Two governors who were embroiled in their state's fiscal problems were unseated Tuesday on an election day in which many large bond and tax measures were successful.
In Pennsylvania, which received downgrades from all three major bond-rating agencies this year for not acting on its estimated $50 billion unfunded pension liability, York businessman and former state revenue director Tom Wolf, a Democrat, trounced Republican incumbent Tom Corbett by a 55% to 45% margin, making him the first incumbent governor in 44 years to lose there.
In Illinois, beset by budget and pension funding woes, Republican Bruce Rauner took the governor's office from incumbent Democrat Pat Quinn.
California voters strongly backed the state's request for $7.545 billion of water bonds, while New York voters green-lit a $2 billion proposal for bonds to upgrade school technology.
The economic pressures states faced since 2010 hovered over this year's campaign nationwide, according to Fitch Ratings managing director Laura Porter, who heads the agency's states ratings group.
"I think this year is particularly interesting when you think about what's happened in the four years since the current incumbent governors were elected, and what that might mean for decisions they'd make if they're re-elected," she said before the election.
The new governors of 2010 faced a pullback in federal stimulus money and declining tax revenues. "So it required really difficult decisions in terms of the spending and the funding that states would do," said Porter.
SOUTHWEST
In Texas, voters approved more than $5 billion of bond proposals for cities, counties and schools.
Proposition 1, diverting up to $1.7 billion from the state rainy day fund to road projects in oil-producing regions of Texas, won easy approval. As expected, Republicans swept the top state offices, sending Attorney General Greg Abbott to the governor's mansion.
Austin voters defeated a $1 billion proposal to build a light rail line and improve roads and bridges in the city. It was the second time since 2000 that Austin has defeated a light rail bond proposal. According to the latest count, voters appeared to favor a $386 million bond issue for expansion of the Austin Community College District.
In the Houston area, voters approved $748 million of bonds for the Katy Independent School District, including $55 million for a new high school stadium. More than 70% of voters in neighboring Fort Bend ISD supported a $484 million bond proposal. Lamar ISD's $240.6 million of bonds also won approval.
The Lone Star College District north of Houston won approval of $485 million of bonds after suffering a defeat on a similarly sized proposal last year.
In North Texas, Denton voters approved the first ban on hydraulic fracturing or "fracking" in the city limits with nearly 60% of the vote
In Tarrant County, voters approved $238 million of bonds for Arlington roads and parks, while Fort Worth voters passed a $450 million bond issue for a new city arena.
Garland ISD in Dallas' eastern suburbs passed a $455 million bond issue, the largest in the district's history.
In Arizona, Maricopa County voters agreed to allow the county to sell $935 million of hospital bonds, while Mesa voters approved a $580 million utility bond package, including a $315.7 million water system improvement bond and $178.2 million for wastewater improvements. Phoenix voters rejected a pension reform bill that would have replaced the city's pension system for new employees with a 401(k)-like plan.
In Colorado, Boulder Valley SD Re-2 passed $576.52 million of bonds.
FAR WEST
It was a handy win for California's $7.5 billion water bond proposal, along with a measure to adopt a stricter rainy-day fund for the state government.
Gov. Jerry Brown was easily re-elected in a Democratic sweep of statewide offices, in which Controller John Chiang was elected treasurer to replace the termed-out Bill Lockyer. Betty Yee will be the next controller.
Preliminary results found California voters approving 89 of 113 local school bond measures, authorizing $9.3 billion of debt out of $11.8 billion requested, according to data gathered by Michael Coleman of Californiacityfinance.com.
The passage rate for the preliminary results is matching up with historic rates where 8 out of 10 school bond measures usually pass, Coleman said.
School bond measures need 55% of the vote. Among those falling short were the North Orange County Community College District's $574 million measure and Orange Unified School District's $296 million measure. Both landed between 54% and 55% in election-night results, meaning absentee and provisional ballot counts could change the outcome.
Winners included Santa Clara USD's $419 million bond, Sonoma Community College District's $410 million, Moreno Valley USD's $398 million, Corona-Norco USD's $396 million, San Mateo Community College District's $388 million, and Norwalk-La Mirada USD's $375 million.
In San Francisco, a $500 million bond proposal for transit and transportation cleared the required two-thirds margin to pass.
In Oregon, voters rejected Ballot Measure 86 to create an endowment for student financial aid and allow the state to issue general bonds to fund it.
NORTHEAST
Rhode Island voters elected General Treasurer Gina Raimondo governor and Seth Magaziner as their new general treasurer. They approved referenda allowing the Newport Grand Casino slots parlor to add table games, while limiting three conditions under which it can relocate. Voters also approved four bond proposals, allowing the state to borrow up to $248 million.
