Several important proposed amendments to the Alabama Constitution will be included on next Tuesday's voting ballot. The well-respected and nonpartisan Public Affairs Research Council of Alabama (PARCA) at Samford University has produced a helpful analysis of each amendment that we hope our readers will find useful, especially if they are registered voters. Perhaps the most critical amendment, in our opinion, is Amendment 2, which would allow the State of Alabama to refinance existing general obligation bonds in order to achieve lower debt service costs and to issue new bonds that would benefit from lower interest rates, all for the purpose of Alabama's economic development. The existing $750 million cap would not be increased, however. Refinancing existing bonds will save the state almost $30 million in interest expense, with potential for increased savings. Governor Bentley has championed this amendment in recent TV ads, and has stated that Amendment 2 allows “the savings from lower interest rates to be used for additional job creation.” The state's major business and trade associations have also endorsed the amendment. To review PARCA's analysis of Amendment 2 and the other proposed amendments, please click here.
To sign up for the PARCA mailing list, click here.