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Legislative leaders approve budget plan, leaving at least $1 billion for consideration in 2023 session

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State adds USM volleyball project to effort to recoup misspent welfare funds

After months of national coverage about how former NFL quarterback Brett Favre solicited welfare money to build a volleyball stadium at his alma mater, the state of Mississippi has filed civil charges attempting to recoup the money.

The lawsuit alleges that Favre “understood that grant funds provided by MDHS could not be used for brick-and-mortar construction” — the first time Favre has officially faced this charge.

The new allegation comes just one week after Favre filed a punchy motion to dismiss the welfare department’s civil charges against him.

Mississippi Department of Human Services filed its initial civil suit, the agency’s response to a multi-million dollar fraud and embezzlement scandal, in May. The initial complaint targeted Favre for $1.1 million he received under a “vague, illusory promise that Favre make appearances or record PSAs” and $2.1 million the athlete helped secure for a pharmaceutical venture.

But the complaint did not initially include the University of Southern Mississippi Athletic Foundation, which took $5 million in welfare money to build a volleyball stadium — billed as a “wellness center” — on its campus.

The amended complaint, filed Monday, adds the athletic foundation and sheds more light on the roles of Favre and other state officials in the scheme, including university officials who are not included as defendants. Former welfare director John Davis and nonprofit founder Nancy New have both pleaded guilty to several fraud and bribery charges in connection with the welfare scandal.

“Despite the Foundation’s expressing worries about ‘rais[ing] negative concerns’ and being ‘scared to death,’ Brett Favre urged Nancy New that it was necessary for the Foundation to ‘utilize you guys [John Davis and Nancy New] in every way,'” the filing reads.

While the new complaint increases Favre’s potential liability by $5 million, it removed the $1.1 million claim against Favre in the initial complaint because he repaid that amount to the state in 2020 and 2021.

The new filing also adds a lobbyist, two former MDHS attorneys and a virtual reality company as defendants in the lawsuit.

It does not mention former Gov. Phil Bryant or the discussions the governor had with Favre about finding funding for the volleyball stadium or Prevacus, the company purportedly developing a drug to treat concussions.

“Governor Bryant was both aware of and supported MCEC’s payments to Prevacus at issue in this lawsuit, as well as its $5 million payment to Southern Miss in connection with the construction of a wellness center,” Favre alleged in his most recent motion.

The lawsuit still names fitness trainer Paul Lacoste and his organization Victory Sports Foundation, which received $1.3 million under what former MDHS leader Davis described as “the Lt. Gov’s fitness issue,” referring to then-Lt. Gov. Tate Reeves. Now governor and in control of the suit, Reeves is also not mentioned in the amended complaint.

In the new complaint, MDHS added the following new defendants:

  • USM Athletic Foundation.
  • N3 Holdings, the company that Nancy New and her sons Zach and Jess New owned and allegedly used to personally invest in Favre’s pharmaceutical start-up companies called Prevacus and PreSolMD.
  • Lobaki, Inc. and Lobaki Foundation, a virtual reality company that received welfare funding to prop up a VR training academy.
  • JTS Enterprises, the company formed by Brian Jeff Smith, John Davis’ brother-in-law, through which he received welfare funds.
  • William Longwitz, former lawmaker and lobbyist who received nearly $320,000 in welfare funds to lobby on behalf of New’s organization.
  • Inside Capitol, LLC, Will Longwitz’s lobbying firm.
  • Jacob Black, former MDHS attorney.
  • Garrig Shields, former MDHS attorney who left the agency to work for New’s nonprofit.
  • William, Weiss, Hester and Co., PLLC, the accounting firm that conducted regular audits of the New nonprofit.

The initial complaint sought to claw back a total of about $24 million. The new complaint asserts that the two nonprofits through which most of the money was misspent — Mississippi Community Education Center and Family Resource of North Mississippi — breached their agreements with MDHS and should have to return their entire awarded amounts, $39.3 million for MCEC and $38 million for FRC. Neither nonprofit has assets totaling anywhere near those amounts.

