In this episode of Mississippi Stories, Mississippi Today Editor-At-Large Marshall Ramsey sits down with writer David Magee to discuss his powerful new memoir Dear William, written to his late son who died of an accidental drug overdose.
He helped inspire and create the William Magee Center for Wellness Education at the University of Mississippi, named for his late son and designed to improve lives with new solutions. Formerly a columnist for Newsweek, and a former daily newspaper and magazine publisher and a vice president of Alabama Media Group (al.com), David is the author of a dozen books including How Toyota Became #1 (Penguin), named a Top 10 Business Book of the Year from the American Library Association, and The Education of Mr. Mayfield, a best book of the South (2009), and he has been a regular guest on CNBC.
Former House Speaker Tim Ford, a northeast Mississippi Democrat, used to say legislative sessions with large revenue surpluses were much more difficult than sessions where the state had revenue shortfalls.
When the state had surpluses, Ford would say, legislators were faced with difficult choices on how to divvy up the funds.
If that is true, the 2022 session of the Mississippi Legislature, beginning Jan. 4, will be one of the most difficult in state history.
State coffers are flush — perhaps an unprecedented flushness.
It gets complicated, but the bottom line is the state has the potential, if revenue collections hit the projections of the state’s financial experts, of having about $2 billion more for the 2022 session than the $6.6 billion that legislators appropriated during the 2021 session. A large portion of those funds are considered one-time revenue, meaning they should not be spent on recurring expenses. But there are infrastructure projects and other options for the use of the non-recurring revenue.
That $2 billion is derived from three years of surpluses and projected surpluses.
For starters, the Legislative Budget Committee and Gov. Tate Reeves recently approved a general fund revenue estimate for the upcoming fiscal year that is 9.6% or $566 million above the projection the Legislature used in the 2021 session earlier this year to budget for the current fiscal year. That in essence provides legislators in 2022 with about one-half billion more in funds to spend than they did in the 2021 session.
But wait, that’s not all. Stashed away in state coffers is $1.05 billion in revenue from the past fiscal year that ended on June 30. The $1.05 billion is the amount collected above what was appropriated by the 2020 Legislature.
And to top it off, collections for the current fiscal year are now projected to be $525.7 million or 8.8% above the estimate used by the 2021 Legislature to budget for the current fiscal year. If that projection holds, legislators will have another $500 million at their fingertips.
Totaling the surplus from the past fiscal year and projected surpluses for the current and next fiscal year gives legislators a cool $2 billion. Even if those official projections are not met, the state still has a surplus of at least $1 billion in the bank.
Lt. Gov. Delbert Hosemann, perhaps afraid to acknowledge the full scope of the state’s revenue bounty, recently said, “We have $1 billion in excess (state) revenue we have to figure out how to spend. We need to be talking about tax reform … I’ve got a list of about 99 differing things, and they are all really important.”
Besides those aforementioned state funds, the Legislature also has $1.8 billion in federal American Rescue Plan funds awarded to the state in response to the COVID-19 pandemic that must be appropriated by the end of 2024. Presumably during the 2022 session, legislators will begin figuring out how to spend those funds.
The deadly pandemic and the influx of federal funds have established unique circumstances resulting in the revenue surge. State leaders would like to point to their policies as the reason for the extra revenue.
Perhaps they deserve some credit. But the impact of COVID-19 and the federal funds cannot be neglected.
“Much of that growth was due to transfers from the federal government through the CARES Act (Coronavirus Aid, Relief and Economic Security Act) and other measures,” state Economist Corey Miller recently said.
Former Speaker Ford knew a little about dealing with the enviable problem of surging revenue. For much of the 1990s, the state experienced unprecedented growth as the casino industry boomed. The state benefited first from the casino construction as massive structures rose up on the Gulf Coast and in the flat cotton fields of the Delta. And then the state benefitted from a whole new source of revenue — taxes on casinos.
The Legislature also in the 1990s raised more revenue by increasing the sales tax on retail items from 6 cents to 7 cents.
