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PERS will ask Legislature for cash, consider changes to ’13th check’

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Mississippi Public Employee Retirement System leaders will ask the Legislature for a cash infusion during the 2024 session.

The board of trustees for the public pension plan is “seeking a cash infusion or direct appropriation from the Legislature,” PERS Executive Director Ray Higgins said in emailed response to questions from Mississippi Today.

The rare cash infusion request is one of a litany of proposals board members plan to offer to the Legislature in an attempt to ensure the financial viability of the public pension plan, which provides retirement benefits for most state and local government employees, including public school teachers.

Normally the Legislature does not provide direct appropriations to PERS. Instead, it is supported by governmental entities paying 17.4% of payroll for each employee. In addition, employees pay 9% of their payroll into the system, and the system also receives investment earnings.

In recent years, efforts have been made to improve the system’s financial viability that has been negatively impacted by multiple factors, including a decrease in the number of government employees. A reduction in the public sector workforce means less funds for the system.

PERS is providing or will provide benefits to about 325,000 members, including current employees, retirees and others who used to work in the public sector but no longer do.

It is not clear how much cash the PERS board might ask the Legislature to consider pumping into the program.

“Officially, yet to be decided,” Higgins said of the amount of money the board will request. “However, it could and likely will be a general request for funding and consideration of a new or dedicated (continuing on a yearly basis) revenue stream. It will also likely include a request for direct appropriations and/or funding for the estimated costs associated with the benefit increases from the late 90s and early 2000s.”

Higgins has said that money was never provided to pay for the enhanced benefits that were provided to PERS beneficiaries in the 1990s and 2000s.

The request would be made at a time the Legislature is flush with funds, thanks in large part to a major rush of federal money. The state had about $3 billion in reserves before the 2023 session and still has well over $1 billion.

According to a study by the Pew Charitable Trust, the Mississippi pension plan would need an additional $1.4 billion to reach its “net amortization benchmark,” which is the amount needed to prevent the plan’s unfunded liabilities from increasing. The system’s current funding ratio is about 61%, meaning it has the assets to pay the benefits of 61% of all the people in the system, ranging from the newest hires to those already retired. Of course, all of the people in the system will not retire at once. Theoretically, though, it is recommended that retirement systems have a funding ratio of 80% or more.

The system has $30 billion in assets and is underfunded by about $20 billion.

During an August meeting, the PERS board also voted to propose a new benefits structure for new hires. Details of what the new benefit structure would look like are still being contemplated, but it could include a new method of providing cost of living adjustments instead of the current system, where a 3% cost of living adjustment is guaranteed each year. The change to the COLA would be for new employees only.

Another recommendation could be a change to the payout method for the cost of living increase for future employees.

Under the current system, many people take the annual 3% cost of living increase as one lump sum payment at the end of the year, often referred to as “the 13th check.” The PERS board recommendation is to make the default choice for retirees to receive the cost of living increase divvied up as part of their monthly retirement checks. The employees would have to request specifically for the cost of living increase to be paid as a 13th check instead of monthly.

Changing the payout method from a lump sum to monthly for the annual cost of living increases would not result in less money for retirees, but it would give more flexibility to the system since it would not be taxed with paying the entire total at one time at the end of the year.

The board did vote to increase the employer contribution rate for each employee by 2% starting with the new fiscal year in July. This means the employer contribution rate would increase to 19.40% of payroll in July.

The board anticipates additional increases in the employer contribution rates in coming years with a possible projection of a rate of more than 27% of payroll.

“This potential future employer contribution rate will be updated in subsequent actuarial reports (typically presented each December) beginning with the next one for the state fiscal year ending June 30, 2023,” Higgins said.

The board has sole authority to increase the employer contribution rate, but it is up to the Legislature and local governmental entities to find the funds to pay for the increases or to cut other services to provide the funds.

It is estimated the total cost of the 2% increase to all governmental entities is $138 million per year.

The board was considering increasing the employer contribution rate earlier, but delayed the increase after an outcry by legislative leaders during the 2023 session. At that time, Higgins committed to providing the Legislature with recommendations from the board to help with the system’s long-term financial viability.

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JSU years away from solving housing needs but working on it

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It will likely be years before Jackson State University secures enough funding to fix its housing shortage as efforts are underway to seek legislative support in the absence of a deep-welled endowment. 

The university is estimated to lack 1,600 beds, according to the new director of campus operations.

