Mississippi Today
Interest on unprecedented amounts of federal cash keeps state budget afloat
Over the last 12 months, the state collected $7.7 billion in revenue, about $18.4 million or 0.24% more than was collected the previous fiscal year.
If not for collecting $68.7 million or 84.4% more in interest earnings than the previous fiscal year, the state would have been in the rare situation of collecting less revenue than the previous year for only the sixth time since 1970.
Interest earnings were buoyed by high interest rates and unprecedented surplus state cash on hand. The state has accumulated large surpluses in part because of billions in federal dollars that poured into the state in response to the COVID-19 pandemic.
The latest revenue report, for the fiscal year that ended June 30, was released recently by the staff of the Legislative Budget Committee. The latest revenue report and upcoming monthly reports will be watched closely as some legislative leaders are again advocating for major tax cuts that could impact future state collections and the revenue available to fund services such as health care, education and road and bridge work. House Speaker Jason White has formed a task force to study possible tax cuts and Gov. Tate Reeves continues to advocate for the elimination of the income tax that accounts for about 30% of state revenue.
In the first two years after the pandemic, the state — fueled in part from federal money and inflation resulting in higher sales tax returns — collected unprecedent revenue. But in the past two years, especially the just completed fiscal year, revenue collections have slowed dramatically.
Still, because of conservative revenue estimates adopted by legislative leaders and because of conservative budgeting – leaving state needs unmet according to some – the slowing revenue estimates have not forced cuts to be made to budgets approved by the Legislature.
The revenue collections for the past fiscal year were $181.7 million or 2.41% above the official estimate. The Legislature sets budgets based on this estimate.
And it is also important to note that the revenue above the estimate would have been much less if not for the aforementioned interest on earnings, which came in $120 million or 400% above the estimate.
The amount collected above the official estimate — $181.7 million — will go into surplus that can be appropriated by the 2025 Legislature. In recent years as state revenue collections have grown by unprecedented amounts, the surplus funds have primarily been used for projects, such as to build or renovate governmental buildings and on public transportation and infrastructure.
According to the recently released report, sales tax, the 7% tax on most retail items, grew $81.8 million or 3% year over year while the use tax (the sales tax on internet sales and other out-of-state purchases) increased $18.9 million or 4.9%.
On the other hand, there was a big dip in personal income tax collections, $141.8 million or 5.9%. Income tax collections were expected to decrease because a $525-million cut in the income tax is being phased in. But the sales tax has not grown at the rate many income tax proponents predicted it would to offset the cut in the persona’ income tax.
The corporate income tax also decreased year over year — $69.5 million or 6.7%.
One of the bright spots in revenue collections continues to be the premium tax levied on most insurance policies. It grew 16.8% or $61.3 million.
The casino tax was down $7 million or 4.3%. The tax on medical marijuana was down $461,400 or 5.8%.
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 1917
Oct. 6, 1917
Fannie Lou Hamer was born on a Mississippi Delta plantation with her sharecropping family, the youngest of 20 children. She became involved with the Student Nonviolent Coordinating Committee, and after registering to vote, she was kicked off the plantation.
A fearless civil rights leader, her singing became a source of inspiration and strength among civil rights workers.
In 1964, she burst onto the national scene when she challenged the all-white Mississippi delegation at the 1964 Democratic National Convention. She spoke about Black Americans being harassed, beaten, shot at and arrested for trying to vote. On television, she asked, “Is this America, the land of the free and the home of the brave where we have to sleep with our telephones off the hooks because our lives (are) threatened daily because we want to live as decent human beings — in America?”
She continued to remain active in the civil rights movement until her death in 1977. Her hometown of Ruleville built a statue to honor her.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
When Black candidates are on the ballot, Mississippians typically turn out in droves
More Mississippians often vote in elections where race is at least a subtext if not out front and center.
And when Black candidates are on the ballot, in particular, Mississippi voters typically clock record or near-record turnout.
In the 1971 gubernatorial race, Charles Evers of Fayette made history as the first Black Mississippian in the modern era to run for governor. Evers, the brother of slain civil rights leader Medgar Evers, was a civil rights leader in his own right and was the first Black Mississippian in the modern era to win the office of mayor of a biracial town.
Evers ran as an independent against Democrat Bill Waller. In that 1971 governor’s race, Waller earned 601,222 votes — still the most votes for a gubernatorial candidate in the history of the state.
