Jackson Free Press

JACKSON, Miss. (AP) — Mississippi's lieutenant governor said Monday that he's ready to accept most of the transportation funding proposals championed by leaders of the state House. That makes an agreement more likely during a special session that Gov. Phil Bryant has said he wants to begin on Thursday.

Republican Lt. Gov. Tate Reeves said there's "general agreement" that any package of legislation should include transferring some taxes on internet sales to cities and counties. He's also ready to use money from sports betting and creating a state lottery to increase spending on the state Department of Transportation. Reeves, who leads the Senate, also said lawmakers are also likely to borrow up to $300 million.

He describes his stance as "a big move to the House position" compared to proposals he made earlier this year, which focused on diverting money to transportation that would have otherwise gone to the state's savings account.

The House wants to divert up to 35 percent of the tax on internet sales to city and county transportation spending. Reeves said he's grown comfortable that the state can afford to do that after a U.S. Supreme Court ruling giving states the power to tax all sales made remotely.

"We have generally agreed as to those transfers," Reeves said. "There are details to be worked out."

House leaders want to automatically distribute the money to cities and counties. Reeves said he wants to consider a new grant program for some of the money, or use some of it to provide revenue streams for existing grant programs that fund city and county infrastructure needs. He said he wants to "ensure there are accountability measures in place."

House Speaker Philip Gunn, a Republican like Reeves and Bryant, was meeting with Republican lawmakers in the Capitol Monday morning and wasn't immediately available for comment.

Both Reeves and Gunn say they personally oppose a lottery, but both have signaled they're willing to concede to the wishes of other lawmakers.

"The governor has been very vocal, in the press and otherwise in our meetings, that he will include a lottery as part of the call for the special session," Reeves said.

Reeves said the plan would provide about $100 million a year in continuing revenue to local governments and another $100 million a year to the state Department of Transportation.

Transportation commissioners say $400 million more each year is needed to prevent deterioration of highways. Reeves said $100 million is a significant bump in state spending, even if it's not what commissioners want.

"I hear from people all throughout state government that tell me they don't get enough," Reeves said.

In the past, he's wanted to eliminate Mississippi's three elected transportation commissioners and replace them with an appointed structure, but said that wouldn't be part of any special session call. Relations between the department and Reeves are rocky. This summer, Reeves has faced questions about whether he tried to push the agency to build a $2 million road connecting the front gate of Reeves' subdivision to a nearby Flowood shopping center.

Also in the mix is an agreement on how the state should spend $700 million in economic damage payments from BP PLC after the 2010 Deepwater Horizon oil spill. Legislative leaders agreed to dividing that money with 75 percent for the three coastal counties and 25 percent for the rest of the state. Reeves said the main sticking point was how to spend the roughly $100 million now in the bank, and whether to use that for special projects. He said he thought those issues could be worked out.