MISSISSIPPI HOUSE OF REPRESENTATIVES
WEEKLY SUMMARY REPORT FOR WEEK ENDING MARCH 16, 2001

JACKSON, Miss. – Amid Governor Ronnie Musgrove’s threat to veto many appropriations measures, the House of Representatives this week completed another round of consideration of state agency appropriation bills, but much work remains ahead before the budget for fiscal year 2002 is finalized.

The 2002 fiscal year begins July 1, 2001.  The FY '02 budgets for most of the 100-plus state agencies, boards and commissions have now had initial consideration in both the House and in the Senate. Final versions of those bills will be negotiated in conference committees between the House and Senate late next week, and the full House will cast final votes on those budgets a few days before the 2001 session adjourns on April 1, 2001.

Planning the estimated $3.6 billion General Fund FY '02 budget continues to be a daunting task due to the fact that actual state revenue collections are failing to meet previous expectations, plus the continuing uncertainty over how collections will go in future months. Through February, revenues for fiscal year 2001 are $131.7 million below the October 2000 projection, which itself had represented a downward adjustment from more optimistic earlier projections.  There has been a slowdown in almost all of the revenue areas:  sales tax collections are $40.6 million below estimates through the first eight months of this fiscal year, individual income taxes $60 million down, corporate income taxes $34 million down and gaming taxes, which until just recently have always exceeded projections, are almost $15 million under the estimate.

Budget shortfalls are not a phenomenon unique to Mississippi. A recent national study showed that 31 states are experiencing revenue shortfalls and that more than 20 have reached into so-called "rainy day funds" to cover the shortages, as our state has done. Many cities, including the City of Meridian, are reporting revenue problems due to lower-than-expected sales tax collections.  A national economy that began performing sluggishly in the final year of the Clinton administration is generally being blamed for these universal revenue problems.

There has been much debate between legislative appropriations leaders and Governor Musgrove over the state budget for the next fiscal year. The Legislature currently is building the FY '02 budgets based on a revenue growth estimate of 3.7 percent, established last October.  Legislative leaders continue to believe that's an attainable growth rate for FY 2002, although there is every indication that actual growth for FY ’01 ending June 30, 2001 will be closer to 2.0 percent.  Governor Musgrove recently has began urging the Legislature to revise budgetary growth estimates for FY ’02 downward to 1.0 percent, a move which many legislators contend would necessitate immediate and severe layoffs of many state employees.

“To even think about coming in and making another $102 or $145 million (cut) just on the prospects of something going wrong is just vulgar,” said House Appropriations Chairman Charlie Capps (D—Cleveland) in dismissing Musgrove’s proposal.  Other House and Senate leaders echo Capps’ position, contending that it is still too early to say whether the 3.7 percent growth factor will be met or not. It has been more than 20 years since the state has suffered two back-to-back low revenue growth years, so there remains some optimism at the Capitol that next year won't be as difficult as 2001 has been.  Senate Appropriations Committee Chairman Jack Gordon (D—Okolona) says he is “cautiously optimistic” that the economy will pick up, and further predicts that there are more than enough votes in the Senate to override any Musgrove veto.

Nevertheless, if the governor sticks to his guns as presently indicated, the Legislature will be faced with a round of Musgrove vetoes either to sustain or override.  If so, it won’t be a “first” for this session, as this week both the House and the Senate overwhelmingly overrode Governor Musgrove’s veto of HB 724. The bill creates a fund to cover expenses of special legislative sessions, with the money coming from a special account in the state treasurer's office.  With the override, the bill becomes law without the governor’s signature. 

During a legislative session a governor has several options on bills sent him by the Legislature. The governor can either approve a bill or return it (through a veto) with his or her objections to the chamber of origin within five days, or it becomes law without the governor's signature.  If the Legislature adjourns before the five days have expired, the governor has 15 days for consideration of the bill. When a bill is vetoed, it may be reconsidered by the chamber of origin and if two-thirds of those present and voting vote in favor of the bill (called an "override"), it is then sent to the other chamber for consideration. If two-thirds of that chamber also vote in favor of the bill over the veto, the bill then becomes law.

