Barbour wants tax cuts this year

By The Associated Press | The Natchez Democrat

Published Tuesday, January 22, 2008

JACKSON (AP) — Mississippi lawmakers will have to make some tough and potentially unpopular budget decisions this year because the state, like many others, is facing tight finances as the national economy drags, Gov. Haley Barbour said Monday night in his State of the State address.

‘‘Four years ago, our state was in the deepest budget hole in history. It is our responsibility — yours and mine — to make sure we don’t get back in that kind of shape again,’’ Barbour told lawmakers and other state officials packed into the House chamber at the Capitol.

‘‘This will require considerable budget discipline,’’ said Barbour, a Republican. ‘‘It means we will have to tell some people ’no.’ It means some good things won’t get funded or won’t get as much funding as some people would like. It’s our job to say ’no,’ even to our friends and favorite programs.’’

Barbour was re-elected in November and was inaugurated last week for his second four-year term.

During the 35-minute speech, lawmakers interrupted several times to clap. But given Barbour’s cautious tone, legislators did not give the standing ovations that sometimes turn State of the State addresses into raucous occasions.

Barbour got his loudest applause Monday when he talked about a commission that will study the state tax structure.

‘‘My first four years, we didn’t raise anybody’s taxes. My next four years, I’m committed we’re going to cut some people’s taxes,’’ Barbour said, adding to the prepared text of his speech.

The study group is set to recommend possible tax revisions by August, which means no changes are expected during the current legislative session that ends in April.

In 2006, large groups of lawmakers pushed to increase the sales tax on cigarettes and decrease the sales tax on groceries. Barbour vetoed the ‘‘tax swap’’ legislation in 2006 and one of his Senate allies blocked it in 2007. Several lawmakers campaigned on promises to cut the state grocery tax, which at 7 percent is the highest in the nation.

Barbour said he will release his budget recommendations later this week, and his plan will include full funding for the Mississippi Adequate Education Program.

MAEP is a complicated formula designed to ensure that each school district receives enough money to meet midlevel accreditation standards. It was put into state law in 1997 and was phased in over five years. It has been fully funded only during the state election years of 2003 and 2007.

Barbour said his budget for the state fiscal year that starts July 1 will include a teacher pay raise.

He also repeated his call for one of his proposals that died in the House last year — a plan to screen first graders for the reading disorder dyslexia.

He said Medicaid is ‘‘the biggest budget challenge we face,’’ acknowledging that the health insurance program for the poor needs several million dollars just to get through June 30, the end of the current budget year

Barbour said the state needs to reduce its long-term debt.

‘‘That’s why I will oppose authorizing any new state debt during this session of the Legislature unless it’s related to creating jobs,’’ he said.

Barbour boasted that Mississippi’s economy has improved since he took office four years ago.

‘‘Personal income has increased by 20 percent these last four years,’’ Barbour said. ‘‘We not only have more people working, but we have been replacing lower-skilled, lower-paying jobs with higher-skilled, higher-paying jobs.’’

Barbour’s first term was dominated by Hurricane Katrina, which left a wide swath of destruction across south Mississippi when it struck Aug. 29, 2005. He praised the resilience of people whose homes and businesses were obliterated, but he offered no new details about the recovery.

Rep. Frances Fredericks, D-Gulfport, said she had hoped to hear some specifics about the status of homeowners’ grants to Katrina survivors.

‘‘There was really no explanation on when we’re going to get the money for the elevation of properties,’’ Fredericks said. ‘‘Nothing was made clear. ... I was really hoping for more than I received.’’

Sen. Lydia Chassaniol, R-Winona, said Barbour offered commonsense ideas about Mississippi’s budget.

‘‘It’s not always going to be sunshine and roses around here,’’ Chassaniol said.

Freshman Rep. Mark DuVall, D-Mantachie, said he was encouraged to hear that the governor wants to cut taxes.

‘‘I campaigned on the fact that we need to reduce the grocery tax,’’ DuVall said. ‘‘Hopefully, we can get some of that legislation through now.’’