Home|Login|Register  |    
Haley won - An exercise in conservative governance - updated
Reflections on the special session
by Alan Lange
7/3/9
Haley Barbour emerged victorious this past week. While states nationwide were issuing IOUs, the Mississippi legislature actually passed a balanced budget albeit kicking and screaming from the pressure levied on them by Governor Barbour. This may be viewed historically as Governor Barbour's second greatest accomplishment of his term (the first being of course the response to Katrina). It will likely further serve to raise his stock among conservatives in the 2012 Presidential conversation.

Remember where we came from before the Special Session.

The Billy McCoy-led House wanted $0 hospital assessment on Medicaid. Governor Barbour got $60M that will increase to $90M under certain conditions in 2011.

McCoy and the MS Hospital Association wanted total protection for hospitals against cuts. They wound up being up to $40M at risk should Barbour need to make cuts to balance the budget.

McCoy's leaders wanted no taxes on small tobacco. Governor Barbour got close to $10M against House leaders initial wishes.

Of course the main bone of contention was saving the Rainy Day fund from the House spending it like drunken sailors (with my apologies to drunken sailors everywhere for the comparison). Here, Haley aided largely by Lt. Governor Phil Bryant and Senator Alan Nunnelee on the Senate Appropriations Committee held firm.

Governor Barbour artfully ran out the clock and boxed the Legislature in and had them literally begging him to be called back into the session. He set the tone by requiring that all revenues be taken care of first before expanding the call for revenue bills. It took extraordinary discipline to slay the spending dragon, but again, it may well be viewed as one of his greatest accomplishments as Governor.

The PSC

The PSC has very closely aligned themselves with Attorney General Jim Hood. Given the PSC's history of corruption in its ranks (former commissioner D.W. Snyder went to jail for corruption), several senators were uneasy about expanding their charter for "more technical resources" when the Public Utilities Staff has a full complement of advisory staff that are functionally at the beck and call of the PSC. Many around the Capitol believe that the game plan for the PSC and Hood was to expand the PSC staff and then make a move to disband the PUS in a few years. Instead of settling for what they had under extraordinary budget circumstances, House leaders pressed their luck on the PSC power grab and it got shot down in committee on the Senate side. It was just another side effect of the Legislature playing chicken with the Governor over the budget and not including him in deliberations forcing the special session.

Barbour has now called a special session to convene on July 10, 2009 at 10:00 a.m. for funding the PSC/PUS. My bet is that it would be at a static level as compared to last year. For anything he hasn't signed from the last special session, he would then have line item authority on revenue bills for the most part up until July 15. Any of those vetoes would not be able to be acted upon by the Legislature until they are next in regular session in January allowing him a little more control on the revenue side for FY10 . . . theoretically.

A Little Intrigue

Just before sine die in the Senate, Lt. Governor Phil Bryant announced the 10 members of the Senate that would serve on the all-important redistricting committee. He chose 5 Democrats and 5 Republicans. That would seem to be a direct challenge to House Speaker Billy McCoy, who has totally frozen out Republicans since his 62-60 vote to be re-elected as speaker. Should McCoy choose a lopsided Democrat majority on this committee, fur will certainly fly. There has been almost no mention of this anywhere in the press, but lobbyists, politicos and insiders are watching it carefully.

Have a great 4th of July weekend.

Posted July 3, 2009 - 10:15 am
9 Comments:

I don’t see how you can say that a Governor who pushed through three tax increases is a conservative.

The hospital tax, and the deceit that was used to force it through, was a disgraceful act from start to finish.

The Governor, several prominent Republican leaders, and the so-called “conservative” media in the state used the same demogogic tactics that liberals has used for so long to justify taxing “those people”: pick a disliked minority, demonize them, accuse them of using “lobbyists”, claim they’re not “paying their fair share”, etc. etc.

No, what we saw the last week was the triumph of welfare-state mentality over conservative principles, embraced by Republicans who falsely claim they are conservative.  Honest, decent businesses (private hospitals) not to mention public hospitals, were forced to pay a new tax in order to be paid for the services they provide the state of Mississippi.

Taxes went up, and who will pay them?  Sick people - but not all sick people.  Just those sick people who pay cash or buy their own private insurance.  Medicaid/Medicare folks won’t pay a dime more.

Thanks a whole lot, Republican leadership in Mississippi!  Thanks for raising my healthcare costs.

John Pittman Hey

Posted by John Pittman Hey on 07-03-2009 at 01:09 PM [link]

Reagan signed tax increases.

Guess he was a liberal.

Posted by kingfish on 07-03-2009 at 02:12 PM [link]

Reagan was certainly less conservative in his fiscal policy than I would be comfortable with.  All that deficit spending, with some tax cuts and some tax increases.

Economically, he was a mixed bag.

He wanted to cut the size of government.  It took a blip downward, and then skyrocketed with BUSH I, Clinton, and BUSH 2.  Looks like Obama will continue the trend.

But the question is, why didn’t the governor cut spending by $90 million to “fund Medicaid”?  After all, we have a $6 Billion state budget.  Seems like he could’ve found a couple hundred Million to cut instead of raising taxes.

Truth is, state government blows about half its budget every year down the rathole of government schools.  They should start cutting government by slashing that waste to the bone.

John Pittman Hey

Posted by John Pittman Hey on 07-03-2009 at 02:32 PM [link]

the Medicaid situation should have been addressed years ago.using,Katrina money spoiled the hospitals not having to pay what they were accustomed to paying.the hospital lobbyists paid off the politic ans to keep from going back to the original policy.the House has drug their feet for three years on this same issue and cost the taxpayers and lied to the public about the issue trying to hide the real facts.

Posted by uhsreb on 07-07-2009 at 06:13 PM [link]

"uhsreb”,

Again, your argument fails because you haven’t grasped the fact that the hospitals weren’t “paying” anything under the old IGT scheme.  They were being fully compensated in less than a month’s time for every dollar they “paid.”

They weren’t out any money, because it wasn’t really a legitimate transaction.  It was a back and forth of funds to try to game the Fed’s payment scheme.

So no, the hospitals were not “accustomed” to paying anything.

I am curious: why do you think that a vendor that performs services to the state should be targeted with a special tax to help “pay” the very money the vendor has performed services for and is entitled to receive?

Would you work for someone who told you you were going to have to “kick back” an assessment to him before he would pay you your wages?

John Pittman Hey

Posted by John Pittman Hey on 07-07-2009 at 07:07 PM [link]

That’s pretty funny that Haley calls a Special Session on a Friday morning.  That doesn’t leave much room for the legislature to maneuver.  That was certainly no accident.

Posted by Alan on 07-08-2009 at 06:01 AM [link]

Hadn’t thought about that.  I guess they’ll be there all Friday, instead of coming in and adjourning at 10 am for the weekend.

Posted by Just Me on 07-08-2009 at 10:03 AM [link]

We need a constitutional amendment that requires the legislature to attend special sessions without pay.

That way, they’d have an incentive to get their work done in the regular session.

John Pittman Hey

Posted by John Pittman Hey on 07-08-2009 at 11:51 AM [link]

Interesting discussion; We will be having a Tea Party at the same time the National Governor’s Conference is going on. Biloxi Town Green across from the Hard Rock Casino. Phil Bryant and Stacy Pickering are invited.

For more information visit http://www.citizenliberty.com

Thank you

Posted by politicalstate on 07-11-2009 at 11:32 PM [link]
You must be registered and logged in to post a comment. And yes, you can still keep your identity anonymous. See the instructions on the registration page.



recent comments

©2005-2010 Jackson New Media, Inc. All rights reserved.