****************************************************
Magnolia Political Report #72
June 11, 2006
****************************************************

Are you getting your money's worth?

If nothing else, Billy McCoy is hard-headed and believes in the righteousness of his own cause.  McCoy truly believes that he and his supporters are the only thing standing between the “little man” and his exploitation by big business, big tobacco, and big, bad Republicans like Gov. Haley Barbour.  It’s part of his appeal in rural North Mississippi.  It’s also his Achilles heel in Jackson. In McCoy’s mind, to paraphrase what he said at last year’s MEC Hob Nob,  “I’m for the people, so if you’re against me, you’re against the people.”  The mindset sometimes causes McCoy’s judgment to lapse.

The latest lapse in judgment comes over the extra pay his Speaker Pro-Tem, J.P. Compretta (D-Bay St. Louis) has been receiving since McCoy fell ill with diverticulitis and a series of strokes two years ago. In an open letter written to Speaker Billy McCoy, State Rep. Rita Martinson (R-Madison) questioned McCoy and the House rules committee allowing Speaker Pro-Tem J.P. Compretta's (D-Bay St. Louis) drawing of almost $90,000 in additional salary over the past two years. Martinson charged in her letter that members of the State House of Representatives have “been let down” by Speaker McCoy.

When McCoy got sick in 2004, Compretta took over McCoy’s duties as Speaker.  At the time, the House management committee increased Compretta's salary from $1,250 a month to $5,000 a month. When McCoy resumed his duties as Speaker, members of the House assumed that the salaries would return to normal.  It didn't happen. Compretta continued to receive his augmented salary costing the taxpayers almost $90,000 dollars.

When asked about the arrangement, McCoy said that he had always wanted to work in a relationship of equals with Compretta and that the pro tem deserves the pay for “the long hours he’s (Compretta) put in for Katrina recovery.”  Never mind that countless public officials have put in lots of extra hours for Katrina recovery without needing the incentive of a raise.  According to McCoy, Compretta “has earned every dollar he has received.”  

Martinson, for one, isn't buying it. She pointedly ended her letter by asking, “Do you think the taxpayers should have paid an additional $86,250 plus travel and living expenses since June, 2004, for two speakers?  The question I have in my mind is this: Don’t you think it is time for you to step down as speaker now, or do you think Mr. Compretta should?”

The controversy is not welcome news for McCoy at this time. Supporters of Rep. Jeff Smith (D-Columbus) are already lining up support for Smith's possible run for Speaker.  McCoy must be feeling the heat.  Reportedly, over the past few months, he has called several Democrats into his office in an attempt to strong arm them into supporting him for Speaker in 2008.

Other House members are openly suggesting McCoy should step down.  Recently on the statewide Gallo radio show, Rep. Jim Barnett bluntly said McCoy should go. Others are saying the same thing -- though not quite so publicly.

If McCoy looks weak after the 2007 elections, House Democrat insiders who currently support McCoy are suggesting he should be nudged out in favor for someone who can win. Bobby Moak (D-Bogue Chitto), Pro Tem J.P. Compretta, and Ways & Means Chairman Percy Watson are probably the three names most mentioned in such a scenario.

Magnolia Report Advertising

With statewide elections coming up in 2007, the Magnolia Report will recieve more exposure than ever before. Thousands of civically minded Mississippians will visit the Magnolia Report every day to look at everything from candidate profiles to election news updates. With this increased traffic in mind, the Magnolia Report will be selling ad space effective immediately.

If you are interested in placing an ad on the Magnolia Report, or if you have any questions regarding advertising, click here to download a rate card and contact the Magnolia Report's Advertising Ddirector, Jon Bellish, by phone (601.813.7836) or email (jon@magnoliareport.com).

Coast Relief

Another $19.8 billion in federal assistance was included in a spending bill recently signed into law by President Bush.  The money was part of an overall package that also provided $65.8 billion in funding for military operations in Iraq and Afghanistan.

