State adds $291M to indebtedness

The COVID-19 pandemic has cost the State of Mississippi huge amounts of capital. Before the Legislature ended its session July 1, it passed a bond bill that will add $291M more to the state’s indebtedness. House Bill 1730, sponsored by state Rep. Trey Lamar (R-Senatobia), is lined with projects for agencies, colleges and universities, and even pet projects. The bill has $86.725M in borrowing for universities, $41.5M for state agencies, and $35.9M for community colleges. Among some projects: • $600,000 for improvements to ballfields in Petal; • $18M for a new bridge on the I-20 frontage road and improvements at the Port of Vicksburg; • $2M for Itawamba County for economic improvements, railroad repairs, port repairs and jail site development; • $1.2M for levee improvements for Vicksburg; • $1M to repair Columbus’ city hall building; • $3M in improvements to dams and spillways at state parks. Out of $25M for community colleges, Hinds would receive the most ($3.9M). Mississippi Gulf Coast Community College ($3.44M). The bill would also expand the state’s borrowing power designed to keep military bases from being closed down. The maximum amount of bonds that can be issued for these projects to $77M. The last time the federal government closed/realigned military bases was 2005. Created a “Mississippi Dam Safety Fund” with $1M to fund improvements statewide. As of last year’s financial report, taxpayers owed $5.792B in bond debt. Lawmakers appropriated more than $464M to pay down on that debt. The non-partisan budgetary interest group, Truth in Accounting (TIA), gave the state a grade of ‘D’, ranking it 31st nationwide for fiscal health. Each state taxpayer’s share of the state’s debts is about $10,000, according to TIA’s study. (Source: Pine Belt News 07/08/20) https://www.hubcityspokes.com/news-hattiesburg/legislators-approve-bond-bill-yearly-session-ends