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Magnolia Political Report #53
March 2, 2004
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Dueling budgets
A few weeks ago, Governor Haley Barbour unveiled Operation Streamline, a budget plan that puts the state back on solid financial footing in two years. Barbour proposes no new taxes in his budget, opting instead to reform state government and cut spending. He does propose $113 in increases over the Legislative Budget Recommendation (LBR), primarily for higher education, homestead exemption reimbursements, MDA and MBN. His increases are offset by $283 million in savings, which include significant reforms of Medicaid, state health insurance. Barbour also proposes to save money by “rightsizing” government by temporarily moving state agencies from the purview of the personnel board.

Last week the House of Representatives adopted their own budget proposal – one that differs significantly from Barbour’s. The House plan exceeds spending outlined in the LBR by $673.9 million, including an extra $170.3 million for K-12 education spending.

Barbour proposed giving state employees more options on their health insurance to address a growing deficit in the program. The current one-size fits all plan is expected to rise by up to 23 percent next year. As part of Barbour’s package, state employees could pick the plan that best suits their needs, but would have to pay for part of their insurance premiums. The House plan contains $55 million to fund the state health insurance program, keeping the current system intact.

While Barbour makes his gains by reducing state spending, the House makes up the budget gap largely on the revenue side of the ledger. In one fell swoop, the House generates an extra $60 million by raising the state’s revenue estimate to 3.3 percent. Increasing fees on everything from specialty car tags to environmental permits would generate another $17.6 million.

Meridian Star ED: Pie in the sky 2/29


Is the Honeymoon over?

The Barbour Administration has shot holes in the House budget, the House has fired back at Barbour’s Operation Streamline and the Senate entered the fray by trashing the House plan while leveling some criticism at Barbour’s budget.

With around $709 million dollars to make up in shortfalls, the honeymoon was bound to be short. Barbour is sticking to his guns on making job creation his number one priority. He has said he’ll veto any budget that increases taxes. The additional spending he proposes is all aimed at job creation.

McCoy is dancing with the ones that brung him. He’s adamant about protecting state employees and teachers. McCoy sought to rally his troops by painting Barbour as attempting to cut education spending, though Barbour had simply adopted the LBR which McCoy helped draft.

The Senate has yet to offer a plan of its own. After the House passed their plan early Thursday, the Senate held a rare afternoon meeting to pick apart the House plan. Senate Appropriations Committee Chairman Jack Gordon gave members a several page letter detailing the shortcomings of the House plan. Gordon’s letter concluded “the House proposal is strategically flawed and structurally inadequate.” He called their financing “a veritable house of cards” that includes “tax increases labeled as fees” and “unprecedented utilization of borrowed funds to support recurring expenses.”

Senators were also handed copies of a letter from State Treasurer Tate Reeves that is critical of the House plan. Reeves called the upward revision of the state’s revenue estimate “irresponsible,” pointing out that the state is $9 million behind last year’s estimate for the first seven months of this fiscal year. He said the proposal to convert fixed rate bonds to variable rate bonds carries a “high degree of risk for the taxpayers.”

McCoy showed some adeptness at garnering votes from House members for his plan. It sailed through the House by a vote of 94 to 28, a total which includes 20 of Barbour’s fellow Republicans in the yes column. Only 2 Democrats dissented: Reps. Warner McBride and Mary Ann Stevens.

McCoy’s move to cut off debate and not allow amendments to the bill caused some consternation on the House floor. Sun Herald correspondent Geoff Pender reported that some House members compared the early days of McCoy’s tenure to that of Speaker Buddy Newman who “ruled the House and the state’s legislation with an iron fist.”

The move to cut off debate on the House floor passed by a vote of 78 – 42, with one legislator skipping the vote and another voting present. Twelve Republicans voted with McCoy to not allow amendments: Jim Barnett (Brookhaven), Lee Jarrell Davis (Hattiesburg), Forrest Hamilton (Olive Branch), Bobby Howell (Kilmichael), Wanda Jennings (Southaven), Eric Robinson (Quitman), Ray Rogers (Pearl) Tom Weathersby (Florence), Tommy Woods (Byhalia) and Hank Zuber (Ocean Springs). Notables on the Democrat side who voted against the Speaker were Charlie Capps (Cleveland), Bobby Moody (Louisville) and Bobby Shows (Ellisville).

