The city of Troy, New York, had obtained federal aid for a Public Works Administration project involving the erection of a new high school building, conditioned upon the city's supplying $786,000 as its share of the cost. The constitutional debt limitation did not permit the city to borrow this amount. The legislature came to the aid of the city and enacted a law providing that the bonds should be issued as "general obligations" of the city school district by the district's board of education. The act expressly stated that the bonds should not be considered as part of the debt of the city of Troy. This action was brought by a taxpayer to enjoin the issuance of the bonds. Held, that the act was unconstitutional since the city school district's debts were to be considered as part of the city's debt within the meaning of the constitutional debt limitation. McCabe v. Gross, 274 N. Y. 39, 8 N. E. (2d) 269 (1937).
Michigan Law Review,
MUNICIPAL CORPORATIONS - CONSTITUTIONAL LIMITATIONS ON AMOUNT OF DEBTS - OBLIGATIONS OF OTHER PUBLIC CORPORATIONS AS DEBTS OF CITY,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol36/iss3/20