With the surging revenue in the 1990s the state was able to among other things:
Provide what is still a record pay raise for teachers.
Air-condition classrooms.
Place teachers on the state health insurance plan.
Provide a $6,000 annual supplement for master teachers.
Enact a new school funding formula.
Invest heavily in a long-neglected state mental health system.
And yes, pass the largest, at the time, tax cut in the state’s history, which among other things eliminated the so-called marriage penalty where a married couple paid more in taxes than an unmarried couple.
In many ways the 1990s were historic in terms of actions taken by the Legislature.
Based on the available revenue, the 2022 session also could be historic.
In a wave of backlash against President Joe Biden’s recent COVID-19 vaccine mandate, Mississippi joins at least 26 other states in suing in opposition of the mandate, with Gov. Tate Reeves successfully winning an injunction on the mandate from the U.S. 5th Circuit Court of Appeals just days ago.
Mostly composed of Republican-leaning states with vaccination rates on the lower end of the spectrum, this coalition includes Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia and Wyoming.
As the White House lists on its website, Biden’s Path Out of the Pandemic COVID-19 action plan has several conditions, some of which have inspired the aforementioned backlash:
• Companies with 100 employees or more must be fully vaccinated by Jan. 4 or submit to weekly testing. • Healthcare workers, federal workers and contractors who work with the federal government must be fully vaccinated and do not have the option of weekly testing, but federal workers only have until Nov. 22. • Large concert halls, sports arenas and the like must require proof of vaccination or testing. • Employers must provide paid time off for vaccination and any post-vaccination side effects.
View the data on those states opposing Biden’s business vaccine mandate, including their vaccine rate and partisan lean:
In 2022, state lawmakers might consider revamping Mississippi’s state financial aid programs in a way that will change how thousands of students pay for college — and whether they even go.
Under the proposed “Mississippi One Grant,” the state’s three current financial aid grants will be consolidated into a single program that will award aid using a formula of need plus merit.
This policy would have wide-ranging implications for college students and their families, but understanding the ins-and-outs of this proposal can, at first glance, seem confusing and complicated.
In an effort to help readers understand what’s going on here, we’ve created several data visualizations that show how the “One Grant” will affect students’ bottom line. As we walk you through the graphics, we’re also going to answer some key questions you might have about this proposal:
Why is this change happening?
How will the One Grant work?
What’s at stake?
How will this affect me?
Let’s start with why lawmakers are considering this proposal. It’s mainly due to cost.
Currently, Mississippi has three main financial aid programs:
The Mississippi Tuition Assistance Grant (MTAG): This grant is intended to help middle-class students who aren’t eligible for federal financial aid. It awards between $500 and $1,000 a year.
The Mississippi Eminent Scholars Grant (MESG): This is the state’s merit-based grant for students who score at least a 29 on the ACT. It awards $2,500 a year.
The Higher Education Legislative Plan for Needy Students (HELP) grant: This is the state’s only need-based grant. It covers all four years of college for students with at least a 20 on the ACT who come from families that make less than $39,500 a year.
All three programs were created in the late 1990s and, in recent years, have come under criticism for different reasons. MTAG and MESG no longer seem to accomplish the policy goals the state created them to meet.
For some policymakers, the bigger problem lies with the HELP grant. While HELP is an effective program, it has ballooned in cost over the last 10 years as Mississippi universities increase tuition and more and more students apply and receive the grant.
Rather than increase the amount of money it allocates to these programs, the Legislature has funded state financial aid at a deficit in recent years. This has led to worries that the Office of Student Financial aid might have to prorate student’s financial aid awards, so the Post-Secondary Board proposed and unanimously recommended that lawmakers pass the One Grant redesign as a way to stay in budget.
To keep the One Grant on budget, the Post-Secondary Board is proposing capping the maximum award at $4,500. That will go only to the poorest students with the highest ACT scores.
