Budget Negotiations Begin, Lawmakers head home early

With most of the work remaining for the Legislature heading to conference, both the House and Senate decided not to gather on Friday. This is the second week in a row that Legislature have not meet on Friday and the fourth time this session.

One reason, is that if legislators are unable to reach a budget, they can use the extra days without forcing a special session or having to extend the session. Last year, lawmakers took several breaks while budget negotiations were under way.

Governor Haley Barbour signed a bill to raise the years of service retirement for new state employees from 25 years to 30 years, on Wednesday.

It has been a long-standing position of MEC to increase the years of service, especially in an effort to retain the state’s most qualified teachers. MEC believes this change needs to be made, with the goal of future pay increases for teachers. The bill, was originally introduced for new teachers only, but was changed in the Senate Finance Committee to include all new state employees. Before passing the Senate, working with officials with PERS offered a compromise for the change not to go into effect until July 1, 2011.

Two years ago, MEC supported the passage of legislation that increase the number of years that teachers were given annual pay increases based on experience. Previously, the annual increases stop at 25 years, but annual pay for teaches now increase each year until 30 years.

Inventory Tax Relief Bill dies after lack of House action

The deadline for passing revenue and appropriations bills was today, and the House took no action on MEC-backed legislation that would have phased out the inventory tax. The Senate passed MEC-priority legislation on Feb. 24, to phase out the state’s inventory tax through a tax credit or refundable tax credit. The bill was referred to the House Ways & Means Committee, which did not even discuss the legislation.

This method would allow the counties, cities and schools to continue collected the tax, but allow business to begin getting the credit beginning in 2013. The legislation calls for a 20 percent tax credit the first year it is implemented and an additional 20 percent each year for the next four years. The key component to this legislation is counties, cities and schools will not see a reduction in their tax revenues. The credit will be covered by the state’s general fund. The implementation of the phase it is set to begin in four years, allowing an increase in general funds as the economy improves.

Conference work begins

With the major deadlines for floor action on bills behind the legislature, the majority of the work over the next few days will be on conference reports. Senators and Representatives will get together and try and work out differences on bills that are still alive but aren't yet ready to be sent to the governor.

MDES Re-authorization Bill dies in House

A bill which would have reauthorized the Mississippi Department of Employment Security died in the House, as the Chairman of Labor decided not to bring the bill up for a vote. The bill originated in the Senate, but in House the Labor Committee added language that would have changed Mississippi's law to allow people that worked part-time and lost their job the ability to collect unemployment. The change is required for the state to accept $58 million in federal stimulus money.

The problem is the money would only cover the cost of those worker for about three years, but since the change is permanent, employers would be required to make up the cost once the stimulus money is depleted. State officials estimate this would create a 75 percent tax increase on employers to pay for the expanded provisions.

A similar House bill, died on the floor of the House earlier in the session when it failed to get the necessary three-fifths vote needed for passage.

Governor Haley Barbour will likely call a special session to deal with the issue, possibly before the legislature adjourns from the regular session.

An early exit

Declaring they were ahead of schedule, the House voted to adjourn on Thursday and take Friday off. The Senate soon followed suit, however, the Senate will have to deal with more than 50 appropriations bills next week.

LLC registration given new life

A bill to require out of state firms that hold Limited Liability Corporation status in Mississippi to file annual reports and pay an annual fee was reconsidered on Wednesday and passed without objections. On Tuesday, the bill failed to pass the Senate when it didn't receive the necessary 3/5 approval.

The bill will likely end up in conference because of differences between the House and Senate version.

LLC registration bill fails

A bill to require out of state firms that hold Limited Liability Corporation status in Mississippi to file annual reports and pay an annual fee failed to pass the Senate when it didn't receive the necessary 3/5 approval. The bill was held on a motion to reconsider, and can be brought up again. Although it faces a Thursday deadline on reconsidering the vote.

