AN AMENDMENT TO THE ARKANSAS
CONSTITUTION CONCERNING JOB CREATION, JOB EXPANSION AND
ECONOMIC DEVELOPMENT
BACKGROUND
The Arkansas General Assembly
referred Issue No. 3 to voters during the 2015 Regular Session. The proposed
constitutional amendment will be on the General Election Ballot in November, giving
Arkansas voters the chance to improve economic development opportunities and
create Jobs for Arkansas in
communities across the state.
Right now, the Arkansas
Constitution includes a patchwork of economic development language and
definitions, making it difficult, and in some instances, impossible, for local
communities to take full advantage of many of the state’s most valuable job
creation tools. This amendment would
clean up those inconsistencies, provide additional opportunities for cities and
municipalities to participate in economic development efforts, and enhance the
state’s ability to attract large employers to Arkansas.
WHAT DOES ISSUE NO. 3 DO FOR ARKANSAS?
Enhances
the State’s Ability to Compete for Large Projects
Removes the cap
on Amendment 82 general obligation bonds (currently limited to five percent of
the state’s general revenue budget).
Bolsters the
state’s ability to compete for large projects, while still allowing the
legislature to determine whether incentives should be offered, based on the
impact of the project.
Provides
Clear, Consistent Constitutional Definitions, Empowering Cities and
Municipalities to Participate in Economic Development
Clearly Defines
“Economic Development Projects,”[1] “Economic
Development Services,”[2] and “infrastructure.”[3](All definitions also align with definitions
used by AEDC)
Having these
definitions in place will eliminate the need for legal interpretation of whether
cities and municipalities may engage in certain economic development activities,
allowing cities to confidently pursue opportunities for their communities.
Clarifies
language of Amendment 62, broadening the ability of cities, counties, and
school districts to form “compact” agreements to share revenue and/or costs to
pursue economic development projects.
Gives
Cities and Counties Clear Authority to Spend Local Dollars for Economic
Development Projects
Sales Tax for Economic Development Projects
Many cities and
counties currently collect a voter-approved sales tax for economic development,
but the Constitution is unclear how the money can be spent, leaving local communities
vulnerable as they work to create jobs.
This amendment
makes clear that cities and counties have authority to spend economic
development sales tax revenue on “economic development projects.”
Bonds for Economic Development Projects
With voter
approval, under Amendment 62, cities and counties will be able to issue bonds
for “economic development projects.”
Allows for the
voter-approved sale of bonds to offer infrastructure and incentives to
companies.
BOTTOM
LINE: ISSUE NO. 3 WILL CREATE JOBS
FOR ARKANSAS
Right
now, Arkansas is at a disadvantage. Our constitution leaves us OUT OF LINE with other states in this part of the country when it comes to
giving communities the ability to engage in economic development efforts. Even with strong local and legislative
support for economic development policies, many cities and counties have found
their job creation efforts are limited by a confusing, inconsistent Arkansas
Constitution. Issue No. 3 would streamline
our constitution, providing ALL of
our cities, counties, and the state with more
and better tools needed to help
create Jobs for Arkansas.
[1] Economic
Development Projects – the land, buildings, furnishings, equipment,
facilities, infrastructure, and improvements that are required or suitable for
the development, retention, or expansion of: (A) manufacturing, production, and
industrial facilities; (B) Research, technology, and development facilities;
(C) Recycling facilities; (D)Distribution centers; (E) Call centers; (F)
Warehouse facilities; (G) Job training facilities; (H) Regional or national
corporate headquarters facilities
[2] Economic
Development Services – (A) Planning, marketing, and strategic advice and
counsel regarding job recruitment, job development, job retention, and job
expansion; (B) Supervision and operation of industrial parks or other such
properties; and (C) Negotiation of contracts for the sale or lease of
industrial parks or other such properties
[3] Infrastructure
– (A) Land acquisition; (B)Site preparation; (C)Road and highway improvements;
(D)Rail spur, railroad, and railport construction; (E)Water service;
(F)Wastewater treatment; (G)Employee training which may include equipment for
such purpose; and (H) Environmental mitigation or reclamation.
*The General
Assembly may amend these definitions with a three-fourths vote of each house.