Former U.S. Attorney Brad Pigott, the private attorney MDHS first hired to bring the suit, planned to include the volleyball project in the complaint, but Reeves’ office instructed him to remove it before filing. In July, after Pigott subpoenaed the athletic foundation for its communication with former Gov. Bryant, among other individuals, Reeves’ appointed welfare director Bob Anderson fired the attorney. At that time, Reeves said the agency was still considering more potential defendants to add to the suit, including the athletic foundation.

“Governor Tate Reeves tasked me with correcting the path of MDHS,” Anderson said in a statement Monday. “As part of that process, MDHS has been working hard to restore trust and put in place numerous internal controls to ensure that misspending is not repeated in the future. The rest of the task involves recovering and returning to the taxpayers the millions of dollars in misspent funds which were intended to benefit Mississippi’s needy families. We continue that task with this motion to file an amended civil complaint.”

The amended complaint alleges that in April of 2017, Favre made a “handshake agreement” with USM, where his daughter played volleyball, to personally guarantee the funds to construct a new facility for the team. He then contributed $150,000 worth of autographed merchandise and began soliciting donations from various people and companies, including the Kohler family.

“Favre, however, was unable to convince his friends and connections to donate enough money to meet his obligation to fund the construction of the volleyball facility, and he did not want to pay the costs out of his own pocket,” the complaint reads.

Favre’s attorney Eric Herschmann rejected the assertion that the athlete personally committed funds to the project, pointing to emails from USM’s athletic director at the time, Jon Gilbert, that say Favre agreed to fundraise for the project.

In July of 2017, Gilbert introduced Favre to nonprofit founder Nancy New, Favre said in his recent filing.

New, who sat on the athletic foundation board alongside Favre, and another nonprofit operator Christi Webb had just become the recipients of a massive cash flow from the welfare department. At the time, New’s nonprofit Mississippi Community Education Center already had existing leases with USM, including for a large suite at the football stadium, where the nonprofit could invite guests to watch the games.

Shortly after connecting with New, Favre met at USM with her, Gilbert, Davis, MDHS attorney Garrig Shields and former WWE wrestler Teddy DiBiase to discuss using MDHS funds on the volleyball construction.

“John Davis discussed his plan to ‘do good things for USM’ and ‘give them 4 mil’ with Christi Webb and Nancy New, both of whom enthusiastically agreed. John Davis suggested that Nancy New tell Jon Gilbert that the facility should be named after Favre,” the complaint reads. “The Foundation told Brett Favre that they were ‘very leary [sic] of accepting such a large grant,’ and suggested ‘trying to find a way for John [Davis] to allocate money to an entity that could then give to us that would pay for brick and mortar.’ Brett Favre also told Nancy New he ‘passed [this] same info[rmation] to John [Davis] and of course he [John Davis] sent back we will find a way to make it work.'”

The lawsuit alleges attorneys Shields and Black were instrumental in crafting the sham lease agreement, as well as facilitating several other allegedly fraudulent purchases.

Black was one of the employees who gathered and brought information about Davis’ alleged fraud to Gov. Bryant in June of 2019.

Favre denies any wrongdoing in the volleyball project. Longwitz, Black, Shields and a spokesperson for USM did not return calls to Mississippi Today on Monday.

“While he had helped raise funds for the facility and thereby met Davis and New, Favre, as with the transfers complained of in the Complaint, did absolutely nothing wrong in connection with the Wellness Center,” Favre’s Nov. 28 motion reads. “During Favre’s fundraising efforts, in July 2017, the Southern Miss athletic director introduced Favre to New, a Southern Miss Athletic Foundation board member, as someone who could assist Favre with the fundraising. New was well connected with numerous Mississippi officials, including Davis and then-Governor Bryant, and close friends with Governor Bryant’s wife Deborah Bryant.”

Tom Duff, current president of the Institutions of Higher Learning Board of Trustees and one of the board members who signed off on the $5 million MDHS grant to build the volleyball stadium in 2017, told Mississippi Today last month that he believed USM should return the funds.

