Much at Stake for Businesses in State Ballot Questions

Yes, the big race is for president -- but voters across the U.S. will also give a thumbs-up or thumbs-down this November to a variety of state initiatives on energy, environmental and transportation policy.

By Richard Sammon, Senior Associate Editor, The Kiplinger Letter

August 18, 2008

Ballot initiatives merit watching this year -- about 150 questions will appear in 27 states in the Nov. 4 election.

Many affect business, government and social policy, and some could be trendsetters for future ballot initiatives in other states. No single issue dominates this year the way gay marriage bans did in 2004 or state minimum wage hikes did in 2006. Still, there are a lot of important issues that will affect businesses and individuals alike.

• Energy. Missouri and Maryland may approve a requirement that 15% of electricity in the state be produced from clean energy sources by 2021. California is considering a tougher plan, but it will probably go down in defeat. Also, look for a close vote in California on a $5-billion bond issue to provide incentives for energy efficient vehicles and renewable energy technology.

  North Dakota will decide whether to bar the use of taxes from in-state oil and gas production for general spending to help balance the budget. A proposed lockbox plan would limit use of the production tax revenue to schools, social services, disaster relief and new tax cuts.

• Environment. Arkansas is expected to approve a bond issue to finance water pollution control. Ohio will decide whether to authorize borrowing for environmental restoration programs, and Minnesota will decide whether to increase the state sales tax to finance a host of state natural resource preservation and cultural heritage programs.

• Transportation. California will likely approve a $9-billion bond issue for high-speed-rail service to eventually connect San Francisco and Sacramento to Los Angeles and San Diego. The ultimate cost for this ambitious proposal may be much higher.

• Affirmative action. Colorado, Arizona and Nebraska will all consider ballot proposals to end preferences based on race or gender in college admissions and public hiring.

• Investment. Montana will decide whether to allow a portion of some state accounts, including public pensions and state worker comp funds, to be invested directly in private company stocks as opposed to broad-based index funds.

• Property rights. Nevada will probably OK a ballot question ensuring fair market value for private properties taken through eminent domain and ensuring that a property owner be allowed to buy back property that had been taken but not used for the intended public purpose.

• Health care. California is likely to approve a plan to issue nearly $1 billion in bonds solely for construction and repair of children's hospitals. Washington state residents will decide whether terminally ill, competent adults may request and self-administer lethal medications prescribed by a doctor for purpose of suicide.

• Immigration. While it does not have enough signatures as yet to qualify, Arizona may vote on a proposal to allow the state to permanently revoke the business licenses of employers who knowingly hire illegal immigrants. Missourians may declare English the official language in the state for all public matters and public correspondence.

• Gambling. Maine will likely lower the age from 21 to 19 for people to play slot machines. Massachusetts will probably outlaw dog racing.

• Agriculture. Californians will wrestle with a proposal that will set minimum enclosure sizes for confined livestock on farms. If passed, the measure would especially impact the state's $330 million a year egg farm industry, resulting in higher egg prices. Polls show the proposal was popular early on, but it's fading as the implications become clearer, and it's likely to lose on Election Day.

• Veterans. California will approve a nearly $1-billion bond issue for farm and home purchase assistance for veterans. Oklahoma will eliminate personal property taxes for veterans who sustained serious lifetime disabilities during military service.

• Elections. Montana may decide to bar contractors doing business with the state from making political donations to state lawmakers.

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