"We have worked hard to ensure that the interests and needs of the hurricane-affected regions are met and that funds to support our national security efforts are provided in a timely manner," said Senate Appropriations Committee Chairman Thad Cochran who has been working over the past year to get the Coast all the federal support for recovery efforts due to Katrina.

Below is a list of some of the hurricane recovery provisions:

’07 races already the talk of the town

With the legislature well out of town, the political chatter has turned to speculation on who is running for what in 2007.  This year though, the talk has largely shifted toward Republicans and away from Democrats.
 
Times change.  Once, Dems lined up for vacant statewide offices while Republicans scrounged to find candidates.  This cycle, apparently that’s changing.
 
There is no doubt the Mississippi Republican Party is maturing, helped along by the success of Governor Haley Barbour, who is almost sure to run again. Two Republican candidates have all but thrown their hats in the ring for lite guv as well as a Republican State Senator who is heading towards runnig for Auditor.
 
Conversely, we may be witnessing the beginning of a permanent decline in the fortunes of Mississippi Democrats. Very few are talking about running, and the ones who are do no particularly excite anyone.  Daily Journal columnist Bobby Harrison recently noted the lack of Democrats lining up and warned that the party is in jeopardy of not being taken seriously.
 
Governor

So far, Governor Haley Barbour seems to be getting a pass.  In an interview with Supertalk’s Paul Gallo a few weeks ago, Dem dream candidate Mike Moore said he would have run in ’99 or ’03 if he’d been interested in being Governor.  Sources familiar with former Governor Ray Mabus, who stirred talk of a political resurrection last year at the Neshoba County Fair, say he won’t run.  Lately, Wayne Dowdy’s name has popped up.  Dowdy has made several unsuccessful runs statewide and could probably get the nomination if he wanted it.  A Dowdy candidacy though, would probably be a lot less about winning than about saving the Democratic Party from a more liberal, less serious candidate who would pull them into an electoral abyss.  Such a candidate would be a drag on the ticket from top to bottom and could tarnish the party for several cycles.
 
Lieutenant Governor

The GOP primary is all but set. State Auditor Phil Bryant and Sen. Charlie Ross (R-Brandon) both look certain to run for the state's number two elected position. In fact, Ross has been quoted on numerous occasions as saying he's running. Both bring impressive credentials to the race. Bryant has been a statewide elected official for ten years and has racked up impressive vote totals in his campaigns in '99 and '03. Ross is a graduate of the Air Force Academy and Harvard Law School. As Judiciary A Chairman in the Senate, he played a big role in passing civil justice reform legislation in 2004.

Reportedly, the money race in the GOP primary is tightening. Ross ended '05 with a money advantage over Bryant. On his year-end report, Ross reported $309,023 cash on hand. Bryant had $136,366 amassed in his warchest. This year, Bryant has been sticking to an aggressive state-wide fundraising schedule which sources close to his campaign say has closed the gap significantly.

Only one thing seems all but certain in the Democratic primary for lieutenant governor - State Rep. Jamie Franks (D-Mooreville) is running. Well, maybe. At least he says he is if Mike Moore doesn't run. Democrats would love for Moore to run, and his name has been a hot topic for weeks around the state. One problem: sources the MR checked with who are close to Moore say there's no truth to it. He's enjoying private practice, making money for the first time in his life and generally not interested.

Former Gov./Lt. Gov./Sen. Ronnie Musgrove is another matter. He's definately in, according to some Democrats. They even claim he's been making fundraising calls. However, sources close to his law firm, Copeland & Cook say this is not the case. Whether Musgrove runs or not, Franks says he's in the race.

Secretary of State Eric Clark is another unknown. The talk out of his office is that he'll run for governor, lieutenant governor or his current job. We think the governor talk is hype. Does Eric Clark really have the stomach to take on Haley Barbour? Maybe he'll run for lite guv, but we suspect if Musgrove gets in the race, Clark will take a pass on moving up in 2007.

