JACKSON — Mississippi lawmakers Tuesday gave Gov. Phil Bryant permission to withdraw another $50 million from state reserves to cover deficits in the budget year that ends June 30.
The move to shore up this year’s budget came as House and Senate leaders remain at a standoff over parts of next year’s budget, even as other business in the 2017 Legislature begins to wrap up. A special session will likely be needed to approve spending plans for the Mississippi Department of Transportation and Attorney General Jim Hood’s office before the 2018 budget year begins July 1.
To guard against further cuts during the current budget year, the House and Senate on Tuesday approved Senate Bill 2649 and sent it to Bryant, who is expected to sign it.
Bryant has cut $171 million from the state budget since July. He has also withdrawn $50 million from the state rainy day fund — the limit he can take in a year without additional legislative authorization.
When he announced a fourth round of budget cuts Friday, Bryant asked for permission to withdraw more money from the $240 million remaining in the state’s rainy day fund. He said Monday he wanted $25 million more in authority.
Lawmakers Monday also approved a bill that appropriated $105 million to various agencies to spend this year, including $60 million for the state-federal Medicaid program to cover a deficit.
The Legislature has passed most bills needed to fund state government for the year beginning July 1, although the $6 billion spending plan is 5.8 percent lower than what was originally appropriated for the current year. But two bills setting the budget for the Transportation Department were killed Monday, casualties of a dispute between the House and Senate over efforts to come up with more money for roads and bridges.
The House wants to earmark some tax money from internet sales to road and bridge work, but Lt. Gov. Tate Reeves opposes that move. House members earlier tried to tie the annual plan to borrow money for construction needs to their road-funding plan, and that bill also died in the dispute.
There was little sign Tuesday that the House and Senate were getting close to an agreement. House Republicans took to the airwaves and posted online videos supporting their position.
“We’ve developed multiple solutions to address this problem, and I think those solutions need to be given their consideration at the other end of the hall,” House Transportation Committee Chairman Charles Busby, a Pascagoula Republican, said in one video . “We just need them to sit down and talk with us about what we can do to maintain our roads and bridges.”
Laura Hipp, a spokeswoman for Lt. Gov. Tate Reeves, attacked the House for risking the cost of a special session.
“Evidently, they want to raise internet sales taxes so badly they don’t care how much it costs taxpayers,” she said.
House leaders deny their plan is a tax increase because it now relies on companies that voluntarily agree to collect taxes.
The attorney general’s budget bill died late Monday in a dispute over requiring the attorney general’s office to quickly deposit any checks from lawsuit settlements. Hood, the lone Democrat in statewide office, announced last week he was depositing $34 million into the state treasury, and he suggested lawmakers spend it on mental health services. Such suggestions from Hood have long irritated Republican legislative leaders who see it as showboating.
Democratic Rep. David Baria of Bay St. Louis questioned whether the quick-deposit requirement was properly put into a budget bill. After consulting attorneys, Republican House Speaker Philip Gunn said it was not. Senators, however, rejected a House attempt to remove the provision. Without agreement before a deadline, the bill died.
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