US Voters Back at Least $52 Billion of Municipal Borrowing Plans
(Bloomberg) - Americans are poised to approve at least $52 billion of state and local government borrowing measures, according to preliminary vote tallies of S&P Global Market Intelligence data analyzed by Bloomberg.
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Measures that appeared to pass include a $238.3 million transportation referendum for Charlotte, North Carolina, and a $240 million authorization for a school district near Columbia, South Carolina, that will finance the construction of a new school and expand several others. Two of the largest measures on the ballot, a pair of $10 billion statewide referendums to finance climate change programs and education improvements in California, also passed.
The referendums come as state and local government borrowers are approaching a record year for municipal bonds sales. Issuers have sold over $442 billion of long-term debt so far, a more than 42% increase from the same period in 2023, according to data compiled by Bloomberg.
The approvals of the ballot measures are an "indication that infrastructure is important," said Jennifer Johnston, director of research for Franklin Templeton Fixed Income's municipal bond team. Under a Donald Trump administration, there is still going to be a "focus on improving infrastructure through the muni markets."
Voters approved a "significant" number of ballot measures which means a new supply of bonds will come to market over the next three to five years, she said.
Not every initiative was greenlit. In Texas, voters denied two bond referendums totaling about $4.4 billion for the Houston Independent School District, the state's largest public school system, which is responsible for educating over 189,000 students.
"These investments should have been made years ago," said Mike Miles, the district's superintendent, in a statement posted on X after the measures failed. "We had not planned to advance a bond at all, but once we saw for ourselves the unspeakable conditions at many schools, it became obvious we could not fully transform this District without tackling our failing facilities."
In California, a $720 million ballot measure for the Rancho Santiago Community College District is on track to be denied by about 51% of voters. The debt would have financed renovations to aging campus buildings, repair work for electrical and sewer lines, and upgrades for computer technology, as well as other projects.
Here are a few of the bond measures that were approved by voters:
San Diego Community College District: San Diego voters endorsed a proposal to provide $3.5 billion to upgrade, repair and renovate classrooms and facilities at the San Diego Community College District. "It's been 18 years since our last bond measure, and despite major infrastructure improvements, facilities have continued to age, and facility needs have evolved," said Bernie Rhinerson, the district's board president in a statement. "We are now at a point where upgrades and replacement of outdated facilities is urgent if we are to continue to serve the community."
Denver Public Schools: Voters signed off a $974 million bond measure to fund maintenance projects, safety measures and to install air conditioning in more than two dozen Denver schools
San Juan Unified School District: Voters approved a $950 million bond to fund deteriorating classrooms, fix water pipes and plumbing, provide safe drinking water and replace outdated security and fire safety systems
Round Rock Independent School District: Voters in the suburb near Austin, Texas, approved proposals including $798.3 million to improve the condition of aging facilities, replace fine arts uniforms and instruments, upgrade safety and security systems, purchase robotics equipments and tools.
-With assistance from Erin Hudson.
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