AT THE CAPITOL

Governor Bryant Signs Mississippi Infrastructure Modernization Act of 2018 Into Law

GOV

The Mississippi Legislature took a big step forward in addressing Mississippi's transportation infrastructure with the passage of two key bills that will put more than $200 million annually into preserving the state's most valuable asset - our infrastructure.

Special thanks to the leadership of Governor Phil Bryant, Lt. Governor Tate Reeves and Speaker Philip Gunn in the passage of the Mississippi Infrastructure Modernization Act and legislation to create a lottery, from which certain funds will be dedicated to transportation. Providing additional transportation funding has been a major priority since the completion of a report by the Blueprint Mississippi Transportation Task Force, chaired by Joe F. Sanderson, Jr. of Sanderson Farms, Inc.

The task force's study underscored the need for focusing on the maintenance of roadways and the repair and replacement of bridges at the state and local level.

The MS Modernization Act of 2018 Will:

  • Divert 35% of the 7% use tax for internet and out-of-state sales to local governments and bridge repairs.
  • Divide up the use tax diversion -  15% to cities - 15% to counties - 5% to the Local System Bridge Program
  • Create a new tax on hybrid and electric cars
  • Bond $300 million, with $250 going to the Mississippi Department of Transportation for emergency projects and $50 million to be spent on projects deemed necessary by the legislature
  • Require counties to match the state use tax money dollar for dollar
  • Divert the new casino sports betting tax money toward infrastructure

The lottery legislation, which was named the "Alyce G. Clarke Mississippi Lottery Law" after the legislator who has long advocated for a lottery, will dedicate the first $80 million to the State Highway Fund for 10 years. The money is to be used with matching federal funds when available.

Any lottery revenue collected above the $80 million, will go into the Education Enhancement Fund for the Early Childhood Learning Collaborative, the Classroom Supply Fund and/or other educational purposes.

It is expected to take a year to 18 months to set up the lottery in Mississippi. The legislation also prohibited video lottery terminals, a long-standing position of MEC.

Vibrant, dependable infrastructure is critical for maintaining public safety and promoting healthy economic development. Again, we are grateful to Gov. Bryant, Lt. Gov. Reeves, Speaker Gunn and our legislature for making an important investment in Mississippi's future.

January 22, 2018 - Within the first three weeks of the 2018 legislative session, two key issues have already garnered a lot of attention. The Mississippi House of Representatives has already passed measures dealing with transportation funding and the state’s education funding formula.

Over the past three years, MEC has been at the lead in working to improve funding in order to address the needs of roads and bridges at both the state and local level. In the first week of the session, the House introduced several options for funding.

Of those, House Bill 722 calls for a diversion of 35 percent of the use tax collected by the state to be used for repair, maintenance and reconstruction of roads, streets and bridges at the local level. The 35 percent would be split three ways, 15 percent given to municipalities, 15 percent given to counties and five percent given to a grant program administered by the Mississippi Development Authority to assist the municipalities and counties with improvements.

It is estimated that approximately $108 million would be directly allocated for infrastructure needs at the local level. Under this legislation, none of the funding would be used to address the needs of the state transportation system. The bill passed by a vote of 118-0.

Other transportation bills already considered by the House include:

  • Allowing any growth of the general fund over 2 percent to be used for transportation repair and maintenance. HB 354 has passed in the House and been sent to the Senate for consideration.
  • Removing the Mississippi Department of Transportation from the State Personnel Board, in hopes of providing flexibility over personnel issues. HB 355 has passed the House and been sent to the Senate for consideration.
  • Providing $50 million in bonds for bridge repair at the local level. HB 357 has been sent to the Senate for Consideration.

Going into the session, both House and Senate leaders have said addressing the state’s education funding formula would be a priority. During the 20 years that the Mississippi Adequate Education Program has been in existence, it has only been funded twice. Legislative leaders studied the issue last year, and upon recommendations from the consulting group EdBuild, have said the goal is to create a student-based funding approach.

The House passed its version of a new funding formula on Thursday. The Mississippi Uniform Per Student Funding Formula would replace the current MAEP formula. Under House Bill 957 school funding allocation would be based upon student enrollment rather than teacher units. The bill calls for a base cost of $4,800 per student with additional weights added for students with individual needs, such as special education, gifted, low income and English language learners. The House’s version of the education formula ultimately passed after a long debate by a vote of 66 to 54.

Both bills have been held on a motion to reconsider, and could still face further debate before being sent to the Senate for consideration.

Ready to be Heard?

Ready to Be Heard?

Mississippi Economic Council