JACKSON, Miss. -- Improved state revenues reported this week for the month of January gave Mississippi lawmakers renewed hope that an economic turnaround finally may be near. State Tax Commission receipts for January were slightly above the estimate for the month, one of the best showings in revenue collections for the current FY 2004 that began July 1, 2003. The January figures, which reflect Christmas season sales, were $4.6 million, or 3.2 percent, above January 2003 collections. This upturn in revenues is very important news because of the extremely tight state fiscal situation the Legislature confronts as it struggles to prepare the FY 2005 budget.

The Legislature and the governor face some extremely difficult decisions in putting together the FY 2005 budget. Education has been and will continue to be the state’s top spending priority, but this unfortunately does not mean that every single facet of our state’s massive educational system will be funded to optimum levels, given the continuing severe fiscal crisis. Governor Haley Barbour frankly told the state’s school superintendents meeting in Jackson this week that "I want to be open and honest and say I hope we can get money for K-12. But I did want to look you in the eye and tell you that my priority is to keep community colleges and universities from being cut $100 million." Neither the governor’s proposed budget nor the Joint Legislative Budget Committee’s own proposal calls for K-12 schools to receive funding at the high levels requested by the State Department of Education. Restoration of solid funding for the universities and community colleges (which have fared much worse than K-12 in recent years) is considered critical to the state’s job creation efforts and economic development strategies.

Many parents and taxpayers have long observed that simply spending more money on schools does little to improve educational quality, and a report released this week by an influential national legislative organization would seem to confirm those doubts. The American Legislative Exchange Council, the nation’s largest bipartisan, individual membership organization of state legislators, this week issued its annual Report Card on American Education. Based on numerous objective criteria, ALEC found that Mississippi ranks 50^th out of 51 in academic achievement, ranking ahead only of the District of Columbia. Among the states of the Deep South, Louisiana ranks 49^th, Tennessee 45^th, Arkansas 37^th, Alabama 44^th, Georgia 47^th, Florida 42^nd, Texas 43^rd, and South Carolina 46^th.

During the 2000-01 school year, 499,362 Mississippi children were enrolled in public schools (47.3% white, 51.1% black), and of these, 16.8% were classified as living in poverty. Mississippi’s Pupil/Teacher Ratio is 16.1, which is virtually the same as the national average (16.2). Mississippi has 152 public school districts with an average of 6.7 schools and 3,285 students per district. Educational funding is primarily a function of the state and local governments -- 85.87% of Mississippi’s funds for education come from state or local sources, while only 14.13% of our total state education budget comes from the Federal government. Mississippi, a poor state, spends $5,283 per public school pupil (representing an increase of 40.5% between 1979-80 and 2000-01), which ranks us 48 out of 51 among all the states and the District of Columbia.

A key finding of the ALEC report is that there is no immediate evident correlation between conventional measures of education inputs, such as expenditures per pupil and teacher salaries, and educational outputs, such as average scores on standardized tests. One especially pointed example: the District of Columbia spent $10,252 per student in the 2000-01 school year (only New Jersey spent more), yet D.C. schools ranked dead last in educational achievement. The ALEC report concludes that increased school funding for K-12 students nationwide has failed to improve test scores. "This year’s Report Card tells state lawmakers what many parents already know," said Duane Parde, ALEC’s Executive Director. "What money cannot buy in our public schools, parental choice and inter-school competition may." Mississippi has only one charter school in the entire state, although the national average is 67. There will be a renewed effort among some Mississippi lawmakers this session to revamp Mississippi’s inadequate charter school statutes so as to promote more effective utilization of charter schools in the state.

The perilous condition of the State Employee and Teachers Health Insurance Program, which is administered by the Health Insurance Management Board through the Office of Insurance, Department of Finance and Administration, is also a matter of great concern to the Legislature. Last year (an election year, after all) the Legislature funded the plan but ordered no increase in premiums. Had this not been done, that there would have been an 8.2% increase for active employees, a 9.1% for dependents and retirees, and an FY 2005 recommendation for a 9.5% rate increase. As a result of artificially keeping the premiums static last year, there was a more modest 4.1% increase for active employees (which the Legislature covered), and no increase at all for dependents and retirees. The bad news is that the Legislature now must confront a 23% increase for FY 2005, and painful but necessary solutions no longer may be deferred. If the Legislature does nothing again this session, the reserve fund will be depleted by this November, with an estimated $80 million in claims projected then to be owing.

House committees continued this week to learn more information about the particular state agencies and other groups that are affected by the legislation the committees will consider during the 2004 session. Among the presentations made this week to House committees:

> The Ways and Means committee hosted more than 25 mayors from across the state who are advocating the Mississippi Optional Sales Tax (MOST) that would allow cities and counties to levy an optional tax on retail sales to fund critically needed facilities. The proposal would require a 60 percent referendum approval by voters in the affected area before any tax could be levied, and the tax would expire when the specific project funded by the special levy was fully paid for. Supporters of MOST point out that 32 other states allow such a tax, although in all of them the citizens do not get a vote, while in Mississippi they would. Proponents also say they have identified more than $1 billion worth of projects statewide that could be funded by MOST. Governor Haley Barbour has indicated that while he will not actively support the legislation, he will not veto it if MOST reaches his desk. Most observers in the House express doubt that the proposed MOST legislation will successfully make it out of the Ways and Means committee.

