LITTLE ROCK—Gov. Mike Beebe on Tuesday said he believes a proposal to issue $300 million in bonds for water projects will pass if voters understand that it will not raise their taxes.

Beebe also said the projects that could be funded by the bond package could help the economy and ease the way for more tax cuts. But Beebe later said the measure’s success at the polls won’t affect any plans he may have for reductions in the state’s sales tax on groceries.

“Certainly roads, water systems, sewer systems, all of those things are significant factors in whether we can expand economic development,” Beebe said at a news conference urging support for the measure on the Nov. 4 ballot. “As I’ve said all along, the more we can expand economic development, the broader we can make the tax base in Arkansas, the more we can lower taxes.”

The proposal, referred to voters by the Legislature, would help the Arkansas Natural Resources Commission continue to provide grants and loans to local governments for water and sewer projects.

Beebe had previously announced his support for the measure, which is being promoted by a campaign committee called Arkansans for Clean Water.

The measure had faced some resistance from lawmakers and organizations who question its impact, but has already won over one group wary of the proposal. The Arkansas Municipal League has decided to support the measure after the commission addressed the group’s concerns that it would encourage urbanization of unincorporated areas, the league’s executive director said.

The proposal would cap financing for irrigation projects at $100 million and would limit to $60 million the total amount to be issued during any two-year budget cycle, unless the Legislature authorized more.

Voters approved the current $300 million bond program for water projects in 1998. The bonds are used to provide grants and low interest loans to counties and cities for water projects. The commission still has about $130 million in unobligated bonds from that issue.