Mississippi Center for Public Policy is part of a coalition of state-based organizations calling on Congress to provide state and local governments with greater flexibility to use money from the Coronavirus Relief Fund.

The letter reads:

The CARES Act established a $150 billion Coronavirus Relief Fund to assist state and local governments combat the Coronavirus Disease 2019 pandemic. Under the Act, each state will receive at least $1.25 billion plus an additional amount based on population, with a portion of the money allocated to local governments within the state.

As written, however, the fund provides little actual relief for state budgets but instead all but compels them to devise new spending that can be attributed to the Coronavirus Disease 2019 (COVID-19).

Congress needs to address this unintended outcome quickly by providing states and local governments the flexibility to use money from the Coronavirus Relief Fund 1) to offset lost tax and fee revenue that would otherwise have paid for ordinary operating expenses between March 1 and December 30, or 2) to provide one-time tax relief to individuals and businesses to revive the local economy.

Unlike the federal government, most states and local governments must balance their budgets. New costs associated with the Coronavirus outside of Medicaid (covered by the Families First Act) and education (covered in the Education Stabilization Fund) would not come close to the full amount appropriated except through budgetary gluttony. Billions of dollars in tax and fee revenue, however, have been lost and cannot be recovered. We ask Congress to allow states the ability to use their Relief assistance in the most prudent and least disruptive way possible.

The Joint Legislative Budget Committee released its March revenue report on Friday and total revenues slightly increased from pre-session estimates even though some tax collections were down in the wake of the coronavirus economic shutdown.

The report has sales tax collections down $6.6 million from estimates, income tax down $9.8 million, and gaming taxes down by $500,000, but collections as a total for March were $29.3 million above estimates. 

In a possible sign of things to come, gas tax revenues were down 20.59 percent from the same time last year. 

For fiscal year 2020 that ends on June 30, revenue collections are up to $217 million or 5.74 percent above the revenue estimate. Compared with last year, collections added up to 4.97 percent more than last year’s collections at the same time ($189 million).

In March 2019, the state had collected $3.821 billion in tax revenues. Despite the coronavirus economic downturn that started in mid-March, the state has collected $4.01 billion in tax revenue toward its goal of $5.996 billion.

In November, the JLBC revised its revenue estimate upward by $137.8 million.

Despite being down for the month of March, sales tax receipts for fiscal year 2020 are up $35.6 million over last year’s collections, income taxes are up $71.2 million more than last year, and corporate tax revenues are up $48.5 million from last year.

Use tax is a 7 percent tax assessed on all out-of-state purchases and revenues were up, both for the month of March over estimates ($4.7 million), the year to date ($28.5 million) and $4.8 million over the same time last year. With more people statewide shopping online due to COVID-19, it’s likely that these numbers might increase in the months to come.

Oil and natural gas tax revenues are down from fiscal year 2020 estimates, as oil is down $4.799 million for the year to date (19.81 percent drop) and natural gas is down $1.285 million (45.07 percent shortfall from estimates).

The spread of the coronavirus pandemic has uprooted many in this country, and all over the world. Kids are at home. The same place many of us are working. If you still have a job at all. Things are being done differently. We watch church online. We use Zoom video conferencing instead of face-to-face meetings. We pick up our groceries and restaurant orders, or we get them delivered to our house. 

With time, normalcy in our day-to-day lives will return. Schools will open. Sporting events will come back. Toilet paper will be in stock. And perhaps the way government functions will change as well. Before we have another crisis on our hands.   

Because as the current pandemic crystalized, we witnessed how government regulations often got in the way and stymied the help they are designed to provide. This was true in the past, it is true today, and will be true in the future. 

Once the coronavirus began to spread, we saw numerous regulations repealed almost overnight. Particularly regulations that limit access to healthcare and seem to do nothing but protect the interest of market incumbents.

One of those regulations is Certificate of Need laws, something the federal government repealed more than three decades ago but they are still on the books in Mississippi. These laws circumvent the normal supply and demand process and require would-be medical providers to prove — essentially to their competitors —that their community needs a new facility or service. And they are one of the reasons we see a shortage of hospital beds during a time of crisis. That is why we have seen both Republican and Democratic governors in other states roll back such regulations during this time. Bills have been introduced virtually every year to repeal CONs in Mississippi, and 2020 was no different than prior years. The issue wasn’t even considered, and it died in committee without a vote or a discussion.

