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Legislature to adjourn this week minus a budget? And what about those new Nissans?

March 22nd, 2010 No comments

Magnolia Marketplace has been making the rounds of the Capitol sources this morning, and we’ve got an interesting nugget to pass along: There are strong expectations that the Legislature will adjourn this week without a budget.

Reason being: The state still needs more information from the federal government regarding Medicaid, and how the state will have to adjust to the new FMAP rules. So the plan is to send lawmakers home while all that is ironed out. Once it is, the Legislature will gavel back into session and hammer out a spending plan for fiscal year 2011, which starts July 1.

The same thing last session kept lawmakers at the Capitol literally until the 11th hour. A budget deal wasn’t reached until minutes before the new fiscal year started. There was a significant hue and cry earlier this session to make sure that didn’t happen again. A giant leap toward a repeat of last year appears ready to happen, though.

Dan Turner, spokesman for Gov. Haley Barbour, would not confirm the rumors but did say such a move “wouldn’t necessarily be a bad thing.”

So stay tuned on that front.

Shifting gears, Nissan will hold a press conference Wednesday afternoon to provide an update to its $118 million expansion and restructuring that will make way for production of light commercial vehicles. The LCVs are scheduled to hit the market this fall, once the 2011 model year starts. Magnolia Marketplace wrote a story about this very thing two weeks ago, and the company said then that everything was on track. Wednesday should fill in some of the gaps. We’ll have the particulars once it’s over.

The broken budget record is still spinning

March 17th, 2010 No comments

Gov. Haley Barbour announced today that an additional $41 million was disappearing from the state’s budget for fiscal year 2010 because of spiraling state revenue collections.

Since the budget year started last July, $499.1 million has been cut.

“Hopefully we’re making the last cuts of the year,” Barbour said.

The latest round of cuts comes just a few hours after the Joint Legislative Budget Committee lowered  the revenue estimate for FY2010 and FY2011. FY10’s figure was reduced to $4.43 billion, and FY2011 was set at $4.45 billion.

Barbour said he was “skeptical” revenue in FY2011 would reach $4.45 billion. Legislators are crafting that plan now.

Barbour signaled his opposition to any budget that comes to him from the Legislature that would waive the stipulation, commonly called the “2 percent rule,” that sets aside 2 percent of appropriations for the rainy day fund. Legislation that violates the 2 percent rule, Barbour said, can expect his veto.

Aside from the state’s dismal fiscal situation, Barbour touched on a few other topics. Among them:

• The healthcare bill President Obama hopes to pass this week would be “very bad for Mississippi,” he said. House Speaker Nancy Pelosi’s plan to pass the bill without a vote wasn’t very popular with Barbour, either. “That’s mind-boggling to me,” he said.

• He urged the House to pass the reauthorization for the Mississippi Department of Employment Security. If the agency is reauthorized by June 30, those currently drawing unemployment will no longer do so. Barbour dropped strong hints that he would call a special session if lawmakers end the regular session without reauthorizing the agency.

• We asked Barbour what was next for The Aerospace Alliance, a four-state consortium that seeks to expand the Gulf South’s aerospace industry, which suffered its first big loss last week when Northrop Grumman/EADS pulled out of the KC-X Tanker program. He said some pretty interesting things, which we’ll chronicle in a story in next week’s MBJ.

Let the Madness begin

March 15th, 2010 No comments

Conversation in offices around the state have likely, at some point, turned to Mississippi State’s devastating loss to Kentucky yesterday in the championship game of the SEC Tournament, and to March Madness as a whole.

That’s where we come in. We’re working on a story about productivity during March Madness. Some bosses choose to allow their employees some slack when it comes to watching the games online, managing their office pools, brackets, etc., and some don’t. If you’re a boss, which category do you fall in? What influences your decision? Does your office have an annual March Madness tradition? Are you starting one?

Bosses and employees, please email me at clay.chandler@msbusiness.com. I’d like to talk to you for the story. Good stories make good reading, so if you have a take, get in touch, and the story will appear in next week’s MBJ.

Until then, happy bracketing.

Categories: News Tags:

Report: Northrop Grumman/EADS will exit tanker bid

March 8th, 2010 2 comments

The Seattle Times is reporting that Northrop Grumman and its partner European Aeronautic Defence and Space Co. will pull out of the race for the $35 billion contract to supply the Air Force with a new fleet of refueling tankers.

The paper cites an anonymous source who says the official announcement will come after the stock market closes this afternoon.

There had been rumors that Boeing would eventually have the competition to itself after the Pentagon released the final request for proposals Feb. 24.

For the ST’s full report, click here.

Guns bill dies; competing Eastover legislation still alive

March 3rd, 2010 No comments

Yesterday was a major deadline for legislation at the Capitol, with bills that have already cleared one chamber needing to make it out of committee or die until next session.

Senate Bill 2153, which would have allowed concealed weapon permit holders to carry their firearms into public parks, unsecured public buildings and bars and restaurants — provided owners chose to allow it — died in the House Judiciary B Committee.

