While House Education Committee Chairman Richard Bennett (R-Long Beach) killed a renewal of and a small expansion to the state’s Education Scholarship Account program this session, Tennessee and Florida have been moving forward to provide new options for children.

Florida has long been a champion of school choice, and is home to the nation’s largest program. The Florida Tax Credit Scholarship Program provides a tax credit on corporate income taxes and insurance premium taxes for donations to scholarship-funding organizations that provide scholarships to low and middle income students and children in foster care. A program that served approximately 15,000 students in 2003 now serves nearly 100,000. 

Florida is also home to two other school choice programs that serve another 40,000 students.

And this year, Florida enacted the Family Empowerment Scholarship program, which will provide new funding for 18,000 low-income students in failing schools to attend private schools. 

“The reason I fought so hard for the new Family Empowerment Scholarship is because of what I heard from the families on the waitlist,” said Florida Gov. Ron DeSantis. “I was told how badly they wanted to send their child to the school they felt was best for them. Signing this bill will help tens of thousands of low-income children realize their dreams.”

While Florida has long been a school choice leader, Tennessee had been similar to Mississippi with just a small ESA for students with special needs. That program served under 150 students this year. But a new law will expand ESAs to students in Shelby (Memphis) and Davidson (Nashville) counties. While it is limited, those two counties make up about 25 percent of the state’s entire population. 

This bill was a top priority of Tennessee Gov. Bill Lee. In fact, DeSantis and Lee, both Republicans, made school choice an issue on the campaign trail while their Democratic opponents were vocal in opposition. It provided a winning issue on the campaign trail, and in their first year in office, both were able to deliver on a campaign promise. 

And students in Florida and Tennessee will be better off. We should find a way to allow parents in Mississippi to have options so parents can send their children to the school they feel offers the best chance for their children to flourish. 

With the statewide political campaigns gearing up, we are sure to hear often this year from candidates who say they want to stop government overreach from stifling small businesses, innovative startup companies, and job creation in Mississippi. This is a worthy goal.

But some may wonder, exactly what does this kind of government overreach look like? Where do we draw the line between the proper role of government and unnecessary government interference? 

To find the answer, we need only look to the travails of an innovative technology startup out of Madison named Vizaline. Two Mississippi businessmen put their experience and ideas together to offer something new. Brent Melton had worked in community banks for 42 years and knew they needed a way to understand the boundary lines of smaller properties they financed. For these smaller loans, surveys were neither required nor financially feasible. Scott Dow had spent two decades working with geospatial remote sensing and 3D computer modeling and he knew how to make this idea a reality. 

Together, they created software that could take a properties’ publicly available legal description – which is just cryptic words on paper generated by professionally licensed surveyors – and turn it into something anyone can understand: a drawing of the described property lines on a map.

Vizaline does not conduct surveys. It does not hold itself out as a professional surveyor. It simply takes information already generated by surveyors and puts it into a more user-friendly format. Vizaline only sells its services to small community banks who need and want a more cost-effective and user-friendly way to understand the properties they are financing. These are sophisticated customers. They know exactly what they are getting. And they want it. Nobody is getting duped.

Nevertheless, the government decided it needed to stop these transactions between a willing seller and willing, satisfied customers. The Mississippi Board of Licensure for Professional Engineers and Surveyors sued Vizaline. The government board claimed Vizaline was engaged in “unlicensed surveying.” It asked the court to shut down Vizaline, and to force them to hand over all the money they have ever earned.

Vizaline fought back. It obtained legal representation from the Institute for Justice and filed its own lawsuit, arguing that the government’s actions were unconstitutional. Everyone in America has the right to free speech, including the right to take existing, publicly available information, and create a new representation of that same information. Moreover, the government board – which is composed entirely of licensed surveyors and engineers – is not trying to protect the public. It is trying to protect its own industry from competition. Unfortunately, for the board, that is not a constitutionally valid function of government. 

While Vizaline’s lawsuit was still ongoing, the Mississippi legislature had an opportunity to stop this government overreach. A bill introduced last session would have clarified that the Mississippi Board of Licensure for Professional Engineers and Surveyors does not have the authority to stop companies like Vizaline from doing business in our state. The legislature missed that opportunity, which is disappointing, given how many of our elected officials campaigned on stopping exactly this type of government overreach.

Vizaline is currently appealing its case in federal court. The Mississippi Justice Institute joined the Cato Institute and the Pelican Institute to file a legal brief supporting Vizaline’s case, and urging the court to uphold all Mississippians’ right to disseminate public information, and to do business free from unnecessary government interference.  

