Election 2024 results: Three innovation funding issues pass, other ballot measures have mixed results

Forty-one states and Puerto Rico voted on 151 statewide ballot measures this fall. Many measures focused on abortion, citizenship, or electoral system reforms. Three measures with direct connection to innovation all were approved by voters, augmenting the strong track record tech-based economic development initiatives have when they are placed directly before voters. The three measures were for vocational-technical school scholarships in Arkansas, a $25 million R&D bond issue in Maine, and a $160.5 million higher ed facilities bond bill in Rhode Island. Voters have previously approved R&D bond measures in Maine and Rhode Island. SSTI highlights more information on those and other initiatives that could have or will impact economic development in individual states.

Minimum wage increases and paid sick leave

Voters in Alaska, California, Massachusetts, and Missouri decided on minimum wage increases, with voters in both Alaska and Missouri approving measures to raise the minimum wage while California and Massachusetts voters opposed their measures. Seventy-four percent of Nebraska voters approved an initiative requiring paid sick leave for employees., Arizona voters opposed allowing tipped workers to be paid 25% less per hour than the minimum wage.

Criminal justice or drug use policies

Other measures included criminal justice or drug use policies (including the legalization of recreational (Florida, North Dakota, and South Dakota) or medical (Nebraska) marijuana, as well as certain psychedelic substances (with Massachusetts seeking to become the third state to legalize psilocybin). While voters in Nebraska overwhelmingly passed its medical marijuana measure with 71% of the vote, recreational use measures were defeated in Florida and in North and South Dakota. In Florida, voters approved the state’s measure by 55.9%, but it ultimately failed due to the state’s 60% threshold to pass. 57% of Massachusetts’ voters decided against legalizing psilocybin.

The results of the following initiatives could have or will impact tech-based economic development—either by providing funding for the initiatives, changing the electoral or redistricting system, altering taxes, or modifying the governance of higher education.

Arkansas  

Voters in Arkansas overwhelmingly approved (89.54%) Issue 1: Lottery Proceed Funding for Vocational-Technical School Scholarships and Grants Amendment, allowing proceeds from the state lottery to fund scholarships and grants for vocational-technical schools and technical institutes. Arkansas’ lottery was created through voter approval of Amendment 3 in 2008. Under the 2008 amendment, the state’s lottery proceeds were designed to fund scholarships and grants for students enrolled in "public and private non-profit two-year and four-year colleges and universities located within the state that are certified according to criteria established by the General Assembly." If the issue passes, it would expand the 2008 agreement to include scholarships and grants to vocational and technical school or institute students.

California

California voters strongly voted in favor (58%) of Proposition 2: the Public Education Facilities Bond Measure, which authorizes $10 billion in general obligation bonds for the repair, renovation, and construction of facilities at K-12 public schools, community colleges, and career technical education programs. About $1.5 billion of the total will go toward community college projects.

Illinois   

Sixty-four percent of Illinois voters supported Advisory Question (AQ)—nonbinding: Income Tax Advisory Question, signaling approval for state officials to amend the Illinois Constitution to create an additional 3% tax on income greater than $1 million to dedicate funds to property tax relief.

Maine   

Fifty-four percent of Maine voters approved Question 2: the Science and Technology Research and Commercialization Bond Issue. This bond issue will authorize $25 million in general obligation bonds to the Maine Technology Institute (MTI) for research, development, and commercialization of Maine-based public and private institutions supporting technological innovation. Under the measure, the funds must be allocated to the targeted sectors of life sciences and biomedical technology, environmental and renewable energy technology, information technology, advanced technologies for forestry and agriculture, aquaculture and marine technology, composites and advanced materials, and precision manufacturing. Maine voters last approved a research and development bond in 2017, with 61% of the vote in favor. That $50 million bond included $45 million in grants to be managed by the MTI and $5 million for a Small Enterprise Growth Fund to create jobs and economic growth by lending to or investing in small businesses.

