The Rankin County School Board has proposed a budget that calls for a tax increase from property owners.

The fiscal year 2020 budget, which was presented during a board meeting on Wednesday morning, includes a local increase of about $3.5 million from county taxpayers. The final budget will be adopted this fall by the Rankin County Board of Supervisors. 

If the tax increase is adopted, taxpayers will be paying about $20 more per year on a $100,000 house with a 2 mill increase. Homeowners of a $200,000 house will be paying an additional $40. 

Over the past decade, the millage rate in Rankin county has increased from 48.89 to 56.55. The increase would bump it up to 58.55 and represent an increase of almost 20 percent during this time period. 

A look at the school district

The Rankin County School District is the third largest school district in the state, behind just Desoto County and Jackson Public Schools. And while the county continues to grow, the school district does not.

Enrollment in 2013 stood at 19,284. It hasn’t been that high since and the district estimates enrollment to be 19,150 for the upcoming year. School officials regularly use the word “stabilized” to describe the district’s enrollment. Essentially, the district is educating the same number of children eight years later, or even experiencing a slight decline.

These numbers are most noticeable in the early grades. While there were 1,509 students in kindergarten and 1,621 in first grade in RCSD in 2013, this past year there were just 1,365 and 1,438, respectively. 

At the same time, the county’s population has increased from just under 146,000 to 154,000 today. So, people are moving to the county, and/ or having children, they just aren’t going to the district schools in the same proportion. And the district benefits from the revenue they receive for the children they don’t have to pay to educate. 

This has helped the assessed property valuation to only increase. In 2013, it was $1.25 billion. It is now $1.47 billion. 

The tax increase is intended to fund an increase to the local supplement for teachers and other personnel as well as additional safety and security expenditures. Both are important and worthwhile proposals that make very good sense and most would support. In fact, they should be near the top of any budget, rather than asking more of taxpayers. 

Over the past decade, property value has increased by 17.6 percent while enrollment is slightly down. Rankin county taxpayers were hit with a tax hike just a couple years ago. Each time we are told “it’s only a few dollars.”

Perhaps another tax hike would be more tolerable if priority items – such as a teacher pay raise – were prioritized in the budget, rather than being the item the county uses to sell another hike. 

Because when the county takes more money out of my pocket, my options are to either prioritize and cut expenses or earn more income through work. I can’t just propose an unbalanced budget (with more uses than sources) and expect someone else to pick up the tab. 

Ole Miss trash cans have gone high tech. The university is home to new solar-powered, network-connected trash cans that communicate with one another and will let you know when they are full. But they come at a cost. 

According to The Daily Mississippian, the BigBelly garbage cans cost $4,560 per unit. The school is renting them through a five-year lease. They are currently paying $1,900 per month for 25 trash cans. If the university purchased them individually, they would cost $4,000 per unit, about $500 less than the current costs. 

A 36-gallon Global Industrial garbage can, similar to most found on campus, retails for under $500. Supporters say the benefits outweigh the cost. 

Because the new garbage cans communicate with each other, work crews can spend less time on collections by avoiding bins that are not yet full. According to a BigBelly rep, this will reduce collections by about 80 percent. 

This would lead to a reduction in the amount of motorized golf carts used on campus, and by extension, a reduction in carbon dioxide emissions. At least according to a study by graduate students at the University of Washington. 

For now, Ole Miss is in a five-year trial period. If the university sees a benefit, it can continue with the lease program or purchase the cans. 

Of course purchasing the cans after the lease would more than double the original cost. Seems like a steep price to introduce “techie trash cans” to Ole Miss so that the air quality can be improved. We’ve never seen any studies warning of us of the poor air quality in Oxford. Then again, it’s hard to put a value on virtue signaling. 

Beware of a future “improved air quality” student fee.

According to an analysis of data, the nation’s second-most popular vacation destination state receives a slim majority of its gasoline tax revenue from tourists.

Florida received about 50.42 percent (more than $822 million) of its 2018 gasoline tax revenue ($1.631 billion) from out of state visitors. Last year, 126.1 million tourists visited the Sunshine State.

In comparison, Mississippi receives about 10 percent of its gasoline tax revenue (more than $423 million in 2018) from its 19,152,000 visitors. 

The state of Florida’s gasoline tax varies by area and is indexed to the general rate of inflation computed by the Consumer Price Index every January. Municipalities and counties can add their own tax, up to 12 additional cents per gallon, for local infrastructure. 

According to the American Petroleum Institute, a weighted average for Florida would be about 41.99 cents per gallon, which is ranked ninth highest by the non-partisan Tax Foundation.

