xt7hdr2p8g68 https://exploreuk.uky.edu/dips/xt7hdr2p8g68/data/mets.xml Georgia United States. Works Progress Administration Lowe, Robert C.(Robert Chapin), 1907- Sherfey, Helen R. 1936 20 p.; 27 cm. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call Number Y 3.W 89/2:36/G 29 books English Washington DC: Works Progress Administration This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. Georgia Works Progress Administration Publications Public welfare -- Law and legislation -- Georgia Social workers -- Legal status, laws, etc. -- Georgia Constitutional law -- Georgia Analysis of Constitutional Provisions Affecting Public Welfare in the State of Georgia text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Georgia 1936 1936 2019 true xt7hdr2p8g68 section xt7hdr2p8g68 I‘ I I“ II'IVIEF’II‘T‘YI°I‘KFIIIIIIII I I I % IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ~ . 77,3, DHEEWHEIEHE? H ”I WORKS PROGRESS ADMINISTRATION HARRY L. HOPKINS, ADMINISTRATOR CORRINGTON GILL I HOWARD B. MYERS, DIRECTOR " ASSISTANT ADMINISTRATOR SOCIAL RESEARCH DIVISION ' unseat . p ' ' ‘* mamas oftENfIUCK’i . . ANALYSIS OF CONSTITUTIONAL PROVISIONS ‘ A_FFECTING PUBLIC WELFARE IN THE STATE OF I GEORGIA . OCTOBER 1, 1956 - Preface This bulletin is one of a series presenting State constitutional provisions affecting public wel- fare, prepared to supplement the State by State di- gests of public welfare laws so as to provide in ab- stract form the basis for the public welfare services of the several States. The provisions quoted are those concerned « directly with public welfare administration and such others as may substantially affect a public welfare program, even though only indirectly related. It Would be impossible to consider within the lindts of this study every remotely connected constitutional . provision. The indirectly related provisions ,in- cluded, therefore, have been restricted to those con- cerning finance, legislation, and the methods of con— stitutional amendment. An attempt has been made, by a careful se— lection of the most recent cases decided by the high- est courts of the States, to indicate wherever possi— ble how these provisions have been construed. These cases are included in footnotes appended to the con- stitutional provisions shown. It is hoped that these abstracts will be useful to those interested in public welfare ques- tions in indicating how State and local public wel— fare administration may be affected by constitutional powers and limitations. Georgia TABLE OF CONTENTS ' Page Incidence of Responsibility for Welfare Program 1 Financial Powers and Limitations Taxation and Assessments 1 . Exemptions ‘7 Borrowing and Use of Credit 9 Appropriations and Expenditures l4 Provisions Affecting legislation 15 Constitutional Amendment or Revision 20 Georgia I. . ANALYSIS OF CONSTITUTISNEQ. PROVISIONS AFFECTING ‘ EQEIIC WELFARE IN GEORGIA 1/ I. Incidence of Responsibility for Welfare Program The Courts of Ordinary shall have such powers in relation to . . . paupers . . . as may be conferred on’them by law. 2/ II. Financial Powers and Limitations A. Taxation and Assessments (1) State (a) The powers of taxation over the whole State shall be exercised by the General Assembly for the following purposes, only: 1. Constitution (1877), with all amendments to September 1, 1956; and proposed amendments to be voted upon November, 1956. 2. Constitution, Art. VI, Sec. 6, Par. 2. Provision is made for one Ordinary for each county from Whose . decision appeals may be taken to the Superior Court. Constitution, ‘ Art. VI, Sec. 6, Par. 1; When the administration of county affairs in a particular county is lodged with commissioners, the power over county matters usually exercised by the Ordinary devolves upon them, and they may discharge such functions with reference to county matters as are conferred on them by the act of their creation, which there- , tofore have been performed by the Ordinary. Town of Decatur vs. De Kalb County, 150 Ga. 483, 61 S. E. 23 (1908). Dyer vs. Martin, 152 Ga. 445, 64 s. E. 475 (1909). The word "paupers" is defined as those persons only who are completely destitute, or those who are not able to maintain them- selves by labor, or have not sufficient means to maintain them— selves. "One desirous of sharing the provision for the county poor should make application to be provided for as a pauper to the commissioner of the poor or the ordinary, upon which a hear— ing must be had." Clark vs. Walton, 157 Ga. 277, 75 S. E. 592 (1911). Since the State is authorized by the Constitution to provide pensions to Confederate veterans, whether or not they could be classified under the head of paupers, the counties may not provide for them from the pauper fund. Clark vs. Walton, 157 Ga. 277, 75 S. E. 592 (1911). See page 5, par. (c), and page 6, footnote 15. See Constitution, Art. VIII, for provisions relating to . education. 