Jackson State’s funding needs, which appears to be the largest bond request any university submitted to the Institutions of Higher Learning Board of Trustees, totals more than $136 million for water infrastructure improvements, renovation of a dorm that’s been offline for two years, and the construction of a new residence hall, according to budget documents.

Some of that money has already been granted to Jackson State, but it’s unclear how much. Last year, the university got $15 million in legislative funding mainly for repairs and renovations. 

The total amount of state support that Jackson State has received in the last 10 years is a little more than $56 million, according to the university. 

There are manifold reasons for this gap between Jackson State’s financial need and the amount of money the historically Black university can realistically expect to receive in state funding, according to lawmakers and university officials. 

Those include but are not limited to the continuation of historical underfunding, an anti-Jackson bias, the university’s recent presidential turnover and the relative lack of Jackson State alums at the Capitol who can independently advocate for the university outside the system-wide lobbying efforts undertaken by IHL. 

“Anything that had the word ‘Jackson’ leading into a request was looked at with askance,” said Sen. John Horhn, D-Jackson. “Unfortunately I think the university may have been victimized by association.” 

Some feel the university has made clear that its infrastructure needs help are beginning to negatively impact its enrollment. After the Jackson water crisis last fall left students living on campus without air conditioning or functioning bathrooms, the university’s enrollment fell by 1%. JSU’s fall enrollment was 6,906 students, according to IHL. 

“It’s all on the Senate, IHL and everybody else,” said Rep. Chris Bell, D-Jackson. 

IHL maintains its four-year funding bond process, which is based on historical state support, helps like-sized universities receive equitable funding. Still, the state’s three largest predominantly white institutions — University of Mississippi, Mississippi State University and the University of Southern Mississippi — come out on top. 

As a system, a spokesperson wrote via email, IHL lobbies for all eight institutions each session. 

“As the state’s urban research university located in the Capital City, Jackson State has a unique mission and a rich history of academic excellence and community engagement,” wrote Kim Gallaspy, assistant commissioner for government relations at IHL. “The additional state support we have received in the past few sessions is evidence that Legislators recognize the value of the university system, including JSU.” 

For HBCUs across the country, underfunding persists on a systemic level, not because of any one university president or government agency, said Andre Perry, a senior fellow at Brookings Metro whose research focuses on race and structural inequality. 

“These issues are long standing and durable, and they will require durable movements in response,” Perry said. “It’s not gonna be one piece of legislation or you know, a savior or a football coach that brings funding to Jackson State. It will be a sustained movement because the movement to deny black institutions is such.” 

Jackson State’s new executive director of campus operations, Vance Siggers, has a different perspective. He said the university needed to take ownership of projects that were in its control and make sure lawmakers were receiving a clear message about the importance of student housing vis-a-vis a new stadium.

Housing “is the biggest priority,” he said. “Not ‘one of’ — ‘the.’ And that’s not the message that was received (by lawmakers).” 

Siggers said he has been working to change that. Last month, he took lawmakers on a tour of the campus facilities. This is done every year, but Siggers said he conducted the largest tour in a decade, inviting faculty and staff. 

“There is a new breeze blowing on campus,” he said. 

One of the stops included McAllister Whiteside, a female dormitory that has been offline since 2021 due to mechanical, electrical and utility failures and equipment that needs to be repaired. The university is hoping to revamp it into a suite-style apartments with $20 million in state funding, some of which it has already received. 

“The way your campus looks is your front porch,” he said. “When you see a house with a neat front porch, you see a house that is welcoming. Nine times out of 10 you say that’s probably a pretty good house to visit. If the yard is out of control and you have weeds and all that time of stuff — I don’t know what the situation is at that house but a lot of times you’d say they need to do some tuning in there.” 

Jackson State is also seeking funding to build new dorms on land the university recently acquired from its development foundation, a sale that has been in the works for years. The new housing would significantly reduce the university’s backlog, Siggers said. 

But the plan is reminiscent of a failed 2014 plan to build a $47 million dorm complex on campus. 

Put on hold by the IHL board after Carolyn Meyers resigned in 2016 amid the university’s plummeting finances, the project is one of several campus upgrades that have been proposed, only to hit some kind of roadblock. The university and some supportive lawmakers considered pursuing a public-private partnership, but that did not materialize. 

So what’s different about this time? The leadership, Siggers said. 

