Looks like the Governor and House want to load up the bond Christmas tree while the Lieutenant Governor is saying not so fast. The Clarion-Ledger reported this morning:
"Lawmakers who couldn't compromise on a bill to fund long-term projects with bond debt might get another chance in a special session.
Lt. Gov. Tate Reeves, who presides over the Senate, said the chamber could not agree to the House's plan for bond debt, which came into conference at nearly $400 million. The Senate's plan was about $120 million, including $50 million in direct appropriations and the rest in bonds.
When it seemed imminent that the bill would die with Saturday's midnight deadline, House Ways and Means Committee Chairman Jeff Smith, R-Columbus, said he and Gov. Phil Bryant spoke about a special session..."
The reporter then engages in the usual hysterics about what will happen if the bill doens't pass:
"Without a special session, the bill's death means no bonds will be approved for purchase this year. The state's universities, community colleges, agencies and municipalities use bonds for renovations of existing buildings and construction of new ones.
Included in the Senate's plan were funds for renovations and construction on the state's public university and community college campuses as well as capital for several tourism projects and loan programs that attract federal matching dollars..."
But then Representative Jeff Smith takes point for the House Leadership, showing why he used to be a Democrat:
"While, as Reeves said, the House's plan going into conference included $376.5 million in bonds, Smith said that was a pie-in-the-sky request. House leadership was prepared to compromise at $250 million, he said.
Smith said the larger request included $31 million for a new medical school building at the University of Mississippi Medical Center, for example.
But Reeves criticized the House for its larger request. "It included such important projects as $20 million for a new sportsplex," Reeves said sarcastically.
He was referring to a facility Rep. Mark Baker, R-Brandon, hoped to build in Rankin County, Smith said. "It wasn't going to make it," Smith said. "We knew that."
Reeves couldn't recall the specifics. "It didn't matter to me," he said. "I didn't need to know where it was to know that it wasn't the kind of the thing that the taxpayers needed to do," he said.
The compromise plan, though, would have been bare bones, Smith said." Article
That was the news, now for the editorial comment. Mr. Smith admits he was not being serious when negotiating with the Senate. $250 million in new spending is "bare bones". Got it. The Lieutenant Governor also said the state pays $450 million in principal and interest every year on the state bond credit card. Notice anything left out of the story? The reporter did not include any information on how much bond debt the state has nor the bond bill passed just a year ago. I did some digging and here is some information that will give you a better idea of the true picture is of the state credit card. Here are the bond bills passed over the last few years of by the Legislature:
2011 - $615 million
2010 - $857.9 million
2009 - $376.4 million
2008 - $27.8 million
Damn. No wonder the former Democrat considers $250 million to be "bare bones". The story also didn't mention the state has $4.1 BILLION in current debt. There is still ANOTHER $1.2 BILLION that has been authorized but NOT issued. Translation: There is $1.2 BILLION that still has be approved by the Bond Commission. Some of these bond packages are for projects that have not reached the stage where the bonds are required so the commission will have to approve some bonds. I seem to remember last year when the Legislature passed a massive bond bill we were told that would be enough for some time yet here they are again, looking for more money. Yet here is the House, the same House that calls spending $68 thousand a month on an erector set building on Springridge Road "cheap", looking to jack up the state credit card... again. Tim Ford and Steve Holley need some money. Hold the line, Tate, hold the line.
By the way Nancy and Cecil, every dime wasted on interest means a dime that is not available for public education.
Monday, April 30, 2012
Bond bill food fight.
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17 comments:
Smith: Once a democrat, always a democrat. Tater showed some balls, let's see what Bryant does. The noise of his mouthpiece says he ain't gonna do right.
Word is that the House's request included funds for the new Dept. of Revenue.
Where is the tea party and their report card on the "conservative" House on this?
No agreement in advance, no special session. This is not one the Governor wants to lose.
Word is that the House's request included funds for the new Dept. of Revenue.
Don't see it in the bill.
Is this the same Tate Reeves who as Treasurer never saw a bond he didn't like?
New medical school building?
Options:
1. Take money out of what appears to be UMMC's unlimited advetising budget and apply it to the building fund.
2. Convert some of the old buildings along the proposed Woodrow Wilson health corridor into medical school building(s).
3. Move the medical school to the old Jackson Mall which is now the Medical Mall.
Tate had a vote in the legislature?
Listening to the "conservative" talk radio this morning (ST), all they could do was bash Tate for the spending CUTS that came from the Senate, and for Tate not allowing this bond bill to go thru.
Tate campaigned on holding down the bonded indebtedness, and thank the good Lord that he had the balls to stand up and stop this.
For too long the legislature would hand the all-powerful community colleges got an automatic inclusion in the bond bills for whatever they might decide they wanted to use it for (thank you Senator Gordon, God bless your soul); local legislators added whatever ornament they wanted to on the Christmas tree of a bond bill; and the state took care of repairs using the long term debt of bonding.
People that want true conservative tax and spending should call their Senators and thank them for stopping this -- whether it was $250 million or $400 million (the House's bottom number and the original proposed bill.)
