/Hosemann Senate ‘not in the business of doing tax credits this year,’ need to fix state problems first

Hosemann Senate ‘not in the business of doing tax credits this year,’ need to fix state problems first

Hosemann reexamines the situation and suggests that the state may be facing all the Biblical calamities. Hosemann’s point was made in a dramatic manner. He said that the state is facing multiple problems and it is not the right time to reduce revenue to address them. He stated that tax credits are not something we do as a rule on our (Senate’s) side. Hosemann, who was secretary of state for three terms, is now lieutenant governor. He is taking a different approach than his fellow Republicans over the past eight years. Former Gov. Phil Bryant, former-Lt.Gov. Former Lieutenant Governor and current Gov. Tate Reeves, Speaker Philip Gunn, and the Legislature passed over 50 tax cuts and credit during the last two terms. The bulk of the tax cuts went to the state’s businesses community. These efforts will be phased in by 2027. This is a significant chunk considering that the state’s current budget is $6 billion. Bryant, Gunn, and Reeves all claimed that tax cuts would grow the economy and increase state revenue. Since the majority of the tax cuts that were passed in the last eight years have yet to take effect, it is hard to predict what revenue collection will be. Hosemann stated that it was time to stop legislation that diverts money from the general fund. Hosemann stated that tax credits should not be preferred until there is better information about how to address the state’s needs, which Hosemann described in biblical terms. The most prominent issue is the violence in the state’s prisons at the start of the year. Since the violence began, 16 people have died, many others were injured, and the whole prison system has been disrupted. Many would argue that the $30 million decrease in funding for Department of Corrections during the 2020 fiscal year, compared with the peak funding level of $346 millions in fiscal year 2015, may have contributed to the continuing problems. A lawsuit has led to the possibility of the federal takingover of the state’s mental health system. Similar legal problems are facing its foster care system. These lawsuits, at least partially, are due to a lack in funding. There is also evidence of rampant corruption at the Department of Human Services. This has led to indictments and allegations that their leaders and supporters were using the money to enrich themselves rather than helping the poor. Other issues include inadequate driver’s license center service and underfunding local school districts, which is based on state funding formula. Hosemann is one of those people who openly questions how over 1,000 state employees manage to survive on less than $20,000 per year. Hosemann asks them how they manage to pay the required 9 per cent of their salary towards their pension and the premium for their state-sponsored health insurance. He promised a raise for state employees, “starting at the bottom up.” Gunn and Reeves have boasted about how they reduced state government spending over the past eight years. That was a goal they claimed to have reached. Bryant stated that there are approximately 4,700 fewer state employees today than when he was elected in 2012. Many would agree that reducing government size is a good thing, unless services aren’t being met, as some might argue. Hosemann stated that the Senate would examine the state’s tax credits during this year to see which ones are effective. Many tax credits are granted to businesses as an incentive to create new jobs. The University Research Center of the State has found that many tax credits do not create jobs, and sometimes their impact is difficult to measure. Hosemann stated that he does not rule out future tax credits for businesses creating substantial jobs, nor do he intend to honor state commitments regarding past tax credits. Hosemann stated that he also wants money to meet state needs. Hosemann could be in conflict if Gunn and Reeves continue to cut taxes over the past eight years._x000D