(Editor’s Note: In an effort to inform voters about the issues that will be on the upcoming Nov. 3 general election ballot, the Herald is publishing a series of unbiased overviews put together by the Arkansas Public Policy Center, which is affiliated with the University of Arkansas Cooperative Extension office in Little Rock.)
Issue 4 would give the Arkansas Natural Resources Commission authorization to issue general obligation bonds under the authority of the Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing Act of 2025 to finance and refinance of the development of water, waste disposal, water pollution control, abatement and prevention, drainage, irrigation, flood control, and wetlands and aquatic resources projects.
The issue puts a cap of $500 million on the bond issue, with no more than $165 million issued to finance and refinance the development of irrigation facilities. In addition, no more than $60 million could be issues within a single year without permission of the legislature.
These funds could be used to provide grants or loans to local governments, used as matching funds for federal or private-sector funding, or be used to refinance existing bonds at a more favorable rate.
Ballot Title: Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing Act of 2025
Ballot Question: Shall the Arkansas Natural Resources Commission be authorized to issue general obligation bonds under the authority of the Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing Act of 2025, for the financing and refinancing of the development of water, waste disposal, water pollution control, abatement and prevention, drainage, irrigation, flood control, and wetlands and aquatic resources projects to serve the citizens of the State of Arkansas, in total principal amount not to exceed five hundred million dollars ($500,000,000), with no more than one hundred sixty-five million dollars ($165,000,000) in total principal amount of such bonds to be issued to finance and refinance the development of irrigation facilities, in series from time to time in principal amounts not to exceed, without prior approval of the General Assembly, sixty million dollars ($60,000,000) in any two-year period beginning on July 1 of each odd-numbered year, which bonds shall be secured by a pledge of the full faith and credit of the State of Arkansas?”
What Supporters Say
• This money is essential. The last two bond issues have been a tremendous help but the future is going to need more money.
• Over the last four years, every single county has received at least one of these loans.
• It will be absolutely devastating to the tune of up to $500 million worth of water and sewer projects in the state of Arkansas that can’t be funded, can’t be assisted without funding without this happening.
• We can ultimately attract a better interest rate, so borrow at better interest rate and then turn around and pass that savings on to the communities that come to us.
What Opponents Say
• Because our counties are already struggling to pay their bills, how will we be able to pay that back plus interest?
• The breadth is part of the concern. Issue 4’s broad language raises questions about who could benefit from taxpayer-backed bonds. Vague definitions could allow bond money to flow to select projects or organizations while some projects could also generate rent and fees.
• Arkansas cannot borrow its way to prosperity.
• Arkansas has accumulated billions of dollars in reserves. Borrowing allows infrastructure costs to be spread across generations that will use it—but borrowing also means paying interest, particularly when today’s rates are considerably higher than they were several years ago.
For More Information
To see the Public Policy Cednter’s complete description of this issue and others, visit https://uaex.uada.edu/business-communities/voter-education/state-ballot-issues.aspx