Another wild card in the race is '03 nominee Barbara Blackmon, who in a bizare speech on '03 election night, after it was clear to everyone else that she had lost, infamously predicted she'd wake as lieutenant governor because the Lord wanted it that way. Her strange antics aside, Blackmon could have the strength to edge out Franks if the two of them end up as the lone candidates in the Democractic primary. Franks is one of the more "out there" liberal members of the House, which would seem to help in the Democratic primary, though in a race with Blackmon, he'll need a lot of money to overcome her popularity with core Democratic voters.
 
Auditor

With Phil Bryant all but certain to run for lieutenant governor, a few candidates are already talking up runs for state auditor. The most high profile is State Senator Stacey Pickering (R-Laurel), who would have a big leg up in the GOP primary if he gets into the race. Pickering is the cousin of U.S. Congressman Chip Pickering (which also makes him the nephew of former federal Judge Charles Pickering.) He's a candidate who looks the part and will have an advantage on the all-important race to build name ID. Madison Mayor Mary Hawkins-Butler (another Republican) has talked for years about running for auditor. She's making noise this year as well, but sources who know her well ultimately say she'll take a pass, primarily because of the high-profile legal trouble her husband got into last year.

One of the most intersting possible twists in the auditors race is the emergence of Hinds County Sheriff Malcom McMillian as an independent in the race. In 2003, several white Democrats elected countywide were defeated by African American challengers. The rumor among people close to the sheriff is that he thinks he's next on the target list to be taken out in the Democratic primary in 2007. So the logic of the rumor says he might as well run for something else - and since auditor is open, why not? McMillian would stand little chance of winning as an independent, though he would considerably change the dynamics of the race.

To date, no Democrat names have been mentioned in the race for auditor. However, remember you read this here first: the Magnolia Report is predicting a run by former State Senator Rob Smith (D-Florence). It may be a longshot hunch, but we think it's a good bet to make. Smith ran unsuccessfully for Treasurer in 2003. His friends say he misses the Senate and Smith has shown up at some unlikely gatherings - unless you're running for office - like the Delta Council meeting earlier this year. From all appearances, he's running for something. If he were thinking of taking on Perry Lee (the candidate who won Smith's vacant Senate seat), why would he go to the Delta Council meeting in Cleveland? And would Smith really want to take on State Treasurer Tate Reeves, who is also from Florence and has a virtual lock on Rankin County? Smith has an accounting background, so the open auditor's seat seems to be a natural for him.

Attorney General

Until he had triple by-pass this Spring, there was a lot of talk about Supreme Court Justice Mike Randolph taking on Jim Hood for Attorney General.  Though he’s making a good recovery from his heart troubles, most think Randolph will likely take a pass in ’07.  Sun Herald columnist Geoff Pender weighed in with an article recently speculating that the GOP may be looking to a former South Mississippi lawmaker to be their standard bearer next year. After reading his article, we have a good idea who he’s talking about, but won’t let the cat out of the bag quite yet.
 
Treasurer

The political grapevine is dead when it comes to a possible opponent for State Treasurer Tate Reeves.  The Dems may come up with someone, but no name is circulating as of now.
 

Insurance Commissioner

If Insurance Commissioner George Dale decides he’s had enough of dealing with the Katrina issue, State Senator Dean Kirby (R-Pearl) is almost certain to run.  Kirby, who owns an independent insurance agency, is chairman of the Senate Insurance Committee and would have a big advantage on the Republican nomination, thanks to being from GOP vote-rich Rankin County.
 
Kirby is probably out if Dale runs again but a Democrat is likely to challenge Dale either way.  Dale has often infuriated Democrats by being close to Republicans and distancing himself from the national party.  He’s trying to do the right thing on the coast post-Katrina by balancing the needs of homeowners with the economic realities of the insurance industry.  The last thing Dale says he wants to do is to run insurance companies out of the state.  None of this sits well with the more liberal wing of his party.
 
State Rep. Bobby Moak (D-Bogue Chitto/Jackson) is a name Democrats often mentioned as a desirable challenger to Dale.  Moak chairs the House Gaming Committee and also sits on the Insurance Committee. He’s a Democrat who doesn’t run from his party label and would be able to capitalize on a lot of anger felt toward Dale by coast residents.
 
