Arkansas voters will decide in November whether to amend the state constitution through Issue 3, a proposal aimed at giving local governments and the state legislature new mechanisms to promote economic development. The amendment, sponsored by State Senator Jonathan Dismang of Searcy and Representative Howard Beaty of Crossett, was referred to the ballot by the Arkansas General Assembly.
If approved, Issue 3 would allow the legislature to create economic development programs and districts in cities, counties, or regions where communities collaborate on growth initiatives. These districts could utilize public funds for development programs, loans, and grants, as well as levy taxes, assessments, or fees to support projects. Local governments, counties, and development districts would also be permitted to issue bonds to finance economic growth, though bonds payable through property taxes would require voter approval in the affected areas.
During a June meeting at the Mountain Home Community Center, local government officials and business leaders discussed the potential impacts of Issue 3 on the Twin Lakes Area. Hosted by Mountain Home Mayor Hillrey Adams, the meeting featured presentations from amendment supporters outlining how communities could use the proposal to attract housing, retail, manufacturing, and other industries.
One example from the meeting described how a community might negotiate a five-to-ten-year tax rebate with a developer, in exchange for the developer covering upfront infrastructure costs. After the rebate period, the community would begin collecting the full tax revenue from the project. Supporters argue that Issue 3 would give cities and counties more control over how they compete for development opportunities, potentially benefiting local businesses alongside outside investors.
Opponents of the measure have expressed concerns that such incentives could function as corporate subsidies, diverting tax dollars that might otherwise fund schools, roads, and other critical services.
If passed, the amendment would also repeal or modify conflicting sections of the Arkansas Constitution and supersede existing laws or court rulings that conflict with its provisions.
A vote FOR Issue 3 supports changing the constitution to permit these new economic development tools. A vote AGAINST opposes their implementation. The amendment requires a majority vote for approval.
With Election Day set for November 3, early voting begins October 19. Residents must register to vote by October 5 to participate in the general election.