Regional battle over BP money could be ameliorated

The first check is not in the mail, yet the fight over how and where – mostly where – the Legislature should spend $750 million in BP oil disaster money has begun.

Even though the city of Jackson’s shores remained relatively sludge and tar-ball free, its leaders have already said they want up to $400 million to fix leaky sewerage and such. They figure this would help the Coast based on a Pearl River trickle-down theory. This prompted my counterpart Paul Hampton at the Sun Herald to opine, “They must be smoking something strong up on High Street.”

Rep. David Baria of Bay St. Louis, is already drafting a bill he wants to pre-file before next year’s session to require at least 80 percent of the BP settlement money over which the Legislature will have dominion be spent in the three Coast counties.

Many Coastians (they never call themselves that) are still upset over the Starkville parking garage funded by Katrina recovery money. Many inland leaders still don’t trust their Coast counterparts not to take money from the state and put it all on red at a roulette table.

If I were an inland lawmaker, I might be a little afraid I’d end up in Biloxi Sen. Tommy Gollott’s crab traps in the Back Bay if I pushed to spend oil settlement money away from the Coast.

But can’t we all get along? Can’t we figure out a way to use this money and make people happy from the sparkling brown waters of the Coast to the mountains of Iuka?

I propose setting up a program that would, eventually, help all cities across the state with dire infrastructure needs. I say use some or most or all of the BP settlement money to create a revolving capital loan program for municipalities.

This could:

A: Create a long-term and renewable program sustained by repayment of what could be extremely low-interest loans, instead of just doling out the money for projects and then … poof, it’s gone.

B: Prevent using “one-time” money on recurring expenses. While using the lawsuit money to “fully fund education” or for highway maintenance or similar expenses, once the money’s gone, it’s gone and then whatever recurring budget it propped up is hurting. Ask Alabama or Louisiana about this.

C. Ameliorate regional and other disputes. The loan program could be Coast-weighted – perhaps say Coast cities have first dibs on 80 percent of the money. Or say it’s available exclusively to Coast cities for the first 10 years. Or say X percent is available only for tourism, recreational, environmental, or economic development projects.

D. Ameliorate cities constantly bombarding the Legislature with requests for a local-option sales tax for infrastructure and other projects, and the Legislature constantly telling them no.

Half of the $1.5 billion for Mississippi in the recent BP settlement will automatically go to environmental restoration and other projects on the Coast. The other $750 million – damages paid to the state proper – will be controlled by the Legislature. The Legislature will get $150 million of that next year, then payments of $40 million a year from 2019 through 2033.

I spoke to House Appropriations Chairman Herb Frierson last week about the BP settlement.

To show great minds think alike – my words, not his – Frierson said he’s been blue-skying an idea similar to my revolving cap loan one.

“I’m going to be asking staff to research what kind of leverage $750 million would give us in bonding,” Frierson said. “Use that money as a revenue stream for bonds for capital expenditure-type programs … Maybe just say we’ll pay the interest out of the general fund and use the $750 million for principle, create a large pool of money for infrastructure-type projects across the state.”

Frierson, who being from Poplarville sort of has a foot in both camps here, notes the “geographical question” on spending would be the hardest challenge.

But Frierson points out that the bulk of the $750 million is for state economic damages, lost money that “would have gone to the state tax commission then the general fund and never would have stopped at the local level, never would have stopped on the Coast.” He noted the other $750 million is pretty much earmarked for Coast projects, and a separate $1 billion settlement being hashed out will go to about 400 local governments across Gulf states including those in Mississippi.

Frierson said all ideas will be on the table, and he wants to talk with the attorney general and other lawyers involved in the settlement to get specifics on how the $750 in state damages breaks down.

“But if somebody wants it all spent on the Coast, there aren’t but two things I’d consider, deepening the (State Port of Gulfport) channel, or putting sewage lines in all communities that don’t have them,” Frierson said. “That’s the biggest problem with water pollution down there, storm-water runoff and sewage … I don’t want to see this money just build piers and boat slips and projects to get people re-elected. Otherwise, we’re probably going to use that money across the state.”

Does Frierson expect a heated regional battle among lawmakers?

“It’s going to be like feeding catfish in a pond,” Frierson said. “When you sling it out there, it starts a frenzy. I think it’s the Legislature’s responsibility to see this is spent wisely on meaningful projects, whatever they may be.”

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