Ballot Initiatives Impacting Construction Industry

On Tuesday, voters across the country voted on ballot initiatives that will raise revenue for transportation, transit and other infrastructure programs. Despite the economic conditions, measures passed include increases in sales taxes, property taxes and vehicle registration fees to finance roads and transit projects. A number of school districts and localities issued increases in bonds for construction. The success of many of the these measures and the increase in the number of measures over the last several years may be a result of tightening state and local budgets to finance these projects, as well as the uncertainty surrounding the federal government's multi-year commitment to funding them. According to the Center for Transportation Excellence, 77 percent of transportation ballot measures passed in 2010. On Election Day, an additional $500 million in funding was approved. Highlights include $997 million in bonds in Alaska. Proposition A, $600 million, will provide funds for veteran residential mortgages and Proposition B will provide $397.2 million in bonds for library, educational and research facilities. A statewide ballot initiative was rejected by voters in Alabama. The constitutional amendment would have provided $10 billion over 10 years for road, bridge and transportation-related construction. Arizona localities issued bonds: Mesa ($201.7 million), Scottsdale School District ($118 million) and Kyrene Elementary School District 28 ($116.95 million). In California five localities (Alameda County, Marin County, San Francisco, San Mateo County and Santa Clara County) approved $10 increases in vehicle registration fees, with most revenue going toward transportation projects including road repair, congestion relief and transit operations. Also, California voters approved more than $600 million in community college bonds and about $2 billion for California School districts. Districts successful in passing bonds include Ohlone Community College ($349 million), San Jose Evergreen Community College ($268 million), San Marcos ( $287 million), Fresno ($280 million), Berkeley ($210 million), San Mateo Union High ($186 million), Anaheim City ($169.3 million), South San Francisco ( $163 million), Atascadero ($117 million) Monterey Peninsula ($110 million), Pittsburg ($100 million), Centinela Valley Union High ($98 million), Emery ($95 million) and Rialto USD ($98 million).  Contra Costa and Sonoma, Calif., rejected $10 increases in vehicle registration fees that would have generated revenue for roads and transit operations, while two school districts rejected bond issues: Western Placer ($163 million) and Claremont ($95 million). Also in California, bonds backed by marijuana taxes failed when Proposition 19 was rejected. Colorado voters rejected Amendment 61, which would have banned borrowing by the state, and Amendment 60, which would have reduced property taxes. Proposition 101 failed and it would have reduced income, vehicle registration fees and other taxes that could have jeopardized future transportation funding. In Florida, Hillsborough County and Polk County rejected increases in the sales tax for expanded transit and road improvements. The statewide measure in Idaho that allows airports to issue debt for improvements in facility, equipment and property was approved. Maryland voters in Baltimore County approved $284.9 million in bonds, including $68.1 million for streets and highways. Prince George's Country approved $267.8 million in bonds, including $62.3 million for streets and highways. Duluth school district in Minnesota rejected a bond measure ($128 million). New Mexico voters rejected a bond measure ($155.6 million). Charlotte, North Carolina issued bonds ($203.6 million). Oregon voters rejected a bond measure ($125 million). Horry County, South Carolina voters approved dedicated funding for transit systems. Texas voters approved more than $1.5 billion in bonds for school districts and infrastructure. Austin approved $90 million for streets, sidewalks, bikes, trails and transit projects, while Sand Antonio Independent School District approved $515 million, Katy school district approved $459.8 million and Cypress Waters Municipal Management District approved $180 million, all for a fresh water supply district. Voters in Judson school district approved ($198.8 million) and Midland County ($375 million) rejected bonds issues. Virginia voters approve bonds for transportation plan and other projects: Fairfax County ($120 million) and Arlington Country ($102.888 million). Bellingham, Washington voters approved a sales tax increase for transportation projects. There were some taxes for transit defeated in Wisconsin referendums. These bond and tax measures are a sampling of the results AGC is tracking through various news sources. If you or your Chapter were involved in a local measure and would like to add it to our list to be highlighted in future newsletters, please let us know. For more information, contact Jim Young at (202) 547-0133 or youngj@agc.org.