Just finished my lift drove it around and measured from ground to fender and its 36" I then back it up and measured again and it was 34.5" where did 1.5 inches go and why? Is this because of the beam and the actual tire shifts from front to Back?

 

It's about Twin traction beam (or twin I beam). That's the way it works.
As you drive forward the tires get pressure on them (from toe-in) and push the truck up a little.
When you back up, the pressure comes off and the truck settles back down.
Backing up and turning is the time to check the clearance on your bumper if you put oversize tires on.