Ways and Means members also heard a report from State Auditor Phil Bryant, who said his office is currently certifying that the Nissan Corporation has indeed hired 4,000 workers by December 31, 2003, as required under the incentives package passed in 2000 to lure the automaker to Madison County. The state can assess the company $11,800 for each job not certified by the auditor. Bryant also will report on how many Nissan jobs went to Mississippi residents, and how far some of them travel daily to go to work at the plant.

> The Education committee heard a report from the Stennis Institute saying that early childhood education is a positive influence in a child's future, and that programs combining child-focused educational programs with parent education are the most successful. A study looked at such programs in Louisiana and South Carolina where four-year-olds tracked through the third grade showed superior academic performance compared to students who did not attend early programs. A bill passed the 2003 Legislature to evaluate all early childhood education programs in this state. One recommendation of the study is for the state to implement a full-day voluntary pre-K program by 2008 for 3-year-olds in cooperation with existing programs such as the federal Head Start.

> The new Tourism committee got a first-hand look at the Hard Rock Beach Club resort in Philadelphia operated by the Mississippi Band of Choctaw Indians that has enjoyed booming success. The committee also heard a report on the benefits of top-grade horse shows that have found a home at the State Fairgrounds.

> The Conservation and Water Resources Committee heard from a recycling expert that so-called "bottle bills" that would put a 5-cents deposit on beverage containers may not be the best way to stop litter problems. The expert said beverage containers account for less than 10 percent of all roadside litter. He said studies show other kinds of litter are more prevalent -- paper and plastic packaging, vehicle parts, newspapers and ad sheets, cigarette packs and a broad range of miscellaneous items that can't be traced to a product or source.

> The Mississippi Military Communities Council held a very significant meeting attended by Governor Barbour on Friday morning. Lamar McDonald, a respected Meridian businessman and Chairman of the Navy-Meridian Team, was appointed by the governor as the new chairman of the council. The MMCC is the state-supported organization of local communities created to defend Mississippi military facilities during the upcoming BRAC (Base Realignment and Closure) round. Although the communities which have been successful in past BRAC rounds, such as Meridian, Columbus, and Pascagoula, are well-aware of the dangers posed by BRAC, the truth is that this new BRAC round may well place numerous other Mississippi facilities on the Pentagon’s chopping block, including some previously considered sacrosanct, such as Keesler Air Force Base in Biloxi and the Army Corps of Engineers facilities in Vicksburg, accounting for the number one and number two, respectively, military payrolls in the entire state. Also, in the upcoming BRAC round, Mississippi National Guard units will be subject to close scrutiny and serious consideration for potential closure. The danger is real, and the MMCC, with the full support of the Barbour administration, is preparing to do everything possible to preserve and enhance Mississippi’s military bases. Virtually every base, unit and facility in the state is "on the table" unless and until the Pentagon declares otherwise, and the MMCC is determined not to be caught unawares. Bill Crawford, also of Meridian, has been appointed by Governor Barbour as a deputy director of the Mississippi Development Authority, where his duties will include working in Mississippi’s defense in the base closure process. Mississippi’s expert base closure consultant, Barry Rhoads of Washington, D.C., cautioned not to expect Congress to derail the BRAC process as some continue to hope, stating pointedly that "[i]f we consider that [a delay in BRAC] to be the case we are foolish, because the governor said it. I've heard it. There are states out there that are gunning for our jobs." The Legislature will be asked to appropriate some $16 million for research or upgrading facilities at the state’s military installations as part of the ongoing commitment to meet the challenge posed to the entire state by the impending BRAC process.

Early in the week the House reconsidered HB 805, which as amended now gives the Department of Mental Health a freer hand in replacing direct-care workers in some of the agency's facilities. The bill, which is pending in the Senate, would freeze hiring and restrict certain purchases at state agencies in an effort to save money during the current fiscal year.

In ceremonial matters before the House this week, state championship high school athletic teams from Greene County were saluted, and the state’s Future Farmers of America also were recognized. The House also honored Ruthie Bolton of McLain, a women's pro basketball and Olympics star.

Another highlight of the week was a trip to the State Veterans Nursing Home in Jackson by a group of House members. The members delivered their "Pets for Vets" project to the 130 residents who are, after all, true heroes who helped keep America strong and free.

Representative Greg Snowden (R––Meridian) maintains a legislative web site to aid constituents and other interested persons in obtaining information about state government. The web site address is www.gregsnowden.com. Rep. Snowden may be reached by e-mail at greg@gregsnowden.com, or by telephone at 601-693-5700 (Meridian office) or 601-527-5350 (cell phone –– a local call from anywhere within Mississippi).