Secretary of State Delbert Hosemann is pushing for a bill that would require all LLCs to file annual reports. Hosemann said once an LLC registered with the state there is no way to track activity since they are not currently required to final annual reports.

Monday, March 8, 2010

Deadline looms for some bills

The House and Senate each worked for about an hour Monday afternoon, as they prepared for a long day on Tuesday. The legislature faces a Wednesday deadline on general bills that originated in the other House.

Retirement bill will head to Governor

MEC's priority legislation that would raise the years of service for new employees from 25 to 30 years is head to the governor's desk.

The bill, was passed by the Senate in February and there were no changes made to the bill before it passed from the House floor. House members could have held the bill on a motion to reconsider today, but did not clearing the way for the bill to go to the governor. MEC appreciates he work of Senate Finance Chairman Dean Kirby who introduced the bill. House Appropriations Chairman Johnny Stringer, who help guide the bill through the House process and Rep. Cecil Brown, who handled the bill on the House floor.

 This legislation is a major step toward keeping experienced teachers in the classroom longer. It has been a long-standing policy of MEC to push for an increase the years of service, especially in an effort to retain the state’s most qualified teachers. MEC believes this change needs to be made, with the goal of future pay increases for teachers.

MEC Priority
House Votes 107-11 in Favor of Retirement Bill

Final Scrambler held on Economic Development

A large crowd turned out for the final MEC Legislative Scrambler of the 2010 session. The event featured Senate Universities and Colleges Chair Doug Davis, House Universities and Colleges Chair Kelvin Buck and MDA Executive Director Gray Swoope. The speakers focused on the key relationship that exist between the state's junior colleges and universities in attracting new companies and new jobs to Mississippi. Thanks to TVA for the generous sponsorship.

In all more than 250 people took part in the four scrambles held this session. A special thanks to all of our sponsors, Watkins, Ludlam, Winter & Stennis P.A.; The Mississippi Road Builders' Association, JBHM Education Group and TVA. Also a special thanks to the legislators that participated in the events.

MEC Priority
House Appropriations Committee Approves Retirement Bill

A bill to raise the years of service retirement for new state employees from 25 years to 30 years, passed the House Appropriations Committee on Tuesday and could be brought up on the floor of the House as early as Wednesday. The legislation, an MEC priority, passed without any amendments.

It has been a long-standing position of MEC to increase the years of service, especially in an effort to retain the state’s most qualified teachers. MEC believes this change needs to be made, with the goal of future pay increases for teachers.

The bill, was originally introduced for new teachers only, but was changed in the Senate Finance Committee to include all new state employees. Before passing the Senate, working with officials with PERS offered a compromise for the change not to go into effect until July 1, 2011.

Two years ago, MEC supported the passage of legislation that increase the number of years that teachers were given annual pay increases based on experience. Previously, the annual increases stop at 25 years, but annual pay for teaches now increase each year until 30 years.

Senate sustains Governor's veto on budget

The Senate sustained a veto of a budget bill that would have restored more than $70 million of cuts. The Senate passed the bill last week, but the governor - as promised vetoed on Wednesday. After two hours of debate, the Senate was four votes shy of overriding the veto.

Wednesday, February 24, 2010

MEC Priority
Bill to cut Inventory Tax passes Senate

The Senate passed MEC-priority legislation on Feb. 24, to phase out the state’s inventory tax through a tax credit or refundable tax credit.

This method would allow the counties, cities and schools to continue collected the tax, but allow business to begin getting the credit beginning in 2013. The legislation calls for a 20 percent tax credit the first year it is implemented and an additional 20 percent each year for the next four years. The key component to this legislation is counties, cities and schools will not see a reduction in their tax revenues. The credit will be covered by the state’s general fund. The implementation of the phase it is set to begin in four years, allowing an increase in general funds as the economy improves.

