State Capitol Commission v. State Board of Finance

Citations

• 74 Wash. 15
• 132 P. 861
• 1913 Wash. LEXIS 1990

Syllabus

<p>Schools and School Districts — School Funds — Investment— State Bonds. Under Const., art. 16, § 5, and Rem. & Bal. Code, § 5056, authorizing the investment of the permanent school fund in state bonds, the investment cannot be made in state capitol building bonds issued against the capitol building fund to be derived from the sale of the capitol lands, unless the general credit of the state is lawfully pledged to the payment of the principal and interest of the bonds.</p> <p>States — Bonds—Validity—State Debt — Limitation—Submission to Vote. Laws 1913, p. 139, § 2, and Laws 1911, p. 323, § 5, providing that the state shall guarantee the principal and interest of the capitol building bonds to be issued against the capitol building fund, pledges the general credit of the state therefor, and hence involves the incurring of a state indebtedness in violation of the prohibition of the Const., art. 8, §§ 1-3; since the bonds provided for exceed the limitation of $400,000, specified in § 1 for certain indebtedness, and do not fall within § 2 authorizing indebtedness to repel invasion and defend the state in war, and were not authorized by a vote of the people as required by § 3 in the case of all other state indebtedness.</p> <p>Same — State Indebtedness — Assets — Oeeset. Where the state pledged its general credit for the payment of capitol building bonds to be paid from future sales of the capitol lands, the ascertained value of the capitol lands cannot be offset against the state obligation upon its pledge for the purpose of showing that the state had not in fact incurred any real indebtedness.</p>