Alabama, which had more than 27 million visitors in 2018, receives about 16.2 percent of its gasoline tax revenue from out of state visitors. In 2018, the state received more than $477 million from its 21.21 cent per gallon gasoline tax, with more than $77 million coming from tourists visiting the state.

The Alabama legislature passed and Gov. Kay Ivey signed into law a 10 cent per gallon tax increase that will bump the Yellowhammer State’s ranking from 41st to 21st, which is where Georgia sits (31.59 cents per gallon) at present. The tax hike will be phased in over the next three years.

Running the numbers for Alabama results in a same proportion of fuel tax paid by tourists (16.2 percent), but adds more than $36 million to the state’s gas tax revenues, which could increase by more than $224 million annually.

Louisiana, which had more than 51 million visitors in 2018, received about 16.5 percent of its gasoline tax revenue (more than $459 million in 2018) from out of state visitors, which adds up to more than $75 million. Louisiana’s gasoline tax is 20.01 cents per gallon.

The way we calculated the amount of gasoline tax paid by out of state visitors was based on tourism numbers from each state’s tourism agency. For overnight visitors, we used the occupancy rates at state hotels and multiplied by 365 and subtracted it from the total number of visitors.

We used an average of 24.7 miles per gallon for the average U.S. vehicle and an average round-trip distance (1,240 miles) for out-of-state travelers. We also assumed that any visitor, be they an overnight or day tripper, would buy about 35 percent of their gasoline in their destination state.

The nation’s largest civil asset forfeiture program does not help police fight crime nor does it reduce drug use, two of the most common refrains from proponents of civil forfeiture. 

That is according to a new study from the non-profit Institute for Justice. While each state may have their own civil forfeiture law, the federal equitable sharing program is administered by the Department of Justice. It allows local law enforcement to cooperate on forfeiture with DOJ agencies and receive up to 80 percent of the proceeds.

This study asked the question, how is this program working and is it reaching its goals? Which is to “remove the tools of crime from criminal organizations, deprive wrongdoers of the proceeds of their crimes, recover property that may be used to compensate victims, and deter crime,” according to DOJ. 

It combined data from the program, along with local crime, drug use, and economic data from various federal sources. 

The study found: 

• More forfeiture proceeds do not translate into more crimes solved;
• More forfeiture proceeds also do not mean less drug use;
• When local economies suffer, forfeiture activity increases, suggesting police make greater use of forfeiture when local budgets are tight. A 1 percentage point increase in local unemployment—a standard proxy for fiscal stress—is associated with a statistically significant 9 percentage point increase in seizures of property for forfeiture.

Mississippi has begun to make a move to scale back civil forfeiture. In 2017, the legislature let administrative forfeiture die when the law authorizing the program was not renewed. 

Previously, administrative forfeiture allowed agents of the state to take property valued under $20,000 and forfeit it by merely obtaining a warrant and providing the individual with a notice. In order to get the property back, an individual was required to file a petition in court within 30 days and incur legal fees in order to contest the forfeiture and recover such assets.

The state is still allowed to seize and keep property through civil forfeiture, a process that requires the state to go before a judge for an adjudication of whether the property should be forfeited, even if the owner does not file suit. 

And much like the federal program has not translated into less crime or drug use, the program in Mississippi has generally not led to big drug busts. In fact, if you remove one large bust from the equation, the average value of forfeited property is only $5,422 over the past 18 months. Less than 10 seizures statewide amounted to more than $60,000. One-third were for less than $1,000. 

Rather than busting drug kingpins, law enforcement is more likely seizing iPhones, guns, or small amounts of cash. 

A non-profit organization in Mississippi that was founded in partnership with five of the state’s universities has given more than $2.5 million since 2008 to out-of-state entities for consulting and research.

The Delta Health Alliance is a non-profit organization that receives most of its revenues from government grants and manages 52 education and healthcare programs in the impoverished Delta region in Mississippi.

In 2016, the DHA gave to $443,946 to the Urban Child Institute, a 501(c)(3) non-profit organization based in Memphis, for what it termed on its IRS tax forms as evaluations. In 2015, the organization gave the Institute $351,091 and $380,200 in 2014 for what it termed “evaluation management.”

The Urban Child Institute says it’s dedicated to promoting the health of children in Memphis and Shelby County (Tennessee). It receives grants from both the University of Memphis and the University of Tennessee, plus the Lebonheur Children’s Hospital Foundation. 

Delta Health Alliance CEO Karen Matthews worked 19 years at the University Of Tennessee Health Science Center.

