Bond-related measures head to Arkansas ballot in 2026

Arkansas State Legislature

Bond-related measures will be on the November 2026 ballot in Arkansas under legislation signed into law by Gov. Sarah Huckabee Sanders over the past week.

Senate Bill 421 puts the issuance of up to $500 million of state general obligation bonds before voters to finance water, waste disposal, pollution control, drainage, flood control, and wetlands and aquatic resources, while capping financing for irrigation facilities at $165 million.

"Current estimates are that the wastewater needs are about $13 billion over the next 20 years. Remaining bond authority will be exhausted in 2027," Republican State Rep. Howard Beaty said ahead of the bill's April 7 passage in the House, adding that existing bond authority will be exhausted in 2027.

If voters approve the $500 million in new authority, the Arkansas Natural Resources Commission would issue a maximum amount of $60 million of bonds per biennium, ensuring the program's continuation through 2043, according to Beaty.

The commission sold $30 million of tax-exempt and taxable GO bonds in 2024, rated Aa1 with a stable outlook by Moody's Ratings and AA by S&P Global Ratings, which revised its outlook to positive from stable.

The state had a total of $437.4 million of GO bonds outstanding as of  June 30 issued for water, economic development, and higher education purposes, according to its fiscal 2024 annual comprehensive financial report.

Senate Joint Resolution 15 places a proposed constitutional amendment for bond-issuing economic development districts on the ballot. 

"This is allowing the people to have a vote on the creation of these economic development districts, and beyond that it allows the legislative body to put together the enabling legislation and the parameters for those economic development districts," Republican State Sen. Jonathan Dismang, its sponsor, told the House State Agencies and Governmental Affairs Committee last week. 

He said the districts could be used by cities and counties to incentivize things like housing and retail development and that incremental increases in property or sales taxes within a district would pay off bonds. 

Beaty, the measure's House sponsor, called it "transformative legislation" that would allow communities to attract investment to improve residents' quality of life. 

"The only way this passes is with the buy-in of small town mayors, county judges, and the communities," he said. "They have to see the merit in this legislation and engage and lean in, and if not, then it won't be successful at the polls."