2. Georgia 11- W (Cont'd) . A. Taxation and Assessments (Cont‘dl (1) State (Cont'd) For the support of the State Government and the public institutions. E/ For educational purposes in instructing children in the elementary branches of an English education only. §/ To pay the interest on the public debt. 2/ To pay the principal of the public debt. y To suppress insurrection, to repel invasion, and defend the State in time of war. §/ To supply the soldiers who lost a limb or limbs, in the military service of the Confederate States, with substantial artificial limbs during life; and make suitable provisions for such Confederate soldiers as may have been otherwise disabled or permanently injured in such service, or who may, by reason of age and poverty, or infirmity and poverty, or blindness and poverty, be unable to provide a living for themselves, and for the widows of such Confederate soldiers as may have died in the service of the Confederate States, or since, from wounds received therein, or disease contracted in the service, or who, by reason of age and poverty, or infirmity and poverty, or blindness and poverty, are unable to provide a living for themselves; . . . fi/ . Tb make provisions for the payment of pensions to any ex-Confederate soldier, residing in this State January lst, 1920, who enlisted in the military service of the Confederate States during the Civil War betWeen the States of the United States, and who performed actual military service in the annies of the Confederate States or of the organized militia of this State and was honorably discharged therefrom; . . . Any soldier doing service in the Confederate army, whether he belonged to the Confederate army or whether he belonged to the militia of any Confederate State and served with the Confederate army, shall be eligible to draw a pension. §/ To construct and maintain a system of State highways. Q/ 3. Constitution, Art. VII, Sec. 1, Par. 1. 4. Ibid. See page 10, par. (c), and footnotes 55 and 34. 5. Ibid. This section applies only to widows married at the time of such service, and since remaining unmarried. 6. Ibid. Provision is also made for pensions to the widowa of such soldiers who were married prior to January 1, 1881, unless such widow is receiving a pension on account of being also the widow of another such soldier. Ibid. Georgia 3, . II. Financial Powers and Limitations (Cont'd) A. Taxation and Assessments (Cont'd) (1) State (Cont'd) (b) The levy of taxes on property for any one year by the General Assembly for all purposes, except to provide for repelling invasion, suppressing insurrection, or defending the State in time of war, shall not exceed five mills on each dollar of the value of the property taxable in the State. 2/ (c) All taxation shall be uniform upon the same class of subjects, and ad valorem on all property subject to be taxed within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws. The General Assembly may however impose a tax upon such domestic animals as from their nature and habits are destructive of other property. §/ 7. Constitution, Art. VII, Sec. 1, Par. 2. Since income is not property, a tax thereon does not come within the prohibitions of this section. Featherstone vs. Norman, 170 Ga. 570, 155 s. E. 58 (19:50). Inheritance tax, being "in the nature of a tax upon a priv- ilege”, does not come within the prohibitions of this section. . Martin vs. Pollock, 144 Ga. 605, 87 s. E. 795 (1916); Farkas vs. - Smith, 147 Ga. 505, 94 s. E. 1016 (1918). 8. Constitution, Art. VII, Sec. 2, Par. 1. The General Assembly in imposing occupation taxes, may sub— divide persons engaged in same business under different corditions, and tax only one of these subdivisions, provided classification is not arbitrary. Thus an act taxing lumber dealers and manu— facturers located in or within three miles of certain specified municipalities, and exempting those located in rural districts was held constitutional under this section. Guerry vs. Harrison, 178 Ga. 669, 173 S. E. 851 (1934). Milliron vs. Harrison, 175 Ga. 764, 166 S. E. 231 (1952). But an occupation tax of $15 to $40 on grocery stores extending credit, and $75 on cash and carry grocery stores was held to be arbitrary and unconstitutional under this section. City of Douglas vs. South Georgia Grocery Co., 180 Ga. 519, 179 S. E. 768 (1934). "A tax upon