Ag Commissioner

Commissioner Lester Spell switched to the GOP last year and has been actively making the rounds in Republican circles.  Prior to his switch, Sen. Perry Lee (R-Mendenhall) looked like a probable GOP challenger.  Lee is not likely to run now, but don’t count out 2003 GOP nominee Max Phillips.  It could be an interesting primary. The personable Phillips has loads of goodwill among Republican faithful and Spell. Despite having the advantage of incumbency, he has some negative baggage relating to the Mississippi Beef Processors debacle.  
 
A wild card in the race could be Roger Crowder of Louisville.  Crowder has made runs at Spell as a Republican (2003), independent (1999) and Democrat (1995).  The third time wasn’t a charm, but don’t be surprised if a fourth is in the cards.

Former legislator ‘Wootsie’ Tate passes

The state of Mississippi lost long-time Legislator, Margaret ‘Wootsie’ Tate after a long battle with Cancer. She was 72.

Though Tate authored many bills that became law, she was best known for her insurance bills. "I'm sure some of the work she did had a positive effect on insurance and Hurricane Katrina issues," said Sen. Ezelle Lee who served in the Senate alongside Tate.

Apart from being remembered for her impact on insurance, she will also be remembered for authoring five bills that got out of the Senate in one year. “She did more in one year than most of them did in four," her husband Billy Tate said. "Her trick was that Wootsie would go in from day one and get to know each senator and representative on a personal level."

The fact that she got to know colleagues personally as well as professionally is evident in some of the comments made about her after her passing. Senator Lee noted that, "You never had to question what her stand on an issue was, which is something to be admired." Picayune Mayor Greg Mitchell remembered Tate as a “good, strong lady that was a good, strong leader.”

Wootsie Tate is survived by her husband, a son, two daughters, a sister, nine grandchildren and eight great-grandchildren.   

Wind Pool hearing goes off without a hitch

The State of Mississippi has by far the longest standing Insurance Commissioner in the United States. While the average Insurance Commissioner’s life in offices lasts a mere 18 months, George Dale has been serving as Insurance Commissioner since 1975. In the three decades that Dale has been serving as Commissioner, though, you can be sure that he has never faced a problem even approaching the magnitude of the one he is currently facing. George Dale must decide whether or not to approve a 400% rate increase as requested by the Mississippi Windstorm Underwriters Association, commonly referred to as “Wind Pool.” To help him get a handle on public opinion and also to inform the citizens of the facts, Dale held a public hearing in Jackson to discuss the situation.

In his opening comments, Dale called Hurricane Katrina “the worst natural disaster in history.” He said that new challenges are occurring every day in the Insurance Department, not the least of which is this one involving the Wind Pool rate increase. Dale noted that if he approves the request, rates will increase dramatically, and if he denies the request, he runs the risk of losing the major insurance companies’ business in Mississippi. His ultimate goals are “to protect the interests of all Mississippians” and to “make sure everyone on the Coast has affordable insurance.”

Dale then introduced Greg Copeland, the attorney representing the Wind Pool. Copeland started by stating the official percentages requested by the Wind Pool which are 397.8% increase on homeowners, 268% increase on commercial property, and 60.4% increase on mobile homes. He went on to note that the Wind Pool does not seek to make a profit. In fact, the Wind Pool has lost a total of $590 million since its inception in 1987. This deficit is paid for by private insurance companies in the state. Copeland continued by describing the effects Katrina had on the Wind Pool. At the time of Katrina, there were 16,155 policies in force, which resulted in 18,154 claims filed, which translated into $1.8 billion dollars to be paid. The Wind Pool is responsible for $720 million of that damage, $175 million of which will be covered by reinsurance, and $545 million will be paid by private companies. Since Katrina, there have been almost 2,000 new policies initiated which translates into $2.8 billion of coverage. Reinsurance, which is insurance taken out by insurance companies, cost $8.8 million dollars last year but will cost up to $50 million this year. Copeland made it clear that this rate increase was not going to pay for Katrina damages (they are being paid out-of-pocket by the insurance agencies), but rather for this reinsurance.