“MDHS’s proposed amended complaint, in which MDHS has dropped its original $1.1 million claim against Brett Favre, while adding new groundless allegations about him, is as frivolous as its original complaint,” Herschmann said in a statement Monday after the state’s latest filing. “Again, MDHS omits facts key to these new allegations—including that the Mississippi Attorney General signed off on the transfers of funds from MDHS to another state entity, the University of Southern Mississippi, all with the full knowledge and consent of the Governor and other State officials.  That a private citizen, like non-lawyer Brett Favre, could have any liability under these circumstances is baseless.  Accordingly, we will oppose, on Brett’s behalf, MDHS’s motion to amend the complaint to the extent it adds these new groundless allegations. “

Editor’s note: Mississippi Today Editor-in-Chief Adam Ganucheau’s mother signed off on the language of a lease agreement to construct a University of Southern Mississippi volleyball stadium. Read more about that here.

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

Mississippi Today

Pharmacy benefit manager reform likely dead

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mississippitoday.org – Gwen Dilworth – 2025-04-01 17:26:00

Hotly contested legislation that aimed to increase the transparency and regulation of pharmacy benefit managers appeared dead in the water Tuesday after a lawmaker challenged the bill for a rule violation.

The bill was sent back to conference after Rep. John Hines, D-Greenville, raised a point of order challenging the addition of code sections to the bill, which will likely kill it. 

House members in the past have chosen to turn a blind eye to the rule, which would require the added code sections to be removed when the bill is returned to conference. This fatal flaw will make it difficult to revive the legislation. 

“It will almost certainly die,” said House Speaker Jason White, who authored the legislation. “And you can celebrate that with your pharmacist when you see them.”

“…This wasn’t ‘gotcha.’ Everybody in this chamber knew that code sections were added, because the attempt was to make 1123 more suitable to all the parties.”

The bill sought to protect patients and independent pharmacists, who have warned that if legislators do not pass a law this year to regulate pharmacy benefit managers, which serve as middlemen in the pharmaceutical industry, some pharmacies may be forced to close. They say that the companies’ low payments and unfair business practices have left them struggling to break even.

The bill underwent several revisions in the House and Senate before reaching its most recent form, which independent pharmacists say has watered the bill down and will not offer them adequate protection. 

House Bill 1123, authored by White, originally focused on the transparency of pharmacy benefit managers. The Senate then beefed up the bill by adding provisions barring the companies from steering patients to affiliate pharmacies and prohibiting spread pricing – the practice of paying insurers more for drugs than pharmacists in order to inflate pharmacy benefit managers’ profits. 

House Speaker Jason White brings the House of Representatives to order at the beginning of the new legislative session at the State Capitol, Tuesday, Jan. 7, 2025 in Jackson.

Independent pharmacists, who have flocked to the Capitol to advocate for reform this session, widely supported the Senate’s version of the bill. 

The Senate incorporated several recommendations from the House into its bill, saying that they believed that the legislation would have the House’s support. 

Instead, the House sent the bill to conference and requested additional changes, including new language that would eliminate self-funded insurance plans, or health plans in which employers assume the financial risk of covering employees’ health care costs themselves, from a section of the bill that prohibits pharmacy benefit managers from steering patients to specific pharmacies.

This language seeks to satisfy employers, who argue that regulating pharmacy benefit managers’ business practices will lead to higher health insurance costs. 

Sen. Rita Parks, R-Corinth, who has spearheaded pharmacy benefit manager reform efforts in the Senate, previously said that adding the language to the bill would “remove any protection out of the law.” But she signed the conference report that included the language Monday after a heated conference meeting between lawmakers. 

Rep. Hank Zuber, R-Ocean Springs and co-author of the bill, said the bill has something for everybody, gesturing to its concessions for employers and independent pharmacists. He said the bill gives independent pharmacists 85% of what they wanted. 

Mississippi Independent Pharmacies Association director Robert Dozier was not available for comment by the time the story published. 

