Mississippi Today
Governor, legislative leaders deadlock on how much money the state has to spend next year
Recently reelected Gov. Tate Reeves and legislative leaders could not agree Wednesday on an official estimate of how much money will be available as they begin setting next year’s state budget.
Reeves said he supports a higher revenue estimate because that would make it easier for legislators to approve his proposal to eliminate state income taxes during the 2024 session.
“For those of us very interested in cutting taxes during this legislative session, arbitrarily lowering the number for no apparent reason hurts our ability to justify those tax cuts,” Reeves told the legislative leaders, including newly reelected Lt. Gov. Delbert Hosemann and outgoing House Speaker Philip Gunn. “I am a very strong proponent of cutting taxes during this session. I am going to be regardless of what this number is.”
Normally, the fall meeting of the governor and the 14 members of the Legislative Budget Committee is a routine event and adopting an estimate is pro forma. But such was not the case Wednesday morning as it soon became apparent Reeves was blindsided by his Republican legislative colleagues. They wanted to adopt a revenue estimate $117.8 million less than recommended by the group of five state financial experts whose recommendations are normally rubber-stamped by the politicians.
Reeves said he believed he was attending the meeting to adopt the recommendation of the experts of projected revenue $7.64 billion for the upcoming fiscal year. Instead, the committee members approved the lower number, the same estimate as for the current budget year.
“I guess I am kind of caught off guard. I did not anticipate there would be a change,” Reeves said.
Rep. Angela Cockerham, I-Magnolia, was the only member of the Budget Committee not to vote for the lower estimate.
Mississippi law mandates that the governor and members of the Legislative Budget Committee agree on a revenue estimate as a starting point in developing a state budget during the upcoming session. In 2002, then-Gov. Ronnie Musgrove and the committee did not agree on an estimate.
It is likely legislators will start work on a budget based on the estimate adopted by the budget committee members Wednesday. And importantly, state law allows committee members to meet at the end of the session to revise the estimate from the fall meeting they have with the governor.
In other words, the impact of Wednesday’s deadlock is most likely symbolic, highlighting the focus Reeves plans to place on eliminating the income tax during the 2024 session. In 2022, the Legislature passed a $525 million income tax cut phased in over four years. Reeves wants to fully eliminate the income tax, which accounts for about one-third of the state general fund revenue.
READ MORE: State revenue slows as phase-in of income tax cuts begins
House Pro Tem Jason White, R-West, who is expected to succeed Gunn as speaker, said he was supporting the lower revenue estimate, but that did not mean that the House would not be working to cut taxes during the 2024 session.
“I think that (cutting taxes) is the aim of most of the people around this table,” White said. “… I anticipate the House will be back with an income tax cut plan sometime in the very near future.”
Reeves told Hosemann he would support the lower estimate if he would say he anticipated the Senate passing an income tax cut during the upcoming session. Hosemann presides over the Senate.
“We anticipate there will be tax relief this year,” Hosemann responded. “Now whether that is grocery tax (sales tax on food) income tax or other taxes, I can’t tell you that because … I don’t vote. They (senators) all vote. Whether I say it doesn’t make much difference.”
Hoseman said the Senate has passed tax cuts in the past and said there is no reason to think that will change going forward.
But he did say the lower estimate should be adopted because revenue for the past two months has been lower than the official estimate approved for the current budget year. If revenue falls too far below the estimate, the governor and-or Legislature would be forced to make cuts or dip into reserve funds to make mid-year adjustments.
State Economist Corey Miller, who is on the group of five state financial experts who provide a consensus estimate to the politicians, testified at the meeting that the anticipation is that the state economy will slow in 2024 and 2025, though, chances of a national recession are low.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1997
Dec. 22, 1997
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.
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.
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