Mississippi Today
Tax cut supporters’ numbers might not tell the whole story
Politicians often depend on numbers to make their argument. But numbers can be confusing and misleading.
Supporters of eliminating the income tax cite a lot of numbers to bolster their contention that the state can afford to phase out the tax.
Both Gov Tate Reeves and House Ways and Means Chairman Trey Lamar, R-Senatobia, recently cited some of those numbers during House Speaker Jason White’s daylong summit on the state’s tax structure. While White stressed that the summit was a “fact finding” mission, it is no secret that the speaker, Lamar and Reeves all are strong advocates of eliminating the state’s personal income tax.
The income tax accounts for between 25% and 30% of total general fund revenue even after the $145 million cut to the tax in 2016 followed in 2022 by a $525 million income tax cut that is still being phased in.
At the summit Reeves used the 2016 and 2022 income tax cuts “to dispel the myth” that complete elimination of the income tax would curtail jobs growth.
Since those previous two cuts, “our economy is thriving, private sector investment in our state has shattered records, and our unemployment rate is at an all-time low with more people working than ever before,” Reeves told summit goers.
The myth the governor cited – that cuts to the personal income tax would curtail jobs growth – has not been prevalent during debate of the issue. Instead, the main debate is whether eliminating such a large source of revenue would make it difficult for the state to provide vital services, such as for education, health care and law enforcement.
But the governor pointed to recent success in luring major economic development projects to the state, such as Amazon Web Services to Madison County and a plant to build electric batteries to power commercial vehicles to Marshall County. Both plants are major wins for the state.
But more to the point, Mississippi was in the bottom five states in the nation with jobs growth of 0.7% in 2023, according to the Bureau of Labor statistics.
Perhaps that anemic jobs growth should not be blamed on the past tax cuts, but by the same token it is difficult to argue the tax cuts are spurring jobs growth.
While Reeves touts the state’s low unemployment rate, he fails to mention that Mississippi has the nation’s lowest workforce participation rate.
That might be why some business representatives at the summit cited workforce training, not tax cuts, as the top issue.
Lamar, on the other hand, made the forceful arguments that state services would be OK if the income tax is eliminated.
Since 1999, Lamar said, the state has averaged annual state general fund revenue growth of 3%. He said 3% growth equates to an extra $230 million per year – more than enough money from growth to afford to phase out the income tax.
In 1999, the total state general fund revenue was less than half of the $7.6 billion generated now by various taxes, primarily the sales tax and income tax. And 20 years from now, if the income tax is not eliminated, 3% will be a lot more than it is now.
Perhaps a simpler way to look at the numbers is that the tax on income generates almost 30% of state general-fund revenue.
When the $525 million 2022 tax cut is fully phased in, the income tax still will be the second largest source of general-fund money, generating about $2.2 billion annually, according to Senate Finance Chairman Josh Harkins, R-Flowood.
Plus, an important item to remember is that the $2.2 billion is in today‘s dollars. A decade from now, two decades from now, the same levy on income will generate much more than $2.2 billion.
At White’s tax summit, Harkins pointed out the state has received an additional $33 billion in COVID-19 relief funds. That money went to state government, local governments, businesses and individuals and created a massive, unprecedented boon in state revenue.
That has generated tremendous surpluses, though state revenue collections have been slowing significantly during the past two years.
Even with the slowdown in revenue, the state still has tremendous reserves that make the beginning of the phase in of elimination of the income tax doable in the immediate future.
So, it is likely that no consequences of the tax cut will be felt during the remainder of Reeves’ tenure.
But the question is whether the state can still deal with losing more than one-fourth of its general fund revenue a decade or two decades from now when the federal government money spigot is not flowing so freely.
What will the numbers say then?
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
New health care coalition forms, including hospitals that left state hospital association
A new health care alliance will unite several of Mississippi’s largest hospital systems – all of which left the state hospital association following controversy over Medicaid expansion – under the umbrella of one of the state‘s largest and most influential lobbying firms.
The new group will be helmed by former Mississippi Medicaid Director Drew Snyder, who served under two Republican governors who thwarted Medicaid expansion and the flow of billions of federal dollars to provide health insurance to low-income Mississippians for over a decade.
The new collaborative will focus on “providing sustainable solutions to challenges facing access to care,” said a press release. It will include representatives from the state’s leading acute and trauma care hospitals, rural hospitals, mental health providers and primary care providers.
Critics, along with the Mississippi Hospital Association, say the new group’s formation is motivated by partisan politics.
A slew of hospitals left the hospital association after the organization’s political action committee made its largest-ever contribution to Democratic gubernatorial candidate Brandon Presley, a strong supporter of Medicaid expansion, in 2023. All but one have joined the new collaborative.