Who’s quacking now?
If it walks like a duck and quacks like a duck, it must be a duck – so says those who contend that all fees are taxes. Others argue that voluntary fees like the extra cost of a vanity car tag aren’t really taxes, but compulsory fees, such as environmental permits, are. The broad definition is that a tax is a “charge against a citizen’s person or property or activity for the support of government.”

If fees are the equivalent of taxes, several of the House members have already broken pledges they made last year in the campaign. The following, who all voted for the $17.6 million in new fees in the House budget, promised voters not to vote for a tax increase when they signed the American’s for Tax Reform “Taxpayer Protection Pledge”:

Democrats
George Flaggs - Vicksburg
Joey Hudson - Monticello
Bennett Malone - Carthage
Bobby Moak - Bogue Chitto
Johnny Stringer - Montrose
Joe Taylor - Waynesboro
Joe Warren - Mt. Olive

Republicans
Bobby Howell - Kilmichael
Eric Robinson - Quitman
Ray Rogers - Pearl


Magnolia Report Polls

How is Billy McCoy doing as speaker?
Standing in the way of much needed change - 37.11%
Saving the state from Republicans - 17.82%
Getting his feet under him in a tough job - 16.35%
One day we’ll name a building after him - 10.27%
Don’t expect him to last long - 9.22%
Who is Billy McCoy? - 9.22%

Who is most likely to challenge Haley Barbour in 2007?
Mike Moore - 36.23%
Mike Espy - 25.51%
Eric Clark - 17.97%
Amy Tuck - 13.33%
Lester Spell - 6.96%

Which statewide elected official has the brightest future?
Tate Reeves - 34.39%
Phil Bryant - 32.99%
Jim Hood - 14.01%
Amy Tuck - 12.87%
Eric Clark - 4.20%

Haley Barbour’s budget balances the state budget within two years without a tax increase. Do you believe the state budget should be balanced by:
Cutting Spending - 71.01%
Combination of Both - 18.64%
Increasing Taxes - 6.80%
I Don't Care - 3.55%

Does Governor Barbour have enough diversity in his administration?
He’s picked the best people for the jobs - 59.43%
Not enough minorities or women - 19.58%
Don’t care - 8.96%
Not enough women - 6.84%
Not enough minorities - 5.19%


Updating campaign finance

The campaign finance reform proposal we reviewed in Magnolia Report # 52 passed the House last week (February 24) by a vote of 92 – 29.

Two Democrats, Rep. Bobby Moody of Louisville and Rep. Bobby Shows of Ellisville, broke with their leadership by not voting for the legislation.

Twenty-one Republicans broke with a majority of their membership in the House to vote for it.

Republicans voting for campaign finance reform were:

Larry Baker – Senatobia
Mark Baker – Brandon
Jim Barnett – Brookhaven
Lee Jarrell Davis – Hattiesburg
Herb Frierson – Poplarville
Danny Guice – Ocean Springs
Forrest Hamilton – Olive Branch
Frank Hamilton – Hurley
Steve Horne – Meridian
Bobby Howell – Kilmichael
Roger Ishee – Gulfport
Wanda Jennings – Southaven
Ted Mayhall – Southaven
Dannie Reed – Ackerman
Ray Rogers – Pearl
Clint Rotenberry – Mendenhall
Clayton Smith – Brandon
Jessica Upshaw – Diamondhead
Tom Weathersby – Florence
Tommy Woods – Byhalia
Hank Zuber – Ocean Springs

Big trouble for Little
Corinth businessman, Thurston Little, pled guilty last week to consipiracy and money laundering charges. The charges stem from Little's involvemnt with financeer Martin Frankel. Frankel swindled investors out of millions in the nations largest insurance fraud scam. Frankel paid Little $6 million up front and added a $30,000 per month retainer for his influence with Mississippi insurance officials. The entire Frankel story is told in the book The Pretender (READER BEWARE - Sexually Explicit Content)

Thurston is the older brother of President Pro Temporae Travis Little who is Lt. Governor Amy Tuck's closest confidant. Last August Tuck revealed that Thurston's company, North Mississippi Supply Company, loaned her $20,000 for personal living expenses during the 1999 campaign. Columnist Sid Salter wrote this week that Little's guilty plea turns Tuck's loan into a "Full fledged political nightmare."