Massachusetts voters rejected a motion to ban casino gambling. They elected Republican Charlie Baker governor, and Democrat Deb Goldberg as treasurer to replace Steve Grossman, who ran for governor but lost in the Democratic primary.
New York voters easily approved the $2 billion school bond measure, and handed the state Senate outright to Republicans. Since 2012 the Republicans have been in the minority but have essentially run the senate with the so-called Independent Democratic Conference of five Democrats who have caucused with the Republicans. Gov. Andrew Cuomo was easily re-elected.
Pennsylvania's new Democratic governor, Wolf, will still have to contend with sizable GOP majorities in the legislature.
In Maine, Republican Gov. Paul LePage, who has challenged many bond issuance plans, was re-elected. Voters also approved six state bond questions, authorizing $50 million in debt.
SOUTHEAST
In the Southeast, five incumbent Republican governors remained in office while voters supported some infrastructure bonds and sent mixed messages on transportation issues.
In Florida, voters approved constitutional amendment No. 1 to dedicate a portion of an existing tax on real estate transfers to fund up to $10 billion in cash and bonds for a conservation program.
In south Florida, Broward County voters agreed to issue $800 million in general obligation bonds for public schools, while Miami-Dade voters rejected $393 million in GOs for a new courthouse after supporting public funding issues in previous years.
In Clayton County in Atlanta's suburbs, nearly 74% of voters agreed to increase their sales tax by 1% to fund bus and rail services through the Metropolitan Atlanta Rapid Transit Authority.
Louisiana voters refused to create a Transportation Infrastructure Bank, while in St. Petersburg, Fla., more than 61% of voters rejected a 1-cent sales tax for a $2.2 billion bus and rail system.
Charlotte, N.C., voters authorized $146 million in GO bonds for transportation, neighborhoods, and housing programs, while Fairfax County, Va., voters agreed to issue $100 million GOs for transportation needs.
Two southern states passed restrictions on new taxes. Georgia voters placed a cap on their income tax rate in the state's constitution, while Tennesseans - who are not currently subject to a personal income tax - voted to place the prohibition in their constitution.
Florida Gov. Rick Scott, Alabama Gov. Robert Bentley, Georgia Gov. Nathan Deal, South Carolina Gov. Nikki Haley, and Tennessee Gov. Bill Haslam all won reelection.
MIDWEST
In the Midwest, incumbent governors fared well with the notable exception of Illinois.
Wisconsin's Republican Gov., Scott Walker, staved off a challenge from Democratic candidate Mary Burke to win his third race in four years. Walker had faced a recall election midway through his first term.
Michigan's Gov. Rick Snyder defeated challenger and former congressman Mark Schauer in a close race that was considered partly to be a referendum on Detroit's historic bankruptcy. In the end, Snyder won 51% of the vote compared to Schauer's 47%. Snyder said his first priority would be pushing through a new road funding bill in the upcoming lame-duck legislative session.
Incumbent Ohio Gov. John Kasich glided to victory over Cuyahoga County Executive Ed FitzGerald.
Indiana voters ushered in Kelly Mitchell, a Republican, as the state's new treasurer over Democrat Mike Boland. Mitchell ascends to the spot after spending the last six years in the treasurer's office as director of TrustINdiana, a local government investment fund.
Iowa Republican Gov. Terry Branstad beat Democrat Jack Hatch, and Minnesota incumbent Democrat Mark Dayton survived a challenge from Republican Jeff Johnson. The GOP retained control of the state House while Democrats held on to the Senate in Iowa. In Minnesota, Republicans won a majority while Democrats retained the state Senate. Also in Iowa, Democratic treasurer Michael Fitzgerald, whose office manages state borrowing, won a ninth term.
In Illinois, Comptroller Judy Baar Topinka beat her Democratic challenger, Lt. Gov. Sheila Simon. The race was too close to call for state treasurer in a contest between Democratic candidate Michael Frerichs, a state senator, and Republican Tom Cross, a state representative, to fill the seat being vacated by Dan Rutherford, who did not seek re-election. The Democrats held on to their three-fifths super majority in the General Assembly.
Illinois voters approved an advisory referendum as to whether the state should consider imposing a 3% surcharge on incomes of more than $1 million, which could raise an estimated $1 billion annually. In Kansas City, Missouri, voters rejected sales tax hikes for public transportation and capital projects. In Wisconsin, voters approved a constitutional amendment banning the diversion of transportation fund revenues for other spending purposes.
In Missouri, voters approved a constitutional amendment that will curtail the governor's powers to withhold budgeted spending without legislative approval when revenues fall short, giving the legislature the ability to override the governor's actions with a two-thirds vote.
Omaha, Neb., voters approved a $421 million bond issuance for public schools.
