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Arkansas Authorize Legislature to Create Programs for Economic Development Including Economic Development Districts Amendment (2026)
| Arkansas Creation of Economic Development Districts Amendment | |
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| Election date |
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| Topic Local government finance and taxes and Local government organization |
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| Status On the ballot |
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| Type Legislatively referred constitutional amendment |
Origin |
The Arkansas Create Economic Development Districts Amendment is on the ballot in Arkansas as a legislatively referred constitutional amendment on November 3, 2026.
A "yes" vote supports amending the constitution to allow the legislature to create programs, including Economic Development Districts, and make loans and grants of public money to achieve the purposes of:
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A "no" vote opposes amending the constitution to allow the legislature to create programs, including Economic Development Districts, and make loans and grants of public money to develop the state economy. |
Overview
What would the amendment do?
- See also: Text of measure
The measure would allow the Arkansas State Legislature to establish establish programs and create loans and grants using public money accomplish purposes of economic development in the state, namely:[1]
- developing and diversifying the state’s economy;
- eliminating or preventing unemployment and underemployment;
- expanding transportation and commerce; and
- developing or improving real estate that contributes to economic development.
The amendment names Economic Development Districts as a program the legislature can create to accomplish economic development in the state.
What is an Economic Development District, and how do they work?
Economic Development Districts (EDDs) are government entities that focus on the economic development of the region they oversee. They are not individual cities or counties, but are generally either composed of multiple cities or counties or cover the geographic boundaries of multiple cities or counties.[2]
EDDs created by the Arkansas legislature would be able to issue bonds to finance projects that would benefit the economic development in the boundaries of the district. Bonds issued by an economic development district would not count towards constitutional debt limits. Property within EDDs would be exempt from state taxation and subject only to taxes levied by the EDD itself. Cities, counties, towns, or other municipal corporations would be authorized to obtain or appropriate money for a corporation, association, institution, or individual to provide funding or lend credit to an EDD. The state legislature would be able to provide by law for the implementation of the amendment.[1]
What have supporters and opponents said about the amendment?
- See also: Support and Opposition
State Rep. Howard Beaty (R-95), who sponsored the amendment in the House, said the amendment would "level the playing field with our neighboring states."[3] The Arkansas State Chamber of Commerce and Associated Industries of Arkansas, which supports the amendment, said, "Arkansas needs more locally driven solutions for economic development. Under the current structure, counties and localities in Arkansas lack certain authority to reduce taxes or tailor incentives to attract and retain businesses. ... This legislation would allow localities to pursue customized economic development strategies, compete for jobs and investment on a more level playing field, and promote innovation and flexibility at the community level."[4]
State Rep. Robin Lundstrum (R-18), who voted against the amendment, said, "The taxpayer is who this will roll down the hill upon if it should fail. I think this particular idea needs more vetting and more time."[3]
Text of measure
Ballot title
The ballot title for the amendment was as follows:
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AN AMENDMENT TO THE ARKANSAS CONSTITUTION CONCERNING ECONOMIC DEVELOPMENT IN THE STATE OF ARKANSAS; AND AUTHORIZING THE GENERAL ASSEMBLY TO PROVIDE FOR THE CREATION OF ECONOMIC DEVELOPMENT DISTRICTS WITHIN CITIES, COUNTIES, OR COOPERATIVE AREAS TO PROMOTE ECONOMIC DEVELOPMENT WITHIN THE ECONOMIC DEVELOPMENT DISTRICT. [5] |
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Popular name
The popular name for the amendment was as follows:
| “ | A Constitutional Amendment Concerning Economic Development in the State of Arkansas; and Authorizing the General Assembly to Provide for the Creation of Economic Development Districts Within Cities, Counties, or Cooperative Areas to Promote Economic Development Within the Economic Development District.[5] | ” |
Constitutional changes
- See also: Arkansas Constitution
The amendment would amend the Arkansas Constitution. The following struck-through text would be deleted and underlined text would be added:[1]
Note: Hover over the text and scroll to see the full text.
SECTION 1. Loans and grants of public money.
(a) Notwithstanding any other provision of the Arkansas Constitution, the General Assembly may provide for the creation of programs and the making of loans and grants of public money for the public purposes of:
(1) Development and diversification of the economy of the State of Arkansas;
(2) The elimination and prevention of unemployment or underemployment in the State of Arkansas;
(3) The development or expansion of transportation or commerce in the State of Arkansas; or
(4) The development or improvement of real estate in the State of Arkansas that contributes to economic development within the State of Arkansas.
(b) The authority under subsection (a) of this section includes without limitation providing for the creation of economic development districts.
