On Wednesday, the Senate passed a bill to divert up to $40million per year to cities to improve infrastructure. This figure is a fraction the $400 million per year that transportation officials and economic developers requested for funding to improve state highways. The $40 million Senate plan and the $108 million House plan, both passed Wednesday, would take the money from the state general funds. This is unless the state revenue collection improves beyond what legislators use to determine the budgets of state agencies for basic services like education, Medicaid reimbursements, and pensions. Senator Buck Clarke (R-Hollanddale) and Senate Appropriations chair said, “It’s kinda piling up – money potentially pulling from the general fund.” It is a source of great concern. It is not possible to pull money from the general fund for infrastructure. However, some entities that pay for infrastructure funding, such as state transportation agencies, cities, and counties, said they will accept any additional funding. Derrick Surrette is the executive director of Mississippi Association of Supervisors. “If we don’t start piecemealing now, we have some real problems with bridges being shut down and public safety.” “I am all for helping now, and then continuing to work on a fuel taxes increase or other long-term solution. Let’s do more when we have more money.” Scott Waller, president of the Mississippi Economic Council and the chamber of commerce, said that he doesn’t believe they are putting all their eggs in one basket. Waller stated, “I am encouraged by the progress made in these discussions.” Waller said, “As we move further into it I’m hoping that I get more details and figure what the rest of the puzzle will look like.” Waller added, “I believe every step is an improvement at this point.” We still have a lot to do before the session ends. We all hope to come together and find the best solution. Currently, 18.5 per cent of sales tax collected by the state is returned to the cities. Wednesday’s Senate bill would allow incremental increases in sales tax revenue diversions to cities, reaching 20% over five years. However, the caveat is that sales taxes collections must grow by 1% year-over-year to allow for an increase in diversions. Senator David Parker, R-Olive Branch said that the $40 million phase-in could be completed in 10 years. Shari Veazey is the executive director of Mississippi Municipal League. Veazey said, “If we can get some more of our priority items through, then I believe overall we can increase revenue for cities and they’ll have the ability to address some serious infrastructure issues.” Senate leaders, including Lt. Governor. Tate Reeves was kind to the legislation Wednesday, but he spent much time last session criticizing what he considered temporary solutions for road funding. On Wednesday, Senate Democrats criticized the leadership’s inability “real solutions”. “Don’t go to your district and claim you have done something for infrastructure.” “You haven’t,” stated Sen. David Blount (D-Jackson). “The greatest failing of this Legislature is the inability to come together bipartisanly to do something about infrastructure. Blount said that all this stuff was just “window dressing.” “Until we’re willing to spend money – real money- to fix the problem we are failing,” Blount said. Infrastructure funding was a key focus of Philip Gunn, House Speaker. The House passed a bill that would redirect $108 million from general fund dollars to counties and cities for bridge and road repair in the second week of session. House leaders last week proposed a bill to raise the state’s fuel taxes and eliminate the 4 per cent income tax bracket. They claim that this move would be “revenue neutral,” which would mean there would not be any direct loss of state revenue. It would also contain a $300 annual fee for electric vehicles and a $150 annual fee for hybrid vehicles. The House has yet to consider the proposal. However, it would simply shuffle spending and place lawmakers in the same situation of having to decide where to cut funding from other state agencies. Clarke stated that the House proposal would still be considered. “You’re still going back to that discussion about writing that large check for infrastructure, but having to cut money to Medicaid or other agencies.”