Arkansas voters will decide Nov. 3 whether to amend the state constitution to give the General Assembly broad new authority to create economic development districts that could use public money and financing tools for a wide range of projects.
What the amendment would allow
Sen. Terry Rice, R-Waldron, summarized the proposal in a State Capitol Report on Oct. 24 describing the ballot item voters will see as Issue 3. Under the measure, the Legislature could authorize districts within a city, county or multi-county region and allow those districts to:
- Issue bonds and incur debt to finance projects;
- Levy certain charges related to services or facilities provided by the district;
- Receive public funds, including state and local grants and loans, to support development;
- Make investments in transportation, commerce, employment initiatives and real estate tied to economic growth.
The amendment would specifically permit the use of public money for activities such as reducing unemployment, expanding transportation and commerce, and improving or developing real estate connected to economic development goals, Rice wrote. It would also authorize public money to be used for loans and grants to support those ends.
Scope and mechanics cited by sponsor
Rice’s report frames the change as a constitutional authorization giving lawmakers flexibility to create districts and tailor financing and funding tools to local or regional projects. The language described in the report does not list dollar thresholds or prescribe a single financing mechanism; instead it grants the Legislature the authority to set the details by statute or local enabling actions.
The proposal would add language to the Arkansas Constitution that squarely expands the state’s authority to use public resources for economic development activities beyond existing tools, according to the summary in Rice’s report.
Votes, next steps and where to find it on the ballot
Issue 3 appears on the Nov. 3 general election ballot as a proposed constitutional amendment. If approved by voters, the Legislature would be able to enact statutes and create administrative frameworks enabling economic development districts under the new constitutional authority. If voters reject the amendment, the constitutional status quo would remain and any new powers would require different legislative or statutory approaches.
- Ballot date: Nov. 3, 2026
The State Capitol Report also summarized other proposed amendments on the ballot addressing voter eligibility and the right to keep and bear arms, but Issue 3 is the item directly tied to public financing and economic development policy.