SECTION 2. Economic development district projects.
(a) An economic development district may issue bonds for the purpose of financing projects within the economic development district.
(b) The bonds under subsection (a) of this section:
(1) May be secured by and be payable from all or a portion of any funds received by or allocated to the economic development district;
(2) Shall not be considered in calculating debt limits for bonds issued under Arkansas Constitution, Article 12, § 4; and
(3) Shall not be subject to the provisions of:
(A) Arkansas Constitution, Article 16, § 1;
(B) Arkansas Constitution, Amendment 62; or
(C) Arkansas Constitution, Amendment 65.
SECTION 3. Implementation.
The General Assembly shall provide by law for the implementation of this amendment.
SECTION 4. Arkansas Constitution, Article 12, § 5:
§ 5. Political subdivisions not to become stockholders in or lend credit to private corporations — Exceptions.
(a) No county, city, town or other municipal corporation, shall become a stockholder in any company, association, or corporation; or obtain or appropriate money for, or loan its credit to, any corporation, association, institution, or individual.
(b) However, a county, city, town, or other municipal corporation may obtain or appropriate money for a corporation, association, institution, or individual to:
(1) Finance economic development projects; or
(2) Provide economic development services; or
(3) Provide funding or lend credit to an economic development district.
(c) As used in this section:
(1) "Economic development district" means a designated area within a city, county, or cooperative area established under authority granted by the General Assembly to promote economic development within the designated area;
(2) “Economic development projects” means 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;
(I) Sports complexes designed to host local, state, regional, and national competitions, including without limitation baseball, softball, and other sports tournaments; and
(J) An economic development district as authorized by the General Assembly and designated as part of an economic development plan;
(3) “Economic development services” means:
(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; and
(4) “Infrastructure” means:
(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.
(d) The General Assembly, by a three-fourths vote of each house, may amend the provisions of subsections (b) and (c) of this section so long as the amendments are germane to this section and consistent with its policy and purposes.
SECTION 5. Arkansas Constitution, Article 16, § 5:
§ 5. Property taxed according to value — Procedures for valuation — Tax exemptions.
(a) All real and tangible personal property subject to taxation shall be taxed according to its value, that value to be ascertained in such manner as the General Assembly shall direct, making the same equal and uniform throughout the State. No one species of property for which a tax may be collected shall be taxed higher than another species of property of equal value, except as provided and authorized in Section 15 of this Article, and except as authorized in Section 14 of this Article. The General Assembly, upon the approval thereof by a vote of not less than three-fourths (¾ths) of the members elected to each house, may establish the methods and procedures for valuation of property for taxation purposes, but may not alter the method of valuation set forth in Section 15 of this Article.
(b)(1) The following property shall be exempt from taxation: public property used exclusively for public purposes; churches used as such; cemeteries used exclusively as such; school buildings and apparatus; libraries and grounds used exclusively for school purposes; and buildings and grounds and materials used exclusively for public charity.
(2) If property exempt from taxation under subdivision (b)(1) of this section is included in an economic development district, the tax status of the property shall not change.
(c) Property located within an economic development district created by the General Assembly shall be exempt from taxation except for taxes, assessments, or other charges levied by the economic development district of which the property is a part.
(d) Nothing in this Section shall affect or repeal the provision of Amendment 57 to the Constitution of the State of Arkansas pertaining to intangible personal property.
SECTION 6. Arkansas Constitution, Amendment 62, § 6:
§ 6. Conduct of elections.
(a) The General Assembly may enact laws governing the conduct of elections authorized by this Amendment. Absent the enactment of such laws, such elections shall be held, called and conducted in accordance with the laws governing elections generally. The results of such election shall be published in a newspaper of general circulation in the county or municipality (as the case may be) and any contest of such election or the tabulation of the votes therein shall be brought within thirty (30) days after such publication or shall be forever barred.
(b)(1) Any bonds or other obligations of a county, municipality, or other political subdivision facilitating the development and diversification of the economy of the state that are issued for the purpose of making loans or grants in connection with a program authorized by the General Assembly under this amendment and that are payable from ad valorem taxes shall be approved by a vote of the majority of the qualified electors of the county, municipality, or political subdivision voting on the issue.
(2) A program created or a loan or grant made by an economic development district that is secured by a pledge of ad valorem taxes or financed by the issuance of any bonds or other obligations payable from ad valorem taxes of the economic development district does not constitute or create a debt for the purpose of any provision of this Constitution.[5]
Support
Supporters
Officials
- State Sen. Jonathan Dismang (R)
- State Rep. Howard Beaty (R)
Organizations
Arguments
Opposition
Opponents
Officials
- State Rep. Robin Lundstrum (R)
Arguments
Campaign finance
If you are aware of a committee registered to support or oppose this measure, please email editor@ballotpedia.org.
