Little Rock voters reject economic development amendment, approve water bonds

Arkansas voters rejected a proposed constitutional amendment that would allow local governments to create economic development districts. The measure, known as Issue 3, failed to secure a majority of the vote as of 11 p.m. on election day. With 79.4% of precincts fully reporting and others partially reporting, the amendment trailed 50.66% to 49.34%. The Associated Press had not yet called the election at that time.

The amendment would have granted cities and counties the power to establish zones designed to attract retail businesses and other operations. These districts could issue bonds, loan money, and award publicly funded grants to developers. Tax revenues collected over time would reimburse developers for project costs. Local governments could lead these districts directly or appoint specific boards to manage them.

Supporters, including the Arkansas State Chamber of Commerce and several mayors, argued the districts would help communities incentivize growth in blighted or undeveloped areas. They cited the need for amenities such as grocery stores and housing. Proponents noted that every other state except Arizona allows for some form of these economic incentives. They pointed to the faster growth seen in Texarkana, Texas, compared to Texarkana, Arkansas.

Opponents of Issue 3 argued that the amendment lacked specific details that lawmakers would need to address in the next legislative session. They expressed concern that voters were deciding on a framework without knowing the final rules. Critics also raised questions about the control unelected boards would have over public funds. Dr. Hal Bass, a political science professor emeritus at Ouachita Baptist University, said the complexity of the issue presented a challenge for supporters. He stated, “I think that in the case of the economic development districts, if it does fail, it’s going to be, ‘When in doubt, vote no.’” He added that the issue presentation was sufficiently complicated and ambiguous, leaving many voters confused.

Voters easily approved two other proposed constitutional amendments. Issue 1, which restated existing provisions regarding noncitizen voting, was leading 69% to 31%. This amendment changes the constitution to state that “only” citizens may vote, replacing the previous language that said “any” citizen may vote. Supporters said this change provides greater clarity and helps prevent scenarios seen in other states and Washington, D.C., where noncitizens participate in local elections.

Issue 2, which reaffirmed the right to keep and bear arms, was leading 71% to 29%. The amendment defines this right as natural, fundamental, and individual, stating it shall not be infringed. The current constitution cites “common defense” as the purpose, but the new language explicitly frames the right as individual. It also includes lawful hunting, recreational use, and any other lawful purpose as valid reasons for the right. The amendment specifies that the right includes, without limitation, the possession and use of ammunition, firearm accessories, and components.

Voters also appeared to approve a ballot initiative allowing the state to issue $500 million in bonds for water, wastewater, and irrigation projects. This measure, referred to as Issue 4, was leading 56% to 44%. The state has identified $20.1 billion in needed upgrades to water and wastewater systems over the next 20 years. The amendment would allow the state to issue bonds and loan the proceeds to communities. These loans would often carry lower interest rates than communities could secure on their own. Localities could use the funds to expand, repair, and maintain their infrastructure.