“(Elayne) Hayes-Anthony is Jackson State,” he said. “She’s done so much for the state of Mississippi. She’s done so much for this nation. And there are a lot of people out there cheering.” 

It’s not clear yet if Hayes-Anthony will become the university’s next permanent president. Last month, the only JSU alumnus on the board voted against allowing her to apply for the role. 

The post JSU years away from solving housing needs but working on it appeared first on Mississippi Today.

The Pulse: Maternal Wellness Rx Initiative

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Jennifer Hopping, executive director of the American Heart Association, talks about the organization’s Maternal Wellness Rx initiative. The initiative focuses on supporting the health and well-being of pregnant and new moms through nutrition security, blood pressure regulation, emotional health support and infant CPR education.

Mississippi health news you can’t get anywhere else.

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Podcast: David Eckert joins the podcast to talk Ole Miss football.

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David Eckert, the Clarion Ledger’s excellent Ole Miss beat reporter, and Rick Cleveland both attended the Ole Miss-Tulane game in New Orleans Saturday. Tyler Cleveland watched on TV. The three discuss the Rebels’ closer-than-it-sounds 37-20 victory and what the future might hold for Lane Kiffin’s Rebels.

Stream all episodes here.


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National Democrats promote five legislative races in Mississippi 

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The Democratic Legislative Campaign Committee, a national Democratic Party-affiliated organization that supports statehouse races, announced Wednesday that it is aiming to boost candidates competing in five Mississippi legislative races this fall. 

“Democrats in Republican-controlled states like Mississippi are on the front lines of standing up to the GOP’s radical agenda,” interim DLCC President Heather Williams said in a statement. “These Democratic candidates are running to fight back against Republican extremism and ensure that all Mississippians are represented in their state legislature.” 

The five Democratic candidates the organization is supporting, all challenging Republican incumbents, are: 

  • Pam McKelvy Hamner (Senate District 2 in DeSoto County)
  • Andre DeBerry (Senate District 10 in Union, Lafayette, Marshall and Tate counties)
  • Donna Niewiaroski (House District 12 in Lafayette County)
  • David Olds (House District 24 in DeSoto County)
  • Annita Bonner (House District 86 in Wayne, Perry and Greene counties)

The five candidates are running in legislative districts that are currently represented by Republicans but are located in suburban areas or have districts with a higher percentage of Black voters and college-educated voters. 

It’s unclear exactly how much money the organization plans to invest in the races, but it’s notable the group, for the first time, is promoting candidates in Mississippi, a state dominated by GOP politics. Republicans control the Legislature, holding supermajority control of both the House and Senate — a reality that is unlikely to change in November.

Mississippi Democratic Party Chairman Cheikh Taylor told Mississippi Today that it is encouraging to see that the DLCC is investing in Mississippi and believes it could be a step forward to flipping seats occupied by conservative lawmakers.

“Mississippi should not be a state that national politics have given up on,” Taylor said. “In fact, we want to be sure we’re becoming more and more attractive because of the infrastructure we’re building here in Mississippi.” 

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On this day in 1858

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Sept. 13, 1858

The Oberlin rescuers at the Cuyahoga County Jail in April 1859. Photo by T.J. Rice. Credit: Library of Congress.

A federal marshal arrested John Price in Oberlin, Ohio, under the Fugitive Slave Act. Price was moved to nearby Wellington, but when abolitionists learned of the arrest, they stormed the hotel where he was being held, later helping him cross the Canadian border to freedom. 

A federal grand jury indicted 37 for their involvement. Not to be outdone, Ohio officials arrested the federal marshal, his deputies and several others involved in Price’s arrest. Officials agreed to release them in exchange for all but two of the 37 indicted. 

The two remaining men received light sentences. The Ohio Supreme Court upheld the convictions, leading to a protest of more than 10,000 in Cleveland. 

Because of his support of the Fugitive Slave Act, the chief justice lost reelection to the court. Two participants in the rescue — Lewis Sheridan Leary and John A. Copeland — joined John Brown’s 1859 raid on Harpers Ferry. Leary was killed during the attack. Copeland was captured and executed.

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Ole Miss’ Caden Davis reminds us why the sport is still called FOOTball

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Caden Davis was the SEC Special Teams Player of the Week for his work against Tulane. (Courtesy Ole Miss Athletics)

NEW ORLEANS — Nearly every game we watch leaves us with some sort of lasting impression. So here’s what I will remember most about Ole Miss’s 37-20 victory over Tulane, other than the fact that the final score was absolutely no indication at all of the intense competition that took place on a steamy New Orleans afternoon:

Ole Miss kicker Caden Davis is what I will remember.