SID SALTER: Tuck link to Little is now tied to Frankel 3/1

 


Movers & Shakers


Jack Criss
has joined Community Bank as Senior Vice President of Marketing. Criss moves over from Coopwood Communications, where he was executive editor of the Delta Business Journal and Delta Magazine.



Brian Wilson
begins work as Special Assistant to the Director for the Mississippi Department of Marine Resources on March 15. Wilson leaves Washington DC after five years as Senior Legislative Aide for Senator Trent Lott where he handled Appropriations, Environment& Public Works, Corps of Engineers, Homeland Security, National Park Service, Agriculture and Indian Affairs issues. During the 2003 Campaign, Wilson took a two month leave of absence and served as Field Representative for the Amy Tuck Campaign on the Gulf Coast. In his new role at DMR , he will be responsible for government affairs on both the state and federal level as liaison to the Governor, Lieutenant Governor, and Mississippi's US Senators and Congressmen.

Congressman Chip Pickering has added Commander Mike Lipski of Long Beach to his Washington DC staff as Military Legislative Assistant and Special Projects Director. Lipski comes to the office with two decades of service in the US Navy at sea, on bases around the world and at the Pentagon. Lipski's legislative service includes service as Navy Legislative Fellow on the National Security Staff of then Senate Majority Leader Trent Lott. Lipski will handle military and homeland security issues for Pickering as well as direct the efforts at protecting the Naval Air Station in Meridian from the next round of base closures (BRAC).

Mick Bullock has been named Director of Public Relations for State Auditor Phil Bryant. Bullock's background includes work with the Columbian Progress and he has worked with several Republican officials and campaigns.


Mississippi's Moment Pictures Posted

www.MississippisMoment.com

Photos from ‘Mississippi’s Moment’, the Inauguration of Governor Haley Barbour, are now available online at www.MississippisMoment.com By clicking on the name of each Inaugural event, you will find specific information about how to order photos and you can view hundreds of photos that are available including a large 10 x 24 inch panoramic photo of the Inaugural Ceremony at the south steps of the state Capitol building. All photos were taken by professional photographer Joe Lee of Madison, Mississippi.




CJR round two
Legislation further reforming Mississippi’s civil justice system, SB 2763, passed the Senate last Wednesday by a 32 to 15 vote. Lt. Gov. Amy Tuck made tort reform a centerpiece of her successful re-election campaign last year. Tuck and the conservative State Senate wasted no time in passing legislation that caps pain and suffering damage awards at $250,000, requires medical malpractice claims to be reviewed by a medical review board and curtails the practice of “jury shopping” to find friendly venues in which to file lawsuits.

The Senate bill, which has been sent to the House, will likely get a chilly reception among the House leadership. Speaker Billy McCoy has been coy on his stance on tort reform, but if anyone ever wondered where he stood, those questions were answered when he named Rep. Ed Blackmon to chair Judiciary A in the House. Blackmon sports around Jackson in a $200,000 Bentley, paid for by his winnings as one of the most successful plaintiffs’ attorneys in the state. He’s not likely to let the bill see the light of day.

If tort reform ever gets to the floor of the House, it stands a good shot of passing. Fifty-nine members of the 122-person body signed on to House legislation, HB 1579, that reforms the civil justice system in Mississippi. Governor Barbour’s political skills are legendary among political junkies. Tuck’s aren’t bad either. Both will need all they have if they are to have a chance at getting the House to agree on additional tort reform.


Lott tipping his hand?

Senator Trent Lott’s recent fundraiser fueled rumors that Lott is leaning toward a run for re-election in 2006. Lott has said publicly that he’s not sure whether or not he’ll seek a 4th term in the Senate. When asked at the fundraiser if he is running again, Lott said he’d talk about it later. The fact the checks for the event were made out to “Trent Lott for Mississippi,” Lott’s campaign committee, raised eyebrows.

Kerry - Edwards visits?
Massachusetts Sen. John Kerry wrapped-up the Democratic presidential nomination Tuesday night, a week before most pundits thought he would. Kerry's chief rival, Sen. John Edwards of North Carolina, was trying to hang on long enough to compete in several contests next week in his native South.

