Bonds

Mixed results for Southeast bond referendums, Puerto Rico gets new governor

Jenniffer González Colón, a supporter of statehood for Puerto Rico, was elected the next governor of the island.

Three of the five biggest bond referendums in the Southeast region passed on Tuesday, with voters agreeing to requests from Nashville, Tennessee; Charlotte, North Carolina; and Fairfax County, Virginia, and rejecting them in Cary, North Carolina, and Lancaster County, South Carolina.

The Southeast’s biggest bond proposal, Nashville’s $2 billion revenue bond that will help finance Choose How You Move transportation project, had a nearly two-to-one approval.

The city will use the funds to improve safety, offer public transportation 24 hours a day, 365 days a year for the first time in the city’s history, upgrade two-thirds of the city’s intersections to smart signals and complete a walk and bike network.

“Across the city now for the next generation we will all enjoy the things the city deserves: sidewalks, signals, service, and safety,” Nashville Mayor Freddie O’Connell said after the vote.

Cary voters rejected a $560 million parks and recreation bond by a 54.9% to 45.1% margin and a $30 million housing bond by a 51.3% to 48.7% margin.

“We have no plans to put these ballot questions back out to our citizens,” said Cary Chief Strategy Officer Susan Moran said, speaking for the town. “Our citizens spoke about their interest in paying for these projects and initiatives. … We have heard them.”

Nearly 60% of Lancaster County voters voted against a $588 million general obligation bond measure that would have financed construction of a high school, three elementary schools and complete renovations to school and athletic facilities.

“The proposed bond was three times the amount of the last bond and one of the highest ever proposed in the state,” Lancaster County School District Communications Director Elizabeth Bryant said. “Community members expressed … that they were concerned about the tax implications, accountability measures from the last bond, and growth projections.”

The district plans to review enrollment, funding and facility capabilities before deciding its next step, she said.

“The district and the board will explore all options including adding mobile classrooms on campuses that are at or above capacity, redrawing attendance zones, raising millage in the amount that does not require a public referendum, and future bond proposals,” Bryant said.

Charlotte voters approved three bond measures: 66.9% approved $283.3 million of transportation bonds, 63.6% approved $100 million housing bonds and 71% approved $61.7 million of neighborhood improvement bonds.

Charlotte City Council District 4 Member Reneé Johnson said, “This vote reflects a shared vision for a better, more inclusive future for Charlotte — one where affordable housing is within reach for all our residents and our transportation infrastructure can meet the needs of a growing, dynamic city.”

Finally, 66.2% of Fairfax County voters approved $180 million of transportation bonds and 69.6% approved $126 million in public safety project bonds.

Separately, North Carolina and Puerto Rico elected governors: North Carolina elected Democrat Josh Stein, who replaces term-limited Democrat Roy Cooper.

Puerto Rico elected New Progressive Party member Jenniffer González Colón to replace fellow NPP member Pedro Pierluisi. González Colón defeated Pierluisi in a primary earlier this year.

It remains to be seen if the switch in leadership will change Puerto Rico policy. The federally appointed Puerto Rico Oversight Board still has a great deal of control over government activity.

When she takes office, the New Progressive Party will control Puerto Rico’s executive branch and Senate and House of Representatives, “which should facilitate implementation of the governor’s policies, an advantage over outgoing Gov. Pierluisi, who had a legislature controlled by his opponents,” said Phillip Escoriaza, senior counsel at Feldesman Leifer. “As a long-standing member of the Republican Party, the Governor-elect will be closely scrutinized over her ability to influence incoming-Trump administration policy towards Puerto Rico, including Puerto Rico Oversight Management and Economic Stability Act, social assistance programs, and reconstruction funding, particularly power-grid woes.”

González Colón has spent almost eight years as resident commissioner for Puerto Rico in the U.S. House of Representatives, advocating for Puerto Rico.

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