a business or occupation is not a tax upon prop— erty, within the ad valorem and uniformity clause." City of Macon vs. Samples, 165 Ga. 150, 145 S. E. 57 (1928); Standard Oil Co. of Ky. vs. State Revenue Commission, 179 Ga. 571, 176 S. E. 1 (1954). A proposed amendment to be voted upon by the people in ' November, 1956, would, if ratified, substitute in the place of this provision the following: "All taxes shall be levied and collected under general laws for public purposes only. All (Footnote forwarded) 4. Georgia II. Financial Powers and Limitations (Cont'd) . A. Taxation and Assessments (Cont'd) (1) State (Cont'd) (Footnote #8 — Continued) taxation shall be uniform upon the same class of property subject to tax within the territorial lhmits of the authority levying the tax. Property which is subject to tax shall be divided into two (2) classes, to wit: Intangible property and tangible property. "Intangible property shall consist of money, notes, accounts, stocks, bonds, and all other rights of action, and/or represen- tative of value, but shall not include corporate franchises. "Tangible properties shall include corporate franchises and all other classes of property not embraced in said definition of intangible properties. "No tax in excess of five (5) mills on each dollar of the assessed value of such intangible properties shall be levied for all purposes of the State, the counties, the municipalities, and the other governmental subdivisions of the State. No tax shall be levied on the tangible property by this State or any govern- mental subdivision thereof, except as follows: 1. No tax in excess of five (5) mills on each dollar of the assessed value of tangible properties shall be levied by . the counties of this State for all county purposes. 2. No tax in excess of five (5) mills on each dollar of the assessed value of tangible properties shall be levied for school purposes. ‘ 5. No tax in excess of five (5) mills on each dollar of the assessed value of tangible properties shall be levied by'a municipality of this State for all municipal purposes. "The General Assembly from time to time may provide the method of returning, assessing, levying, and collecting all taxes, and may apportion the same to the State and the govern- mental subdivisions thereof in accordance with the provisions of this section. "Provided, that such property shall continue to be subject to taxation for the payment of the principal and interest of any legal indebtedness of the State and/or any political subdivisions thereof, existing as of January 1, 1936, and such bonded in— debtedness as may be hereafter legally created and validated. "Provided further, that nothing herein shall be construed to restrict or abridge the right of the General Assembly to assess and/or levy any form of taxes for governmental purposes, but the General Assembly is specifically authorized to assess and levy such forms of taxes as it may seem proper not in conflict here— with." Georgia Laws (1935), Part V, Title I, p. 1240. Georgia 5. . II. Financial Powers and Limitations. (Cont'd) A. Taxation and Assessments (Cont'd) (1) State (Cont'd) (d) No poll tax shall be levied except for educational purposes, and such tax shall not exceed one dollar annually upon each poll. 2/ (e) No person shall be deprived of life, liberty, or property, except by due process of law. 19/ (2) Counties (a) Each county shall be a body corporate, with such powers and limitations as may be prescribed by law . . . 11/ (b) The General Assembly shall have the power to consolidate and combine all governmental functions and powers now vested in and exercised by cities and municipalities having a popu— lation of more than 52,900 according to the Federal census of 1920, with the governmental functions and powers now vested in and exer- cised by the authorities of the county in which such cities or municipalities are situated; to create, designate, and give a name . ' to political subdivisions composed of the entire area of such counties; . . . to divide such political subdivisions into districts; to fix a maximum rate of ad valorem.taxation to be levied by authority of such political subdivisions, within the various districts, without regard ‘ to the uniformity of the rate; . . . 12/ I (c) The General Assembly shall not have power to delegate to any county the right to levy a tax for any purpose, except for educational purposes 15/; to build and repair the public buildings and bridges; to maintain and support prisoners; to pay 9. Constitution, Art. VII, Sec. 2, Par. 5. 10. Constitution, Art. I, Sec. 1, Par. 5. 11. Constitution, Art. XI, Sec. 1, Par. 1. 