So where is the line between proper exercises of government power and government overreach?  While the government tries to stop it from drawing lines on paper, Vizaline has drawn a new line in the sand against government overreach. Broadly enforcing vague laws simply to protect industry insiders from competition with new, innovative competitors is not a valid function of government. The Mississippi Justice Institute is proud to stand with Vizaline, and would be proud to stand with any Mississippian facing similar government overreach.  

This column appeared in the Meridian Star on May 17, 2019.

When Rachel Sugg first heard about Airbnb doing well in Jackson, she was skeptical.

She, like many others, associated Airbnb with young people and vacation destinations. However, since she and her husband incorporated Airbnb into their real estate business two years ago along with their long-term rentals, her view of who Airbnb serves has changed. 

The Sugg’s placed their first short term rental unit on Airbnb in April of 2017. From then on, it had been booked, and kept booked. 

Two years, three units and 500 people later, Airbnb has turned out to be more profitable for the Suggs then their numerous long-term rentals. And Rachel’s view of Airbnb’s main consumer is different than before.

The majority of those staying in the Sugg’s locations, Rachel has noticed, have turned out to be working class, blue-color individuals, who are, for the most part, coming to Jackson for work related reasons, or college students and their parents. 

Rachel believes that an important draw to Airbnb is not only the price, but the fact that visitors can have a one-on-one experience with their host. With Airbnb, there is always someone local to call who is familiar enough with the area to give an expert recommendation. Having someone so close at hand to act as a personal ambassador to Jackson, changes the whole experience of coming here, into something personal. 

Not only does the personal experience Airbnb hosts provide change negative views of Jackson, but it brings people to the city as well. In her experience, Rachel has had guests change their stays from one night in Jackson, to two days, or more after having a great experience that first evening. Or, in some cases, people who have come to the area for an appointment in Madison have stayed in Jackson at one of the Sugg’s three Airbnbs, because they there was no Airbnb available in Madison. 

Airbnb travelers generally have a different idea of traveling than others might, even if they are traveling for work. Rachel says they tend to be more laid back. They want to get a real feel for the area, not just the touristy version. They want to experience the culture. They want to get to know where they are, not just travel through, staying one night at a hotel then leaving the next morning. 

Rachel has found that the benefits Airbnb provides to the Jackson community are numerous; it draws people in, changes minds about Jackson and Mississippi, incentivizes the upkeep of property, brings money into Jackson and the surrounding area, and not only exposes visitors to Jackson but exposes Jackson residents and their neighbors to completely new people.

It is an experience. And, according to Rachel, it’s good for Jackson. 

According to a recent study, it would take more than 13 weeks to wade through the 9.3 million words and 117,558 restrictions in Mississippi’s regulatory code. Yet we know little about many of those regulations, such as if they are even necessary today.

The Mercatus Center at George Mason University’s James Broughel and Jonathan Nelson wrote a policy snapshot of Mississippi’s regulatory state as part of a national project to analyze regulatory burdens nationwide.

These regulations can impose huge costs as businesses are forced to comply with them and can also become anticompetitive devices, since many of them are written by the industries that are being regulated.

Mississippi is roughly mid-pack in the amount of its regulatory framework. But the one consistent among most states is that the number of regulations are only increasing.

That changed in a big way in one state.

Idaho has a somewhat unique regulatory process. Each year, the state’s regulatory code expires unless reauthorized by the legislature. While this does provide a check that is missing in places like Mississippi, it is normally a formality. But not this year. 

Now, Idaho Gov. Brad Little is tasked with implementing an emergency regulation on any rule he would like to keep. The legislature will consider them next year. And there are certainly needed regulations, just as there are unnecessary or outdated regulations that serve little purpose. 

But, as Broughel has pointed out, the burden on regulations now switches from the governor or legislature needing to justify why a regulation should to be removed to justifying why we need to keep a regulation. 

To reduce red tape, Mississippi could move toward a sunset provision similar to Idaho or introduce a regulatory cap that orders the removal of two old rules each time a new one is added. A thriving economy is one with fewer regulations, a lighter government touch, and more freedom for small and mid-sized businesses.

If a regulation is so important, prove it. 

Mississippi Justice Institute Director Aaron Rice has been named a recipient of the 2019 Buckley Award, given annually by America’s Future Foundation. 

The Buckley Awards recognize “outstanding young professional conservatives for their above-and-beyond service to the conservative movement.” The award is in honor of William F. Buckley, who became a leader of the early conservative movement before the age of 30 by founding National Review in 1955 and hosting the public affairs television show, “Firing Line,” for 33 years. This is the only such award in the freedom movement that focuses on the achievements of liberty-minded young professionals. 

