Newsletter, Spring 2006

As we approached the 2006 legislative session, Hurricane Katrina was on everyone’s mind. Thanks to Governor Barbour and our congressional delegation (in particular Senator Cochran on the Appropriations Committee and Congressman Thompson on Homeland Security) most of the financial relief will come from the federal government. The Governor, his staff and our delegation in Washington worked hard to provide assistance to those whose lives and fortunes were devastated by this horrible event. Their efforts were rewarded with unprecedented financial assistance for businesses and homeowners on the Gulf Coast.

The legislature also adopted a number of measures to help those who were affected by the hurricane. Much of our work was done in a special session soon after the storm. Those measures included help for cities, counties and school districts and a loan program for small businesses. We also allowed the coast casinos to move inland up to 800 feet as long as a portion of their facility continues to touch the water.

In the regular session we passed additional measures designed to assist in the rebuilding effort. Among them were new an enhanced building code for the six southernmost counties, ad valorem tax relief for coast homeowners and tougher penalties for home repair fraud. It is likely that more help will be needed in coming years as the folks on the coast continue their heroic efforts to rebuild.

Outside of Katrina, much of the action in the 2006 legislative session revolved around proposed changes in sales and tobacco taxes. Early in the session the Lt. Governor proposed legislation that would have eliminated the sales tax on groceries and increased the tax on tobacco. The bill combined two very popular issues. Mississippi has the highest tax on groceries and the second lowest tax on tobacco in the country. Both the Senate and the House quickly passed the bill and sent it to the Governor who promptly vetoed it.

There was a problem with the original bill. In totally eliminating the sales tax on groceries the legislation also eliminated that portion of the tax that goes to the cities. The House attempted to fix the problem by passing a companion bill that made the cities whole. The Senate never acted on the fix, and the Governor’s veto stood. Later in the session I introduced a bill that cut the grocery tax in half, restored the cities’ portion of the sales tax and increased the tobacco tax in an amount that would have replaced the loss to the state’s general fund. My bill fixed the problem in the first bill, and it immediately passed the House. The Senate killed my bill but introduced their own version which passed both houses. The Governor vetoed this second bill even though it fixed the problem with the cities.

Because both bills originated in the Senate, they were first in attempting to override the Governor’s vetoes. They tried twice but fell short of the necessary 2/3 vote.

I support reducing the sales tax on groceries and increasing the tobacco tax. We have the highest tax on groceries and the second lowest tax on tobacco of any state. Adopting the proposed policy would put us in line with the rest of the country. Reducing the sales tax on groceries would also provide a tax cut for all Mississippians at time when gasoline prices are at an all time high. At the same time, all the evidence indicates that an increase in the tobacco tax would discourage young folks from taking up this dangerous habit. It is likely that this proposal will be revisited in the 2007 session. In the interest of the people of Mississippi, I hope it becomes law.

In a related matter, I introduced legislation that would have put the state’s support of The Partnership for a Healthy Mississippi into the law. This organization’s positive impact on the health of Mississippians is nothing short of miraculous. The incidence of smoking by Mississippians has decreased dramatically, particularly among young people. The legislation passed both houses but, again, was vetoed by the Governor. The Governor’s veto was ill-advised and shortsighted. In arguing for the veto, he and state treasurer Tate Reeves raised a number of concerns, all of which were actually fixed in the legislation that the legislature passed. It is unfortunate that the Governor and the state treasurer would oppose good public policy for what are, apparently, political reasons.

Perhaps the most controversial legislation of the session was my proposal to phase in full funding of Mississippi’s K – 12 education funding formula over a period of four years. The Mississippi Adequate Education Program (MAEP) is the formula by which state dollars are allocated among Mississippi’s public schools. It currently accounts for nearly 50% of the state’s general fund budget.

Over the last several years, in the face of a national recession and in order to pay for a phased-in teacher pay increase, we have cut our 4-year colleges, our community colleges, Medicaid and other general fund agencies. The University Medical Center has had to shut down hospital beds. We have laid off state employees. State employees who kept their jobs have not had a raise in several years. And we have funded MAEP some $188 million below what the formula would require.

Had we insisted on adding the full $188 million to MAEP in one year, none of the state’s other needs could have been addressed. For that reason, I felt it was in the best interest of our public schools to put in place a realistic plan to fully fund MAEP by a date certain. The phase-in plan provides more than $68 million in additional dollars for MAEP next year and an additional $65 million for each of the following 3 years. At the end of that time, the program will be fully funded.

Such an agreement will mean we will have funded the MAEP shortfall and made education a priority for the next four years. Had we not reached such an agreement, MAEP would have simply been tossed in with all the other budgets to fight for scare general fund dollars. I believe we now have a recognition by all parties that fully funding MAEP is essential to a better future for all Mississippians. As a final note, there is nothing in the phase-in plan that prohibits us from fully funding MAEP before the end of the four year period. In fact, if revenues permit, we will accelerate the funding of MAEP.

As the economy begins to recover, there is some good budget news. Tax receipts are projected to increase to record levels. For the first time since 1999 it appears that we will be able to balance next year’s budget without the use of substantial “one time” monies. The recovery seems to be broad based. Sales tax collections across the state are well above expectations. And, although Katrina had a devastating effect on those who live on the coast, the recovery effort is employing thousands of people and will create hundreds of new permanent jobs. As a result of the improved revenue picture and the agreement to phase in full funding of MAEP, we were able to reach a reasonable budget compromise with the Senate and the Governor.

Among the budget highlights are an overdue pay increase for state employees, full funding (for the first time) of the state’s six mental health crisis centers, restoration of many of the budget cuts to our universities and colleges, additional funding for the highway patrol and the state crime lab, substantial increases in funding our state emergency management agency, much needed assistance for the University Medical Center and additional funds for the departments of Health, Mental Health and Medicaid.

As Chairman of the Education Committee much of my time is spent on legislation that affects our public schools, and a number of significant education bills became law this year.

The percentage of Mississippi students who drop out of school continues to be a major problem. In order to focus on the problem and potential solutions, I authored a bill that sets up an office of drop out prevention within the state department of education. State Superintendent Hank Bounds and his staff concur about the severity of the problem and have pledged to make reducing the drop out rate a priority within the State Department of Education.

I also authored a bill to require the Department of Education to design an alternative route to a high school degree. Currently all students are required to take a college prep curriculum. While I believe that everyone should have the opportunity to go to college, the truth is that most of our kids go directly into the work force. The alternative curriculum would be aimed at giving those kids the skills they need to survive and succeed without a college degree.

Several other education proposals passed. Among those were increased freedom from state regulation for high performing schools, the creation of a statewide “virtual” (distance learning) school, allowing high school students to receive credit toward graduation for certain college courses and adjustments to the MAEP formula.

Next year is an election year in Mississippi, and I do plan to run for reelection. These past seven years have moved by quickly. Thanks to you I have had an opportunity to work on a number of issues that are vital to Mississippi’s future – education, health care, public safety and economic development. I’ve learned a lot and enjoyed the experience. As always, I am indebted to you for the opportunity to serve, and I humbly ask for your support in next year’s election.

I want to also thank those who have inquired about my recent back surgery. Dr. Bob McGuire and the staff at the University Medical Center did a wonderful job, and I am well on the way to complete recovery. UMC is a real jewel, and we are fortunate to have terrific physicians such as Dr. McGuire in our state.

Thank you for allowing me to serve as your representative. If I can ever do anything to help you or if you have comments, criticisms or suggestions, please do not hesitate to call.

Yours,

Cecil Brown