/Most infrastructure money will take months, in some cases years, to aid counties, towns

Most infrastructure money will take months, in some cases years, to aid counties, towns

Most people would agree that the bills passed in special session were intended to give local officials the much-needed help they need with infrastructure issues. However, the majority of the aid won’t be available immediately. It may take months or even years for the majority of the money to reach local governments in order to assist, for example, with repair of 500 bridges across the state that were closed for safety reasons. The executive director of Mississippi Association of Supervisors, Derrick Surrette said that it will take some time for the money to accumulate. According to Derrick Surrette, executive director of the Mississippi Association of Supervisors, “It will take a while for the money to accumulate.” Those bills will: * Create a lottery * Divert funds from the state to local governments * Divvy $700 million in BP settlement funds and fund earmarked infrastructure projects across the state. The BP bill will provide immediate relief but it will not provide any assistance to other cities or towns. The state received $111 million in funding for 128 projects. While many of the projects were infrastructure-related, there was no clear method for determining how they were allocated. The state Department of Finance and Administration will award the money. Chuck McIntosh of DFA said that the agency is working with the Mississippi Association of Supervisors and the Mississippi Municipal League to create a communication plan to define the process of disbursing funds to local governments. DFA will enter into a memorandum with each recipient, with specific requirements for reporting quarterly, procurement, and other matters. McIntosh stated that the bill doesn’t specify which projects will receive funding, so money for earmarks will not be disbursed on an “first come, first served” basis. The proposal to divert 35 percent of the state’s use tax revenue to local governments is the one that will have the greatest impact on local governments for a long time. The use tax is a 7. percent tax on retail products purchased outside of Mississippi by Mississippians, such as through the internet or catalogs. Some legislators suggested that local governments would receive funds via the diversion starting in January. According to Kathy Waterbury, a spokesperson for the Department of Revenue, the local governments will not start receiving funds until January 2020. Waterbury says that the state will start taking 8.75 percent from the state’s use tax revenue in August 2019. Over a period of four years, the total amount that will be diverted to local governments (35 percent) will be gradually phased in. Waterbury stated that the Department of Revenue would disburse the funds to the counties and cities every January and July. Shari Veazey is the executive director of Mississippi Municipal League. She said that the bill would be welcomed relief for the state’s 300 municipalities but acknowledged that it won’t provide immediate relief. The bill will benefit all cities, towns, and villages,” the Municipal League stated via social media. The use tax revenue generated by the bill will be distributed annually to cities and counties, with an estimated $120 million to $130 million. It is expected that the use tax will continue to generate revenue as more people shop online. A $250 million fund, which will be managed by the three-member state Transportation Commission, is also created under the use tax diversion bill. It will be used to meet emergency infrastructure needs at both the local and state levels. The state will acquire long-term debt to raise the funds. It is not likely that the bonds will be sold before October. This means that revenue will remain available after October. The lottery will be the main source of revenue for the state’s transportation system. The lottery bill requires that $80 million in revenue from the lottery each year be used to fund state highway and bridge projects. Any additional revenue above $80 million should be used for education. According to the legislative champions, the bill will likely be passed in two years. State transportation needs will also benefit from revenue generated by the state’s sports betting. Sports betting is expected to generate between $5 million-$15 million annually._x000D