Now compare that to the cost of tuition at University of Mississippi: $8,934. That’s how much a UM student who gets the HELP grant currently receives in state aid: $8,934. The significant gap between those two awards are why advocates for college access in Mississippi are concerned about the One Grant.
This brings us to what’s at stake: For many students in Mississippi, state financial aid programs are the difference between going to college and, well, not. The state’s high poverty levels mean we have some of the lowest college-going rates in the country, and that, in turn, affects the kinds of jobs Mississippians can get. State financial aid is one way many low-income students and their families can break that cycle of poverty.
This proposal, however, won’t help low-income students. Low-income students will receive significantly less aid under the One Grant than they do under the state’s current programs. Middle-class families on the other hand, who often can already afford to pay for college, will receive more aid. You can see this shift in dollars in the following chart:
Because the One Grant will substantially cut aid for the poorest students in Mississippi, it also means Black and minority students will be getting much less. White students, on the other hand, will see their average aid slightly increase.
Why does the program have this effect? We already talked about the gap between the aid low-income students currently under the HELP grant and what they would receive from the One Grant.
Another significant reason for this disparate impact is how the One Grant awards “merit.” To get any aid under the One Grant, a student has to score a minimum of 18 on the ACT. That minimum score is going to cut off many Black and low-income students who don’t have access to good test prep.
More than half of Mississippi high school students do not score well enough on the ACT to get aid under this proposed program.
When it proposed the One Grant, the Post-Secondary Board said it wanted to create a financial aid program that would give more aid to more students.
The One Grant will do that: About 1,700 more students will be eligible for aid under this new program. But the additional dollar amounts they will receive are negligible. The average student is going to gain just $87 in aid under this program. Meanwhile, low-income students are going to lose thousands.
Scott Smallwood, co-founder and editor-in-chief of our partner newsroom Open Campus, contributed to this report.
A ribbon-cutting was held Friday morning in the Delta town of Marks to celebrate the improbable re-opening of the Quitman Community Hospital.
Multiple rural Mississippi hospitals have closed in recent years because of financial difficulties. The Quitman County medical center is one of the few to reopen.
“For the first time in five years, Quitman County residents will have access to critical care with the reopening of this rural hospital,” said state Sen. Robert Jackson, who represents Quitman County and the area the hospital will serve. “It’s nothing short of a miracle to see this come to fruition, especially in a time when we are going through a pandemic and our current political climate. I can’t think of anyone who is against this particular project.”
In September, the Quitman County Board of Supervisors voted to reopen the hospital in partnership with the Panola Medical Center in Batesville and with the Delta Medical Foundation, which provides clinical health care in the area.
“This means that 75-100 good paying jobs will return to the county, and it goes without saying, we need a hospital close by to provide medical services for our citizens,” said Manuel Killebrew, president of the Quitman County Board of Supervisors.
According to a news release, the hospital will offer both 24-hour emergency medical services and beds for those who need hospitalization.
Various statistics indicate the county, which has about 6,800 residents, according to the latest U.S. Census, is in dire need of medical help. According to the National Rural Accountable Care Commission, the county ranks 79th of the 82 counties in Mississippi in terms of health outcomes.
Quentin Whitwell, chief executive officer and chairman of the board for the Panola Medical Center, said reopening the hospital in nearby Quitman County will help improve health care outcomes for the region.
“Serving our patient populations in the North Delta region is our mission. Providing exceptional care for better health is our driven passion,” Whitwell said in a news release.
U.S. Rep. Bennie Thompson, who represents Quitman County and who attended the ribbon-cutting, said, if the state would expand Medicaid as is allowed under federal law to provide health care coverage to primarily the working poor, it would help ensure rural hospitals like the ones in Panola and Quitman counties do not close.
“The Quitman County Hospital closed because of Gov. Reeves’ unwillingness to expand Medicaid,” said Thompson, a Democrat. “The governor shouldn’t turn down federal dollars that will give Mississippians the same healthcare coverage that he also enjoys.”