For Senate Bill 3027

Bond bills pass

Both the Senate and House have passed versions of a general bond bill and a transportation bond bill. The Transportation bills equal about $300 million in both chambers, while the general bond bills vary greatly, as the House version is almost $400 million, while the Senate version is about $100 million. Both issue are likely to end up in conference committee to work out the differences.

Tuesday, February 23, 2010

Close vote in finance committee on Inventory Tax bill

The Senate Finance Committee passed an MEC-supported bill that would phase out the state’s inventory tax.

The bill similar to one introduced this year calls for a tax credit or refundable tax credit for companies paying the tax. Cities, counties and school districts would continue to collect the tax, and the business would be required to file with the state tax commission for the credit.

After a lengthy debate the bill passed 12-10 sending it to the full Senate for a vote.

Senate passes its share of budget bills

On Tuesday, The Senate worked through 52 appropriations bills. Like the House did last week, passing the bills are part of the process necessary to meet Wednesday's deadline for appropriations and revenue bills. Most budget legislation is a long way from final passage.

MEC Scrambler on Education held

The day started with a good conversation about education, as Senate Education Chair Videt Carmichael and House Education Chair Cecil Brown spoke at the MEC Scrambler, sponsored by the JHBM Education Group. Both Chairs discussed legislation designed at helping individual schools that are failing within school district that are successful.

The bill called the "New Start School Bill"  would allow the state to take over individual schools. Administrators and possibly teachers would be replace. The local school boards would hire the new employees, but any appointment would have to be approved by the state board of education.

House Appropriations approved

The House spent about three hours working through 54 appropriations bills Wednesday afternoon. The Senate will also deal with about 50 bills that fund state agencies. The bills will then switch sides and they will work them again. Usually, most appropriations measure end up in conference to work out differences between the House and Senate.

House bill on eminent domain dies

A bill to restrict eminent domain died on the House Calendar on Monday. The bill had passed but was held on a motion to reconsider. By failing to table the motion, the bill died. Several bills were introduced in the Senate on the eminent domain issue, but all died in committee.

Deadline looms for general bills

Facing a midnight deadline for general bills and a prediction of snow in the afternoon, both the House and Senate worked quickly Thursday morning to clear items from the calendar. Due to snow forecast for the state, both chambers adjourned about 3 p.m. on Thursday, and will not return until Monday.

Governor signs bill design to battle meth labs

Governor Haley Barbour today signed House Bill 512 aimed at restricting the purchase of a key ingredient of the illegal drug methamphetamine. House Bill 512, which takes effect July 1, requires a doctor’s prescription to purchase cold and sinus medicine containing the ingredient pseudoephedrine. The bill swiftly passed the Legislature this month with overwhelming bipartisan support.

Senate agrees to cut own salary; but not reduce number

The Senate addressed two bills that would have dealt with cost savings, as a result of the recent economic downturn. The first bill, which would have reduced the size of the legislature by five senators and 12 representatives, failed after it was recommitted to committee, which kills the bill.

 The second bill, which was designed to cut the legislators pay by 10 percent, passed.

MEC Scramblers resume with Transportation Chairmen

MEC’s Scrambler returned on Wednesday, as Senate Transportation Chairman Tom King and House Transportation Chairman Warner McBride. Next week (Feb. 17) will feature Education Chairmen Sen. Videt Carmichael and Rep. Cecil Brown.

A House bill to address individual schools that are failing, even if the district as a whole isn’t failing, passed. But not before a number of amendments were added. The bill, known as the new start school bill, was designed to give the individual schools new direction. The bill originally allowed the state to oversee new leadership in a school that failed for three consecutive years. However, the bill now has language allowing for charter school companies to be employed, teachers are given additional consideration before not being rehired and additional curriculum requirements.

The Senate on Tuesday passed a bill to raise the years of service retirement for new state employees from 25 years to 30 years.

It has been a long-standing position of MEC to increase the years of service, especially in an effort to retain the state’s most qualified teachers. MEC believes this change needs to be made, with the goal of future pay increases for teachers.

