Jackson Free Press

There is a showdown this week in the Magnolia State between Gov. Haley Barbour and the state Senate on one side and the House of Representatives on the other. Between them hangs a $108 million economic-development bond bill that Barbour wants passed before the regular session convenes in January. Most lawmakers agree on the need for the bonds, which would primarily honor commitments the state made in 2003 to Northrop Grumman Ship Systems.

The House is trying to flex its municipal muscles. In this chess game, some House members believe that once Barbour's economic-development bonds are passed, he can't be trusted to support the other funding bills coming down the pike in January. He has, thus far, refused to add the other bonds to the special session.

Mississippi State Treasurer Tate Reeves, a Republican, made it simple during a House Ways and Means Committee meeting on Monday, when he called for the Northrop Grumman bonds to move forward: "Do the long-term benefits outweigh the short-term benefits and debt? If yes, then I would advise that we issue these bonds." The state Senate agrees, voting 42-0 last week in favor of Barbour's bond bill.

The House, though, isn't quick to agree to issue those bonds, while other bonds—one of which includes $30 million of the Ayers settlement for the state's historically black universities—are left unattended until the Legislature convenes in January. The House Ways and Means Committee has been trying to come to a mutual agreement for days now—and, as we go to press, has refused Barbour's request, responding with a fuller menu of bonds than Barbour wants.

Barbour also supports bonds for Tim-Tek, Viking Range, Baxter Healthcare and the UMC Cancer Center. Many House lawmakers say the Barbour bill should not cherry-pick those bonds, but should include $312 million for community colleges and bridge repairs across the state. Other lawmakers believe those causes can wait until the regular session starts back in January.

Rep. Cecil Brown, D-Hinds, said at a Stennis Institute luncheon Monday that the "governor sent mixed messages" and ignored "protocol." He added: "I think we have a moral commitment to fund Northrup Grumman, and we have a legal and a moral commitment to fund Ayers."

Northrop Grumman Ship Systems is the state's largest private employer, currently managing about 12,000 jobs along the state's gulf coast. Last week, Philip Dur, president of Northrop Grumman, spoke to the House Ways and Means Committee and urged them to maintain their $144 million, multi-year commitment to help fund expansions in both Pascagoula and Gulfport. The company has agreed to match the state's dollars two-to-one, pledging to create more than 2,000 jobs.

In an effort to extinguish these fiscal fires, Rep. John Reeves, R-Jackson, introduced a bill for only the $40 million slated to Northrop Grumman for the next year. Reeves said Monday: "Call me old school, but I believe a handshake means something. Musgrove made Northrop a deal, and the state should honor its commitment to them. We must keep our word so that others will trust us. I believe other projects are good, but with our bad financial position, we simply can't afford them right now. Northrop Grumman wants to know by tomorrow, so we need to resolve this."

Reeves is referring to the Northrop Grumman board of directors meeting that was scheduled for 10 a.m. Tuesday morning in Florida, where they planned to discuss the company's budget plans for the next year. The governor said the lack of a decision by the Legislature by that deadline could cost many people jobs and demolish dreams of expanding the Gulfport shipyard.

Brown said at the luncheon that it was "legitimate" that Northrup Grumman needed to know something before their meeting. However, he said, it did not require a special session.

"(Barbour's) got a right, but we've got a duty, folks," he said. Sen. Gloria Williamson, D-Philadelphia, said the Legislature needs to pass the $108 million package and deal with the rest of this in the regular session. "We need to keep Northrop Grumman's facilities up to date and allow them to expand," she said. "We aren't Santa Claus with his big bag of goodies. We don't need to issue bonds to take care of our debt. We need a new source of revenue. In January, everybody is going to have to tighten their belts."

Brown emphasized at the luncheon that the Legislature is going to face a rat's nest when they return in January, regardless of what happens in this special session—at least a $3.6 billion deficit, and little left to cut that's not going to anger one constituency or another. "There is no pot of money out there," he said, adding that Barbour refuses to even consider raising the tax on cigarettes (which has not gone up since 1985) or even fees that have not gone up since the 1960s.

"If we don't increase taxes or fees, we're going to see major cuts. … I'm not trying to pick on the governor, but people need to know."

So far, the governor will not submit a budget until lawmakers agree to his bond requests during this special session. At the luncheon, Brown crumpled up a piece of paper and threw it on the floor, calling it Barbour's budget. "The governor doesn't have a budget," he said. "I don't know what we're going to do."

Previous Comments

ID

64308

Comment

The Clarion-Ledger's coverage of the special session has been very incomplete, and without context so faróespecially the editorials, which are about as silly and simplistic as they've done on any topic to date (although the tort reform and recent endorsements certainly vie for the prize as well). Today's editorial is no better, but the actual news story on page 1 is the most balanced and thorough piece, yetófocusing on Barbour's rather bizarre accusations of "racial quotas." However, the editorials about the "obstructionist" House this week have been just ridiculous and, seemingly, without any sense of the big picture of what's really going on at the Legislature. The Corporate-Ledger's editorial writing (and reasoning) is simply in the toilet these days. Real Mississippians deserve better. (See Rep. Cecil Brown's comments in City Buzz this issue for some very apropos criticism of legislative coverage and editorials of late.) Oh, and just in case you think the Ledge's pro-Barbour bias is only in the editorials, check out page 3E's promotional house ad for the paper today (should you still actually read the paper). It promises coverage tomorrow (Sunday) called "State Capitol Rift" and then follows with: "State House members are fighting amongst themselves, their peers across the hallway and Gov. Haley Barbour. If the bickering is already costing taxpayers thousands of dollars, what does this spell for the 2005 legislative session?" Now, that's Fair and Balanced.Æ

Author

DonnaLadd

Date

2004-11-20T14:19:00-06:00