The University of Illinois received money for four years of consulting services. In 2013, the DHA gave the university $108,008, with $114,636 provided in 2012, $246,672 in 2011 and $137,804 in 2010.

Mathematica Policy Research Inc. received three grants from DHA, with the first in 2008 ($160,000) for external evaluations, the second in 2010 ($313,108) and the third in 2011 ($244,618) for program research.

Princeton, New Jersey-based Mathematica describes itself as a pioneer behind research and policy advancements in health, education, child welfare, criminal justice and other areas, partnering with federal agencies, state and local governments, foundations and universities.

The DHA administers two Promise Neighborhoods (an Obama era U.S. Department of Education program), a medical clinic, headstart programs, anti-obesity and anti-smoking programs among others. 

The organization receives grants from the U.S. Department of Health and Human Services, the U.S. Department of Agriculture and the U.S. Health Resources and Services Administration. 

DHA’s CEO Matthews has averaged more than $350,000 in pay, bonuses and benefits annually over the last seven years.

The majority of state’s gasoline tax was paid for by Mississippi residents from 2012 to 2018, according to an analysis of tourism data from the Mississippi Development Authority and the Department of Revenue.

Out-of-state visitors accounted for only 10.02 percent of the state’s gasoline tax revenues, on average, from 2012 to 2018. 

According to data from the DOR, the state averaged more than $419 million per year from 2012 to 2018 in gasoline tax revenue and an average of more than $42 million per year originated from out-of-state visitors.

According to the MDA’s tourism economic impact report from 2018, 24 million visitors participated in the state’s economy. Of those, 20.2 percent came from Mississippi, leaving 19,152,000 from out of state.

Of the remainder, 11,874,240 booked a stay overnight in the state, while 7,277,760 just did a day trip.

We used an average of 24.7 miles per gallon for the average U.S. vehicle and an average round-trip distance (1,240 miles) for out-of-state travelers.

Assuming that the out-of-state traveler purchased 35 percent of their gasoline in Mississippi on their trip, that adds up to about 17.57 gallons bought at Magnolia State gas stations. That would add up to about $3.30 in gasoline tax paid per out-of-state, overnight vacationer.

As for day trip enthusiasts, they would likely purchase (assuming that they bought 35 percent of their fuel in this state and 24.7 miles per gallon) about 3.4 gallons per trip into Mississippi.  That adds up to about 64 cents of gasoline tax.

All tourism-related gasoline tax revenues in 2018 would add up to $52,460,176 and removing 20.2 percent of them to account for in-state residents leaves a total of $43,644,073.

Taxpayers will spend $1,105,236,550 on the Mississippi Department of Transportation, with $559 million coming from federal funds and the rest from the state’s petroleum tax. 

The Office of State Aid Roads will have an appropriation of $225,410,848 from special and federal funds, which will help maintain 25,857.04 miles of county roads that are considered “feeder” routes between the state highways. This money also goes to maintaining 5,368 bridges on these routes.

Right now, drivers in Mississippi pay 37.19 cents in state and federal taxes on every gallon of gasoline, about 11 cents a gallon less than the national average. The state’s gas tax was last increased in 1987. 

The federal gas tax has been 18.4 cents per gallon since 1993. For every one cent increase, the state’s gasoline tax revenue ($423,642,449 in fiscal 2018) would increase by about $23 million.

In December, Andrea Falcetto attended Mississippi Host Club conference as an Airbnb host. There, she learned that between 2017 and 2018, Mississippi Airbnb hosts earned a combined income of $7.2 million dollars while $1 million dollars was earned in taxes which then went to state and local government.

But more than that, 1,800 guests were welcomed to the state of Mississippi by local Airbnb hosts alone.

Andrea experience as an Airbnb host started five years ago. In those five years, she has hosted over 500 people herself from various walks of life, including interns, doctors from Canada, people doing tours of the South, and some visiting from Chicago on spring break. 

Andrea’s own first stay at Airbnb was back in 2013 in Memphis when she was visiting from Kentucky. After numerous personal experiences like this, she realized how easy it would be to host her own Airbnb space. 

In her move to Louisiana from Kentucky, Andrea had Airbnb in mind and settled on a house with extra bedrooms. She found one and rented out through Airbnb for the two years she lived there. When she moved to Jackson in 2017, she did the same thing and found a three-bedroom house, two of which she currently rents out.

Now, thanks to the constant bookings, she rarely gets a single night in her own home to herself.  

