Sunday, February 25, 2018

Bill Crawford: BRIDGE Act endows Governorship

Love him or hate him for it, Lt. Gov. Tate Reeves stays true to his autocratic ways. He dropped his complex $1.1 billion “Building Roads, Improving Development, and Growing the Economy (BRIDGE) Act” on the Senate one day last week and passed it the next.


He also stuck in the bill provisions that would allow him expanded autocratic power as Mississippi’s next Governor. In addition to the imaginative funding it would provide, the bill would shift certain authorities from the Mississippi Department of Transportation (MDOT) to the Governor.

The big money in the bill, estimated at $800 million, comes mostly from diverting money from the state rainy day fund into a new “Economic Development and Bridge Repair Fund” under the control of the Governor, not MDOT. The Governor would get to choose which bridges to be repaired from a list prepared by the State Aid Engineer, but would have total discretion to choose projects that “support economic development."

Notably, most of the money going into the fund would not be available to spend until the next Governor takes office.

There is an extraordinary policy provision in the bill that would shift from MDOT to the Governor approval authority for all future right-of-way acquisitions for the state highway program.

Reeves' bill also creates another new fund called the “Strategic Infrastructure Investment Fund.” The Governor would control expenditures from this fund too. Initial state funding would be limited to revenues generated by a new tax on electric and hybrid vehicles. But the fund could potentially access millions from the $1.5 trillion infrastructure program proposed by President Donald Trump.

Altogether, this could provide extraordinary discretionary money and power for the next Governor.

Could.

Reeve’s five-year funding scheme is imaginary not only because of the many existing sources he taps to capture funds, but also because much of it may be illusory. The projected rainy day fund transfers depend on annual state revenues exceeding expenditures by 2% of the total budget. That hasn’t happened in recent years.

There is no certainty that President Trump’s turn-$200-billion-into-$1.5-trillion infrastructure scheme will come true either. Even if it does, it may not be suitable for Mississippi to do much. As proposed, states would have to match each federal dollar four-to-one.

Also, another $125 million projected to fund a new Municipal Sales Tax Diversion Infrastructure Fund will only occur in years when state sales tax collections exceed the prior year’s by 1%. That’s another iffy prospect. Growing online sales and retail store closures have been slowing sales tax growth. Sales tax collections for 2017 were flat compared to 2016.

It will be interesting to see how the House and its burgeoning autocratic leader, Speaker Philip Gunn, react. Will they want to put so much money and power into the hands of the next Governor (Reeves is the well-funded favorite)? Will they want to sign on to a $1.1 billion scheme that may actually generate far less money?

Still and all, it could happen. All the money could come true, Reeves could become governor, and infrastructure spending bliss could descend upon the parts of Mississippi he favors.

Hard to bet against autocrats these days.


Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

17 comments:

Anonymous said...

Governor Hood will be loving him some Tate

Anonymous said...

So just to be clear: We are draining the rainy day fund to provide a slush fund to pay for roads?

We cut our already-low taxes.

We cut our spending every single year.

We're dead last in growth because there's nothing to attract businesses.

And now we're emptying the rainy day fund to pay for something as basic as roads and bridges.

I'm sincerely asking --experts and MSGOPers-- is any of the above incorrect?

Anonymous said...

Tell us 11:00 Donkeycrat what you would do differently. Be specific.

Anonymous said...

Bryant and Gunn are getting rolled by Reeves. This plan is all smoke and mirrors. If it passes short term and long term the roads will not be better than they are today.

Anonymous said...

I don't know about 11:00, and I'm not a Democrat, but just for starters:

1. I wouldn't cut taxes when there are glaring deficiencies in education and basic services, and when there is zero evidence that taxes are what is deterring companies from relocating to MS.

2. I wouldn't raid the trust fund. But if I had to take from it, I damn sure wouldn't dump it into an unaccountable slush fund in a state where corruption is endemic and the party in power has handed out favors like Tammany Hall.

3. I'd outlaw lobbying by state agencies. I'd implement a revolving door tax requiring state officials who land at Butler Snow, or any other lobbying firm, to pay 70% of their income for the first five years. I'd prohibit "consulting" contracts between former public officials and the public entities they regulated.

4. I'd implement performance metrics to pay effective, efficient public officials more and fire the bad ones -- including those who really just wanted to be "consultants" one day.

5. I'd prioritize areas that can potentially attract businesses and families, like Southhaven, Madison, Oxford, and Biloxi, for major infrastructure and education improvements funded by a mix of tax revenue and bonds. I would tell other areas that we might not get to them. You may have to move, because not every little town has a future in the global economy, and we have to prioritize places that can produce ROI.

6. I'd start work on consolidating school districts and even look at eventually consolidating counties. I'd consolidate back office functions of all state agencies and universities.

7. I'd change the flag to something bland and boring that isn't a dealbreaker for 1/3 of the folks who'd like to move here. And I'd repeal the dumb gay marriage law that solves a non-existent problem but makes us look stupid. Not because I'm particularly liberal, but because we can't afford to have these stupid conservative temper tantrums define how we're perceived.

Anonymous said...

Damn, 11:30 ... all excellent points. Good luck being elected in MS with that sort of forward thinking.

Anonymous said...

11:30, just as in your #1 there is "zero evidence that" your #7 specifically "is deterring companies from relocating to MS".

Anonymous said...

Tate's "smoke and mirrors" BRIDGE program will be long forgotten after he is elected governor. He is just playing to Gov. Feel's folks and playing the voters. At the end of his first term, Mississippi would have continued its decline, and no one will care about anything but who wins the annual Egg Bowl.

Anonymous said...

It's going to continue to decline and will soon require a $4 to $1 match from the feds to keep the doors open.

Anonymous said...

Hey 11:00, we are not draining the rainy day fund, as the democrat talking points say. The rainy day fund presently has over $300 million in it, and will have more added to it at 6/30/18. The proposal uses the 2% of revenues that would be added to it for the next five years to be used on roads and bridges. This amounts to about $560 million. The other part of the package is bonded. If revenues grow, as they are presently doing, there are no budget cuts, plus you are paying for the roads and bridges. Tax cuts are spread out 10 years and have been considered in all projections.

Anonymous said...

Revenues are growing? What percent?

Anonymous said...

When taking out one time deposits from last year, Actual revenues are growing Over 4% YTD

Anonymous said...

1130...i was with you until #6&7. Consolidation of school districts is the least likely thing to happen, right behind consolidation of counties. #7 dont have a problem with a private business refuses whomever...they will end up out of business anyway, social crisis averted

Anonymous said...

So state road and bridge contractors have a fortune coming their way.

Plain ol' Catfish said...

When McDaniels votes against his party, you damn right its smoke and mirrors.

He may be a closet bigot, but at least he means what he says and says what he means when it comes to fiscal responsibility.

He's one of the few Republicans I respect in the #msleg. He practices what he preaches.

Anonymous said...

9:15 - does that include his marriage vows?

Plain ol' Catfish said...

@ February 26, 2018 at 10:53 AM

I don't know about his personal life that much. But in my opinion, his wife isn't that bad looking.

But I do give him credit for being consistent on wanting the state to be conservative with spending.

This infrastructure play by Reeves is something to say he tried to do before he became governor, god willing he doesn't get in the office.



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