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A look at where state’s record surplus originated and how it can be spent

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A look at where state’s record surplus originated and how it can be spent

The Mississippi Legislature will begin the 2023 session on Jan. 3 with a mind-boggling $3.9-billion surplus, according to information compiled by the staff of the Legislative Budget Committee.

To put the surplus in perspective, it is little more than half as large as the overall state-support budget of $7.9 billion for the current fiscal year. State support refers to the funds derived primarily from general taxation, such as the sales tax on retail items and the income tax. The state also has other special fund agencies, which receive taxes or fees designated solely to run their agency, such as the fee barbers pay for their regulatory board or the motor fuel tax to operate the Transportation Department.

The state has an overall budget, including all state and federal funds appropriated by the Legislature, of $26 billion for the current fiscal year with 45% of the total funds being provided by the federal government.

By any metric, the surplus the state has is unprecedented.

These funds fall into different categories with different guidelines of how they can be appropriated by the 2023 Legislature. But it should be stressed that in most cases the Legislature can vote to change those guidelines and it is almost a certainty the Legislature will not appropriate all the surplus funds this session.

Here are the categories of the surplus and, in general, how they can be spent:

Capital expense fund: $1.6 billion. This is the accumulation of unspent revenue from past sessions. These funds are not considered recurring, meaning the Legislature will strive to spend them on non-recurring expenses, such as construction projects or major purchases, such as computer systems. Providing rebates to taxpayers as some have proposed also would be a one-time expense.

General fund: $1 billion. These are tax collections and other revenues collected above the amount projected at this time to be appropriated by the Legislature for the next fiscal year beginning July 1. These funds are considered recurring and can be used for any purpose.

Working Cash Stabilization Fund or rainy day funds: $579.4 million. These are funds that have been placed in reserves for emergencies, such as a downturn in state revenue collections. The rainy day fund currently is at its legal cap of 10% of the total general fund budget.

Coronavirus State Fiscal Recovery Fund: $298.1 million. These are federal funds provided to deal with COVID-19 related issues. The federal government places guidelines on how the funds can be appropriated. A portion can be used for recurring expenses, but for the most part must be spent on one-time items, such as water and sewer repair and construction, broadband and for pandemic relief.

The 2% set aside: $150.4 million. By law, the Legislature is only supposed to appropriate 98% of the projected state tax collections. The 2% rule is in place because projecting tax collections is an inexact science. In recent years revenue has significantly exceeded projections, resulting in the large reserves in the capital expense fund. In bad economic times, legislators have changed the law to spend the 2% set aside, but that will not be necessary this session.

Gulf Coast Restoration Fund: $124.2 million. Money from the settlement of lawsuits related to the 2010 BP oil rig explosion in the Gulf of Mexico. These funds are earmarked for Gulf Coast projects.

Education Enhancement Fund: $78.9 million. The state collects a 1% sales tax on retail items designated solely for education projections. Like with the overall tax collections, revenue, from the 1-cent sale tax has exceeded expectations resulting in the surplus in the Education Enhancement Fund

Health Care Expendable Fund: $43.1 million. The state receives a payment annually from the tobacco companies as a result of the 1990s-era lawsuit filed by former Attorney General Mike Moore against the cigarette-manufacturers. Money in the fund is normally designated for health-related issues.

BP Settlement Fund: $12.3 million. Money from the BP oil spill settlements reserved for one-time projects in areas outside the Gulf Coast counties.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

On this day in 1997

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mississippitoday.org – Jerry Mitchell – 2024-12-22 07:00:00

Dec. 22, 1997

Myrlie Evers and Reena Evers-Everette cheer the jury verdict of Feb. 5, 1994, when Byron De La Beckwith was found guilty of the 1963 murder of Mississippi NAACP leader Medgar Evers. Credit: AP/Rogelio Solis

The Mississippi Supreme Court upheld the conviction of white supremacist Byron De La Beckwith for the 1963 murder of Medgar Evers. 

In the court’s 4–2 decision, Justice Mike Mills praised efforts “to squeeze justice out of the harm caused by a furtive explosion which erupted from dark bushes on a June night in Jackson, Mississippi.” 

He wrote that Beckwith’s constitutional right to a speedy trial had not been denied. His “complicity with the Sovereignty Commission’s involvement in the prior trials contributed to the delay.” 

The decision did more than ensure that Beckwith would stay behind bars. The conviction helped clear the way for other prosecutions of unpunished killings from the Civil Rights Era.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Medicaid expansion tracker approaches $1 billion loss for Mississippi

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mississippitoday.org – Bobby Harrison – 2024-12-22 06:00:00

About the time people ring in the new year next week, the digital tracker on Mississippi Today’s homepage tabulating the amount of money the state is losing by not expanding Medicaid will hit $1 billion.

The state has lost $1 billion not since the start of the quickly departing 2024 but since the beginning of the state’s fiscal year on July 1.

