What condition allows state general obligation bonds to exceed the debt service limit of 5%?

The condition that allows state general obligation bonds to exceed the debt service limit of 5% is a two-thirds vote of the legislature. This requirement reflects the importance of legislative oversight and consensus in financial decisions that significantly impact the state's budget and its residents. When a two-thirds majority is achieved, it demonstrates a strong level of support among lawmakers for the necessity of issuing additional debt, which is often warranted for critical infrastructure projects or urgent needs within the state. This mechanism serves as a check to ensure that increasing bond limits is well-considered and not taken lightly, thereby providing a balance between financial prudence and the need for state development.

The other options, while they represent various potential avenues for influencing state financial decisions, do not provide a mechanism specifically recognized for exceeding the debt ceiling in this context. Approval from the federal government, a majority vote of local electors, or a State Supreme Court ruling do not directly relate to the established legislative process required to alter the debt service limit for state general obligation bonds.