Rick Cleveland

A kicker, you say?

Yes, but what a kicker…

Davis, a senior transfer from Texas A&M, showed us once again what a marvelous weapon an extraordinary kicker can be. He was, most assuredly, the Rebels’ MVP.

Davis reminded this long-time observer of another college placekicker from half a century ago, the one named Ray Guy, who was known mainly as a punter but could kick a football from here to next week.

So can Davis. It wasn’t just that Davis made all three of his field goals, including the game-clinching 56-yarder. It wasn’t just that he made all four of his extra point kicks. And it wasn’t just that he consistently kicked off through the end zones on his kickoffs. No, it was more the majestic height on all his kicks that floored me. Granted, Tulane’s smallish Yulman Stadium isn’t the tallest around, but Davis’s kickoff soared high above the stadium.

We see line-drive kickoffs all the time that carry into — and sometimes through — the end zone, but rarely do we see kickoffs that soar seemingly into the clouds, above the stadium, and still go through the end zone. In Davis’ case, at least one kickoff sailed through the goal post uprights and several rows up into the end zone seating.

Let’s put it this say: If Bum Phillips were still around, he would have that football checked for helium.

Again, Guy was known primarily for his punting, but as a straight-on, toes-first kicker, he was remarkable. He, too, got amazing height on his kickoffs, which nearly always carried through the end zones. He once kicked a 61-yard field goal in a Utah snowstorm. I saw him hit 70-yard field goals in warmups.

Davis has that kind of range as well. He hit one from 67 yards Saturday in pregame warmups. He says he has hit from 76 yards in practice. The ball just sort of explodes off his foot.

Still, Lane Kiffin was faced with a perplexing decision with two minutes remaining in the game. Ole Miss led 27-20 and faced fourth and one at the Tulane 34. Kiffin sent in Davis to try a 51-yard field goal. But then Ole Miss was called for a false start, making it a 56-yard try. Kiffin left Davis in, even though a miss would have given Tulane excellent field position and plenty of time to try to tie or win the game.

As it was, Davis made the kick with room to spare and the game was essentially over. For his efforts, Davis was named the Southeastern Conference Special Teams Player of the Week.

Now then, you, as I, might have wondered: Who is this Caden Davis? Wasn’t Caden Costa, sensational as a freshman, supposed to return after a year’s absence to be the Rebels’ kicker? 

Well, Davis won the job, kicking in the preseason just as he did on Saturday. Davis couldn’t get on the field for field goals at A&M, kicking behind Randy Bond, who was excellent last year for the Aggies. Interestingly, Bond has missed two of five field goals through two games this year, while Davis has made all four of his kicks for the Rebels.

An equally good example of how important a kicker can be might have come the next day in New Orleans, when the Saints began their season with a a 16-15 victory over Tennessee in what might best be described as a field goal fiesta. Rookie Blake Grupe made all three of his field goal attempts and the game’s only extra point. Each of Grupe’s kicks were center-cut and validated the Saints’ decision to keep him and let go of seven-year veteran Will Lutz, who now kicks for ex-Saints coach Sean Payton.

While Grupe, who looks like a water boy who just dressed out, was hitting every kick for the Saints, Lutz was missing one of his two in the Broncos’ opener. The Saints won at least partly because of Grupe’s kicking. The Broncos lost at least partly because of Lutz’s kicking.

We are only two games into a marathon season, but already we have received a prime example of why the game is called FOOTball. Kicking is still a huge part of it.

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Are Republicans about to leave Gov. Tate Reeves behind on Medicaid expansion?

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Gov. Tate Reeves, running for a second term this year, is traveling the state vowing he’ll continue to block Medicaid expansion, a policy that would provide health coverage to at least 200,000 working Mississippians and bring at least $1 billion in new annual revenue to the state.

A powerful fellow Mississippi Republican Party leader appears to have had enough of his defiance.

Presumptive new Speaker of the House Jason White told Mississippi Today last week that Medicaid expansion would be on the table in the 2024 legislative session. White’s remarks sparked an earth-rattling flash in a state that has resisted expansion for more than 10 years.