12. Constitution, Art. XI, Sec. 1, Par. 2—a. This provision does not apply to cities and municipalities, the corporate limits of which are included within more than one county. The section further provides for the method of ratifi- cation of a special act creating such political subdivisions by the voters therein. Ibid. 15. The Legislature may authorize the counties to levy a tax for the services of an itinerant demonstrator of agricultural and home economics. Bowers vs. Hanks, 152 Ga. 659, 111 S. E. 58 (1922). 6. Georgia II. Financial Powers and Limitations (Cont'd) . A. Taxation and Assessments (Cont'd) (2) Counties (Cont'd) jurors and coroners, and for litigation, quarantine lé/, roads, and expenses of courts; to support paupers 15/ and pay debts heretofore existing; to pay the county police, and to provide for necessary sanitation 16/, and for the collection and preservation of records of birth, death, disease, and health. 12/ (d) Any county, municipal corporation or political division of this State which shall incur any bonded indebtedness under the provisions of this Constitution shall lg/ at or before __________________________________.__________.___________.__.___________._ 14. A county tax for the procurement of vaccine for the prevention of the spread of small pox held unconstitutional under this section since the term "quarantine" means only the confinement of those persons exposed to, or suspected of being afflicted with the dis— ease. Daniel vs. Putnam County, 113 Ga. 570, 58 s. E. 980 (1901). 15. The General Assembly has and exercises the power of providing by State taxation for the payment of pensions to Confederate soldiers, and can confer no authority for paying pensions to indigent, blind soldiers out of the funds to be raised by county taxation. Elder vs. Collier, loo Ga. 342, 28 s. E. 116 (1897); Verdery vs. . Walton, 137 Ga. 215, 75 s. E. 590 (1911). 16. Building a county owned hospital for sick convicts, paupers, and indigent poor, with limited facilities for pay patients, by use of proceeds of highway department refunding certificates issued to county under statute, held a valid use of the county tax power. Griner vs. Board of Commissioners of Bulloch County, 180 Ga. 619, 180 s. E. 118 (1935). 17. Constitution, Art. VII, Sec. 6, Par. 2. County may levy tax for accumulated debts and current ex— penses in amount equal to State tax. Central of Georgia Railway Company vs. Wright, 165 Ga. 651, 142 S. E. 292 (1928); Central of Ga. Ry. Company vs. Effingham County, 57 Ga. App. 765, 142 S. E. 505 (1928); Southern By. Company vs. Gordon County, 175 Ga. 907, 161 s. E. 824 (1931). County funds not derived from taxation may be applied to any purpose for which the county has authority to apply public funds. Tate vs. City of Elberton, 156 Ga. 301, 71 s. E. 420 (1911); McGinnis vs. McKinnon, 165 Ga. 713, 141 s. E. 910 (1928). So much of Workman's Compensation Act as requires counties to insure employees against personal injuries and death, held un- constitutional under this section. Floyd County vs. Scoggins, 164 Ga. 485, 159 S. E. 11 (1927). But cf. City of Atlanta vs. Pickens, 176 Ga. 855, 169 s. E. 99 (1953) where the Compensation Act as applied to municipalities was held constitutional. See page 11, par. (6) and footnote 56. . 18. The word "shell" is interpreted as mandatory. Wilkins VS. City of Waynesboro, 116 Ga. 559, 42 s. E. 767 (1902). Georgia 7. . II. Financial Powers and Limitations (Cont‘d) A. Taxation and Assessments (Cont'd) (2) Counties (Cont'd) the time of so doing provide for the assessment and collection of an annual tax sufficient in amount to pay the principal and interest of said debt, within thirty years from_the date of the incurring of said indebtedness. 32/ (5) Other Local Units (a) See page 5, par. (b). (b) See page 6, par. (d), and footnote 19 below. B. Exemptions (1) State (a) The General Assembly may, by law, exempt from taxation all public property; places of religious worship or burial; all institutions of purely public charity 29/; all buildings 21] erected for and used as a college 22/, incorporated academy, or other seminary _____________________.____.________._____________________.______________________ 19. Constitution, Art. VII, Sec. 7, Par. 2. An Act authorizing a municipality to issue bonds with provisions for an annual tax sufficient to pay the interest on the bonds, and a sinking fund to pay the principal, but without provision for an annual tax suffi- ._ cient to pay the principal, held unconstitutional under this section. Wilkins vs. City of Waynesboro, 116 Ga. 559, 42 S. E. 767 (1902). "This does not . . . mean that the municipal authorities are compelled to collect this tax, if when the time arrives for payment of any part of the debt, either principal or interest, there are funds in the treasury derived from other sources, which may be lawfully applied to the payment of the debt.