Connect with us

Mississippi Today

Tables turned with Gunn, Hosemann on state revenue estimate

Published

on

Tables turned with Gunn, Hosemann on state revenue estimate

Note: This analysis anchored Mississippi Today’s weekly legislative newsletter. Subscribe to our free newsletter for exclusive access to legislative analysis and up-to-date information about what’s happening under the Capitol dome.

Last year, when it was Lt. Gov. Delbert Hosemann’s turn to run the Legislative Budget Committee, House Speaker Philip Gunn was anxious to raise the state’s revenue estimate to grease the skids for his proposal to eliminate the income tax.

This year, Gunn’s turn to run the LBC, Hosemann wants the estimate upped to help his proposal to fully fund K-12 education.

But Gunn says he does not intend to call a meeting of legislative leaders during the final days of the 2023 session to raise the revenue estimate to give lawmakers more money to budget for the upcoming fiscal year, beginning July 1.

What a difference a year makes. This time last year, Gunn was urging Hosemann to call a meeting of the Legislative Budget Committee to raise the revenue estimate.

A key difference is that last year Gunn wanted to raise the revenue estimate to ensure enough money was available to enact the income tax elimination that he and Lt. Gov. Tate Reeves coveted.

Gunn, who is not seeking re-election this year and ending his historic tenure as the first Republican speaker in the modern era, was hoping to increase the scope of the tax cut this session. But the plan was scraped after it was rejected behind closed doors by a sizable portion of his own Republican caucus.

Now Hosemann is wanting the revenue estimate raised, in part to make it easier to enact a plan to put an additional $181 million in kindergarten through 12th grade schools and achieve full funding of the Mississippi Adequate Program for only the third time since 2003. MAEP is the funding formula that provides the state’s share of most of the basic needs of local school districts, such as teacher salaries, utilities and textbooks.

Gunn, who has the power to call the meeting this year, says he has no intention of doing so.

“No. We don’t see any reason to adjust it (revenue) at this point,” Gunn said late last week as he headed from the House floor to a meeting.

A little background might help. The speaker and lieutenant governor alternate in chairing the 14-member Legislative Budget Committee. Hosemann chaired the panel last year. Gunn is the chairman this year.

Each year in the fall the Budget Committee along with the governor meet to decide on a revenue estimate that represents the amount of money available for the Legislature to appropriate during the upcoming session for the next fiscal year that begins on July 1.

The politicians rely heavily on the recommendation of five financial experts, including the state economist and treasurer, in making the estimate. But since the estimate is of the amount the state is going to collect during for the next fiscal year, beginning in July, it is educated guesswork at best.

The Budget Committee for years has normally re-assembled in the midst of the final days of budget negotiations between House and Senate leaders to revise the estimate. They argue the later meeting during the final days of the legislative session gives the state’s financial experts an opportunity to glean more information on the outlook of revenue collections for the upcoming fiscal year.

Last year Hosemann finally called a meeting on the Friday before the weekend that was the deadline for House and Senate leaders to agree on a budget.

The legislative session is now in the final week before the deadline weekend. So, if Gunn is going to call a meeting, this is when it would occur, though he says he is not.

For a little comparison, through February of last year, seven months into the fiscal year, state revenue collections were $768.4 million or 21.5% above the estimate. During that time, the state had collected $433.3 million or 11.06% more that it collected during the same time period in the previous fiscal year.

Mississippi, like most states, has experienced and continues to experience unprecedented revenue growth. This year, revenue collections are $524.4 million or 12.4% above the estimate through February or $395.8 million or 9.1% above the amount collected the previous year.

Granted revenue collections have slowed slightly. But in past years, state leaders would have jumped at raising the estimate based on such strong collections.

And it is safe the say that if Gunn’s income tax cut was on the table for consideration during the final days of the session, he also would be jumping to call a meeting to raise the estimate.

In January on Supertalk radio, Gunn was still pitching his income tax elimination plan.

“We had about $800 million more than we were even spending, and I advocated that it was time to give some of that back to the taxpayers,” he said at the time. “We are collecting more revenue from our citizens than we’re even spending, let’s return some of that to the taxpayers.”

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

Mississippi Today

On this day in 1997

Published

on

mississippitoday.org – Jerry Mitchell – 2024-12-22 07:00:00

Dec. 22, 1997

Myrlie Evers and Reena Evers-Everette cheer the jury verdict of Feb. 5, 1994, when Byron De La Beckwith was found guilty of the 1963 murder of Mississippi NAACP leader Medgar Evers. Credit: AP/Rogelio Solis

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.

Continue Reading

Mississippi Today

Medicaid expansion tracker approaches $1 billion loss for Mississippi

Published

on

mississippitoday.org – Bobby Harrison – 2024-12-22 06:00:00

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.

Continue Reading

Mississippi Today

On this day in 1911

Published

on

mississippitoday.org – Jerry Mitchell – 2024-12-21 07:00:00

Dec. 21, 1911

A colorized photograph of Josh Gibson, who was playing with the Homestead Grays Credit: Wikipedia

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.

Continue Reading

Trending