/After failed efforts last session, Gunn strikes early on roads funding

After failed efforts last session, Gunn strikes early on roads funding

House Bill 355, one of the bills, removes Mississippi Department of Transportation (State Personnel Board) from the bill. Leaders said this would allow the department to spend more infrastructure funds. Rep. John Read (R-Gautier), chairman of the House Appropriations Committee, stated that “I don’t believe there’s any devious plan or covert strategy here.” “It’s to give the agency some flexibility and latitude.” Other bills would provide additional funding for entities that maintain roads and bridges. A final bill would address new road construction. House Bill 358 would redirect half of the internet sales tax revenue each year, which is typically around $40 million per year, to a new fund in the Treasury. The Legislature could authorize the appropriation of funds from this fund for infrastructure projects. House Bill 357 would allow the sale of bonds to finance infrastructure repairs in municipalities. House Bill 354 would redirect any excess revenues above the 98 percent in a budget proposal to the state transport department, counties, and cities. House Bill 359 would place a moratorium upon any new road construction, if the right-of-ways are not yet acquired. Later, the bill was amended to include a loophole for economic growth projects. Rep. Mark Baker (R-Brandon) stated that HB 359 was intended to allow the transportation department to catch up on existing road maintenance and build new roads. The bill was criticized by Democrats, including Robert Johnson (D-Natchez), who claimed that the bill would cause harm to less populous counties. Johnson stated that the bill appears to be helping the wealthy (areas) become richer while the poor get poorer. Gunn sponsored four bills and Rep. Charles Busby (R-Pascagoula, chairman of the House Transportation committee), sponsored the other. Second term speaker tried in many ways to raise additional funds for state roads and bridges last session, which some business leaders and politicians called “crumbling.” But those plans were ultimately stopped by Senate leadership, including Lt. Governor. Tate Reeves. The Mississippi Economic Council and Governor Phil Bryant supported one plan. Phil Bryant would have used the existing online sales tax, which is currently set up to be a voluntary use tax, to fund infrastructure improvements. The plan was introduced in 2017 during the regular session. It caused an impasse between Gunn, Reeves and the lieutenant governor who called it “unconstitutional.” House leaders sent two transportation bills to the Senate in dramatic hours just before the deadline. Reeves stated to reporters that as the deadline approached, the House wanted to insert a provision that would create an “internet sales tax” and divert a current use tax in order fund road and bridge repairs across the state. Reeves and other Senate leaders remained firm in their earlier statements on the matter that the taxes were illegal and refused any compromises. Gunn said to reporters that Reeves’ press release was incorrect because it mentioned the creation of tax. Gunn stated that it was not about the implementation of tax. It just states that whatever amount we already collect, a portion would go to roads and bridges. Gunn stated that three attempts have been made by the House, two of them in response to issues raised by the Senate and the lieutenant governor. “And not one time has the Senate at other end of the hallway sat down to discuss this.” Reeves responded, “That’s certainly they prerogative to stand up on the House floor to lie.” “The Republicans have enough votes to save taxpayers $30,000 per day for a special sessions. The Republicans in Congress have the votes to stop us spending taxpayer money to prevent us from raising taxes.” Unfortunately, three agencies, MDOT, Attorney General’s Office, and State Aid Roads, missed out on funding during the regular session. In late June, the special session that lasted two days was used to finalize funding for these three agencies. Gunn proposes a local tax increase for roads. At a fall legislative hearing, lawmakers were presented with yet another grim outlook by the Mississippi Department of Transportation. MDOT Executive Director Melinda McGrath stated that the current funding means that state crews can’t keep up with the declining condition of state roads and bridges. MDOT has struggled for years to convince the Legislature that it needs to raise $400 million per year to address its infrastructure problems. This is despite the support of powerful lobbyists, interest groups, and other influential lobbyists. MDOT’s current fiscal year budget, which is approximately $1.2 billion, is largely made up of revenue from the 18.4-cent gas tax in the state and federal transportation funds. State Aid Roads was able to receive approximately $175 million in general funding for the current fiscal year. While not yet in bill form, there were other legislative initiatives that could have raised the gas tax. Contributing: R.L. Contributing: R.L. Our reporters give a human face to policy’s impact on everyday Mississippians by listening more closely and understanding their communities. To ensure that our work is aligned with the priorities and needs of all Mississippians, we are listening to you. Click the button below to let us know what you think.