“ Epping vs. City of Columbus, 117 Ga. 265, 45 S. E. 805 (1905). Where a city has failed to levy a tax to pay the principal of its bonded indebtedness, a sinking fund set aside for such purpose, may not be diverted to another purpose. Matthews vs. Darby, 165 Ga. 509, 141 S. E. 504 (1928). 20. Hospital supported in substantial part by donations and largely by income derived from pay patients held not exempt as an institution of purely public charity not used for corporate profit. Richardson vs. Executive Committee of Baptist Convention, 176 Ga. 705, 169 S. E. 18 (1953). 21. Buildings are "construed to embrace the land upon which they are located and the land adjacent thereto necessary for‘their proper use, occupancy, and enjoyment". Mayor of City of Gainesville vs. Brenau College, 150 Ga. 156, 105 s. E. 164 (1920); Baggett vs. Georgia Conference, Associa- tion of Seventh Day Adventists, 157 Ga. 488, 121 S. E. 858 (1924). 22. College buildings are exempt where tuition is used only to pay for teachers' salaries and maintenance and repair of the institution. Linton vs. Lucy Cobb Institute, 117 Ga. 678, 45 S. E. 55 (1905). 8, 'Georgia II. Financial Powers and Limitations (Cont'd) . B. Exemptions (Cont'd) (1) State (Cont'd) of learning, and also all funds or property held or used as endowment by such colleges, incorporated academies or seminaries of learning, provided the same is not invested in real estate; and provided, further, that said exemption shall only apply to such colleges, incorporated academies or other seminaries of learning as are open to the general public; provided, further, that all endowments to institutions estab- lished for white people shall be limited to white people, and all endowments to institutions established for colored people shall be limited to colored people; the real and personal estate of any public library, and that of any other literary association, used by or connected with such library; all books and philosophical apparatus; and all paintings and statuary of any company or association, kept in a public hall, and not held as merchandise or for purposes of sale or gain; provided, the property so exempted be not used for purposes of private or corporate profit and income. 25/ 'The General Assembly shall further have power to exempt from taxation, farm products, in- cluding baled cotton, grown in this State and remaining in the hands of the producer, but not longer than for the year next after the production. 23/ (b) All laws exempting preperty from taxation . other than the property herein enumerated shall be void. EE/ (2) Counties Any person, natural or artificial, a resident of this State, who may after January lst, 1924, build, equip, establish or enlarge a plant for the manufacture or processing of cotton §§/, _——_____—__————_——____________._—___________________________________ 25. "Property used for raising income is not exempt, although the in- come may be used for charitable purposes, but property used for charitable purposes is not taxable, although in the operation of the charity incidental income may be derived." Linton vs. Lucy ' Cobb Institute, 117 Ga. 678, 45 s. E. 55 (1903). 24.. Constitution, Art. VII, Sec. 2, Par. 2. The Constitution, Art. IX, Sec. 1, Par. 1, defines a home— stead covering personal and real property to the extent of $1,600 and Art. IX, Sec. 4, Par. 1, recognizes another form of homestead previously created by statute covering miscellaneous property which might exceed $1,600. Neither of these homesteads is exempted from taxation. Art. IX, Sec. 2, Par. 1. 25. Constitution, Art. VII, Sec. 2, Par. 4. 26. Held not to include a cotton ginnery, since ”processing" only refers to manufacturing processes subsequent to ginning. Georgia Warehouse Company vs. Jolley, 172 Ga. 172, 157 S. E. 276 (1951). Georgia 9. . II. Financial Powers and Limitations (Cont'd) B. Exemptions (Cont’d) (2) Counties (Cont'd) wool, linen, silk, rubber, clay, wood, metal, metallic or non-metallic mineral or combination of same, creamery or cheese plant 27/; or for the production or development of electricity, may, as to such building, enlargement, or equipment, be exempt from all county, incorporated town or city ad valorem.taxes for a period of time_not exceeding five years from the date of the beginning of the building, enlargement or