Voters went for the very big and the very small in municipal bond elections yesterday - and when the smoke cleared, they approved $5.35 billion, or 74%, of the $7.23 billion of bond proposals on the ballot.
Roughly three-quarters of the issues over $100 million or under $5 million were approved, while 42% of the issues in between were defeated. Two states, North Carolina and Texas, accounted for the bulk of yesterday's bond. proposals and approvals. In Texas, voters cast ballots on $2.48 billion of proposals and approved $2.29 billion, or 92%, led by $1 billion of state bonds for correctional and mental health facilities and $750 million for the Veteran Land and Housing Fund. In North Carolina, ballots were cast for $1.3 billion of bonds, and $1.21 billion, or 93%, was approved, topped by a $740 million state proposal for colleges and universities, clean water, and parks.
It was a different story in Ohio, the state with the third-largest bond slate. Voters turned down $710 million, or 65%, of the $1.09 billion bonds submitted for their approval. California voters were even more emphatic, rejecting $424 million, or 82%, of the $516 million of bonds on their ballots.
Due to late reporting on bond elections in several states, the amount of bonds on state and local ballots has been revised sharply higher from the figures that appeared in Monday's pre-election story. The revised total of $7.23 billion makes this the second-largest off-year general election for bonds since 1946, exceeded only by the $7.88 billion submitted in 1991.
"The catchphrase for this election seems to be ~small, but acceptable,'" said Robert Chamberlin, senior vice President Of municipal research and marketing at Dean Witter Reynolds Inc. "In terms of the modest-sized issues on the local level, chances were pretty good that if you had a deal $5 million or under it was passed. However, the larger issues up to about $20 million had a greater propensity to get knocked down. But overall, it was a very positive election."
"How can I not be pleased?" said Heather Ruth, president of the Public Securities Association. "With relatively few ways available for ... capital-intensive projects, the appreciation for municipals as the acceptable vehicle by issuers and voters is impressive."
Bonds have been a long way from winning the 80% approval rates they saw in the 1980s, but they have made up ground since their plunge to an 41% approval rate in 1990. Sixty-two percent of bonds on the ballot were approved last year and 70% in 1991.
So far this year, 706 bond proposals, totaling $10.99 billion, have been voted on, and 441 issues, totaling $7.02 billion, or 64%, have been approved.
In Texas, voters approved for the fourth time in six years the issuance of state general obligation bonds to finance prisons, reflecting a growing public sentiment to keep violent criminals behind bars.
"Prisons are a popular issue with Texas voters," said Beverly Bunch, acting executive director for the Texas Bond Review Board.
Across the rest of the nation, $303 million of ballot bonds were earmarked for jails and prisons, of which $284 million, or 94%, was approved.
Also in Texas, voters approved the issuance of $750 million of state general obligation bonds to provide funds for veteran home loans, home improvements, and land, by a unofficial margin of 52% to 48%.
Texas voters did shoot down two state bond proposals, one to provide $50 million of start-up funds to new businesses primarily owned by women and minorities, and to increase the amount of GO debt that could be issued by the Texas Agricultural Finance Authority from $25 million to $100 million.
"We are disappointed," Bunch said. "It will severely constrain the program."
In North Carolina, voters in Mecklenburg County approved $206 million of bonds for schools, libraries, and community colleges, but rejected $35 million for parks and recreation, government buildings, and telecommunications. Charlotte voters approved $98.3 million of bonds for water and environmental cleanup.
While most Ohio voters turned down the governments' bond proposals, they did approve $200 million of state GOs for park and recreation improvements. Paolo De Maria, assistant director of the Office of Budget and Management said that up to $50 million of bonds could be issued annually, and the first bond issue probably will not be sold before the third quarter of next year.
In Cincinnati, voters defeated a $348 million bond issue for the public school system by 59% to 41%.
Colorado voters faced $558 million of bond proposals and approved $416 million, or 75%, of the total. Boulder Valley School District No. RE-2 won approval for $89 million of school bonds but lost its bid for $36 million of additional bonds.
Other States
* California
While Californians rejected more than 80% of the $516 million of bonds on state and local ballots, they did agree to extend permanently a statewide half-cent sales tax. The proposal will raise about $1.5 billion annually for local public safety activities, with most of the proceeds benefiting counties.
They trounced Proposition 170, which would have allowed school districts to seek GO bond authorizations with simple-majority rather than two-thirds voter approval. The highly publicized school voucher initiative, Proposition 174, also lost by a margin of about 70%.
* Colorado
Voters flattened a statewide referendum for a 0.2-cent sales tax to raise $13 million for tourism advertising, despite a $540,000 advertising campaign paid for mostly by ski resorts.
* Florida
In Miami's nonpartisan mayoral contest, Stephen P. Clark, a former Mayor, was first among three major candidates with 45% of the vote, while city commissioner Miriam Alonso came in second with 39%. Because neither received a majority, the two will square off in a Nov. 9 runoff.
* Georgia
In the Atlanta mayoral race, neither of the two top vote-getters, City Councilman Bill Campbell and former Fulton County commissioner Michael Lomax, received the majority vote necessary to win. They now face a runoff on Nov. 23.