“There is perhaps no honor greater for a young conservative than to receive an award in the name of William F. Buckley,” said Jon Pritchett, President and CEO of the Mississippi Center for Public Policy. “He inspired a generation of conservative intellectuals to fight boldly for foundational beliefs. That is exactly what Aaron has done since he joined the movement, but it’s also what he has done all of his life.”

Aaron received the award for recognition of his work in helping to defeat the renewal of administrative forfeiture in the legislature this year. Administrative forfeiture previously 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.

But due in large part to Aaron’s thought leadership through state and national op-eds, television, and radio, the renewal died without receiving a vote in committee. 

“I am honored to be able to bring this award to the Mississippi Center for Public Policy, and its legal arm, the Mississippi Justice Institute,” said Rice. “Our work on administrative forfeiture was very much a team effort. I would not have been able to make any meaningful impact on my own. While I have the honor of receiving the Buckley Award, I consider it a team award to our entire organization, and the first we have been honored with. I could not be happier to be a part of that recognition for our great organization.”

“Aaron’s contributions to advancing the free society, to improving people’s lives and to working tirelessly against amazing odds in Mississippi has inspired all of us,” said Cindy Cerquitella, Executive Director of AFF. “Aaron’s work to secure the private property rights of Mississippi citizens, against the desire of so many in power is a true testament to his patriotism and commitment to the values of a free society.”

This is the first time the award has been presented to a state-based think tank that focuses exclusively on one state. Previous winners include Christina Sandefur of Goldwater Institute, Rob Bluey of Heritage Foundation, Mollie Hemingway of The Federalist, and Jim Geraghty of National Review.

See the full list here. 

Read Aaron’s full interview with America’s Future Foundation here– including more about his work in the conservative movement and some fun facts about his life. 

In the debate over a wood pellet mill that is being built in George County near Lucedale, both sides are missing a key point.

The pro-mill side says Enviva’s $140 million pellet mill and a $60 million loading terminal at the port in Pascagoula will provide more markets for the state’s generous timber resources. The anti-mill side argues from an environmental viewpoint and that the mill would bring a danger to state residents due to increased health risks from emissions and airborne particles.

No one is talking about what the mill will cost taxpayers. Taxpayers statewide, through the Mississippi Development Authority, will be providing $4 million in grant funds, with $1.4 million for a water well and a water tank, while the other $2.5 million is for other infrastructure needs and site work. 

George County will provide $13 million in property tax breaks over the next 10 years. 

The company is expected to hire 90 employees in Lucedale, with 300 loggers and truckers possibly finding work supplying logs to the company. 

All of those incentives, if realized, could add up to $17 million or about $188,888 per job.

The lost revenue will have an effect on George County’s budget over the next decade, especially since counties don’t receive sales tax revenue. According to the most recent audit from April 24, George County received $8,445,185 in property taxes.

Over the last four years, the county has taken in $32,051,659 in property taxes, an average of $8,012,915. Extrapolating this over a decade, the county could be expected to take in about $80 million in property taxes. 

If Enviva realizes all of the property tax breaks, the county will lose 13.9 percent in potential revenue. 

George County property tax receipts

The only winner during the first decade of the deal with Enviva might be the city of Lucedale, which could see a boost in sales tax revenue from the plant. 

According to data from the Mississippi Department of Revenue, the DOR has disbursed $18,386,882 in sales tax revenue to the city from 2010 to 2018. The DOR disburses 18 percent of the state’s 7 percent sales tax to municipalities. In 2017, sales tax revenue ($2,204,988) represented 46.8 percent of the city’s $4.7 million budget.

Enviva is the world’s largest wood pellet producer and produces pellets to fuel overseas power plants. It has seven mills in the Southeast and one of those mills is in Amory, acquired in August 2010.

These wood pellets are made from low-grade wood fiber unsuitable for lumber because of small size, defects, disease or pest infestation; parts of trees that can’t be processed into lumber and chips, sawdust and other residue. The plant will mill, dry and pellet the wood in a press, using natural polymers in the wood called lignin to act as a natural glue.

Unnecessary and burdensome regulations make it harder for Mississippians to earn a living.

According to a new report from Pete Blair with Harvard University and Bobby Chung with Clemson University, occupational licensing reduces labor supply by an average of 17-27 percent. An earlier report from the Institute for Justice found that Mississippi has lost 13,000 jobs because of licensing requirements. 

While licensing was once limited to areas that most believe deserve licensing, such as medical professionals, lawyers, and teachers, this practice has greatly expanded over the past five decades. 

Today, approximately 19 percent of Mississippians need a license to work. This includes everything from a shampooer, who must receive 1,500 clock hours of education, to a fire alarm installer, who must pay over $1,000 in fees. All totaled, there are 66 low-to-middle income occupations that are licensed in Mississippi.

