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State revenue slows as phase-in of income tax cuts begins

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Mississippi tax collections have taken a downward trend during the first quarter of the new fiscal year as the state has collected $18.9 million or 1.02% less than what was collected during the same time last year.

The slowdown comes during the first year of the phase-in of the largest tax cut in state history.

READ MORE: Mississippi lawmakers pass the largest tax cut in state history

According to the revenue report recently released by the staff of the Mississippi Legislative Budget Committee, the state collected $1.83 billion between July 1 and Sept. 30. The slowdown in collections comes on the heels of unprecedented growth in recent years.

But the slowdown, unless it gets much worse, should not impact the state budget for the current fiscal year. The reason it will not have an impact is despite unprecedented growth in recent years, legislative leaders and Gov. Tate Reeves have adopted revenue estimates not reflective of that growth.

The official revenue estimate represents the amount of money available for the Legislature to appropriate for the dozens of state agencies, for local school districts, for higher education and other state services.

If revenue collections fall short of the estimate, state leaders either have to dip into reserve funds or make cuts.

But during the first three months of the current budget year, collections are $85.8 million or 4.9% above the estimate, despite revenue being below the amount collected last year.

Mississippi, like most states, experienced unprecedented revenue growth following the COVID-19 pandemic as millions of dollars in federal relief funds poured into the state. Revenue grew a record 15.9% for the fiscal year beginning July 1, 2020, through June 30, 2021, followed by 8.1% growth the next year and 4.4% growth last year.

Throughout those years, revenue estimates were much lower than actual growth, meaning that the money was not used for appropriations that year. Instead, the revenue exceeding the estimate was used in the following year by the Legislature primarily for capital projects, such as building and tourism projects throughout the state.

Through the first quarter, sales tax collections, the largest single source of revenue, were up $28.4 million or 4.2% over the previous year. But income tax collections, the second largest source of revenue, were down $65 million or 10.3%. The slowdown in income tax collections is occurring during the first year of a four-year phase-in of a $525 million cut in the state income tax.

The use tax collections, a 7% tax or items purchased out-of-state such as via internet sales, were up $11.5 million or 12.6%.

A key in the collections during the first three months is that revenue from sources other than tax sources, such as interest earnings, was up $21.6 million or 45.6%.

The slowdown in collections comes in the midst of campaigns for governor and legislative seats. And the slowdown comes as legislative leaders and Gov. Reeves, who is seeking re-election this November against Democrat Brandon Presley, work on developing a budget proposal for the Legislature to consider during the 2024 session starting in January.

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 1912

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mississippitoday.org – Jerry Mitchell – 2025-03-09 07:00:00

March 9, 1912

Portrait of Charlotte Bass Credit: Wikipedia

Charlotta Bass became one of the nation’s first Black female editor-owners. She renamed The California Owl newspaper The California Eagle, and turned it into a hard-hitting publication. She campaigned against the racist film “Birth of a Nation,” which depicted the Ku Klux Klan as heroes, and against the mistreatment of African Americans in World War I. 

After the war ended, she fought racism and segregation in Los Angeles, getting companies to end discriminatory practices. She also denounced political brutality, running front-page stories that read, “Trigger-Happy Cop Freed After Slaying Youth.” 

When she reported on a KKK plot against Black leaders, eight Klansmen showed up at her offices. She pulled a pistol out of her desk, and they beat a “hasty retreat,” 

The New York Times reported. “Mrs. Bass,” her husband told her, “one of these days you are going to get me killed.” She replied, “Mr. Bass, it will be in a good cause.” 

In the 1940s, she began her first foray into politics, running for the Los Angeles City Council. In 1951, she sold the Eagle and co-founded Sojourners for Truth and Justice, a Black women’s group. A year later, she became the first Black woman to run for vice president, running on the Progressive Party ticket. Her campaign slogan: “Win or Lose, We Win by Raising the Issues.” 

When Kamala Harris became the first Black female vice presidential candidate for a major political party in 2020, Bass’ pioneering steps were recalled. 

“Bass would not win,” The Times wrote. “But she would make history, and for a brief time her lifelong fight for equality would enter the national spotlight.”

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 1977

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mississippitoday.org – Jerry Mitchell – 2025-03-08 07:00:00


On this day in 1977

March 8, 1977

Henry Marsh
Henry L. Marsh III became the first Black mayor of the Confederacy’s capital.

Henry L. Marsh III became the first Black mayor of the former capital of the Confederacy, Richmond, Virginia. 

Growing up in Virginia, he attended a one-room school that had seven grades and one teacher. Afterward, he went to Richmond, where he became vice president of the senior class at Maggie L. Walker High School and president of the student NAACP branch. 

When Virginia lawmakers debated whether to adopt “massive resistance,” he testified against that plan and later won a scholarship for Howard University School of Law. He decided to become a lawyer to “help make positive change happen.” After graduating, he helped win thousands of workers their class-actions cases and helped others succeed in fighting segregation cases. 

“We were constantly fighting against race prejudice,” he recalled. “For instance, in the case of Franklin v. Giles County, a local official fired all of the black public school teachers. We sued and got the (that) decision overruled.” 

In 1966, he was elected to the Richmond City Council and later became the city’s first Black mayor for five years. He inherited a landlocked city that had lost 40% of its retail revenues in three years, comparing it to “taking a wounded man, tying his hands behind his back, planting his feet in concrete and throwing him in the water and saying, ‘OK, let’s see you survive.’” 

In the end, he led the city from “acute racial polarization towards a more civil society.” He served as president of the National Black Caucus of Elected Officials and as a member of the board of directors of the National League of Cities. 

As an education supporter, he formed the Support Committee for Excellence in the Public Schools. He also hosts the city’s Annual Juneteenth Celebration. The courthouse where he practiced now bears his name and so does an elementary school. 

Marsh also worked to bridge the city’s racial divide, creating what is now known as Venture Richmond. He was often quoted as saying, “It doesn’t impress me to say that something has never been done before, because everything that is done for the first time had never been done before.”

He died on Jan. 23, 2025, at the age of 91.

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

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Mississippi Today

Judge tosses evidence tampering against Tim Herrington

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mississippitoday.org – Molly Minta – 2025-03-07 15:08:00

A Lafayette County circuit judge ended an attempt to prosecute Sheldon Timothy Herrington Jr., the son of a prominent north Mississippi church family who is accused of killing a fellow University of Mississippi student named Jimmie “Jay” Lee, for evidence tampering.

In a March 7 order, Kelly Luther wrote that Herrington cannot be charged with evidence tampering because of the crime’s two-year statute of limitations. A grand jury indicted the University of Mississippi graduate last month on the charge for allegedly hiding Lee’s remains in a well-known dumping ground about 20 minutes from Herrington’s parent’s house in Grenada.

“The Court finds that prosecution for the charge of Tampering with Physical Evidence commenced outside the two-year statute of limitations and is therefore time-barred,” Luther wrote.

In order to stick, Luther essentially ruled that the prosecution should have brought the charges against Herrington sooner. In court last week, the prosecution argued that it could not have brought those charges to a grand jury without Lee’s remains, which provided the evidence that evidence tampering occurred.

READ MORE: ‘The pressure … has gotten worse:’ Facing new charge, Tim Herrington will remain in jail until trial, judge rules

The dismissal came after Herrington’s new counsel, Jackson-area criminal defense attorney Aafram Sellers, filed a motion to throw out the count. Sellers did not respond to a request for commend by press time.

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

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