Zuber told House members Tuesday to “blame the Senate” for the slow progress of pharmacy benefit manager reform in Mississippi, citing the body’s failure to take up a drug pricing transparency bill half a decade ago, for three years in a row.

“If the Senate had followed the leadership and the legislation that we drafted those many years ago, we would not be here,” Zuber said. “We would have the information on drug pricing, we would have the information and transparency on (pharmacy benefit managers) and we would have the ultimate reason as to why drug costs continue to rise.”

Members of the House expressed dissatisfaction with the legislation Tuesday, arguing it did not do enough to ensure lower prescription drug costs for consumers. 

“I’m going to try to do something next year that goes even further,” Zuber responded.

For the past several years, lawmakers have proposed bills to regulate pharmacy benefit managers, but none have made it as far as this session. 

“We’ll go another year,” said White. 

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

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Feuding GOP lawmakers prepare to leave Jackson without a budget, let governor force them back

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mississippitoday.org – @MSTODAYnews – 2025-04-01 19:23:00

After months of bitter Republican political infighting, the Legislature appears likely to end its session Wednesday without passing a $7 billion budget to fund state agencies, potentially threatening a government shutdown if they don’t come back and adopt one by June 30. 

After the House adjourned Tuesday night, Speaker Jason White said he had presented the Senate with a final offer to extend the session, which would give the two chambers more time to negotiate a budget. As for now, the 100 or so bills that make up the state budget are dead.

The Senate leadership was expected to meet and consider the offer Tuesday evening, White said. But numerous senators both Republican and Democrat said they would oppose such a parliamentary resolution, and Lt. Gov. Delbert Hosemann has also said it’s unlikely and that the governor will have to force lawmakers back into special session.

White said he believes, if the Senate would agree to extend the session and restart negotiations, lawmakers could pass a budget and end the 2025 session by Sunday, only a few days later than planned.

But if the Senate chooses not to pass a resolution extending the session, White said the House would end the session on Wednesday.

It would take a two-thirds vote of support in both chambers to suspend the rules and extend the session. The Senate opposition appears to be enough to prevent that. 

Still, the speaker said he believes Lt. Gov. Delbert Hosemann and Senate leaders are considering the proposal. But he said if he doesn’t hear a positive response by Wednesday, the House will adjourn and wait for Gov. Tate Reeves to call a special session at a later date. 

“We are open to (extending the session), but we will not stay here until Sunday waiting around to see if they might do it,” White said.  

White said leaving the Capitol without a budget and punting the issue to a special session might not cool tensions between the chambers, as some lawmakers hope. 

“I think when you leave here and you end up in a special session, some folks say, ‘Well everybody that’s upset will cool down by then.’ They may, or it may get worse. It may shine a different and specific light on some of the things in this budget and the differences in the House and Senate,” White said. “Whereas, I think everybody now is in the legislative mode, and we might get there.”

The Mississippi Constitution does not grant the governor much power, but if Gov. Tate Reeves calls lawmakers into a special session, he gets to set the specific legislative agenda — not lawmakers. 

White said the governor could potentially use his executive authority to direct lawmakers to take up other bills, such as those related to education, before getting to the budget. 

“When we leave here without a budget, it is entirely the governor’s prerogative to when he (sets a special session) and how he does that.”

While the future of the state’s budget hangs in the balance, lawmakers have spent the remaining days of their regular session trying to pass the few remaining bills that remained alive on their calendars. 

House approves DEI ban, Senate could follow suit on Wednesday 

The House on Tuesday passed a proposal to ban diversity, equity and inclusion programs from public schools, and both chambers approved a measure to establish a form of early voting. 

The House approved a conference report compromise to ban DEI programs and a list of “divisive concepts” from K-12 schools, community colleges and universities. If the Senate follows suit, Mississippi would join a number of other Republican-controlled states and President Donald Trump, who has made rooting DEI out of the federal government one of his top priorities. 

