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Business groups are out to defeat scores of state ballot initiatives, ranging from caps on state spending to limits on taking private property for public use. In some cases, business leaders are advocating long-held positions, such as opposition to raising the minimum wage. But in others, the business community's stance might surprise you.
Caps on state spending and taxes, for example, are high on the hit list. Voters in up to a dozen states will consider ballot questions prohibiting any boosts in tax revenue to be used to increase government spending. If such an initiative passed, the state's budget would be allowed to grow only in proportion to population and inflation, with any excess revenue refunded to taxpayers.
Expect businesses to mount pitched battles to defeat such initiatives in Maine, Michigan, Montana, Nebraska, Nevada and Oregon. Companies fear that a lack of state spending on services and infrastructure will make it impossible for them to attract talented employees, especially for high-tech jobs. In fact, pending initiatives closely resemble one passed by Colorado in 1992, which was suspended in 2005, helped by support from the Denver Metro Chamber of Commerce and other business groups. Already, chambers of commerce in Arizona, Michigan, Missouri and Oklahoma have come out against the ballot moves, but they'll have to overcome support from taxpayers who like the idea of tax freezes and potential refunds.
Many states will likely refine laws on eminent domain, the taking of private property for public use, after last year's U.S. Supreme Court decision in Kelo v. New London. In that case, the Court ruled that the Connecticut city could seize property for economic development. Look for Colorado, Florida, Georgia, Michigan, New Hampshire, Oregon and South Carolina to have an item on the ballot that would limit the use of eminent domain to public infrastructure. Ten states have already passed laws restricting eminent domain.
Six other states will see an initiative more favorable to developers. Arizona, California, Idaho, Montana, Nevada and Washington will package restrictions on eminent domain with proposals on regulatory takings modeled after one already in effect in Oregon. It requires that governments pay property owners when zoning or land-use restrictions reduce the value of their property. If governments can't pay, which is usually the case, they must rezone to let owners do whatever they want with the land.
Minimum wage hikes will be on the ballot in Arizona, Colorado, Missouri, Montana, Nevada and Ohio. Twenty states and the District of Columbia have already decided to set the minimum above the $5.15-an-hour federal rate, which hasn't been raised in a decade.
A number of social issues will also be put to voters in November. Several states will vote on banning same-sex marriage, expanding stem cell research and limiting benefits for illegal immigrants. Perhaps the most unusual ballot initiative will be in Arizona, where voters will weigh in on a plan to increase election turnout by offering a $1-million prize. Beginning with the next election, anyone who cast a vote would be eligible to win the prize.
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