This means lawmakers in 2025 will hear from two separate groups of hospitals and health care organizations, raising questions about whether their overall impact will be diluted without a unified voice.
Snyder, who declined repeated requests for comment for this story, will lead the Mississippi Healthcare Collaborative under the umbrella of multi-state, Jackson-based lobbying firm Capitol Resources and its new health policy consulting division, Health Resources.
Capitol Resources is a strong supporter of Republican Gov. Tate Reeves. The firm’s political action committee has contributed nearly $75,000 to Reeves since 2018.
Five of Capitol Resources’ scores of Mississippi clients hold multi-million dollar contracts with the Division of Medicaid.
A query to the Mississippi Ethics Commission published just days before Snyder announced his resignation from the Division of Medicaid sought an opinion on how a former head of an agency could work for a lobbying firm with clients in the same field as his or her public service without violating state law. Requests for opinions are anonymous.
The Ethics Commission ruled that the public official could not work for compensation on matters “which he or she was directly or personally involved while working for the government,” but would not be forbidden from working for a company that does.
A national ethics expert told Mississippi Today that when public officials transition to private sector work, particularly in the same field as their public service, it can raise ethical issues.
The knowledge and information public officials hold can be used as a “leg up,” which leads to unfairness in private companies’ and lobbying organizations’ business dealings with government entities, said professor John Pelissero, the director of Government Ethics at the Markkula Center for Applied Ethics at Santa Clara University.
Capitol Resources has for years represented Centene, a company that currently holds $5.2 billion worth of contracts for managing Medicaid beneficiaries care through its subsidiary Magnolia Health. The company has paid the lobbying firm $3.9 million over the last decade, according to the Secretary of State’s website.
Tim Moore, the former head of the Mississippi Hospital Association, said he has concerns about the conflict posed by a lobbying firm representing two health care organizations with competing interests.
“How do you represent a managed care company and a bunch of hospitals at the same time?” he said.
Moore was ousted by the Mississippi Hospital Association’s Board of Governors following hospitals’ withdrawal from the organization.
Clare Hester, the founder and managing partner of Capitol Resources, did not respond to a request for comment by press time.
The evolution of the Mississippi Hospital Association
The Mississippi Hospital Association was for many years one of the most powerful lobbies at the Capitol. But that began to change with the passage of the federal Affordable Care Act, which created a partisan rift over whether or not the state should expand Medicaid.
The trade association splintered in May 2023, starting with the departure of the state’s largest hospital system, University of Mississippi Medical Center, in May. Four additional hospitals, all led by Gregg Gibbes, left the association in 2024.
Hospital leaders at the time declined to say what precipitated their decision to leave, other than to cite concerns about the hospital association’s leadership. But the exodus was widely interpreted as a rebuke of the association’s support for Presley and, specifically, Medicaid expansion.
Research has shown that Medicaid expansion would provide millions of dollars to Mississippi’s struggling hospital system.
As Reeves faced an uphill reelection bid, due in part to his opponent’s support of Medicaid expansion and his adamant opposition, he worked with Snyder to create a new program to provide supplemental payments to hospitals to offset low Medicaid payments. While the program did not directly support low-income Mississippians, it was estimated to generate $700 million for the state’s largest hospitals.
Republican House leaders pushing for Medicaid expansion in the last legislative session said the program prevented some large hospitals from being strong advocates for expansion, in part due to fear that Gov. Reeves would punish such a move by doing away with the expanded payments.
The Mississippi Hospital Association has 76 current hospital members, according to its online directory. Some are members of hospital systems.
“The Mississippi Hospital Association will continue to be the trusted voice in health care and to offer education and quality advocacy solutions based on sound health care policy – and not politics – as we have successfully done for almost 100 years,” president and CEO Richard Roberson told Mississippi Today. Roberson is the former head of TrueCare, a provider-led, nonprofit managed care organization that contracts with Medicaid.
Kent Nicaud, one of Reeves’ top campaign donors and the president and CEO of Memorial Hospital, will serve as chair of the collaborative’s board. Memorial Health System left the hospital association in 2023, and is a current client of Capitol Resources.
Moore said having two major health care trade associations in the state will “create division among the industry, which is not good.”
“…The best thing for all hospitals is to be united in one voice, because they have similar issues, whether they’re a small hospital or a large hospital,” he said.
Along with hospitals that left the association, Mississippi Healthcare Collaborative incorporates several existing Capitol Resources clients, including the state’s 21 Federally Qualified Community Health Centers, and Universal Health Services, a company with five behavioral health centers in Mississippi.
“For too long, too many health providers have been siloed in our advocacy. It’s time to sit down at the same table and work together,” said Terrence Shirley, CEO of the Community Health Center Association of Mississippi, which represents the Federally Qualified Community Health Centers, in a press release.