* Indiana
Hoping to bring economic relief to their communities, voters in the cities of Hammond, East Chicago, and Michigan City approved plans for riverboat casinos. The state must issue licenses to those cities before gambling can begin. Porter County voters defeated plans for a fourth riverboat casino.
* Maine
The most watched statewide question dealt with term limits for the state's legislators, treasurer, secretary of state, auditor, and attorney general. Although the numbers were still unofficial, the measure is expected to pass with about 65% of the vote. The legislation will take effect in 1996 and be retroactive to 1988. State Treasurer Samuel Shapiro, who has served in his post since 1980, would have to abdicate the job in 1996.
* Michigan
Voters in Detroit elected Dennis Archer to succeed five-term Mayor Coleman Young, who announced in June he would not seek another term in office.
* Massachusetts
In Boston, Thomas M. Menino trounced Rep. James T. Brett in a race that pitted the two Democrats against each other.
* Minnesota
In Minneapolis, city council president Sharon Sayles Belton became the city's first woman and first African-American mayor. She defeated former Hennepin County Commissioner John Derus.
In St. Paul Norm Coleman, a state assistant attorney general, defeated Andy Dawkins, a state representative, in the race for mayor.
* New Jersey
Gov. Jim Florio, a Democrat, lost a squeaker to his Republican opponent, Christine Todd Whitman, who bested the incumbent by two percentage points.
A ballot question asking whether the state constitution should be amended to provide for recall elections for public officials was overwhelmingly approved.
All 120 seats were up for grabs in the New Jersey state house, and Democrats made some gains. They picked up six seats in the Assembly and three seats in the Senate.
* New York
Republican-Liberal candidate Ruldoph Giuliani won the New York City mayoral election, receiving 51% of the vote to 48% for the Democratic incumbent, David N. Dinkins.
Voters also approved limits of two terms for the mayor, controller, public advocate, borough presidents, and the entire city council.
The Associated Press projected voter approval for ballot proposals that would make it easier for New York State and its municipalities to make level payments on its general obligation debt. Another proposal giving local governments more power to sell sewer debt was too close to call, the wire service said.
The voters in the borough of Staten Island voted 65% to 35% to secede from New York City. The measure must now be approved by Gov. Mario M. Cuomo and the state Legislature.
* Texas
Sixty-eight percent of Texas voters favored an amendment to require voter approval for a state personal income tax or a subsequent increase in the income tax rate. In the past, only a majority vote by the state Legislature and the governor's signature was needed for adoption of a state income tax.
The amendment also specifies that one-third of the revenue from an income tax be used for education and two-thirds be used for property tax reduction.
Voters approved 55% to 45% a proposal to expand the use of constitutional appropriation bonds for higher education.
* Virginia
Voters elected Republican George F. Allen as governor to succeed Democrat L. Douglas Wilder. Allen defeated Attorney General Mary Sue Terry, the Democratic party's standard bearer.
* Washington State
By 56% to 44%, voters rejected Initiative 602, which would have rolled back an estimated $995 million in state tax and fee revenue increases. The initiative also would have established a limit on future revenue growth, based on a personal income formula.
While the state sidestepped the bullet on rolling back taxes, a state spending limitation, Initiative 601, was leading by roughly 13,600 votes with 188,000 absentee ballots yet to be counted.
Initiative 601 would limit annual increases in state general fund expenditures to the average rate of inflation plus population growth for the previous three years. The spending limit would take effect in fiscal 1996. The measure also would require voter approval to raise taxes before July 1995 and a super-majority vote by the Legislature to raise taxes up to the spending limit afterward. Some sources believe that, over time, Initiative 601 could be more painful than Initiative 602.
[TABULAR DATA OMITTED] Bond Election Results Election Day, Nov. 2, 1993 Submitted Approved No. of Dollar No. of Dollar Pct. Issues Volume Issues Volume App. Arizona 5 $30,030 4 $15,730 52.4%California 9 515,795 3 92,250 17.9Colorado 55 558,175 47 416,255 74.6Connecticut 22 66,965 20 55,957 83.6Florida 2 13,000 2 13,000 100.0 Georgia 3 225,000 3 225,000 100.0Illinois 31 197,190 20 127,250 64.5Iowa 3 22,900 1 14,000 61.1Kansas 3 23,980 1 5,950 24.8Kentucky 1 4,500 0 0 0.0 Maine 10 89,165 10 89,165 100.0Michigan 3 20,620 2 17,900 86.8Minnesota 2 60,500 1 1,500 2.5Nebraska 1 3,995 0 0 0.0New Mexico 3 8,005 0 0 0.0 North Carolina 34 1,298,250 28 1,212,550 93.4Ohio 56 1,089,153 23 384,847 35.3Pennsylvania 3 109,056 2 100,000 91.7Rhode Island 6 27,100 5 13,600 50.2South Carolina 1 22,225 0 0 0.0 Texas 26 2,482,350 18 2,293,800 92.4Vermont 1 1,470 1 1,470 100.0Virginia 12 200,820 11 165,320 82.3Washington 29 156,543 15 101,880 65.1Wyoming 1 1,500 1 1,500 100.0 Total 322 $7,228,288 218 $5,348,924 74.0 NOTES: Dollar amounts are in thousands. Election returns werenot available for six issuestotaling $14.6 million.