The new report also looks at the varying requirements for occupational licensure, including prohibitions on those with criminal convictions, whether the conviction had anything to do with the occupation or not.

This year, the legislature passed a new law that prohibits occupational licensing boards from using bureaucratic rules to prevent ex-offenders from working. The law requires occupational licensing boards to eliminate blanket bans and “good character” clauses used to block qualified and rehabilitated individuals from working in their chosen profession. 

Under the Fresh Start Act, licensing boards must adopt a “clear and convincing standard of proof” in determining whether a criminal conviction is cause to deny a license. This includes the nature and seriousness of the crime, the passage of time since the conviction, the relationship of the crime to the responsibilities of the position, and evidence of rehabilitation. The law also creates a preapproval process that allows ex-offenders to determine if they may obtain a particular license before undertaking the time and expense of training, education and testing. In addition, the law protects licensed individuals who fall behind on their student loans from losing their occupational license. 

All too often, occupational licenses only serve to protect certain industries, rather than protecting public health or wellbeing. We should continue to look for ways to help people find gainful employment rather than implementing unnecessary roadblocks. Working provides purpose and the opportunity for families to flourish. We should do everything possible to encourage it.

The $1,500 teacher pay raise could be a net positive for the health of the state’s defined benefit pension system but that would require future earnings forecasts meeting projection targets, according to analysis of data by the Mississippi Center for Public Policy.

The good news is the increased contributions to the Public Employees’ Retirement System of Mississippi could add up to as much as $677 million over the next 30 years. This added revenue will mean more money will be available to pay benefits to retirees and give the plan more to invest.

One problem is the projected benefit payments, which will increase by $878 million over the next 30 years ($29.26 million annually) when compared to the previous projections.

The market value of the plan’s assets could increase as much as $2.9 billion over the next three decades, but that depends on a steady return on the investments of 7.75 percent, an assumption that hasn’t been lowered by the plan’s governing board since 2015.

The catch is the plan’s forward looking projections could be in error, as the plan’s actuaries rely on several generous assumptions that include:

• Income from the plan’s investments, 7.75 percent.
• Price inflation, three percent.
• Salary increases, 3.25 percent.

Using those assumptions above, the original projections have the plan 99.6 percent funded by 2048.

A recent report by PERS actuaries suggests the assumed rate of inflation they use to make future projections should be lowered from 3 percent to 2.75 percent to reflect changes in their forecast prediction models.

The way this number was computed was to use the future-looking projections by the PERS actuaries, which provide guidance for the retirement fund’s governing board as a starting point and other data from the state superintendent’s annual report and the Public Employees’ Retirement System of Mississippi’s comprehensive annual report.

To find the most likely number of Mississippi teachers requires using the extra appropriation needed for the $1,500 raise ($14 million more than the original $58 million) and the formula used by the Mississippi Department of Education to compute the amount. 

When the agency submitted the information to lawmakers, it multiplied the number of teachers listed in MDE computers (31,157) by 1,500 and multiplied the result by 25.05 percent for fringe benefits to arrive the $58 million figure.

Using that data, Mississippi K-12 teachers represent about 25 percent of the 150,867 contributing members to PERS and 63.34 percent of the state’s 60,952 employees in K-12 public education. Using the larger figure, that would add up to about 38,260 teachers.

Multiplying the projected PERS payroll by 25.6 percent and the percentage of the $1,500 raise (3.34 percent) yields larger payroll numbers which affect total contributions to the plan.

The first 10 years of projected benefits data were excluded since the raise’s effects will be minimal on those retiring at that time. 

The best way to calculate the effect on benefit payments is to use the plan’s projections for the first decade and focus on the following 20 years. Multiplying the benefit payments by percentage of PERS members that are teachers (25.6) and the amount of the raise (3.34 percent) gives an idea of how much they would affect this crucial area.

PERS beneficiaries also receive a generous annual cost of living increase, 3 percent, that compounds every year after they reach age 60. 

In addition to the $1,500 raise passed by the legislature last session, teachers also receive small, annual raises once they complete two years of service, according to the pay schedule published by the MDE. Teachers are paid according to their qualifications and years of service. 

In 2018, PERS received $570,807,000 (employees contribute 9 percent of their income to PERS) from state, county and city workers and $1,018,163,000 from their employers (taxpayer contributions will increase in the new fiscal year from 15.75 percent of payroll to 17.4 percent). 

Divide that further and the state’s 60,952 employees in K-12 public education contributed $230,891,431 to PERS in 2018 while the employer contribution to their retirement added up to $411,846,933 for a total of $642,738,364.