Lawmakers to Face Budget Challengs in 2009 Session

Legislators kick off the 2009 session today at the old capital in Jackson, where the state legislature met until 1903. While they're meeting in a historic location, they'll be tackling some modern problems.

Workers spent yesterday putting some of the final touches on the old capital to get it ready. Inside the capital smelled of fresh paint, and outside workers were landscaping and pressure washing the sidewalk.

When lawmakers take their place in the chambers later today, they'll open a session facing some dire economic predictions. In December tax revenues were down around 9 percent below estimates. Governor Haley Barbour Spoke about the issue yesterday in Jackson.

“it would be better if I could tell you I think December's an anomaly. I don’t,” said Barbour.

One likely contentious part of the budget will come in trying to fill a 90 million dollar deficit in the Medicaid program, which provides healthcare to around 600,000 low income, aged and disabled Mississippians. Some house members pushed last session to increase tobacco taxes in the state to pay for the program. Barbour says he doesn’t want funding from tobacco taxes connected to any one program.

“I don’t think we ought to tie the legislators’ hands,” said Barbour. “IF this year they think the biggest chunk ought to go to Medicaid, fine, but next year we may want it for education.”

Barbour is in favor of reinstating tax paid by hospitals until 2005 to cover the Medicaid shortfall. Tying tobacco taxes to the Medicaid program could also meet opposition in the Senate. Last week Lt. Governor Phil Bryant told reporters he’d like tobacco taxes to help offset other tax cuts.

“We believe there’s an exchange that could take place,” Bryant said. If you’re going to generate additional revenue through a tax increase, we want to be able to go back as Republicans and say ‘yes, but we lowered taxes.’”

An offset doesn’t sound like a good plan to House Majority Leader Tyrone Ellis, a Democrat from Starkville.

“Right now I don’t foresee that as something the House would be interested in. I think right now is a terrible time to think about tax cuts. We’re in the hole right now,” said Ellis.

Ellis hopes lawmakers can help reduce costs in other areas, such as the Department of Corrections.

“Their budget is out the window, it’s through the roof. We’re looking at ways to lessen the incarceration of these non-violent offenders,” he said.

Even with the tight finances, lawmakers hope to work stimulating the economy and attracting jobs. Legislators and the Governor have expressed interest in fully funding k through 12 education as a way to bolster the economy in the long term. Lt. Gov Bryant says it could cost up to 60 million dollars more than last year, but it’s a good use of the state’s money.

“Education is a key to our economic future. If we don’t have a well-educated, trained workforce, we’re not going to be able to bring in future Toyotas, Nissans and Severcorrs,” said Bryant.

Following the opening ceremonies, lawmakers will continue the session at the new capital. The restored old capital museum will open to the public in February.