The bill, was originally introduced for new teachers only, but was changed in committee to include all new state employees. MEC, working with officials with PERS offered a compromise for the change not to go into effect until July 1, 2011.

Two years ago, MEC supported the passage of legislation that increase the number of years that teachers were given annual pay increases based on experience. Previously, the annual increases stop at 25 years, but annual pay for teaches now increase each year until 30 years.

For Senate Bill 3078

Senate passes Charter School bill

After about two hours of debate Tuesday afternoon, the Senate passed a bill that would allow the creation of charter schools. Under the bill, the school would receive the MAEP portion of state funding per student, but all other expenses would have to be cover by the school.

Legislators greeted by Scouts

Both the Senate and the House returned to work a little earlier than normal, because they faced a major deadline on Thursday.

When they arrived, they were greeted by several hundred Boys Scouts, Cub Scouts and leaders, who were at the Capitol in honor of Scouting's 100th anniversary.

Senate Bill to Restore funds amended.

A bill to put $45 million back in to K-12 education was amended Friday morning. Senate Appropriations Chair Alan Nunnelee said the bill passed on Thursday failed to address other needs and obligations. Nunnelee offered an amendment to use a total of $58 million of the tobacco trust fund money. Of which, more than $35 million goes to restoring education cuts. It includes $25.6 million for MAEP. Other monies went to the nationally board certified teachers salaries, community colleges and IHL.

The House and Senate face a Thursday deadline for passing general bills. Both chambers still have over 150 bills on their calendar.

The Senate took a different approach to adjourning today. Instead of the usual aye on the motion to adjourn, many members gave a loud shout of WHO DAT in honor of the New Orleans Saints first appearance in the Super Bowl. The Saints, which have a large fan base in Mississippi, take on the Indianapolis Colts Sunday in Miami.

Both Chambers will return at 3 p.m. on Monday.

MEC Priority Issue

Strategic budgeting plan passes Senate

The Senate passed the “Mississippi Strategic Planning and Performance Budget Act of 2010.”  This legislation (Senate Bill 2816)  comes from recommendations made by the Commission for a New Mississippi in a report issued in December 2009.

The following is the release from Lt. Gov. Phil Bryant:

The bill would institute Smart Budget, a performance-based budgeting system where resources are allocated based on results.

Lt. Governor Phil Bryant and a panel of state leaders, known as the Commission for a New Mississippi, authored a report late last year that recommended Mississippi to adopt a performance-based budget. Bryant said he's excited at the prospect of a sleeker, more efficient government.

“I have said before that the biggest policy decision government ever makes is when it builds a budget,” Bryant said. “Making decisions on how to fund so many important functions of government is a demanding task that would benefit from a performance-based system.”

Mississippi has technically had performance-based budgeting on the books for years, but it was never used. The report by the Commission for a New Mississippi uses the Texas budget process as a model system bringing strategic planning and performance together in the state’s appropriations process. It further encourages state government to be mission driven and goal oriented.

The purpose of the performance budgeting process is to require budget decisions to be made based on whether state agencies are accomplishing expected results.

“Rather than keep budgeting the same way we’ve always done it, we need to look to the future, and that better way is performance based budgeting,” Bryant said. “The key is results. Departments are allocated money with specific goals in mind. Simply, this process is an effort to provide more accountability for the taxpayers’ money.”

This legislation, would further require the creation of a statewide and agency-level strategic plans to give clear and comprehensive direction for government to meet the needs of the citizens of the State. The plan focuses on the key roles of government, necessary services for our citizens, and the outcomes we expect when we expend scarce resources.

The new legislation gives the Performance Evaluation and Expenditure Review (PEER) Committee oversight in implementing and operating systematic and continuous improvement programs based on statewide strategic planning and performance budgeting. The PEER staff would also be charged with serving as a resource for state agencies in developing their strategic plans, and assuring that agency plans align with the statewide plan.