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Oppose | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Total | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Background
Economic Development Districts in Arkansas and neighboring states
As of 2025, EDDs did exist in the state of Arkansas. The United States, through the Economic Development Administration, created eight federal EDDs that cover the entire state of Arkansas.[6] The Arkansas state legislature did not create those EDDs, nor does it have the authority to alter their boundaries or funding. Additionally, the property in the EDDs are not exempt from state taxation not imposed by the EDD. Any EDDs created by the state legislature, in the event that the constitutional amendment passes, would be separate entities from the federal districts, and they would work independently of each other.
Two neighboring states, Louisiana and Mississippi, permit the state legislature to create EDDs. In Mississippi, property within the EDDs are not exempt from taxation, and EDDs do not have the power to levy taxes, only institute general obligation bonds.[7] The bonds themselves, however, are exempt from state taxation. In Louisiana, property within the EDDs are not exempt from state taxation, and they have the ability to levy additional taxes and incur debt.[8] In Louisiana, all EDDs have the same rights and powers as any other political subdivision in the state.
Economic development ballot measures in Arkansas
While Arkansas has seen numerous ballot measures over the years that deal with districting, tax policy, and the economy, only three ballot measures have addressed the broad topic of economic development.
| Year | Title | Summary | Result |
|---|---|---|---|
| 1990 | Proposed Question Act 945 | Authorize the issuance of up to $25 million in economic development credit enhancement general obligation bonds | 
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| 2004 | Proposed Amendment 34 | Allow the general assembly to issue general obligation bonds for economic development projects that invest in capital expenditures | 
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| 2010 | Amendment 3 | Lower the threshold for issuing state bonds to attract major new industries to Arkansas |
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Path to the ballot
Amending the Arkansas Constitution
- See also: Amending the Arkansas Constitution
A simple majority vote is required during one legislative session for the Arkansas State Legislature to place a constitutional amendment on the ballot. That amounts to a minimum of 51 votes in the Arkansas House of Representatives and 18 votes in the Arkansas State Senate, assuming no vacancies. Amendments do not require the governor's signature to be referred to the ballot.
Senate Joint Resolution 15 (2025)
The following is the timeline of the constitutional amendment in the state legislature:[1]
- April 14, 2025: The state Senate passed the amendment in a vote of 28-6.
- April 16, 2025: The state House passed the amendment in a vote of 74-21.
| Votes Required to Pass: 18 | |||
| Yes | No | NV | |
|---|---|---|---|
| Total | 28 | 6 | 1 |
| Total % | 80.0% | 17.1% | 2.9% |
| Democratic (D) | 6 | 0 | 0 |
| Republican (R) | 22 | 6 | 1 |
| Votes Required to Pass: 51 | |||
| Yes | No | NV | |
|---|---|---|---|
| Total | 74 | 21 | 5 |
| Total % | 74.0% | 21.0% | 5.0% |
| Democratic (D) | 18 | 0 | 1 |
| Republican (R) | 56 | 21 | 4 |
How to cast a vote
- See also: Voting in Arkansas
See below to learn more about current voter registration rules, identification requirements, and poll times in Arkansas.
See also
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External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 Arkansas State Legislature, "SJR 15," accessed June 10, 2025
- ↑ U.S. Economic Development Administration, "Economic Development Districts," accessed June 10, 2025
- ↑ 3.0 3.1 Arkansas Advocate, "Arkansas lawmakers refer three proposed constitutional amendments to 2026 ballot," accessed April 23, 2025
- ↑ Arkansas State Chamber, "Daily Legislative Update: Monday, April 15, 2025," accessed April 23, 2025
- ↑ 5.0 5.1 5.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ U.S. Economic Development Administration, "Economic Development Directory: Arkansas," accessed June 5, 2025
- ↑ Mississippi Code Public Access, "Miss. Code § 19-5-99. Establishment of economic development districts.," accessed June 5, 2025
- ↑ Louisiana State Legislature, "§9039.104. Authorization to create local and regional economic development districts," accessed June 5, 2025
- ↑ Arkansas Code, "Title 7, Chapter 5, Subchapter 304," accessed April 3, 2023
- ↑ 10.0 10.1 10.2 10.3 Arkansas Secretary of State, "Voter Registration Information," accessed July 29, 2024
- ↑ Arkansas Secretary of State, "Arkansas Voter Registration Application," accessed November 1, 2024
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ Arkansas Secretary of State, "Frequently Asked Questions," accessed July 29, 2024
