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State’s budget problems might not be going away anytime soon

Governor calls special session

Mississippi Capitol
WAPT
Mississippi Capitol
SOURCE: WAPT
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State’s budget problems might not be going away anytime soon
Governor calls special session
Gov. Phil Bryant has called lawmakers back to the Capitol Tuesday for a special session to approve dipping into a rainy day fund to plug a budget hole.Bryant said Mississippi’s budget has grown 13 percent since he took office in 2012.“I don’t know if it is a blame game,” Bryant said. “I think we all looked at needs. For example, the teacher pay raise that is $100 million each year (and) a pay raise for troopers. They needed it desperately.”Bryant said the state is spending more, compounded by nearly $250 million in teacher and trooper pay raises, a new state children’s protection division and other tax cuts and incentives that are in place each year. Add to the problems that the state oil and gas severance collections have dropped by $28 million for the last year.“The reason for those is the Republicans created it with their policies,” said Mississippi Democratic Party Executive Director Bobby Moak. “They created the low numbers when no corporations can be taxed the way they have been in the past few years.”State economist Dr. Bob Neal said the state might be heading for more problems with the removal of a business franchise tax that starts in less than two years.“The franchise tax was a terrible tax to begin with. It is a tax on firms investing in the state that serves as a disincentive to business growth,” Neal said.Bryant said that and other money problems can be dealt with next year. Tuesday’s special session is limited to lawmakers saying yes or no to using $50 million to $75 million in rainy day funds for the fiscal year that ends Friday.22758298 

Gov. Phil Bryant has called lawmakers back to the Capitol Tuesday for a special session to approve dipping into a rainy day fund to plug a budget hole.

Bryant said Mississippi’s budget has grown 13 percent since he took office in 2012.

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“I don’t know if it is a blame game,” Bryant said. “I think we all looked at needs. For example, the teacher pay raise that is $100 million each year (and) a pay raise for troopers. They needed it desperately.”

Bryant said the state is spending more, compounded by nearly $250 million in teacher and trooper pay raises, a new state children’s protection division and other tax cuts and incentives that are in place each year. Add to the problems that the state oil and gas severance collections have dropped by $28 million for the last year.

“The reason for those is the Republicans created it with their policies,” said Mississippi Democratic Party Executive Director Bobby Moak. “They created the low numbers when no corporations can be taxed the way they have been in the past few years.”

State economist Dr. Bob Neal said the state might be heading for more problems with the removal of a business franchise tax that starts in less than two years.

“The franchise tax was a terrible tax to begin with. It is a tax on firms investing in the state that serves as a disincentive to business growth,” Neal said.

Bryant said that and other money problems can be dealt with next year. Tuesday’s special session is limited to lawmakers saying yes or no to using $50 million to $75 million in rainy day funds for the fiscal year that ends Friday.