Reeves, along with other state leaders, have refused to expand Medicaid, saying the state cannot afford its share of the cost. Under the program, the bulk of the costs is paid by the federal government and there have been studies, including by the Mississippi University Research Center, indicating expanding Medicaid would result in additional funds to the state general fund.
The Mississippi Hospital Association had joined other groups in trying to place on the ballot a citizen-sponsored initiative to expand Medicaid. But in May the entire initiative process was struck down by the Mississippi Supreme Court.
U.S. Sen. Roger Wicker also attended the ribbon-cutting on Friday.
Gov. Tate Reeves announced on Thursday his intent to allow the state of emergency he declared in early 2020 to combat the COVID-19 pandemic to expire on Nov. 20.
Reeves previously announced in June that he would let the emergency order expire on Aug. 15, but reversed course as the delta variant pushed the state’s hospital system to the verge of collapse.
Issuing states of emergency — which provide a legal framework for extraordinary government actions to be carried out — is one of the governor’s most direct powers in Mississippi.
“With more than 3,000,000 doses of the COVID-19 vaccine having been administered in Mississippi and with COVID-19 infections and resulting hospitalizations being effectively managed, it is time to end the State of Emergency in Mississippi,” Reeves tweeted.
Mississippi’s seven-day average for new COVID infections have decreased by more than 91% since the August peak. Hospitalization and death rates have followed this trend. Still, ending the state of emergency could severely limit hospitals’ ability to coordinate patient transfers if the state sees another winter surge of infections.
Reeves’ announcement comes 11 days after 900 nurses the state funded to help keep hospitals afloat during the worst of the delta wave left dozens of hospitals across the state. It also comes as Reeves has refused to call a special session of the state Legislature to address the massive staffing crisis hospitals across the state are experiencing.
On Nov. 5, chief nursing officers from 36 hospitals across Mississippi begged Reeves and other state leaders for help as they confront the need to close hundreds of hospital beds this winter due to the ongoing labor shortages.
The original state of emergency order allowed Reeves to issue dozens of executive orders related to the pandemic, ranging from imposing mask mandates to closing businesses and other activities to limiting crowd capacities at various venues.
Since March 4, 2020 — when the governor first issued a state of emergency — Reeves has issued at least 78 executive orders and supplements to executive orders related to the coronavirus — most of them legally allowable because of the state of emergency.
Under the state of emergency, State Health Officer Dr. Thomas Dobbs was able to mandate that hospitals coordinate under MSDH’s COVID-19 System of Care Plan. In its current form, the System of Care Plan prioritizes all Mississippi hospitals’ inpatient hospital beds and other resources for COVID-19 patients who require admission.
Dr. LouAnn Woodward, vice chancellor for University of Mississippi Medical Center, told Mississippi Today in August that she was concerned that the expiration of the emergency order would diminish the authority of Dobbs to mandate that coordination.
“Without that in place, the transfer and the management of these patients at a statewide level would be not as organized, it would be more chaotic and more ad hoc,” Woodward said.
The state of emergency order also granted Dobbs the power to issue his own health-related orders, including requiring quarantine for infected or exposed Mississippians, requiring hospitals to participate in a state-run program that allows real-time tracking of hospital bed space, and requiring school districts to report their COVID-19 infection data the Mississippi State Department of Health.
A number of other actions related to Mississippi’s COVID-19 response could expire without the state of emergency order in place. These include:
The authority for state agencies to provide paid administrative leave for public employees for various reasons related to COVID-19, such as an employee contracting the virus or being quarantined or caring for a loved one with the virus.
The authority of counties, municipalities and local school districts to offer paid administrative leave to their employees related to COVID-19 absences.
Dobbs’ authority to mandate that all the state’s hospitals coordinate with the state Department of Health to assess bed space in real time and provide adequate care for the state’s hospital patients.
The activation of the Mississippi National Guard to assist with COVID-19 testing and vaccinations, among other duties.