Chris Berkhalter, the actuary representing the Wind Pool, then came to the podium to close the Wind Pool’s argument. Berkhalter called the work he and his firm did for the Wind Pool, “the easiest and most difficult work [he had] ever done.” He said it was so difficult because, as a Coast native, he knew exactly what his friends and family were going through. The actuarial work itself, on the other hand, was some of the easiest of his career. This new increase, he said, was not based on a complex mathematical projection, but rather on the fact that the bill that came in the mail this year was so much higher than it was last year. Berkhalter attributes this hike to a combination of the decrease in the supply of capital on the part of reinsurance companies combined with these reinsurance companies realizing exactly how much they could lose on the Coast.

Not surprisingly, the public had a slightly different take on the situation than did the representatives of the Wind Pool. Coast residents, on the whole, were upset that the hearing was set in Jackson and were vehemently opposed to the rate increase. One Coast resident said that the increase would cause the Coast to “dry up and blow away.” Another called the Coast a “special and beautiful place” and asked Commissioner Dale to do all that he could to deny the request. Though it was clear that Coast residents did not want the rate increase to take place, the only real solution posed was to have the Commissioner spread the cost out all across the state (that would come out to $49 a year per homeowner), but that is out of his statutory power. The only citizen that spoke out in favor of the increase was Clayton Bush, Vice President of the Alfa Insurance Group who applauded the Wind Pool for dealing with such a difficult situation so well.

Billy Hewes, the state Senator representing District 49 on the Coast, came in to round up the open forum section of the hearing. Sen. Hewes’ position is interesting since he is both a representative of the Coast and has been in the insurance business for about 40 years. Sen. Hewes reminded the audience of how Katrina brought all Mississippians together and made it clear that he was unhappy with the divisiveness this issue has caused. He mentioned that he has been hearing talk about how one part of the state is having to support another part, and was therefore quick to point out that the Coast not only has its own intrinsic economic value -- some of which goes to enriching other parts of the state -- but also that the Coast usually bears the brunt of statewide rate hikes. “An exorbitant rate increase on our citizens,” Hewes concluded, “would choke us to death.”

Like most important arguments, both sides have valid points to be made. On one side of the argument, this requested rate increase is based on the assumption that the Mississippi Gulf Coast will be devastated by another hurricane this season. If rate increase takes place and the insurance companies finish the season in the black as a result, will they refund the money to the citizens of the Coast? Of course not. But conversely, this rate increase falls directly in line with the way insurance companies do business. Coast residents have to pay more for wind insurance for the same reason accident prone drivers pay more for car insurance and people with histories of chronic illness pay more for life insurance. Regardless of his decision, the position in which Commissioner Dale has found himself is not one to be envied.

Barbour's bomb versus Media Giants

Many politicos refer to Jackson’s paper as the “glaring error.”  Friday night was the media’s turn to make hay from the glaring errors of a group of local politicos.  The Barbour’s Bombers took on the Media Giants in a charity softball game on July 7 at Trustmark Park. The Bombers are comprised of players that have worked in various capacities in Governor Barbour’s gubernatorial office and campaigns.  The Media Giants consist of local journalist and television personalities.  

In last year’s inaugural Homerun for Habitat game, the Bombers' victory was never in doubt.  This year was another story.  Though Gov. Haley Barbour played a mean first base for the second year in a row, the rest of the team lived up to their name – the Bombers.  The Giants, coached by Saints running back Deuce McAllister, avenged last year’s loss to the Bombers with a dramatic last inning, come-from-behind rally, thanks in large part to numerous errors by the Bombers.

Though the Giants won 12-10, the real winners were the families that benefited from the proceeds.  The event, billed as “Homerun for Habitat,” raised almost $15,000 for Habitat for Humanity in Jackson.

