/Lawmakers to return Thursday to discuss whether to shift federal coronavirus funds

Lawmakers to return Thursday to discuss whether to shift federal coronavirus funds

According to House Pro-Tem Jason White, lawmakers will meet again Thursday to discuss funding issues related the $1.25 million the state received in federal Coronavirus Aid, Relief and Economic Security Act funds earlier this year. Federal law requires that the CARES Act funds are spent before the end of the year. The Legislature allocated those funds earlier this year to a variety of areas, including grants for small businesses that have been affected by COVID-19, expanding Internet access, and aiding health care providers. Philip Gunn, House Speaker, and other legislative leaders stated in recent weeks that the main reason the Legislature is returning is to assess the expenditures and determine if any funds should be re-allocated for other programs. The $300 million that was allocated to small businesses grants earlier in the year will not be used. Gunn stated that he expects the Legislature “to keep things focused, very narrow.” “I spoke with the lieutenant governor and we know of other issues that are CARES-related but do not necessarily have to do the money expenditure. We will evaluate the spending we had designated back in June and determine how many dollars have been spent. Also, we will decide if we want to shift some of those dollars around to get the best return. Many programs contained provisions that would divert any funds not spent by the end of the year to the Unemployment Trust Fund. This fund has been depleted since the coronavirus epidemic caused a surge in the number of unemployed in Mississippi. Jackie Turner, the executive director of Mississippi Employment Security Department, stated that the fund had $706million in it in March. It was one of the best-funded unemployment trust funds in America. It now stands at $422.9million, with $181 million that the Legislature diverted to it in June, Turner told legislators. Turner stated that the fund would have been “extremely dangerously low” without the injection of funds earlier in the year. The trust fund is funded by taxes on businesses. If the Legislature does not divert other revenue sources, the tax rate might need to be raised at some point. Turner and Gov. Tate Reeves argued for $500 million to be diverted into the program. Legislators may also consider other areas that are in need of funding, such as a salary increase for health care providers who work on the font-line side. The 2020 legislative session was due to conclude in April, but lawmakers extended it to address coronavirus-related issues. There are two legislative days left on the extension. However, legislators could opt for a two-thirds vote to extend their meeting time. Leaders have stated that this is unlikely. To support this work, you can make a recurring gift today to celebrate our Spring Member Drive. This will allow us to continue important work such as this one.