/Reeves Agreement reached on most infrastructure funding issues for special session

Reeves Agreement reached on most infrastructure funding issues for special session

Bryant, a Republican second term, has not yet issued the call for special session. However, Monday morning Reeves stated that he expected it to include enacting lottery and diverting some use tax revenue from education to transportation programs. The 7 percent tax on retail products purchased outside of the state is called use tax. For many years, Senate and House leaders have struggled to find additional funding for what is most commonly a degrading state and local infrastructure system. It has been difficult to find a viable alternative and there has not been any willingness to raise the 18.4-cent per gallon motorfuel tax. In April, the regular session came to an end with Senate and House leaderships still not coming to an agreement. According to the governor, he intends to call a special session in order to resolve the problem. The state’s infrastructure has been a key issue and could play a significant role in the 2019 statewide elections. Reeves stated Monday that he expected that the governor’s special sessions agenda would also involve diverting revenue form sports betting, which is currently being allowed at Mississippi casino casinos, and “monetizing” revenue from a fund that generates revenue for roads in the county. The fund will issue approximately $300 million of long-term debt to finance bridge repairs across the state. Nearly 500 county-owned bridges in the state are currently closed and many counties don’t have the funds to repair them. Reeves stated that details are still to be worked out but that there is a “general agreement” between the Senate and House leaderships on the issues raised in the special session. Reeves stated Monday morning that he believes this is a significant step towards resolving one of the most difficult issues in our country. Gunn and Reeves have both expressed opposition to the lottery. However, the lieutenant governor said he expects that it will be voted upon during the special session. Six states, including Mississippi do not have a lottery. Reeves stated that the lottery would generate approximately $80 million annually, and that the tax diversion would amount to about $100 million each year. Reports indicated that the Senate wanted local governments provide “matching funding” to help draw down additional state funds for transportation. Reeves stated Monday that it is not necessary to pass legislation during the special session. He stated that many of these items were House proposed during the regular session. “Some of these items were included in Senate bills. If all of them passed the Legislature within the next few days …”, the Legislature would have “found an acceptable” solution to the state’s infrastructure problems. The governor, Speaker Phil Gunn, and he have been discussing the issue since the end of the regular session. Questions still will be asked of whether an increase of $200 million annually is enough, considering some have estimated an additional $400 million annually is needed, and whether other agencies can absorb more than $100 million per year being taken from them for transportation.