Lawmakers argue over borrowing, pet projects

Lawmakers put the finishing touches on a $6.27 billion state budget Monday, with soaring Medicaid costs absorbing most of the state's recent revenue growth.

Most debate on Monday, the deadline for passage of spending and taxing measures, centered on borrowing $450 million earmarked for projects.

The House reluctantly and narrowly approved an annual bond bill to borrow $250 million for projects statewide, with some accusing Lt. Gov. Tate Reeves and the Senate of dictating what projects were chosen.

"We can save some money — 173 of us can go home, and (Reeves) can just make all the decisions for us," said Rep. Gregory Holloway, D-Hazlehurst.

Holloway and others argued to go back into negotiations with the Senate on borrowing, as the Legislature's 2015 session enters its final days and deadlines. They said the bill should include dorm construction and renovation at Mississippi Valley State University and a project at Alcorn State University.

Other lawmakers argued for projects requested in their home districts, and several questioned plans for the state to borrow $24.5 million to build an aquarium in Gulfport when there are needs for bridge and road repair and other infrastructure. Senate Bill 2906, the $250 million "big bond bill," includes $12.5 million for the aquarium and another measure to borrow $200 million financed by casino taxes. The latter includes $12 million to be borrowed over two years for the aquarium.

"I like the mayor of Gulfport," said Rep. Cecil Brown, D-Jackson. "I understand the mayor of Gulfport recently endorsed the lieutenant governor, and I understand how politics work ... It seems that our priorities are a little out of kilter."

Gulfport Mayor Billy Hewes III, a former longtime state senator, unsuccessfully ran against Reeves for lieutenant governor in 2011, and the two had been political foes. But recently, Hewes endorsed Reeves for re-election, prompting some lawmakers to question Reeves backing the $24.5 million aquarium project Hewes is pushing.

But House Ways and Means Chairman Jeff Smith, R-Columbus, urged the House to pass the bond bill without adding to it, saying Reeves and the Senate proved in 2012 they are willing to go home from Jackson without approving any borrowing for capital projects.

"The lite-governor has told me if we go above $250 million, the Senate conferees won't sign it," Smith said.

The measure squeaked through the House 75-43, with 71 required for passage, after more than two hours of debate Monday.

Although most opposition to the borrowing plan came from Democrats in the House, in the Senate it was mostly from Republicans.

"Pork is pork, whether it's in Washington or here," said state Sen. Billy Hudson, R-Hattiesburg.

Hudson said the state shouldn't borrow money to fund the pet projects of lawmakers, many of whom face challengers in this year's elections.

Citing a redistribution of wealth, Sen. Angela Burks Hill, R-Picayune, compared bond bill perks to the candy harried parents buy whiny children to pacify them in the grocery store.

"Mama, Mama, can I just have this?" Hill said.

The measure overwhelmingly passed in the Senate, with only four — Republican Sens. Hill, Hudson, Chris McDaniel and Melanie Sojourner — voting against it.

Reeves, over the weekend as lawmakers haggled out a state budget, noted the House had passed about $800 million in borrowing, an amount to which he said the Senate would not agree.

Since he took office, Reeves has argued against large amounts of borrowing and successfully put an end to the large "Christmas tree" bond bills of $400 million — or much more — loaded with many lawmakers' pet projects. For the past couple of years, House and Senate leaders have agreed to hold borrowing to below the amount of debt the state pays off each year. This year, lawmakers said, the state is paying off about $256 million in debt.

But House leaders have also complained that Reeves and Senate leaders have not only set the cap on borrowing but controlled what projects are funded and played hardball in negotiations.

Lawmakers also on Monday approved borrowing another $200 million, mostly for bridge and road repairs, that will be paid off by casino taxes that originally were earmarked for roads in counties with casinos.

The proposal had originally been to borrow $400 million for bridge repair.

The bridge bond bill also includes $6 million a year over two years for the Gulfport aquarium or, as Brown described it, "a fish tank."

Other legislative action Monday included:

Medicaid

Lawmakers on Monday passed a Medicaid budget that tops $1 billion for the first time in state history and is projected to still have a shortfall for next year of $20 million or more.

The Legislature had to cover a $92 million shortfall for this year and increased the budget for fiscal 2016 by $83 million — absorbing much of the revenue growth the state has seen this year.

The state-federal program saw a spike of more than 60,000 people added to Mississippi's rolls over the past year, now providing health coverage for nearly 800,000 people.

House Appropriations Chairman Herb Frierson, R-Poplarville, said the program's state costs have increased about $365 million over the last four budget years.

Department of Health

Lawmakers appropriated $384 million for the Department of Health.

House Public Health Chair Sam Mims, R-McComb, said this is $45 million more than what was recommended by the Legislative Budget Committee.

The amount includes about $1 million for an infant mortality prevention program.

Human Services

Lawmakers approved a $1.5 billion budget for the Department of Human Services.

However, the conference report provides only $8.2 million to continue compliance with a decade-old federal lawsuit over how the state cares for children in foster care.

The House initially approved $12 million for the case, originally known as Olivia Y vs. Haley Barbour.

Mims acknowledged the $8.2 million is less than requested. He said the state is in uncharted waters, and he doesn't know what will happen if it doesn't fully comply.

Mental Health

Lawmakers approved a $626.8 million budget for the Department of Mental Health, about $40 million more than originally recommended.

The Legislature restored 61 positions and added 12 new positions for the department.

"They have been cut a lot over the years," Mims said. "We are trying to get them back up to the level they were once at."

Contact Geoff Pender at (601) 961-7266 or gpender@jackson. gannett.com.

Contact Jimmie E. Gates at (601) 961-7212 or jgates@jackson.gannett.com.

Follow @GeoffPender and @jgatesnews on Twitter.

State borrowing for projects

Some highlights of the spending/projects in the $250 million "big bond bill" borrowing plan the Legislature passed Monday:

• Public universities: $71.7 million

• Community colleges: $25 million

• Ingalls shipyard: $20 million

• Civil Rights Museum and Museum of History: $20 million

• Gulfport aquarium: $12.5 million

• State Coliseum/fairgrounds improvements: $10 million

• Blair E. Batson Children's hospital: $6 million

• Arts and Entertainment Center: $5 million

• Jackson Zoo: $1 million

• Elvis Presley Birthplace Museum: $1 million

• Ridgeland corridor (connects Lake Harbor Drive to Highland Colony Parkway): $1.5 million

• Grammy Museum: $1 million

• Capitol renovations: $2.25 million