Blake Wilson, President of the Mississippi Economic Council said, “This is another step toward putting Mississippi in a place of greater opportunity. Companies look to states that follow a business like model. This is good not only for state government but for economic development as well.”

Senate Bill 2816 will now head to the Mississippi House of Representatives for consideration.

SB 2816 comes from a report issued by the Commission for a New Mississippi. Governor Haley Barbour requested for Lt. Governor Bryant to form that commission to evaluate the efficiency and effectiveness of state government. The commission consisted of 17 members and was chaired by the former Department of Finance and Administration director, J.K. Stringer, Jr. The commission reviewed reports that chronicled and analyzed how the state’s government operated for the past 80 years. The commission also investigated best practices in other states.

Senate bill restores $45 million to K-12 Education

The money was a result of an amendment to a Senate bill call, the Budget Reconciliation Act of 2010. The amendment uses $50 million of the fund, with the vast majority going to K-12. Appropriations Chairman Alan Nunnelee held the bill on a motion to reconsider, saying that only $5 million to other budget shortfall would make it hard for the state to meet obligations. He said he hopes to reach an agreement dividing the money among other areas.

Wednesday, Feb. 3, 2010

House votes to sell state jet

A bill to sell a Citation jet owned by the state, passed the House Wednesday afternoon. The funds from the sale would go into a special fund. The bill also calls for possibly selling the jet on ebay, provided the minimum bid is fair market value. The jet is primarily used by the governor.

A similar bill was introduced last year, but failed to make it to the governor's desk.

Floor work begins

Both chambers began the day early and began working bills on the calendar. After Tuesday's committee deadline for general bills, there were 268 items on the Senate Calendar and there were 397 bills, not including items on the rules calendar. The rules calendar lists resolutions, which normally are used to honor people or groups for their accomplishments.

Teacher Retention Act passes committee

The Senate Finance Committee passed S.B. 3078, an MEC priority bill. The bill changes the years of services for all new state employees from 25 to 30 years. While the bill originally called for the change for teachers, a committee substitute was introduced that made it for all new state employees hired after July 1, 2011.

The effective date is a result of a compromise worked out between MEC and officials with the Public Employees Retirement System. PERS is hoping to make some other administrative changes in the coming year and asked that all changes go into effect at the same time.

This issue is a long-standing MEC priority. By raising the retirement service requirement for NEW teachers will be a long-term solution to helping keep our best teachers in the classroom longer.

Thanks to Sens. Dean Kirby, who introduced the legislation and Sen. Walter Michel, who offered the amendment to change the effective date.

Senate sends meth bill to Governor

The Senate passed a House bill that would make drugs containing pseudoephedrine require a prescription from a doctor. Pesudoephedrine is the main ingredient used to make the illegal drug methamphetamine.

Short day Friday, expect a busy Monday

It was a short day at the capitol, as lawmakers ended a busy week of committee meetings.

Both chambers will be coming in earlier that normal on Monday, and several committee meeting will take place before the start of the session next week. General bills face a committee deadline of Tuesday in order to stay alive. The deadline for revenue and appropriations bills is Feb. 24.

Bill aimed to cut illegal meth passes

Most of the attention at the Capitol on Thursday centered around a House debate over where to make drugs containing pseudoephedrine require a prescription from a doctor. Pesudoephedrine is the main ingredient used to make the illegal drug methamphetamine.

Law enforcement is pushing for the bill saying it will help cut down on the number of meth labs. The House passed the bill overwhelming and it will now go to the Senate where it has the support of Lt. Gov. Phil Bryant, a former deputy sheriff.

Quick Hits

• Hundreds of Mississippi Valley Students crowded the Capitol hallways Thursday morning in protest of a possible merge of Mississippi's three historically black universities.

• A bill to create a Department of Labor in Mississippi failed to get enough votes to pass in the Senate Labor committee. The bill, which is typically introduced every year wasn't expected to get to the floor because it also required approval by the Senate Appropriations Committee. Last year the bill pass the labor committee, but died in appropriations.

