DALLAS - Louisiana's constitutional limit on annual debt service may derail Gov. Bobby Jindal's plans to use the proceeds from $400 million of revenue bonds to finance the proposed new $1.2 billion Louisiana State University teaching hospital in downtown New Orleans.

Louisiana's constitution limits the amount of net state tax-supported debt service to 6% of total state revenues. The state can exceed the cap only if the Legislature exempts a specific debt issue from the constitutional mandate with approval by two-thirds of the legislators.

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