Jackson Free Press

The Mississippi House and Senate started working through spending bills this week as lawmakers face a couple of important deadlines in the coming weeks. By Thursday, March 29, legislators must pass appropriations from the bills' originating in their chamber.

Bryant Changes Budget Recs
Gov. Phil Bryant modified his executive budget recommendation this week in response to rosier-than-expected state revenue collections. To be exact, Mississippi will have $128 million more than previously thought.

Bryant's updated budget, submitted Tuesday, adds $73 million to the Mississippi Adequate Education Program and funds higher learning institutions, including community colleges at the same rate as fiscal year 2012. Bryant also added $3 million to the Mississippi Highway Patrol for 51 new troopers.

"It is encouraging to see a small increase in Mississippi's revenue estimate, and I am also hopeful that the increase is both justified and sustainable. We must still allocate our resources using sound, conservative guidelines," Bryant said in statement.

A Poor Tax?
As lawmakers wrangle with a spending plan, much of the debate will center on bills that will affect low-income Mississippians. One such bill, HB 1396, establishes the Consumer Installment Loan Act to regulate small loans on common household items, such as furniture, that are now regulated by the Check Casher's Act.

The proposal allows lenders to charge an annual percentage rate of up to 99 percent and a closing fee of 10 percent on loans of $1,500 or less. The bill also sets monthly fee limits of $69 on loans of $1,500.01 and up to $124 on loans up to $4,000.

Paheadra Robinson, director of consumer protection for the Mississippi Center for Justice, called HB 1396 "truly horrible for consumers."

The 99 percent APR that HB 1396 law establishes is higher than the current law's 36 percent, she said. Even though the act states the loans cannot exceed 22.5 percent of a borrower's gross income, small loan companies do not have to consider a borrower's other debts

Corporate Loophole
Since lawmakers have been cool to some revenue-boosting ideas such as collecting sales tax from online purchases, shoring up revenues is also key.

For this reason, supporters of HB 970 say the bill will close a $30-million tax loophole. Under current Mississippi law, corporations can pay royalties on intangible assets such as logos featuring fuzzy cartoon animals to states where the companies own assets to lower their income tax exposure in Mississippi.

The House has until Thursday to act on the bill, which is assigned to the Ways and Means Committee.

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