Mark Twain said "facts are stubborn things, they do not change"
Mississippi has a very strong bond rating (AA) with all three Rating agencies...which is as strong as the US Govt. Section 115 of our Constitution dictates our bond celing and we are at 33% of that ceiling down from a high of 38% 6 years ago.
Our bond debt as of the writing of this message is $4,148,110,000. The state will pay off $284,030,000 in bonds in 2012.
The amount of bonds requested by the House of Representatives and given to the Lt. Governor and Governor was $250,000,000. For such projects as $104,000,000 all 8 senior collges, $13,000,000 for commuunity colleges, $49.7 Mil for Dept. of Finance & Admin for taking care of all State Buildings including Colleges. $22 Mil for MAGIC a computer system/Accounting system to bring Mississippi into the 21st century(on which $62 Mil has been spent)with out this last incrememnt the $62 mil spent could be in harm of going for naught. $31mil for a New Medical School Bldg, to replace the one built in 1954 which will have to be done before much longer to keep UMC a top tier medical school.
There were other items I wont mention but none were wasteful.
Finally, the negotiations of the bond bill were taken over my the Speaker to deal with the Lt. Gov. during the last day of discussions. None of the final negotiations was done by either of the Money Chairmen, which I have never seen in my 21 sessions.
The Lt. Governor and Speaker saw needs and priorities differently, but to say Mississippi is in a bond crisis is a misnomer, especialy in light of us paying off more in bonds than we would issue under any of the two scenarios.
With all due respect, which facts did I get wrong? Your comment leaves out the fact that $1.2 billion has been authorized but not approved. Lets take your numbers at face value. Several hundred million are paid off this year and replaced by the new amount. That still means the amount of bond debt could still rise another $1.2 billion, although it is likely the bond commission will not approve every one of those projects.
So if your bill is passed, the bond debt could still be over $5 billion after the previously authorized bonds are finally approved.
Then there is the matter of interest. Just because we have $4 billion, we should not look at that as "only" $4 billion. Our tax receipts are not going to improve that much any time soon. Therefor, the more we save in interest by paying down the bond debt, the more we can use in the actual budget.
Tate had a vote in the legislature?
He had a vote on the Bond Commission.
And how much investment tomfoolery did he rubberstamp on the PERS board? Plenty.
Kingfish, you have a good point.The authorized but not issued bonds were mentioned to me by the Lt. Governor, and the Speaker was there when he said same. I suggested, and both LTG and Speaker agreed, Finance and Ways & Means Committees have a joint ad hoc Committee appointed. We would look at those unissued bills and repeal or eliminate many of them. Our Bills will never have that problem again, as we are putting repealers in bills, repealing issuing authority after three years.
Guessing that most JJ readers missed it ...
Harvey Johnson was on the radio Sunday afternoon advocating that his optimum solution to Jackson's infrastructure funding shortfalls as a metro-wide sales tax increase that would **redistribute** (<<-- the exact word he used) collected funds back to Jackson using a pro-rated basis indexed on population.
In other words ol' Harvey already understands that commission or no offensive oversight commission -- regardless of its narrow purpose target -- a sales tax increase limited solely to Jackson will in actuality have a severely negative impact on businesses operating within the city. Because let's face it ... there's a limit to even what the beautiful people in Fondren will spend for over-priced gee gaws and trinkets.
Therefore like the big debt and big tax spending government-loving Democrat he is Harvey wants sales taxes jacked up throughout the metro in order to force everyone to bail out decades of Jackson FAILURE.
Jackson, Mississippi ... the City of Pipe Dreams.
Jeff - thanks for your 'explanation' but the "Bill" that was sent to the Senate was for just short of $400M. I watched you as you pleaded with the House to quit adding to it so that it "might have a chance to survive". Granted, you wanted to negotiate on $250M, your 'bottom line' as I understood from the various debates.
But of the CC $14M - is that for specific projects, or just as in the past - here's you some money for whatever you decide you need it for money? I haven't looked, but know in the past that was the process to give the 'all powerful CC Presidents' their annual gifts.
I'm with you on MAGIC - if we would improve our IT (and do it properly) we could save millions IF afterward we would reduce the spending on people that would no longer be needed with use of current technology. And it is a long-term issue. But the rest of the list - I'd take 90% of them off.
Again - thank you to the Lt. Governor - and if as you say the negotiations were with him and the Speaker, let me say thank you to the Speaker - for cutting up the credit card that W&M and Finance have long felt was their bailiwick. And to those that say the Governor will call a special session - get real. If the votes aren't there for it now, they won't be in a special session. Same (i'm afraid to say but truth hurts) applies to those that think Gov should call session for Charter Schools.
Keep them tight, LG Reeves and Senators. Let's REDUCE the state's bonded indebtedness rather than being happy that we are holding it where it is.
Kudos to ChiliCheeseDogTater for helping to limit long term debt.
If anyone understands that the uneducated masses exiting from behind the Illiteracy Curtain of Mississippi's public schools system will be unable to pay those long term bonds it is our see-ya-next-year-charter-schools Lt. Gubner.
I am sure Phil can lead us through this. Just slap some people on the back and tell some jokes while being MC at some charitable event. Maybe Phil has his physical years confused.
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