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Governmental
Relations Update
Lewis
Slater, Vice President, Governmental Relations
The 2005
Session (one major issue –budgets) -- but is over?
Early last fall, representatives from the
MetroJackson Chamber and other metro area chambers met with
metro area legislators to discuss potential issues for inclusion
in the 2005 Metro Legislative Agenda. During that legislative
planning session, legislators told us that the 2005 session
would be primarily about money and budgets and for us not to
come advocating any kind of general tax increase.
That prediction was certainly true. The
session has been all about budgets and the predicted
consequences of not being able to fund most agency requests from
present revenue streams. There were no other big issues that got
much attention. All of this activity took place in a political
environment where Governor Haley Barbour has reaffirmed his
position of “no new taxes” and says that our state’s problem is
uncontrolled spending and not a shortage of revenue.
The House was willing to increase the tax
on cigarettes but the Senate would not do so. How all of these
budget consequences will play out in the next few weeks is
uncertain. Will the aftermath prompt a special session to deal
with revenues?
The 2005
Metro Legislative Agenda:
Our 2005 Metro Legislative Agenda included
seven items plus one item that was added after the session
started. Our items were: (1) protecting the tort reform gains of
2006, (2) authorizing toll roads, (3) Mississippi
Optional Sales Tax, (4) Momentum Mississippi Economic
Development Incentives, (5) incentives for restoration of
historic structures and certain downtown structures, (6) funding
mechanism for city and county storm water drainage districts,
and (7) tourism promotion. Support for reducing the unemployment
tax and using surplus funds in the Unemployment Compensation
Trust Fund for workforce training was later added.
Of these eight agenda items, we were
successful on three: preserving tort reform, tourism promotion,
and lowering the unemployment tax/allocating funds for workforce
development.
Click here for details on
the results of the 2005 Metro Legislative agenda.
Other
Bills of Interest to Business Community:
The cities of Pearl and Madison have Local
and Private Bills on the Governor’s desk authorizing referendums
on hospitality taxes. Pearl’s bill would authorize a tax (up to
2%) on restaurant sales in the western part of the city to help
pay costs associated with bringing AA Braves baseball to Pearl.
Madison’s bill would authorize a tax (up to 1%) on motel, hotel
and restaurant sales to fund tourism promotional projects. Both
bills require 60% of those voting to vote “for the proposal”
before the city council can levy the tax.
A bill of significance to all is HB 1104,
which deals with Medicaid. Unless this program is brought under
control, it will continue to grow and make it very difficult to
fund other programs at desired levels. This bill will amend the
code sections on eligibility and services for Medicaid
Though the Momentum Mississippi economic
development incentives did not pass, several bills enhancing
economic development did pass.
Click here for details on HB 500, HB 1488,
HB 1711, HB 1668, HB 1341, HB 1294, and SB 2478. One of the most important
bills for business was SB 2480, which lowered the unemployment
tax rate, established a minimum fund balance of $500,000,000 for
the Unemployment Compensation Trust Fund, and authorized
$20,000,000 a year for several years for workforce training for
existing businesses.
Another bill important to the metro area
was the passage of SB 2339, which makes it easier to get a
temporary judge appointed to help catch up on overloaded court
dockets. This will be of help in reducing some the backlog of
criminal cases pending in Hinds County.
Is It Over?
Legislative activity for 2005 may or may
not be over. Time will tell.
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