Other members of the new group include Methodist Rehabilitation Center and Northwest Regional Medical Center in Clarksdale.
The group’s members are based in 78 of Mississippi’s 82 counties.
Ochsner Medical Center, which left the Mississippi Hospital Association last year and is a client of Capitol Resources, is not listed as a member of the new collaborative. Ochsner did not respond to Mississippi Today by the time of publication.
Geoff Pender contributed reporting.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1926
Nov. 5, 1926
Victoria Gray Adams, one of the founding members of the Mississippi Freedom Democratic Party, was born near Hattiesburg, Mississippi.
“(There are) those who are in the Movement and those who have the Movement in them,” she said. “The Movement is in me, and I know it always will be.”
In 1961, this door-to-door cosmetics saleswoman convinced her preacher to open their church to the Student Nonviolent Coordinating Committee, which began pushing for voter registration. A year later, she became a field secretary for SNCC and led a boycott of businesses in Hattiesburg, later helping found the umbrella group, the Council of Federated Organization, for all the civil rights groups working in Mississippi.
In 1964, she and other civil rights leaders fought the Jim Crow laws and practices that kept Black Mississippians from voting, marching to the courthouse in the chilly rain to protest. By the end of the day, nearly 150 had made their way to register to vote.
Adams became the first known woman in Mississippi to run for the U.S. Senate, unsuccessfully challenging longtime Sen. John Stennis. She also helped found the Mississippi Freedom Democratic Party. It was time, she said, to pay attention to Black Mississippians, “who had not even had the leavings from the American political table.”
In August 1964, she joined party members in challenging Mississippi’s all-white delegation to the Democratic National Convention.
“We really were the true Democratic Party,” she recalled in a 2004 interview. “We accomplished the removal of the wall, the curtain of fear in Mississippi for African-Americans demanding their rights.”
Four years later, the party that once barred her now welcomed her.
She continued her activism and later talked of that success: “We eliminated the isolation of the African-Americans from the political process. I believe that Mississippi now has the highest number of African-American elected officials in the nation. We laid the groundwork for that.”
In 2006, she died of cancer.
“When I met … that community of youthful civil rights activists, I realized that this was exactly what I’d been looking for all of my conscious existence,” she said. “It was like coming home.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Vote today: Mississippi voters head to the polls. Here’s what you need to know
Polls in Mississippi will be open from 7 a.m. to 7 p.m. today as voters make their picks for presidential, congressional, state judicial and some local races.
READ MORE: View Mississippi sample ballot
Voters are reminded to bring a photo identification. This can include a valid Mississippi driver’s license, an identification or employee identification card issued by any government entity of the U.S. or state of Mississippi, a U.S. passport, a military photo ID card, a current student ID card issued by an accredited college or university or a Mississippi voter ID card. For more information on voter ID rules, check here.
READ MORE: Vote Tuesday: Candidates battle for seats on state’s highest courts
Those who do not have a valid ID can vote affidavit, but must return and present a photo ID within five days for their ballot to count. Voters waiting in line as polls close at 7 p.m. will still be allowed to vote. If you vote absentee or affidavit, you can track the status of your ballot here.
POLLING PLACE LOCATOR: Use the secretary of state’s online locator to find where you vote
Stay tuned to Mississippi Today for live results, starting after polls close.
LISTEN: Podcast: Mississippi’s top election official discusses Tuesday’s election
The Mississippi secretary of state’s office offers an online resource, My Election Day, where voters can locate or confirm their polling place, view sample ballots and view current office holders. Those with doubts or questions about their precinct locations are urged to contact their local election officials. Contact info for local election officials is also provided on the My Election Day site.
READ MORE: Mississippi Election 2024: What will be on Tuesday’s ballot?
The secretary of state’s office, U.S. attorney’s office and the state Democratic and Republican parties will have observers across the state monitoring elections and responding to complaints.
The secretary of state’s elections division can be contacted at 1-800-829-6786 or ElectionsAnswers@sos.ms.gov.
The U.S. attorney’s office investigates election fraud, intimidation or voting rights issues and can be contacted at 601-973-2826 or 601-973-2855, or complaints can be filed directly with the Department of Justice Civil Rights division at civilrights.justice.gov. Local law enforcement holds primary jurisdiction and serves as a first responder for alleged crimes or emergencies at voting precincts.
The secretary of state’s office also provides some Election Day law reminders:
- It is unlawful to campaign for any candidate within 150 feet from any entrance to a polling place, unless on private property.
- The polling places should be clear of people for 30 feet from every entrance except for election officials, voters waiting to vote or authorized poll watchers.
- Voters are prohibited from taking photos of their marked ballots.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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