House bills that the Senate this week approved without changes were sent on to Governor Musgrove for his approval (signature) or rejection (veto). This week the House also began consideration of changes the Senate made to general bills that had originated in the House of Representatives. These measures cover a wide range of subjects such as crabbing licenses, expansion of the Junior Reserve Officers Training Corps, having a brief period of "quiet reflection" in public school classrooms, handicap parking violations, creating another round of the popular Rural Fire Truck Acquisition Program, and establishment of a Heart Disease and Stroke Prevention Task Force.

Many of the bills approved each year are proposed to simply extend various programs of state agencies. An example would be HB 475, which extends the program of the Department of Corrections to lease out prison-owned lands to farming operations. Another would be HB 513, which extends the program to provide legal counsel to indigent offenders. Another would be HB 441 to extend a project in south Mississippi that diverts more water to the Lower East Pearl River.

Among the bills approved by the House this week -- after changes had been made in the Senate -- that were sent to the governor for approval were:  HB 1565 increasing the amount of homestead exemption for persons 65 and over and many disabled citizens, with no corresponding loss in revenue for county governments; HB 720 authorizing the fifth round of the Rural Fire Truck Acquisition Program; HB 527 requiring the non-reemployment of licensed school district employees to be based on a valid educational reason or noncompliance with school district personnel policies; HB 1338 allowing counties to construct dams or low-water control structures on local lakes; HB 905 strengthening penalties for persons convicted of making threatening or harassing phone calls, with sentences ranging from not more than $500 and/or six months in jail for the first offense to fines up to $2,000 and/or five years in jail for third and subsequent offenses; and HB 1163 designating the State Board of Nursing as the agency responsible for legitimate drug traffic among nurses.

Among the bills that the House voted to send to conference committees for negotiation between the House and Senate were:  HB 1489 to revamp the Department of Transportation and appoint its commissioners, rather than elect them; HB 627 to revise fees for distinctive vehicle license tags promoting out-of-state universities; three bond bills (HB 1637, HB 1641 and HB 1642) to finance improvements and repairs to state-owned buildings and university campuses; HB 1007 to allow Mississippi Veterans Memorial Stadium to enter into a lease arrangement with a local ice hockey team; HB 1424 allowing state agencies to receive payments by credit cards and other electronic means; HB 396 to award honorary high school diplomas to WWII and Korean War veterans; HB 692 to exempt some water systems from having backflow-preventers; and HB 1448 to expand the JROTC program in state public schools.

Of special local interest to Lauderdale County citizens, the Senate this week concurred in the House amendments to SB 2666, which designates Meridian as the site for the Southern Arts and Entertainment Center.  The bill now goes to the governor, who has promised to sign it into law.  The House also voted to concur in Senate changes to HB 413, which would allow students living within a municipal separate school district but not within the municipality proper to transfer to an adjoining county school district if, and only if, there is no representative on the municipal separate school district board residing in the non-municipal area.  HB 413, which originated because of the complaints of some Lauderdale County citizens that they were victims of “taxation without representation,” now also goes to the governor’s desk.  Also, the House passed HB 1669, a local and private bill which extends the repealer of the Lauderdale County Tourism Commission to 2005.  HB 1669 now must go to the Senate for action.

 The 2001 Regular Session of the Mississippi is scheduled to adjourn sine die on April 1.

The text and history of any bill may be accessed and read online by following the "Bill Tracking" link at www.gregsnowden.com.

To contact House members, call the Capitol at 601-359-3770. 
State government's Internet address is http://www.ls.state.ms.us
Representative Snowden's cell number (no long distance to Jackson) is 527-5350
Greg  Snowden's e-mail address is greg@gregsnowden.com