A positive change that we have seen in virtually every state was an expansion of telemedicine, something that is vitally important in a rural state like Mississippi, pandemic or not. And the state has been recognized as an early leader in this technology. Yet that doesn’t mean we don’t have restrictions in place. Almost immediately, we began to see states waive the requirement that you can only use an in-state physician. Mississippi did that. And then just as quickly walked back that change to only allow this if you have a prior patient-physician relationship, greatly limiting your options as a consumer. Mississippians should be able to access the doctor or nurse practitioner of their choosing, regardless of the state they are licensed. 

Speaking of nurse practitioners, if we want to increase healthcare access, the state should move to allow nurse practitioners to practice to their full practice authority. Today, they are required to enter into a “collaborative agreement” with a physician if a nurse practitioner wishes to open their own clinic. Particularly in rural communities where we see a shortage of doctors, nurse practitioners could fill that role. If the state would let them. 

Another bill that the legislature let quietly die in committee was universal recognition of occupational licenses. Meaning, if you received a license in Tennessee, you can work in Mississippi without jumping through the normal bureaucratic hoops. After all, just because you move doesn’t mean you forget how to practice your skill. To increase the supply or nurses, many states, including Mississippi, said they would allow nurses licensed in other states to work in their state. 

This should be standard practice. Not something that requires an emergency declaration. If someone has received an occupational license in another state, the state should recognize that license and allow them to immediately work in Mississippi. We don’t know what the economy is going to look like when the pandemic passes, but one of our main goals should be to make it easier to work. 

As we’ve seen, it is the overburdensome government rules and regulations that tend to get in the way. If may be something as serious as healthcare access or as simple as alcohol delivery, another bill the legislature killed this year.

The truth is this happens every day of the year. Rather than waiting for the next crisis, now is the time to roll back regulations that prevent people from earning a living, accessing the healthcare they need, or using technology to make our lives easier and better. 

Mississippi’s already troubled defined benefit pension system could be facing an even larger fiscal hole as the economic effects of the coronavirus pandemic continue to manifest.

The Public Employees' Retirement System of Mississippi serves most state, city, and municipal employees in the state. The pension fund’s finances were already in trouble before the COVID-19-related economic downturn, as it is only 60.9 percent fully funded and now has an unfunded liability of more than $17.6 billion.

Two recessions — the first after the 9/11 terrorist attacks and the second after the great mortgage meltdown — could portend what might be ahead for PERS. Both times the plan’s investments lost money and a key metric known as the funding ratio, which is defined as the share of future obligations covered by current assets, suffered as a result.

Losses on the investment front for PERS could be considerable. According to a report by the Mercatus Center at George Mason University, the U.S. gross domestic growth rate will decline 5 percent for every month of economic shutdown. 

Since August 1980, PERS has been investing in the stock market, which promised larger returns than the bonds that represented most pension fund investments up to that point. The plan’s investment assets have grown from $15.4 billion in 2009 to $28.6 billion in 2019, an 85.7 percent increase. 

The downside for PERS and other defined benefit pension plans is the increased volatility. 

In 2001, PERS’ investments lost 7.1 percent and 6.6 percent in 2002 before rebounding in 2003 with a 3.5 percent rate of return. 

In 2001, the plan was 87.5 percent fully funded, but that slipped to 79 percent by 2003. The plan’s funding ratio never caught up despite several years of strong returns and by 2008, the plan was only 72.9 percent funded.

In 2008, PERS lost 8.2 percent on its investments and a ruinous 19.4 percent in 2009 before a rebound to 14.1 percent in 2010. Despite bounce-back years from the market in the following years, PERS bottomed out in 2012 with a 58 percent funding ratio that has only ticked up slightly since then despite investment returns of 13.4 percent (2013), 18.6 percent (2014), 14.96 percent (2017) and 9.48 percent (2018). 

The PERS staff uses an expected annual rate of return for 7.75 percent for planning purposes. The PERS board lowered the expectation from an unrealistic 8 percent in 2015.

The reason why the plan loses ground even when investment returns are above expectation is primarily demographic. In 2005, there were 157,101 employees contributing into the system and 69,939 retirees.

By 2019, the number of employees contributing to PERS had shrunk to 150,651, while the number of retirees was up to 107,844. This represents a 54 percent increase in 15 years.

America was founded on the ideal of individual freedom and liberty, but we often forfeit our rights to the strong arm of government when we’re scared.

“Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety.”

These words from Ben Franklin still ring true, especially in days like these. For long-term safety, we may concede some of our rights. But essential liberties – such as due process and fundamental rights – should not be surrendered for short-term safety. 