Nevada    

Nevada voters once again defeated Question 1: Remove Constitutional Status of Board of Regents Amendment. Fifty-four percent of the vote opposed the amendment that sought to remove the Board of Regents from the Nevada Constitution and authorize the state legislature to review and change the governing organization of state universities. A similar proposal to remove the constitutional status of the Board of Regents was also on the 2020 ballot in Nevada. Voters defeated that amendment measure 50.15% to 49.85%, respectively.

New Mexico    

New Mexico voters overwhelmingly supported Bond Question 3: the Public Education Bond Issue. Sixty-five percent of the vote approved authorizing the issuance of $230,258,400 in bonds to fund various initiatives, including capital improvements and acquisitions at higher education institutions, distinct schools, and tribal schools. 

North Dakota     

North Dakota voters want more say on using their state’s legacy fund. Voters narrowly approved Constitutional Measure 3: the North Dakota Legacy Fund Transfers Amendment, which will decrease the amount of money that can be expended from the state legacy fund during two years from 15% to 5% of the fund’s principal. The state legacy fund is a fund that receives 30% of tax revenue from oil and gas production each month. The amendment would provide a distribution from the state legacy fund to a legacy earnings fund rather than sending the accrued earnings to the state general fund. The legacy fund was created through a constitutional amendment on the 2010 ballot.

Ohio

Ohio voters rejected Issue 1: the Establish the Citizens Redistricting Commission Initiative, which sought a constitutional amendment to establish a Citizens Redistricting Commission (CRC) responsible for adopting state legislative and congressional redistricting plans. Issue 1 was the third time Ohio voters have considered an overhaul to the existing redistricting system; it would have replaced the Ohio Redistricting Commission, established in 2015 for state legislative districts, and the process established for congressional districts in 2018. If approved, Ohio would have become the ninth state to task a non-politician commission with redrawing its congressional district lines.

Nearly 78 percent of voters defeated Measure 118: the Corporate Tax Revenue Rebate for Residents Initiative. Opposed by the governor, legislators, and businesses, the proposal would have raised corporate taxes to establish a universal basic income program that sought to give every Oregonian an estimated $1,600 annually, distributed equally among residents of all ages and incomes.

Puerto Rico

Once again, Puerto Rican voters largely support becoming a state. Fifty-six percent of voters approved Advisory Question (AQ)—nonbinding: the Puerto Rico Statehood, Independence, or Free Association Referendum, which asked voters to choose statehood, independence, or sovereignty in free association with the U.S. Citizens of Puerto Rico are citizens of the U.S., but the Commonwealth does not have representation with voting privileges in the U.S. Congress nor do Puerto Ricans have the ability to vote for president in general elections. Puerto Rico has voted on ballot measures addressing statehood in 1967, 1993, 1998, 2012, 2017, and 2020.  The last vote on a statehood referendum in 2020 was approved, with 52% favoring statehood.

Rhode Island      

Almost 60% of Rhode Island voters approved Question 2: the Higher Education Facilities Bond Measure that will authorize $160.5 million in bonds for improvements to higher education facilities, with $87.5 million going to the construction of a University of Rhode Island Biomedical Sciences building and $73 million going to renovations and improvements to the Rhode Island College Institute of Cybersecurity & Emerging Technologies.

Washington       

Sixty-four percent of Washington voters opposed Initiative 2109: the Repeal Capital Gains Tax Initiative. The initiative would have repealed the 7% capital gains excise tax imposed on sales and exchanges of long-term capital assets by individuals with capital gains over $250,000. The Washington State Legislature passed legislation creating the capital gains tax in 2021. It took effect on January 1, 2022, with the first payments due on April 18, 2023. In 2023, the Washington State Supreme Court ruled that the capital gains tax was an excise tax and did not violate the constitutional prohibition on income taxes.

Washington voters were strongly opposed to Initiative 2117: the Prohibit Carbon Tax Credit Trading Initiative, and defeated by 62 percent the proposed initiative that sought to prohibit any state agencies from implementing a cap and trade or cap and tax program; prohibit carbon tax credit trading; and repeal provisions of the 2021 Washington Climate Commitment Act (CCA), a state law that provided for a cap and invest program designed to reduce greenhouse gas (GHG) emissions by 95% by 2050.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.