The agreement between the Republican-dominated chambers follows hours of heated debate in which Democrats, all almost of whom are Black, excoriated the legislation as a setback in the long struggle to make Mississippi a fairer place for minorities. Legislative Republicans argued the legislation will elevate merit in education and remove from school settings “divisive concepts” that exacerbate divisions among different identity groups. 

The concepts that will be rooted out from curricula include the idea that gender identity can be a “subjective sense of self, disconnected from biological reality.” The move reflects another effort to align with the Trump administration, which has declared via executive order that there are only two sexes.

The House and Senate disagreed on how to enforce the act, but ultimately settled on an agreement that would empower students, faculty members and contractors to sue schools for violating the law, but only after they go through an internal campus review process that would give schools time to make changes. The legislation could also withhold state funds from schools that don’t comply. 

Legislature sends ‘early voting lite’ bill to governor 

The Legislature also overwhelmingly passed a proposal to establish a watered down version of early voting, though the legislation is titled “in-person excused voting,” and not early voting.

The proposal establishes 22 days of in-person voting before Election Day that requires voters to go to the circuit clerk’s office or another location county officials have designated as a secure early voting facility, such as a courtroom or a board of supervisors meeting room. 

To cast an early vote, someone must present a valid form of photo ID and list one of about 15 legal excuses to vote before Election Day. The excuses, however, are broad and would, in theory, allow many people to cast early ballots. 

Examples of valid excuses are voters expecting to work on Election Day, being at least 65 years old, being currently enrolled in college or potentially travelling outside of their county on Election Day. 

Since most eligible voters either work, go to college or are older than 65 years of age, these excuses would apply to almost everyone. 

“Even though this isn’t early voting as we saw originally, it makes this more convenient for hard working Mississippians to go by their clerks’ office and vote in person after showing an ID 22 days prior to an election,” Senate Elections Chairman Jeremy England said. 

Republican Gov. Tate Reeves opposes early voting, so it’s unclear if he would sign the measure into law or veto it. 

Both chambers are expected to gavel at 10 a.m. on Wednesday to debate the final items on their agenda. 

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

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‘A lot of us are confused’: Lacking info, some Jacksonians go to wrong polling place

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mississippitoday.org – @mintamolly – 2025-04-01 18:43:00

Johnny Byrd knew that when his south Jackson neighborhood Carriage Hills changed wards during redistricting last year, his neighbors would have trouble finding their correct polling place on Election Day.

So he bought a poster board and inscribed it with their new voting location – Christ Tabernacle Church.

“I made a sign and placed it in front of the entrance to our neighborhood that told them exactly where to go so there would be no confusion,” said Byrd, vice president of the Association of South Jackson Neighborhoods.

Still, on April 1, a car full of voters from a senior living facility who should have gone to Christ Tabernacle were driven to their old polling place. 

“I thought it was unfortunate they had to get there and find out rather than knowing in advance that their polling location was different,” said Sen. Sollie Norwood, a Democrat from Jackson who was on the ground Tuesday helping constituents with voting.

One of those elderly women became frustrated and said she no longer wanted to vote, Norwood said, though her companions tried to convince her otherwise. By midday Tuesday, 300 people had voted at Christ Tabernacle, one of the city’s largest precincts currently in terms of registered voters, but among the lowest in turnout historically.

Voting rights advocates and candidates vying for municipal office in Jackson are keeping an eye on issues facing voters at the polls, though without official results, it remains to be seen if that will dampen turnout this election with the hotly contested Democratic primary.

“I still believed it was gonna be low,” Monica McInnis, a program manager for the nonprofit OneVoice, said of turnout. “I was expecting it would be a little higher because of what is on the ballot and how many people are running in all of the wards as well as the mayor’s race.”

A daughter helps her mother casts her votes as mayoral candidate John Horhn chats with voter at Christ Tabernacle Church in south Jackson, Tuesday, April 1, 2025.

The situation is evolving as the day goes on, but the main issues are twofold. One, thousands of Jackson voters have new precinct locations after redistricting last year put them into a new city council ward. 

