Are there any regulations related to public finance, including borrowing?

Yes, there are regulations related to public finance, including borrowing, in California. Generally, borrowing by local governments in California is regulated by the California Constitution and statutes, including the enactment of bonds, the Local Agency Public Construction Act, and the Revenue Bond Law of 1941. State Constitution and statutes provide the basis for government borrowing. Article XVI, section 18 of the California Constitution generally prohibits any local government unit in the state from incurring any indebtedness for any purpose except for the construction of single-family dwellings, unless the specific purpose is approved by two-thirds of the qualified electors voting. The Local Agency Public Construction Act allows all local agencies in the state to enter into contracts for works and improvements of a public nature. The Revenue Bond Law of 1941 authorizes local governments to issue revenue bonds for any public purpose, including public works or improvements, and for financing any economic or industrial development project. In addition, the Government Code allows for local governments to issue bonds on the basis of a vote of the people through a general obligation bond election. Generally, these bonds must be approved by a two-thirds majority of the qualified electors in the affected area. Moreover, local governments are empowered to borrow funds to meet their current expenses. The amount borrowed may not exceed one-twelfth of the amount appropriated in the current budget. Finally, local governments can borrow money from public and private lenders. However, most public loans require voter approval and the imposition of a tax levy, while private loans may involve certain interest costs. Thus, the regulations related to public finance, including borrowing, in California are established and regulated by the California Constitution and statutes.

Are there any regulations related to public finance, including borrowing?

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