Magnolia Marketplace has a story about the legislation in this week’s MBJ. The restaurant owners we talked to were wary, to say the least, of allowing handguns into their buildings. Andy Wilson, who has Underground 119 in Downtown Jackson, was the most adamant, saying the legislation reminded him of the Wild West days when cowboys packed their pistols in swinging-door saloons.

Although the issue is dead for this session, look for it to appear next year. The National Rifle Association, one of the most powerful lobbies in politics, has made this legislation a priority.

The two bills that deal with the Old Blind School property, which Jackson developer Ted Duckworth wants to turn into a mixed-use development, are still active. SB 3097, authored by Jack Gordon, would authorize the state to lease the property for development. Rep. Cecil Brown, D-Jackson, has authored House Bill 637, which calls for the state to sell the property to a developer with conditions attached that would allow the state to take it back if those conditions were not met.

We had a story about the competing pieces of legislation about a month ago, in which we learned that Duckworth would most likely pull out of the project if the state insisted on leasing the property instead of selling it. With both the lease and sell bills still alive, Duckworth’s future involvement would seem to be still very much up in the air.

Categories: Economic development, News, Politics Tags:

Toyota reports February sales

March 2nd, 2010 No comments

Toyota has just released its sales figures for the month of February. There is some pretty good and some really bad in the numbers.

The really bad:

Overall sales of Toyotas — excluding Lexus and Scion — for February came in at 100,027 vehicles. That represents a decrease of 8.7 percent from last February.

The Corolla compact and the mid-size Camry and Camry Hybrid were the company’s best-sellers last month. About 17,000 new Corollas rolled off car lots; the Camry and Camry Hybrid combined to sell about 16,500 units.

To go with the foundering automotive market, Toyota had to expect some sales-related fallout from the recall mess the company has been fighting since the calendar turned to 2010.

The decline is magnified by the strong showings General Motors and Ford both posted earlier today. Ford sales increased a whopping 43 percent; GM’s jumped 12 percent.

The good news is that Lexus sales were up 4.5 percent in February 2010, compared with February 2009. The Tacoma mid-size pickup also saw its sales jump almost 6 percent.

What’s even better for Mississippi, where the company maintains it will eventually build the Prius Hybrid, is that sales of the vehicle this past February (7,968 units) were up 10.2 percent from the same period last year.

You can view the entire sales breakdown here.

Toyota reports February sales

March 2nd, 2010 No comments

Toyota has just released its sales figures for the month of February. There is some good and bad in the numbers.

The bad:

Overall sales of Toyotas — excluding Lexus and Scion — for February came in at100,027 vehicles. That represents a decrease of 8.7 percent from last February.

The Corolla compact and the mid-size Camry and Camry Hybrid were the company’s best-sellers last month. About 17,000 new Corollas rolled off car lots; the Camry and Camry Hybrid combined to sell about 16,500 units.

To go with the foundering automotive market, Toyota had to expect some sales-related fallout from the recall mess the company has been fighting since the calendar turned to 2010. Both General Motors and Ford earlier today posted strong showings for February. Ford sales increased a whopping 43 percent; GM’s jumped 12 percent.

The good news is that Lexus sales were up 4.5 percent in February 2010, compared with February 2009. The Tacoma mid-size pickup also saw its sales jump almost 6 percent.

What’s even better for Mississippi, where the company maintains it will eventually build the Prius Hybrid, is that sales of the vehicle this past February (7,968 units) were up 10.2 percent from the same period last year.

You can view the entire sales breakdown here.

Is sugar the new nicotine?

March 1st, 2010 No comments

As we mentioned earlier, Judith Phillips, a research analyst with the Stennis Institute of Government, was the keynote at today’s monthly luncheon meeting of the Stennis Capitol Press Corps.

Phillips released the findings of a report she just completed that looks at some of the facts and figures associated with obesity – more specifically, how much sugar-sweetened drinks contribute to the condition.

Mississippi is at or near the top of almost every list that ranks the most obese states in the U.S.

Figures from 2008, the latest that are available from the Centers for Disease Control, tell us that 33.4 percent of Mississippians are considered obese relative to their Body Mass Index, which measures height and weight to determine if a person is obese, overweight, at his ideal weight or even underweight. Mississippi is first on that list, followed in second place by Alabama, at 32.2 percent.

The CDC also puts Mississippi at the top of deaths per 100,000 people that are obesity related. In 2006, the latest year for which numbers are available, 270.9 Mississippians died of heart disease, which is the most common obesity-related disease that causes death. Alabama, at 253.3 deaths per capita, is second on that list, too.

In 2009, according to Phillips, Mississippi spent $700 million in Medicaid money to treat obesity-related conditions. Phillips said that number is expected to rise above $1 billion the next decade, as states are forced to pick up bigger portions of their Medicaid tabs.

“Action is needed (to combat obesity and pay for the tratment of related illnesses and diseases) but that decision is left up to the decision-makers,” Phillips said, adding that her report wasn’t meant to forge policy, but to provide information to those who make policy decisions.

A bill that would have added an excise tax on sugar-sweetened drinks like sodas has already died this legislative session.