Two, some voters didn’t realize their polling place for the municipal elections may differ from where they voted in last year’s national elections, which are run by the counties. 

In Mississippi, voters are assigned two precincts that are often but not always the same: A municipal location for city elections and a county location for senate, gubernatorial and presidential elections 

“People in Mississippi, we go to the same polling location for three years, and that fourth year, it changes,” said Jada Barnes, an organizer with the Jackson-based nonprofit MS Votes. “A lot of us are confused. When people are going to the polling place today, they’re seeing it is closed, so they’re just going back home which is making turnout go even lower.” 

Barnes said she’s hearing this primarily from a few Jackson voters who called a hotline that MS Votes is manning. Lack of awareness around polling locations is a big deterrent, she said, because most people are trying to squeeze their vote in between work, school or family responsibilities. 

“Maybe you’re on your lunch break, you only got 30 minutes to go vote, you learn that your polling location has changed and now you have to go back to work,” she said. 

Norwood said he heard from a group of students assigned to vote at Christ Tabernacle who had attempted to vote at the wrong precinct and were told their names weren’t on the rolls. They didn’t know they had been moved from Ward 4 to Ward 6, Norwood said, meaning they expected to vote in a different council race until reaching the polls Tuesday.

Though voters have a duty to be informed of their polling location, Barnes said city and circuit clerks and local election commissioners are ultimately responsible for making sure voters know where to go on Election Day. 

Angela Harris, the Jackson municipal clerk, said her office worked to inform voters by mailing out thousands of letters to Jacksonians whose precincts changed, including the roughly 6,000 whose wards changed during the 2024 redistricting. 

“I am over-swamped,” she said yesterday. 

Despite her efforts, at least one voter said he never got a letter. Stephen Brown learned through Facebook, not an official notice, that he was moved from Ward 1 to Ward 2. 

Stephen Brown, a resident of Briarwood Heights in northeast Jackson, ran into difficulty voting April 1.

A resident of the Briarwood Heights neighborhood in northeast Jackson, Brown’s efforts to vote Tuesday have been complicated by mixed messages and a lack of communication. He has yet to vote, even though he showed up at the polls at 7:10 this morning. 

His odyssey took him to two wrong locations, where the poll managers instructed Brown to call his ward’s election commissioner, who did not answer multiple calls, Brown said. Brown finally learned through a Facebook comment that he could look up his new precinct on the Mississippi Secretary of State’s website — if he scrolled down the page past his county precinct information.

This afternoon, Brown has a series of meetings planned, so now he’s hoping for a 30-minute window to try voting one more time, even though he’s skeptical it will make a difference. 

“I’m a very disenchanted voter, because I’ve been let down so much,” he said. “I vote because it’s the thing that I’m supposed to do and because of the sacrifices of my ancestors, but not because I truly believe in it, you know?” 

Brown’s not alone in facing turbulence. Back at Christ Tabernacle, one Jackson voter, who declined to give her name, said she’s frustrated from having to drive to three polling locations in one day.

“I’m dissatisfied with the fact that I had to drive from one end of this street and all of the back to come over here when I usually vote over here on Highway 18,” she said. “This was a great inconvenience, gas wise and time wise.”

The same thing happened to Rodney Miller. He called the confusion some voters are facing in this election “unnecessary.” 

“That ain’t the way we should be handling business,” he said. “We should be looking out for one another better than that, you know? It’s already enough getting people out to vote, and when you confuse them when they try? Come on now. That’s discouraging.”

Christ Tabernacle is the second largest precinct in the city in terms of registered voters, with 3,330 assigned to vote there as of 2024, according to documents retrieved from the municipal election committee. But it had one of the lowest voter turnout rates – 10% in the 2021 primary election before redistricting and before it became so large.

Byrd mentioned the much higher turnout in places like Ward 1 in northeast Jackson, compared to where he lives in south Jackson. Why does Byrd think this is?

“Civics,” Byrd said. “They took civics out of school. If you ask the average person what is the role and responsibility of any elected official, they can’t tell you.”

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

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