Mississippi Today
Gov. Tate Reeves urges lawmakers to use unspent state revenue for tax cuts
Mississippi’s legislative leaders believe two things will happen when lawmakers convene for their next session in January: They will attempt to cut state taxes in some form, and they will have almost the same amount of money to spend during the next fiscal year as they do for the current fiscal year.
Members of the Joint Legislative Budget Committee and Republican Gov. Tate Reeves agreed on Thursday morning to estimate that the state government will collect about $7.6 billion in tax revenue during the next fiscal year, a slight increase in revenue collections of $26.9 million from the current fiscal year.
Reeves, who is strongly urging lawmakers to pass legislation to abolish the state income tax, pointed out that $600 million in tax revenue from the current fiscal year remains unspent, and that it could be used for tax cuts.
“I would encourage you for the additional $600 million that we return that back to the taxpayers,” Reeves said.
House Speaker Jason White, who is the current chair of the JLBC, has also strongly encouraged his colleagues to support eliminating the income tax and trimming the grocery tax. He joked with Reeves that there are “lots of crosshairs” on that unspent revenue.
“Now, some have different bullets than others, but targets nonetheless,” White said.
The income tax accounts for about 30% of state general fund revenue.
Republican Lt. Gov. Delbert Hosemann, the leader of the Senate, wants lawmakers to trim the 7% sales tax on groceries, the highest of such a tax in the nation. He told reporters after the meeting that he wants to trim the tax while also making sure the state’s public employee retirement system is adequately funded.
Hosemann said he has an ideal rate in mind for where he would like to see a new grocery tax reduced to, but he declined to share it with reporters ahead of the 2025 legislative session.
Corey Miller, the state economist, told the lawmakers that Mississippi’s economy this year will grow slightly more than anticipated, but predicts the state economy, like the U.S. economy, will slow slightly in 2025 and 2026.
Miller also said sales tax collections have slumped compared to last year, but income tax collections have increased in recent months. He attributed the increase in income tax revenues to anecdotal reports of an increase in the number of new businesses started.
The Thursday meeting is typically a pro forma part of the state’s budget writing process. The more important meeting will occur in early spring when the committee will adopt a final revenue estimate to determine how much money lawmakers can spend before they pass a budget and adjourn.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Medicaid expansion tracker approaches $1 billion loss for Mississippi
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.
Mississippi Today
On this day in 1911
Dec. 21, 1911
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.
Mississippi Today
On this day in 1958
Dec. 20, 1958
Bruce Boynton was heading home on a Trailways bus when he arrived in Richmond, Virginia, at about 8 p.m. The 21-year-old student at Howard University School of Law — whose parents, Amelia Boynton Robinson and Sam Boynton, were at the forefront of the push for equal voting rights in Selma — headed for the restaurant inside the bus terminal.
The “Black” section looked “very unsanitary,” with water on the floor. The “white” section looked “clinically clean,” so he sat down and asked a waitress for a cheeseburger and a tea. She asked him to move to the “Black” section. An assistant manager followed, poking his finger in his face and hurling a racial epithet. Then an officer handcuffed him, arresting him for trespassing.
Boynton spent the night in jail and was fined $10, but the law student wouldn’t let it go. Knowing the law, he appealed, saying the “white” section in the bus terminal’s restaurant violated the Interstate Commerce Act. Two years later, the U.S. Supreme Court agreed. “Interstate passengers have to eat, and they have a right to expect that this essential transportation food service,” Justice Hugo Black wrote, “would be rendered without discrimination prohibited by the Interstate Commerce Act.”
A year later, dozens of Freedom Riders rode on buses through the South, testing the law. In 1965, Boynton’s mother was beaten unconscious on the day known as “Bloody Sunday,” where law enforcement officials beat those marching across the Selma bridge in Alabama. The photograph of Bruce Boynton holding his mother after her beating went around the world, inspiring changes in voting rights laws.
He worked the rest of his life as a civil rights attorney and died in 2020.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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