow1ng and Use of Credit—Continued
I V,
| (2) Counties and Other Local Units~Continued
‘1 (b) ‘3‘ =1”- * Neither the State nor any city, coun—
, ty, town or other municipality in this State, shall ever lend its credit
for any purpose whatever; (see page 6, par. (b)) nor shall any county, city, I
town or municipality ever issue any interest—bearing evidences of indebt- I
o . .
~ " edness, except such bonds as may be authorized by law to pr0v1de for and I
. secure the payment of the indebtedness existing at the time of the adop— i
j ' tion of the Constitution of 1874, ‘4‘ =5‘ ‘1‘. Provided that cities of the '
first and second class may issue by and with the consent of a majority of I
1 the qualified electors of said municipality voting on the question at an i
1
1 I! election held for the purpose, bonds in sums and for the purposes approved I
by such majority at such election as follows:24 =3 * *. ' |
‘ (c) No county, city, town or other municipal corpora— ’
' tion shall become a stockholder in any company, association or corporation, 1
1‘ or obtain or appr