Remember, in 1971, Mississippi’s population was 2.2 million compared to just under 3 million today, and that 1971 election is still a high water mark in terms of the most votes garnered by a candidate for governor.
It should be stressed that Bill Waller was no segregationist. As a matter of fact, he was a racial moderate, even enlightened on the issue.
As Hinds County district attorney, Waller twice prosecuted Byron De La Beckwith, who years later was finally convicted of assassinating Medgar Evers. In the racially contentious 1960s, both of Waller’s efforts to prosecute De La Beckwith ended in mistrials when all-white juries did not reach a unanimous verdict. Still, his effort to bring Evers’ killer to justice has been described as heroic. As governor, Waller tried to heal racial wounds and appointed Black Mississippians into state government.
To Waller’s and to Mississippians’ credit, he defeated avowed segregationists in the 1971 Democratic primary for governor, and he did not make race an issue against Evers in the general election.
But the unprecedented vote Waller received in the general election cannot be ignored.
To understand the significance of Waller’s vote total, a little historical perspective is needed. For much of the history of the state after the Civil War and Reconstruction, the Democratic Party held all the power.
Normally in those times, the election that decided the winner of any contest was the Democratic primary. The winners of the Democratic primary most often ran unopposed or with token opposition in the November general election.
For instance, the most votes the Democratic gubernatorial nominee received in the general election in the two races before and after the Waller-Evers contest in 1971 was the 413,620 votes William Winter (another racial moderate) received in the 1979 general election. Winter’s total was almost 200,000 less than what Waller garnered in 1971. For the record, in 1979, the losing candidate against Winter — Republican Gil Carmichael — received 263,702 votes compared to Evers receiving 172,712 in 1971.
Something different was bringing voters to the polls in November 1971, and the most obvious difference was the color of Evers’ skin.
To further illustrate the importance of race on the ballot during the time period, the 654,509 Mississippians who flocked to the polls in the 1968 presidential election were significantly more than the number who voted in 1964 or 1972. What was significant about 1968 is that segregationist Alabama Gov. George Wallace was running as a third-party candidate and carried Mississippi that year.
Skip ahead to more modern times in 2011, when Republican Phil Bryant won with the second-most votes amassed in a November general election for Mississippi governor. Bryant’s opponent — Hattiesburg Mayor Johnny DuPree — was the first Black Mississippian elected by a major party to be a gubernatorial nominee.
On the flip side, the two Democrats other than Waller to receive the most votes in Mississippi were Black candidates: Mike Espy in the 2020 U.S. Senate race and Barack Obama in the 2012 presidential election. But the difference between now and 1971 is that the Republican Party is the dominant party, and Black Mississippians now vote at a much higher rate than they did in 1971, when they had gained the right to vote only a few years earlier.
The candidate who has received the most votes in the history of the state is Donald Trump in the 2020 presidential election, when 756,764 Mississippians cast their ballot for him. Many would argue that Trump has dabbled, to say the least, in racial politics.
This historic Mississippi electoral backdrop occurs against the quickly approaching 2024 presidential election, when Trump is running against Democrat Kamala Harris, the first Black woman to run for president as a major party nominee.
The outcome of that race in Republican-heavy Mississippi is all but a foregone conclusion.
But given the state’s history when Black candidates are on the ballot, it will be fascinating to assess the vote totals.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1870
Oct. 5, 1870
The first Reconstruction Legislature, made up of 27 Black lawmakers and 150 white lawmakers, met in Richmond, Virginia — a state that had been devastated more by the Civil War than any other state.
After the war ended, Black Virginians battled KKK violence and the first round of Jim Crow laws. They tried to reconstruct their own lives, reuniting families, building churches and benevolent groups and starting their own businesses. To the astonishment of many white Virginians, Black Virginians proved adept at democracy and began bringing change.
With many white Virginians refusing to take a loyalty oath to the Union, a “Committee of Nine” created a compromise that traded Black support for former Confederates for office if they would support the state’s Reconstruction constitution. Voters backed the constitution, which embraced the 14th Amendment and Black voting.
Before the 1870s ended, the number of Black members of the Legislature grew to 30. In the end, however, “Virginia was never really reconstructed, rebuilt from the ground up,” the website, Reconstructing Virginia, says. “The same men ran Virginia after the war as before; the same heroes were worshipped and the same goals led government. As with the rest of the South, however, later generations took the 14th and 15th Amendments created in Reconstruction and resumed the work that Reconstruction in Virginia never had a chance to do.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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