In just one interview, the likely new House speaker bucked his party’s leader in a prolific way. But the candor of White’s statement was telling in itself. He acknowledged that his own party was being rightfully criticized for not being willing to even discuss expansion. It was a brutally honest, almost self-deprecating statement, the likes of which are rarely seen in modern politics. 

And it was a clear contrast in how Reeves has long discussed and handled the issue.

“I think we as Republicans have probably earned a little bit of the bad rap we get on health care in Mississippi,” White said in a Thursday interview with Mississippi Today. “Part of that is that we haven’t had a full-blown airing or discussion of Medicaid expansion. We’ve just said, ‘No.’

“Now, I’m not out here on the curb pushing Medicaid expansion, but we are going to have full discussions on that and on all facets of health care in Mississippi,” White said. “… Right or wrong, we have been wearing the yoke of, ‘Y’all haven’t even considered this or dug down into the numbers.’ And that’s true.”

There’s all sorts of political cover for any Mississippi leader to float expansion. Public polling this year suggests anywhere between 65% and 80% of Mississippians — and well over 50% of Republicans — support it. Voters broadly want Medicaid expansion, and they’re letting candidates hear it.

White, for what it’s worth, knows this sentiment better than anyone. The past few months, he’s been coordinating political efforts to keep the House GOP supermajority intact in this November’s elections. Many of his partymates are facing challenges from Democrats, who have for years advocated for Medicaid expansion and have recently coordinated a concise pro-expansion message. Several Republican candidates across the state are no doubt having a hard time justifying their party’s inaction to voters.

Beyond just the politics, the facts are impossible to ignore. The federal expansion program would provide Mississippi, the poorest and unhealthiest state in America, billions in new revenue and create tens of thousands of new jobs. It would provide health care to at least 200,000 Mississippians who live in what’s called the “coverage gap” — people who have jobs but do not make enough money to afford health insurance plans on their own and are not offered coverage from their employers. And it would be a major financial shot in the arm for struggling hospitals.

READ MORE: Nearly half of rural hospitals at risk of closure in Mississippi, new data shows

But Tate Reeves doesn’t want it. He plays politics, calling it “Obamacare” and likening it to “welfare.” When the governor gave his State of the State address earlier this year, he issued a direct appeal to lawmakers to resist it.

“Don’t simply cave under the pressure of Democrats and their allies in the media who are pushing for the expansion of Obamacare, welfare, and socialized medicine,” Reeves said in that speech. “You have my word that if you stand up to the left’s push for endless government-run healthcare, I will stand with you.”

White, who sat a few feet from the governor’s podium that evening, apparently doesn’t care if the governor is standing with him or not.

For the first time since the Affordable Care Act was passed, the top two leaders of the Legislature may be on the same page about having a conversation, at least, about expanding Medicaid. Lt. Gov. Delbert Hosemann, a shoo-in to be reelected for another four-year term, has expressed openness to some version of Medicaid expansion in the past. 

While there has never been an earnest debate of expansion under the Capitol dome, most GOP lawmakers have clearly been awaiting leadership from a party leader. In the 2023 legislative session, Mississippi Today spent weeks surveying lawmakers about the issue. A voting majority in the House and just shy of a voting majority in the Senate said they either supported expansion or were still undecided. Only a small handful of lawmakers in either chamber said they outright opposed it.

White, apparently, is the leader they’ve been waiting on. And on this issue, he may just take his fellow Republicans along with him and leave his governor behind.

READ MORE: Why so many top candidates are ignoring Mississippi’s worsening hospital crisis

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On this day in 1992

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Sept. 12, 1992

Credit: Wikipedia

Dr. Mae Carol Jemison became the first Black woman to travel in space, going into orbit aboard the Space Shuttle Endeavour with six other astronauts. 

A native of Decatur, Alabama, she excelled in a classroom as a student, attending Stanford University on a National Achievement Scholarship. She also attended Cornell University Medical College and became a physician, working at the University of Southern California Medical Center. 

After serving as the Peace Corps medical officer for Sierra Leone and Liberia, she decided to follow her dream of becoming an astronaut. In 1987, she became the first Black woman admitted into the astronaut program. During the space shuttle journey, she conducted scientific experiments on weightlessness and motion sickness. She later appeared in an episode of “Star Trek: The Next Generation” and now is the principal of the 100 Year Starship organization, which is working with NASA to help make interstellar space travel possible.

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