Arkansas Universities Plan to Move Ahead, Despite Failure of Bond Issue

Last month, voters in Arkansas narrowly rejected a major bond proposal targeting technology and capital upgrades in higher education and actively supported by Gov. Mike Huckabee, leaving many to wonder what went wrong.

Although the bonds package lost by only by a small margin -- unofficial results indicate 50.26 percent to 49.74 percent -- Gov. Huckabee said he would not raise the issue again with voters during his months left in office, according to the Associated Press.

Perhaps what might be most surprising and educational for Digest readers considering their own higher ed and tech-based economic development bond initiatives is the proposal failed in each of the counties that are home to a college or university, according to unofficial results reported by the Arkansas Democrat-Gazette.

Media reports from Arkansas suggest that voters may have been confused on the higher education bond issue because it was on the ballot along with a highway bond proposal, which was heavily opposed by many interest groups.

Recognizing the mood of the electorate and the other items on the ballot may be critical for determining strategies for success with bond measures in other states. In Ohio, for instance, a $500 million TBED bond failed when on its own, but passed easily this past fall when it was combined with a larger, more popular infrastructure bond measure. In Maine, however, with six bond initiatives on the ballot totalling $83 million last November, the $9 million higher ed bond issue was defeated by a margin small enough to trigger a recount.

Under Arkansas's higher education proposal, the bonds would not have exceeded $250 million, which included $100 million to restructure existing bonds and $150 million in new funding for technology and capital projects, according to the governor’s office. The program specifically targeted technology upgrades, which bond proponents argued are needed as enrollment has increased by 34 percent since the most recent bond issue in the 1990s, according to the governor’s office. Additionally, $10 million was earmarked specifically to connect Arkansas four-year schools to the high-speed Internet initiative, the e Corridor. The bonds would be paid off through the annual higher education appropriations from general revenue funding.

Despite the loss for colleges and universities, many campuses are planning to go ahead with upgrades, according to an article from the Arkansas Democrat-Gazette. University officials said they would probably turn to individual campus bond issues, which would have to be paid off with other revenues, possibly by increasing tuition and fees, the article states.