equipment of such plants. . . fig] (3) Other Local Units See page 8, par. 2, and footnote 26; also footnotes 27 and 28 below. C. Borrowing and Use of Credit (1) State (a) No debt shall be contracted by, or on behalf of the State, except to supply such temporary deficit as may exist in . the treasury in any year from necessary delay in collecting the taxes of that year, to repel invasion, suppress insurrection, and defend the State in time of war, or to pay the existing public debt; but the debt created to supply deficiencies in revenue shall not exceed, in the aggregate, five hundred thousand dollars, and any loan made for this purpose shall be repaid out of the taxes levied for the year in which the loan is made. 29/ However, said debt may be increased in the sun 27. Held to include a manufacturer of ice cream and related products. Miller vs. Pitts, 179 Ga. 789, 177 S. E. 587 (1934). 28. Constitution, Art. VII, Sec. 2, Par. 2-a. Acquisition by a cotton manufacturing corporation of a ware- house held not an enlargement of its plant, and not essential to its operation so as to come within this section. City of Columbus vs. Muscogee lmnufacturing Company, 165 Ga. 259, 140 S. E. 860 (1927). 29. An act authorizing the setting apart of the rentals due the State from a railroad as a special fund, and the drawing of warrants against the fund, and using the proceeds to meet the , State's obligations then incurred, and for other purposes, held not to create a debt by or in behalf of the State, since the warrants were payable exclusively out of that fund. Wright vs. Hardwick, 152 Ga. 502, 109 S. E. 903 (1921); Harrison vs. Hard- man, 169 Ga. i35, 150 S. E. 542 (1929). 10. Georgia II. Financial Powers and Limitations (Cont'd) . C. Borrowing and Use of Credit (Cont'd) (1) State (Cont'd) of three million, five hundred thousand dollars for the payment of the public school teachers of the State only. The principal amount borrowed for payment of teachers to be repaid each year out of the common school appropriation, and the interest paid thereon to be paid each year out of the general funds of the State. §9/ (b) The bonded debt §_1_/ of the State shall never be increased, except to repel invasion, suppress insurrection or defend the State in time of war. Eg/ (c) The General Assembly shall raise, by taxation, each year, in addition to the sum required to pay the public expenses and interest on the public debt, the sum of one hundred thousand dollars, which shall be held as a sinking fund, to pay off and retire the bonds of the State which have not yet matured, and shall be applied to no other purpose whatever. 55/ If the bonds cannot at any time be purchased at or below par, then the sinking fund herein provided for may be loaned by the Governor and Treasurer of the State; provided, the security which shall be demanded for said loan shall consist only of the valid bonds of the State; . . . 53/ . (d) The credit of the State shall not be pledged or loaned to any individual, company, corporation or association and the State shall not become a joint owner or stockholder in any company, association or corporation. g2/ 30. Constitution, Art. VII, Sec. 5, Par. 1. 51. The word "debt" on a given date is the principal amount of all the State's obligations, plus the past-due and unpaid interest on that date. Epping vs. City of Columbus, 11? Ga. 265, 43 S. E. 805 (1903). 32. Constitution, Art. VII, Sec. 12, Par. 1. 35. The application of this fund to the bonded debt is legal only when it has the effect to pay off and cancel one or more obligations of the State. It may not be devoted to the payment of interest alone. Park vs. Candler, 114 Ga. 466, 40 S. E. 525 (1902). 34. Constitution, Art. VII, Sec. 14, Par. 1. 55. Constitution, Art. VII, Sec. 5, Par. 1. jecrgia \ 11- II. Financial Powers and Limitations (Cont'd) . C. Borrowing and Use of Credit (Cont'd) (1) State (Cont’d) (e) The General Assembly shall not, by vote, resolution or order grant any donation or gratuity in favor of any person, corporation or association. @6/ (2) Counties (a) See page 12, par. (a), and footnotes 39 and 40. (b) See page 6, par. (d), and footnote 19; also page 7, footnote 19. (c) The State shall not assume the debt, nor any part thereof, of any county, municipal corporation, or political sub- division of the State, unless such debt be contracted to enable the State to repel invasion, suppress insurrection, or defend itself in time of war: . . . gz/ (d) The General Assembly shall not authorize any county, municipal corporation, or political division of this State to become a stockholder in any company, corporation, or