/Hosemann, Gunn eye June to renew budget; awaiting clearer picture of coronavirus fallout

Hosemann, Gunn eye June to renew budget; awaiting clearer picture of coronavirus fallout

Hosemann stated that Hosemann, who preside over the Senate, as well as Gunn, “are both of a mind to do the budget earliest possible.” This will allow legislators to have more time to assess how the coronavirus has affected state revenue and the economy. The Legislature should normally have finished the session by May 3. Because of the threat of a coronavirus pandemic, legislators decided to take a recess in March. However, the resolution gave April 1 as the date for the session to resume. This was only if Gunn or Hosemann were in agreement. Both sides agreed last week that April 1, was too early to return. Hosemann and Gunn will agree on a later date. If they wait until June to make the budget, Gunn and Hosemann won’t likely call legislators back until May to discuss non-budget-related bills. Gunn suggested that it would be sensible to wait until May’s revenue collection before adopting a budget in June. Robert Johnson, a House Democratic Leader, stated that there was talk of meeting at the Mississippi Coliseum to allow for more social distancing, if necessary. Johnson, who has been in discussions with Republican legislative leaders, also said that it would be logical to wait. Hosemann stated that legislators will have to be extra careful in passing budget proposals when they return. He said, “We have to look at the economic implications of every decision.” It could be difficult to pass a budget because revenue collections from the state are likely to plummet due to the fact that many sectors of the Mississippi economy were shut down by COVID-19. Also, it is unclear how quickly the nation and state will recover from this crisis. It is possible that plans made in the past year, when revenues were rising, will need to be reviewed. The Senate approved a $78 million annual teacher pay increase of $1,000. The House is currently considering the proposal. Hosemann stated that the teacher pay increase was the first thing we did in the new year. Hosemann said, “That’s still on my agenda.” Plans were also in place to give a pay raise to state employees and expand the state pre-kindergarten program. The Legislature will return to discuss how COVID-19 funds can be used by the state. Federal legislation costing over $2 trillion included funds for hospitals, direct payment to most people, increased unemployment benefits, and money to state- and local governments. According to the National Conference of State Legislatures Mississippi should contribute approximately $1.25 billion. This is a good example: Mississippi’s current fiscal year general fund budget is approximately $6 billion. Gov. Gov. Schools should also have access to a separate fund for coronavirus-related costs. The state should also receive $380 million more in Medicaid funding.