This report does not constitute a rating action. Among the measures with the greatest relevance and credit materiality are two competing approaches to fiscal policy: increasing or preserving revenue for specific purposes and limiting governments'ability to raise revenue. From a ratings perspective, S&P Global Ratings is watching if these measures signal a shift toward additional narrowing of fiscal flexibility. Many referendums included revenue-restriction measures. States such as Arizona, Colorado, and Iowa asked voters to approve constitutional or statutory limits on taxation, revenue growth, or future tax hikes. Examples range from Arizona’s proposals to limit local grocery taxes and prohibit mileage-based transportation fees, to Iowa’s proposed two-thirds legislative threshold for income tax increases. These measures share a common theme: limiting
