/Gunn holds $18 billion hostage and could give Reeves a big win

Gunn holds $18 billion hostage and could give Reeves a big win

Philip Gunn, Speaker of the House, is still telling donors and advisers that he is considering running for governor in 2023 against Republican incumbent Gov. Tate Reeves. Jackson politicos have been watching Gunn closely during the 2022 legislative session. They wondered if the third-term speaker would use this final legislative session before the election to demonstrate strong leadership. This is the type of leadership that inspires, brings together political factions, and that creates lasting and positive changes for the state. Gunn and others claim that Reeves lacks these qualities since his two terms as lieutenant- governor. Gunn had to stand out from Reeves in the crucial first three months of the year if he wanted to be a successful candidate for governor and to launch a viable state campaign against him. Gunn has not done anything of the kind this session. Gunn is more like Reeves’ Capitol days, a bully who kills bills he and his friends didn’t write. Gunn is now aligning himself with Reeves in an attempt to intimidate Republican senators into backing a bill that he doesn’t like. Gunn’s determination to block Wednesday’s deadline signalled that he would not allow any spending bills, including the $1.8 billion in American Rescue Act Plan funds, to pass unless Senate Republicans support his proposal to eliminate the state’s personal tax. Gunn stated on February 28 that “I believe that if this tax elimination is not achieved in the next two week, the governor should call an extraordinary session to eliminate the income taxes before we spend any other money… (American Rescue Plan Act money, capital expense funds money, anything).” Gunn stated that the governor was supportive of this issue and has already been supportive. He agrees with us that we don’t spend money until we give the taxpayers tax relief… We hope Governor would call a special session to discuss income tax elimination. Reeves, whose political aides had been closely following Gunn for months, now relishes the opportunity to assist in bringing about income tax elimination. Reeves stated last week that he was impressed by the House’s progress and that he believes they have a plan to eliminate the state’s income tax. “I am reluctant to call special sessions… but eliminating the income tax is an issue that could certainly rise to that level. Gunn was determined to stand out during the 2022 legislative session by passing a complete repeal of the income tax. This would be a unique achievement that would appeal to Republican voters in the state. Gunn is so desperate after failing to get buy-in from Republican senators that he is willing to ask Reeves to help him and give his arch-rival the political gift he has been waiting for: the opportunity to claim all credit for Gunn’s greatest idea. READ MORE: The House proposes a ‘compromise’ teacher raise, but the Senate denies it was involved in the compromise. While it’s tempting to think about the 2023 implications of this moment, the fact that the speaker is holding the ARPA funds hostage will continue to dominate news cycles for at most three weeks. The $1.8 billion pot is available for lawmakers to spend until 2024, but this deadline doesn’t mean much to many Mississippians who are in urgent need of the money. Because lawmakers have given indications that a state match may be on the horizon, many counties and cities have been putting off spending small amounts of ARPA money to pay for long overdue repairs to roads, water, and sewerage. The Senate approved a $750million state match program that local governments can use to fund these projects. As they are coming off the fourth COVID-19 wave, hospital leaders and nurses need relief. To address this, the Senate approved a $12 million plan. Many state agencies had major revenue losses and have significant needs. The Senate approved a $211.4million plan to provide infrastructure upgrades for state agencies. This included $26.5 million for work in various state buildings. The Senate also approved a $110million plan for water and sewerage projects at universities, community colleges, as well as a $250 million plan to reimburse state revenue lost due to the pandemic. Due to growing mental health problems among students and faculty, the state’s teacher shortage crisis is likely to worsen. A $105 million plan was passed by the Senate to address various mental health issues in the state. Many Mississippians are unable to work due to inability to find or afford child-care, while others will face foreclosures and evictions as a result of the economic impact of the pandemic. ARPA funds have been used by many states to expand child care centers and protect those who might lose their homes. Gunn is struggling to get support for his tax-cut plan, which some senators, including Republican senators, fear could severely harm the state’s long-term economy. Gunn is still creating drama at the Capitol. However, at least one Jackson resident is reaping the political benefits of the moment. It might even get him reelected to the office as governor. READ MORE: Senate rejects House bill to pass teacher pay increase