But Andrea does not mind sharing her home. She sees it as an investment, putting the income made from renting back into the historic house in Fondren she lives in. Ultimately, the fact she is providing a spot to stay for someone who needs a place to stay, and in turn, she then has the ability to work on some projects for her home. provides a win for everyone involved.

Andrea believes Airbnb is important to Jackson but especially the Fondren area. Right now, though there are hotels being constructed now, there are currently no hotels in Fondren and those who come visit want to experience that local city feel.

The only way for them to do that right now is to stay in an Airbnb unit. Even after those hotels are built however, Airbnb will still be a more economical option for many.

As long as it has that appeal, Airbnb will continue to provide an additional form of income for local hosts in Jackson and bring to the area millions of dollars in tax revenue a year. 

One of the arguments against charter schools in the case before state Supreme Court is that they take away local property tax revenue from the Jackson Public School District.

The amount provided to the charter public schools in Jackson is minuscule when compared to both the amount of local property tax revenue (slightly more than 1 percent) and the annual expenditures by JPS (less than 0.5 percent).

Since 2015, the three charters located in Jackson have received $4.5 million from the district’s property tax revenue, or about 1.2 percent of the $373,917,333 in property tax revenue the district has received during the same span.

In 2018, JPS had expenses of $277,820,379, $298,256,286 in 2017, $282,231,492 in 2016 and $268,687,636 in 2015. 

That adds up to $1,126,995,793 in expenses from 2018 to 2015. The amount directed to charter schools represents only 0.4 percent of that spending. 

The arguments Tuesday before the state Supreme Court arose because of a 2016 lawsuit by the Southern Poverty Law Center that questioned the validity of the state’s 2013 charter school law and whether local property tax revenues can be used to fund public charter schools.

A February 2018 ruling in Hinds County Chancery Court was a victory for charter school supporters, but the SPLC immediately appealed to the state’s highest court.

The reason for the location of charters in Jackson is because the district is a failing one according to the Mississippi Department of Education’s annual accountability scores. The district has received an F grade for the past three years.

Since 2011 when the MDE switched to a letter grade system for its accountability scores, JPS has scored no higher than a D. 

The accountability grades are partially based on the performance of students and the annual progress made on the Mississippi Academic Assessment Program tests for English language arts and mathematics, which are administered annually to students in the third through eighth grades and in high school.

Also figured into the accountability grades are the four-year graduation rate, student performance on biology, U.S. history and ACT tests, and student participation and performance in advanced coursework such as Advanced Placement.

A finalized rule unveiled last week by the Trump Administration could help make coverage both more portable and affordable and increase choices for consumers.

The new rule deals with Health Reimbursement Arrangements or HRAs, which are employer-funded accounts that workers use to pay for health insurance premiums or medical expenses.

This rule will allow employers to offer HRAs to their employees in lieu of a company sponsored plan. These plans would allow an employee to take their coverage with them rather than the plan being owned by their employer and leftover funds would roll over from year to year.

According to the Department of Health and Human Services, the expansion of HRAs would benefit approximately 800,000 employers and 11 million employees and family members, including an estimated 800,000 who were previously uninsured.

It would also free small businesses from the complexity of having to manage a company-provided plan for its employees.

“Too many Americans today have little say in how their healthcare is financed,” said HHS Secretary Alex Azar in a statement. “President Trump has promised Americans that he will put them in control of their healthcare, and this expansion of health reimbursement arrangements will help deliver on that promise by providing Americans with more options that better meet their needs. 

“This rule and other administration efforts are projected to provide almost 2 million more Americans with health insurance.”

White House economist Brian Blase told reporters on a conference call that the vast majority of expansion under the new rule will be on plans that are not part of the Affordable Care Act’s plan exchanges. He also said that the new rule will require employers to either offer a sponsored plan or migrate to the HRA model.

Under the new rule which takes effect on January 2020, companies can replace their sponsored plans with the HRAs to allow their employees to purchase in the individual market. Employee and employer contributions to HRAs are without tax penalties when it comes to both income and payroll taxes, like employer-sponsored health plans. 

According to the HHS, 80 percent of employers that provide coverage only offer one plan.

In 2017, President Trump issued an executive order that says the administration will prioritize three areas for improvement: Association Health Plans, short-term, limited duration insurance and HRAs. 

Short-term insurance plans are ones that aren’t compliant with the massive tome of rules and regulations that made Affordable Care Act plans unaffordable to many consumers and the Trump administration’s rule allowed more customers to 

The other rule allowed small businesses to join Association Health plans and receive savings through economies of scale once only limited to large companies.