Both Edwards and Kerry planned to make stops in the Magnolia State before we vote on March 9th. Edwards was scheduled to attend a fundraiser in his honor at the home of former Mississippi Trial Lawyers Association president Lance Steven. Kerry reportedly was planning to come to Jackson and Tupelo, but though details have not been released.

With Edwards exit from the presidential race, it’s likely Kerry will be a no-show in Mississippi.

Thirty-three Democratic delegates from Mississippi are up for grabs on March 9th.

Gutsy call or politically obtuse?
Just before Kerry swept 10 states Tuesday night, 28 Democratic lawmakers in Mississippi endorsed his candidacy. Rep. May Whittington of Schlater wasn’t shy about why she is supporting Kerry, telling the Clarion Ledger Kerry “has a better shot than anyone else” of beating George W. Bush.

Bush bettered rival Al Gore by nearly 17 percentage points in Mississippi in the 2000 election. No Democrat has carried the state since Southerner Jimmy Carter carried the state in 1976. The last time a Bush ran for president against a socially liberal Massachusetts elected official, George Bush beat Michael Dukakis 60 to 39 percent in Mississippi. We’re guessing Rep. Whittington doesn’t plan on running statewide anytime soon.

Pickering to Vice-Chair Energy and Commerce Committee
According to an Associated Press report, Third District Mississippi Congressman Chip Pickering will soon be the new Vice-Chairman of the Energy and Commerce Committee in the House. In addition to being the oldest of House Committees (first established in 1795), it is also one of the most powerful with jurisdiction over issues relating to telecommunications, consumer protection, food and drug safety, public health and Medicare, air quality and environmental health, the supply and delivery of energy and interstate and foreign commerce in general, Pickering will serve under new Chairman Joe Barton (Texas-6) who replaces outgoing Chairman Billy Tauzin (Louisiana-3).


7 days until the Primary
GOP challengers for 4th District Rep. Gene Taylor and 2nd District Rep. Bennie Thompson will be decided next Tuesday, March 9th. State Rep. Mike Lott should get the nod from voters in the 4th to face Taylor in November. The race to challenge Thompson in the 2nd is wide open.


Legislative shenanigans
Elected officials often talk cooperation and conciliation in public while taking shots at their opponents below the radar screen. Rep. Bubba Pierce filed legislation, HB 1636, to prevent political consultants from becoming lobbyist until at least a year after the candidate who employed them takes office. It also bars lobbyist from consulting on campaigns for at least one year after they last registered as a lobbyist.

The measure would affect several lobbyist-consultants in the state. However, it is apparently aimed directly at the nephews of Gov. Haley Barbour, who headed into lobbying after working on Barbour's campaign last year. Reps. Bo Eaton, Steve Holland, Bobby Moak and Percy Watson are also listed on Pierce's legislation.

Think it’s good government instead of a political move. Consider this? Former Speaker of the House Tim Ford, though not a registered lobbyist with the Secretary of State’s office, is making calls on behalf of clients. Ex-Senator Crowell Armstrong and former House members Will Green Poindexter, Tom Wallace (who was defeated last November), Willie Bozeman and Bob Montgomery are currently registered lobbyist. So is Gary Anderson who resigned as head of the Department of Finance Administration to run for Treasurer last year.

Over the years, many members of the House, Senate and the executive branch have left state government and immediately began lobbying careers.

If it’s good for the goose, it’s good for the gander. No word yet when Pierce, Eaton, Holland, Moak and Watson are going add themselves and their colleagues to their “good government” legislation. We won’t hold our breath for them to correct their oversight.

State Rep. Eric Flemming, who probably introduces more bills than any other member of the House, has outdone himself this time. HB 221, authored by Flemming, would authorize the state to issue distinctive car tags featuring cartoon characters from Disney, Looney Tunes and Warner Brothers.


Quotable Quotes
"Everybody in here is for fully funding everything, obviously, if we can find the money to do it." - Senator Travis Little

"If you are not making $200,000 a year, you ought to be voting Democrat...You are cutting off your nose to spite your face." - AG Jim Hood

"I have very good feelings about Jackson — a city with significant accomplishments in civil rights," - German Chancellor Gerhard Schroeder


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