association, or to appropriate money for, or loan its credit to any corporation, company, association, institution or individual except for purely charitable purposes. This restriction shall not operate to prevent the . support of schools by municipal corporations within their respective limits. . . _23_8_/ 56. Constitution, Art. VII, Sec. 16, Per. 1. Morkmen's Compensation Act requiring municipal corporations to insure their employees against personal injury or death held constitutional under this section. Recognizing the unconsti- tutionality of similar county insurance under par. (c), page 5 (Art. VII, Sec. 6, Par. 2.) the court stated: "The Legislature has more liberal control of municipalities than of counties, since the latter are safeguarded more strictly in the Constitution." City of Atlanta vs. Pickens, 176 Ga. 833, 169 s. E. 99 (1933). See page 5, par. (6) and page 6, footnote 17. A grant to a railroad without consideration of a right of way being in aid of a public purpose from which great benefit is ex- pected is not a gratuity under this section. State of Georgia Vs. Trustees of the Cincinnati So. Ry. et al., 248 U. S. 26, 39 S. Ct. 14, 65 L. Ed. 104 {1918). 57. Constitution, Art. VII, Sec. 8, Par. 1. 58. Constitution, Art. VII, Sec. 6, Par. 1. _ A contract between the State highway board and Hall (bunty whereby the county agreed to grade that portion of the State-aid road within its borders, for a consideration to be paid by the State highway board, less a stipulated percentage to be borne by the county was held valid under this section. Spain vs. Hall . County, 175 Ga. 600, 155 s. E. 612 (1932). 12. Georgia II. Financial Powers and Limitations (Cont'd) . C. Borrowing and Use of Credit (Cont'd) 5. Other Local Units (a) The debt hereafter incurred by any county, municipal corporation or political division of this State except as in this Constitution provided for, shall never exceed seven per centum of the assessed value of all the taxable property therein and no such county, municipality or division shall incur any new debt except for a temporary loan or loans, to supply casual deficiencies of revenue, not to exceed one fifth of one per centum of the assessed value of the taxable property therein, without the assent of two thirds of the qualified voters thereof, voting at an election for that purpose to be held as prescribed by law: gg/ Provided, said two thirds so voting shall be a majority of the registered voters . . . any city the debt of which does not exceed seven per centum of the assessed value of the taxable property at the time of the adoption of this Constitution may be authorized by law to increase at any time the amount of said debt three per centum upon such assessed valuation. 59/ 39. ”Any liability which (is; not to be discharged by money already in the treasury, or by taxes to be levied during the year in which the contract under which the liability arose (is) made, is a debt, within the meaning of (this section), and cannot be in- curred without the preliminary sanction of a popular vote, unless . it be for a temporary loan to supply casual deficiencies of revenue." City Council of Dawson vs. Waterworks Company, 106 Ga. 696, 32 S. E. 907 (1899); Butts County vs. Jackson Banking Company, 129 Ga. 801, so 3. E. 149 (1908). ”County commissioners have no authority to contract in behalf of a county for a loan of money (not to supply casual deficiencies of revenue) to be used in defraying current expenses, although the general design be to discharge the notes given for such loan from the anticipated revenues of the current year.” Baker vs. Rockdale County, 161 Ga. 245, 150 s. E. 684 (1925). 40. Constitution, Art. VII, Sec. 7, Par. 1. Twenty amendments to this section have been adopted,_2£ . purely local application, allowing additional indebtedness. One of these provided that the "County of Stephens, for the purpose of owning, erecting, equipping, and operating a hospital for medical and surgical treatment, may incur a bonded indebtedness of sixty thousand ($60,000.00) dollars, in addition to and Separate from the amount of debt hereinbefore in this paragraph allowed to be incurred, and may levy taxes to retire the principal and interest of said bonds; said bonds to be issued under the general law providing for county bond issues." Georgia Laws (1929), Part I, Title III, No. 195, page 142; ratified Nov. 4, 1930. (Footnote forwarded) Georgia 13. . II. Financial Powers and Limitations (Cont‘d) C. Borrowing and Use of Credit (Cont'd) ‘ (5) Other Local Units (Cont'd) (b) Reserving to the municipal corporations the , benefit of all