Piece of history recovered

In 1988, George W. Bush visited Meridian to campaign for his father who was running for President. During that time, Greg Snowden was serving as the Lauderdale County Bush for President Chairman for the 1988 primary elections. Snowden went on to serve as a Bush delegate in the Republican National Convention in New Orleans.

While in Mississippi, Mr. Bush spent several hours in Meridian touring the town and the high school, served as the principal speaker at the Mississippi Republican Convention in Jackson, and, of course, took a great deal of pictures. In fact, Snowden had pictures of Mr. Bush with everybody from state political activists to his own parents, but he did not have one of himself with the future President of the United States- he assumed one had not been taken.

His assumption proved false when Snowden’s daughter, Emily found a picture of her dad and George W. Bush while cleaning her room. After 18 years, a piece of family (and state) history was found. 

Get Well

First Lady Marsha Barbour, who underwent major spinal surgery at a California hospital on June 27, has returned to Mississippi and is recuperating at the Governor's Mansion after staying a few days at a Jackson area hospital. If you would like to send your get well wishes to the First Lady, click on the following link: www.GovernorBarbour.com/GetWell

Former State Supreme Court Justice Jim Roberts of Pontotoc is recovering from surgery. Please keep Judge Roberts in your thoughts and prayers as he recovers.

GOP Features

The Mississippi Republican Party's official website has a new addition. "Features" is a new series of video interviews available on the website that gives Mississippians an opportunity to get to know important figures across the state. As of now, visitors to the GOP's website can see interviews with Tchula Mayor Yvonne Brown, State Senator Billy Hewes, United States Senator Trent Lott, and Columbus Mayor Jeffrey Rupp. Click here to watch the interviews.

Movers and Shakers

Former Governor Ray Mabus has been named Chairman of the Foamex Board of Directors, Interim President and Chief Executive Officer of Foamex International, Inc. by the company’s Board of Directors. Foamex produces cushioning for bedding, furniture, carpet cushion and automobiles.

Jason Dean, policy advisor for Haley Barbour, was selected by President Bush to be a White House Fellow. Dean is one of fourteen Fellows selected out of about 1000 applications from all across the country. The White House Fellowship is a year long program designed to “give the Fellows first hand, high-level experience with the workings of the Federal government and to increase their sense of participation in national affairs," according to President Lyndon B. Johnson, the man responsible for starting the program. Dean starts work at the White House on September 1, 2006 and will be joined in DC by his wife, Courtney and his daughter, Mary Bogan.  

Senator Merle Flowers and his wife, Stacey, just had a baby girl. Mary McCoy Flowers, named after her great-grandmothers, was born on June 29, 2006, weighed 6 pounds 12 ounces, and measured 19 ¾ inches. The mother and baby are both in good health and "Daddy has not stopped grinning…"

T. Clovis Williams celebrated his 90th birthday recently with a grand old party at the Republican headquarters in Jackson.  Still spry at 90, Williams recently signed on to manage U.S. Senator Trent Lott’s re-election campaign.  Williams has served a long line of Mississippi governors, most recently Gov. Kirk Fordice.  During much of the ‘90’s, Williams split his time between working half-days for Fordice and half-days for Lott.

Quotable Quotes

"Oh, if you're not indicted, you're exonerated?  Is that how that works?" --Senator Trent Lott on Karl Rove

"I thouht he was crazy for wanting to run, and I still think he's crazy." --First Lady Marsha Barbour about her husband, Governor Haley Barbour

"That would be the fox guarding the hen house, if you ever had it." --Rep. Steve Holland on the Governor appointing the Medicaid Director

"When I said that I was going to run against (Lott), people said, 'Fleming, you're crazy.' But it's time for the people of Mississippi to change things for the better...This is going to be a tough campaign. An uphill campaign. But Goliath had all the weapons, too, and David just needed that one shot."--Erik Flemming on running against Senator Trent Lott

"I believe that history will say that our response in Mississippi was unprecedented." --Anthony Topazi, president, Mississippi Power