Some who oppose Medicaid expansion say the digital tracker is flawed.

During an October news conference, when state Auditor Shad White unveiled details of his $2 million study seeking ways to cut state government spending, he said he did not look at Medicaid expansion as a method to save money or grow state revenue.

“I think that (Mississippi Today) calculator is wrong,” White said. “… I don’t think that takes into account how many people are going to be moved off the federal health care exchange where their health care is paid for fully by the federal government and moved onto Medicaid.”

White is not the only Mississippi politician who has expressed concern that if Medicaid expansion were enacted, thousands of people would lose their insurance on the exchange and be forced to enroll in Medicaid for health care coverage.

Mississippi Today’s projections used for the tracker are based on studies conducted by the Institutions of Higher Learning University Research Center. Granted, there are a lot of variables in the study that are inexact. It is impossible to say, for example, how many people will get sick and need health care, thus increasing the cost of Medicaid expansion. But is reasonable that the projections of the University Research Center are in the ballpark of being accurate and close to other studies conducted by health care experts.

White and others are correct that Mississippi Today’s calculator does not take into account money flowing into the state for people covered on the health care exchange. But that money does not go to the state; it goes to insurance companies that, granted, use that money to reimburse Mississippians for providing health care. But at least a portion of the money goes to out-of-state insurance companies as profits.

Both Medicaid expansion and the health care exchange are part of the Affordable Care Act. Under Medicaid expansion people earning up to $20,120 annually can sign up for Medicaid and the federal government will pay the bulk of the cost. Mississippi is one of 10 states that have not opted into Medicaid expansion.

People making more than $14,580 annually can garner private insurance through the health insurance exchanges, and people below certain income levels can receive help from the federal government in paying for that coverage.

During the COVID-19 pandemic, legislation championed and signed into law by President Joe Biden significantly increased the federal subsidies provided to people receiving insurance on the exchange. Those increased subsidies led to many Mississippians — desperate for health care — turning to the exchange for help.

White, state Insurance Commissioner Mike Chaney, Gov. Tate Reeves and others have expressed concern that those people would lose their private health insurance and be forced to sign up for Medicaid if lawmakers vote to expand Medicaid.

They are correct.

But they do not mention that the enhanced benefits authored by the Biden administration are scheduled to expire in December 2025 unless they are reenacted by Congress. The incoming Donald Trump administration has given no indication it will continue the enhanced subsidies.

As a matter of fact, the Trump administration, led by billionaire Elon Musk, is looking for ways to cut federal spending.

Some have speculated that Medicaid expansion also could be on Musk’s chopping block.

That is possible. But remember congressional action is required to continue the enhanced subsidies. On the flip side, congressional action would most likely be required to end or cut Medicaid expansion.

Would the multiple U.S. senators and House members in the red states that have expanded Medicaid vote to end a program that is providing health care to thousands of their constituents?

If Congress does not continue Biden’s enhanced subsidies, the rates for Mississippians on the exchange will increase on average about $500 per year, according to a study by KFF, a national health advocacy nonprofit. If that occurs, it is likely that many of the 280,000 Mississippians on the exchange will drop their coverage.

The result will be that Mississippi’s rate of uninsured — already one of the highest in the nation – will rise further, putting additional pressure on hospitals and other providers who will be treating patients who have no ability to pay.

In the meantime, the Mississippi Today counter that tracks the amount of money Mississippi is losing by not expanding Medicaid keeps ticking up.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

On this day in 1911

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mississippitoday.org – Jerry Mitchell – 2024-12-21 07:00:00

Dec. 21, 1911

A colorized photograph of Josh Gibson, who was playing with the Homestead Grays Credit: Wikipedia

Josh Gibson, the Negro League’s “Home Run King,” was born in Buena Vista, Georgia. 

When the family’s farm suffered, they moved to Pittsburgh, and Gibson tried baseball at age 16. He eventually played for a semi-pro team in Pittsburgh and became known for his towering home runs. 

He was watching the Homestead Grays play on July 25, 1930, when the catcher injured his hand. Team members called for Gibson, sitting in the stands, to join them. He was such a talented catcher that base runners were more reluctant to steal. He hit the baseball so hard and so far (580 feet once at Yankee Stadium) that he became the second-highest paid player in the Negro Leagues behind Satchel Paige, with both of them entering the National Baseball Hame of Fame. 

The Hall estimated that Gibson hit nearly 800 homers in his 17-year career and had a lifetime batting average of .359. Gibson was portrayed in the 1996 TV movie, “Soul of the Game,” by Mykelti Williamson. Blair Underwood played Jackie Robinson, Delroy Lindo portrayed Satchel Paige, and Harvey Williams played “Cat” Mays, the father of the legendary Willie Mays. 

Gibson has now been honored with a statue outside the Washington Nationals’ ballpark.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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