• The House Education committee approved its version of a bill to create a task force on teacher attrition, retention and quality, late Thursday. The Senate version passed earlier in the week.

• Also, in the House Education committee, a bill was passed that would allow the take over of individual schools that fail for three consecutive years.

Tuesday, Jan. 26

Teacher Retention comes to forefront in Senate committee

The Senate Education Committee passed a bill to create a task force to explore teacher attrition, retention and quality.

Teacher retention has long been priority issue of MEC. Under the current retirement system, teachers can retire after 25 years of service, often at the prime of their careers. A separate bill introduced this session looks at extending the years of service in order to be eligible for retirement. Legislative leaders have indicated that action can be expected on this legislation.

All general bills filed, available for review

Despite the deadline being this past Monday, it takes a while for all bills to receive bill numbers and committee assignments. By Friday, all bills from both the House and Senate bills were available.

There were 1559 bills filed before Monday's deadline in the House, while there were 1097 Senate bills filed. All general bills that are going to be advanced must have committee approval by Feb. 2. On average only about 300 bills from each chamber gain committee approval.

Bills, bills and more bills to come

While the deadline for filing general bills was Monday, it always takes several days for the bills to be assigned to committee and show up on the introductions list.

The Senate list was completed on Thursday, as 1,097 bills were filed. The House list hasn't been published, however they are being listed on the legislative website as they are assigned to committees. As of 11 a.m., there where 1,303 House bills listed.

Senate committee removes repealer on MDES

The first step in reauthorizing the Mississippi Department of Employment Security was taken in the Senate Finance Committee today. Senate Bill 2404, which removes the repealer on the department passed the committee and will now be taken up on the floor of the Senate.

Two years ago the Senate and House ended up in special session over the reauthorization of the department, due to disagreements on how some state agencies handled advertising. MEC members voices were heard at the capitol on the issue, as more than 700 responded in favor of reauthorization. MDES, which oversees workforce training, was given a two year extension. Failure to reauthorize the department could result in higher unemployment rates to businesses and a loss of workforce development funds.

MEC Scramblers begins - No new taxes expected

The MEC Legislative Scramblers begin this morning. The scramblers, a series of breakfasts held throughout the session, allows MEC members, legislatures and lobbyists a chance to get together to discuss key issues.

Sen. Dean Kirby, Senate Finance Chair, and Rep. Percy Watson, House Ways & Means Chair, spoke at the Scrambler, which was sponsored by Watkins Ludlam Winter & Stennis P.A. Sen. Kirby said there were no plans to raise taxes, and Rep. Watson also said he didn't expect there to be major changes. However, Rep. Watson said that because the state is so reliant on sales taxes, the state's tax system probably deserves a close look.

Three additional Scramblers are currently scheduled. The events are free to attend and if you are unable to make the meeting in person, you can call in and listen. The call-in number is provided to members each week.

Upcoming Scramblers
Feb. 10 - Transportation
Sponsored by Mississippi Roadbuilders Association
Feb. 17 - Education
Sponsored by JBHM Education Group
March 3 - Economic Development
Sponsored by TVA

MEC Priority Issue

Senate Committee begins discussing strategic budgeting plan

Monday, Jan. 18, 2010

Governor delivers State of State

The Governor delivered his State of the State address, prior to getting into the budget issues, the took time to thank the legislature for the passage of the two bills to help spur job growth. On the opening day of the session, the legislature passed economic incentives for a new pipe manufacturing plant in Tunica County and made changes to the Workforce Enhancement Training funds to make sure money would continue to be available for workforce development programs.

The governor was cautious in his approach to budgeting, saying he would be willing to spend rainy day funds, provided the spending is spread out over the next three years and not all at once. He also urged the House to approve a Senate measure that would give him flexibility in cutting spending up to 10 percent. It current caps at 5 percent.

Legislators Returned to Find There's No Water