But the issue is far from over.

Rep. John Mayo, who authored the bill this session, has said repeatedly the past few months that he will continue to introduce similar legislation. Phillips’ report says that a one-cent-per-ounce tax on sugar-sweetened drinks would produce an average of $145 million per year in revenue the next four years; a tax-per-ounce of 1.5 cents would generate an average of $187 million per year over that same period. A two-cent-per-ounce tax would produce an average of $208 million over the next four years.

Ron Aldridge, who is the Mississippi director of the National Federation of Independent Businesses, also serves as the executive vice president of the Beverage Association of Mississippi, which staunchly opposes any excise tax on its sugar-sweetened products.

Aldridge said the BAM led the charge in 2007 as Mississippi became the first state to remove full-calorie sugar-sweetened beverages from public schools.

“This thing is not about whether or not our beverages cause obesity. There’s been no scientific study that says that. There’s been no scientific study that proves there’s a direct link to that, either. What they do say is that it’s about calories in and calories burned.

We believe we need to attack obesity at every front. The public schools have done an excellent job of that. Taxes aren’t going to make us healthier. That’s the reality of it.”

This sounds a lot like the rhetoric that surrounded the cigarette tax in its first years of debate at the Capitol. Legislation to levy an excise tax on cigarettes died the first three or four times lawmakers attempted to move it forward. While it’s not certain that a soda tax will pass, like the cigarette tax eventually did, what is certain is that it’s an issue that will be a part of the next handful of legislative sessions.

Categories: News, Politics, State revenue Tags:

Bill deadline tomorrow — guns bill to live or die

March 1st, 2010 No comments

If you haven’t already, be sure to check out my story in this week’s MBJ about the bill that would allow people who have valid concealed weapon permits to carry their firearms into public parks, unsecured public buildings and bars and restaurants, if owners choose to allow them to do so. The angle that we pursued was the bar and restaurant conundrum. Not surprisingly, people on both sides of the issue have strong feelings about handgun possession in places that serve alcohol.

The bill sits in the House Judiciary B Committee, and since it originated in the Senate, it must clear Judiciary B by 8 p.m. Tuesday, or it dies. Rep. Willie Bailey, D-Greenville, chairs Judiciary B, but Magnolia Marketplace was unable to corner him for comment before press time last week.

Also arriving just a little too late for the print edition was a statistic from the Mississippi Department of Public Safety, which issues the weapon permits, which shows that 14,004 people in Mississippi have a valid concealed weapon permit. That number is as of Feb. 26.

On the agenda today is the monthly luncheon meeting of the Stennis Capitol Press Corps, in which Judith Phillips, of MSU’s Stennis Institute of Government, will discuss her research and report, “Obesity and Sugar-Sweetened Beverages: An Overview for Decision-Makers.” The effects of soft drinks on public health and its impact on the state’s bottom line, and whether they should be taxed, has gotten a good amount of play this legislative session.

Magnolia Marketplace will have the particulars as soon as they’re available. Stay tuned.

Categories: News, Politics Tags:

Bryant: Barbour’s veto will be sustained

February 24th, 2010 No comments

Gov. Haley Barbour earlier today vetoed Senate Bill 2688, a bill that would have restored money to some agencies after budget cuts, because he said in a press release that “it spent too much of the state’s reserves and ineffectively divided funds among several agencies. This legislation would virtually guarantee higher taxes within a few years,” Barbour said of the bill’s use of one-time money to fund recurring expenses .

Specifically, Barbour said the bill spent too much of the Health Care Trust Fund and the state’s rainy day fund to fill some of the gaps left by budget cuts, which have totaled more than $400 million since the fiscal year started last July.

Barbour had signaled his intentions to veto the bill almost from the moment it cleared both chambers of the Capitol about a week ago. There had been some strong indications that Barbour’s perfect veto record would acquire its first blemish once the legislation headed back to the House and Senate.

Lt. Gov. Phil Bryant, in a statement released about 10 minutes ago, doused cold water on that notion.

“It is my intent to sustain the Governor’s veto and immediately move on SB 2495,” Bryant said. “This bipartisan compromise allocates nearly $40 million to restore cuts made to education. It also places a total of $16 million, including $14 million that we did not anticipate receiving, to the Department of Corrections. In all, SB 2495 restores $82 million of cuts made to state agencies for FY 10. I will continue to work with the Governor and the House leadership to reach a fair and reasonable solution without compromising the state’s savings account.”

Obviously, if enough senators vote to override Barbour’s veto, Bryant’s plan will fail. With the House all but certain to override Barbour’s veto, it will be up to Bryant to muster enough votes in the Senate to sustain it.

Barbour’s undefeated veto record has come close to entering the realm of political legend. Magnolia Marketplace will never forget Barbour’s veto last session of a bill that would have eliminated the use of eminent domain for economic development projects. The bill originally cleared the Senate 52-0. His veto was sustained with a handful of votes to spare.

“That’s the damndest thing,” said Marty Wiseman, director of the Stennis Institute, shortly afterward the Senate sustained the veto.

It sure was.