SJR 16 Summary

• Amends Article 12, § 5 of the Arkansas Constitution to authorize cities, counties, towns, and other municipal corporations to obtain or appropriate money for economic development projects and services, which includes manufacturing, research facilities, recycling, distribution centers, call centers, warehouses, job training facilities, and corporate headquarters.

• Modifies Amendment 62 to exempt bonds issued for economic development projects from the 10% debt limitation for counties and 20% limitation for municipalities, allowing unlimited bonding for qualifying economic development purposes.

• Eliminates the requirement for public sale of bonds issued under Amendment 62 for economic development projects, providing greater flexibility in bond issuance.

• Expands Amendment 82 to increase the principal amount of general obligation bonds the Arkansas Development Finance Authority may issue from an unspecified limit to 5% of state general revenues collected during the most recent fiscal year to attract large economic development projects.

• Authorizes joint compacts among cities of the first and second class, incorporated towns, school districts, and counties to cooperate on economic development projects and share revenues generated by such projects upon voter approval.