Still, Americans have long been willing to give up freedoms in exchange for supposed safety during a time of crisis. Much to the delight of government officials, the current coronavirus outbreak has been no different. 

We saw this after 9/11. What was the immediate response? The Patriot Act, a new law that vastly expanded the government’s authority to spy on its own citizens. We then thought it was normal for TSA agents to harass granny at the airport. And don’t think about bringing more than 3 ounces of liquid on the plane with you. 

But this was after terrorists killed 3,000 Americans on our own soil. We wanted to be protected. Regardless of the Fourth Amendment or any values we previously held.  

Enter 2020. An invisible virus from China that we know little about leads to a near total shutdown of the economy. We see the number of positive cases and deaths add up during the non-stop media coverage. We hear projections of 1.7 million deaths in America. Naturally, we get scared. And decide it’s okay to give up freedoms.

Government takes the ball and runs. 

Soon, government officials are closing restaurants. Sorry restaurant owners, servers, and bartenders. But okay. We then shut down “non-essential” businesses and act surprised when millions file for unemployment. In between, we enact curfews (for some reason). We’ve fined people for being in too large of a crowd. In Greenville, we prohibit drive-in church services at a church right down the road from a Sonic…Drive-In. The city of Jackson floats the idea of tracking residents. 

Perhaps we’re just following other states. Kentucky state police were in church parking lots getting license plate numbers on Easter so they can impose state-mandated quarantines on churchgoers. Utah is requiring a travel declaration for all adults traveling into Utah via car or plane. They are doing so via the federal Wireless Emergency Alert system, which is otherwise used for weather or missing children alerts. But it’s just for people coming into Utah, not Utahans. 

But many would probably say this all makes sense.

In Colorado, police handcuffed a man for playing with his wife and six-year-old daughter on a nearly empty “public” softball field. Law enforcement claim he violated an order prohibiting gatherings of five or more. In Washington, D.C., police officers are prohibiting you from sitting on a park bench…alone. In Philadelphia, a man was dragged off a public bus. His offense? Not wearing a mask. 

A little too intrusive yet?

Hold my beer. The newest tourism slogan from Michigan. In Michigan, it is illegal to travel from one house to another. A private gathering of any size is prohibited. “Non-essential” sections of grocery stores are closed. You can buy lottery tickets, but not a pack of seeds. You can canoe, paddle boat, or kayak, but can't get in a boat with a motor.

Because, there’s a dangerous virus and that motor in your boat will only make things worse. 

There’s a precarious game of politicians trying to one-up each other, to the thunderous applause of many. After all, they did “something.” And that's what we want.

But when you give up a little liberty, your restaurant closure turns into a prohibition on boats with a motor. Those who want to control our lives will simply look for the next excuse to do so, because there will always be a reason. And our response will not soon be forgotten. 

As Christians across the globe prepare to celebrate the resurrection of Jesus on Sunday, the city of Greenville is doubling down on enforcement of those who worship in their cars in church parking lots. 

Police first descended on Temple Baptist Church on Wednesday, issuing $500 fines to about two dozen people attending a “drive-in” prayer service. They were listening to the lesson on the radio, much like you do at a drive-in movie theater.

“The police officer said I might go to jail,” Temple Baptist Church Pastor Arthur Scott said on The Todd Starnes Radio Show. “If it means going to jail and if it takes that for me to keep preaching, I’ll be glad to go to jail…One of the police officers said the mayor wanted to make an example of our church. I told them to get some more tickets ready because we will be preaching Sunday morning and Sunday night.”

Making sure the city got their point across, some 20 police officers stormed King James Baptist Church who was having a drive-in service the following night, again threating citations. 

Temple Baptist Church has been holding radio broadcast services for the previous weeks. 

Lee Gordon, a longtime member of Temple Baptist, said he the church was doing the right thing by having worshippers stay in their cars with the windows rolled up.

“A lot of our membership is elderly and doesn’t have access (to technology needed to stream the service),” Gordon said. “There’s 25 cars 200 yards away all in the same place at the Sonic Drive-In. What we’re doing endangers nobody.”

An order from the city not only bans in person worship services, as the statewide shelter-in-place order does, it also takes on drive-in services.

“The City of Greenville put in place an Executive Order that orders all church buildings closed for in person and drive-in church services, until the State of Mississippi’s Shelter In Place Executive Order No. 1466 is lifted by Gov. Tate Reeves. Churches are strongly encouraged to hold services via Facebook Live, Zoom, Free Conference Call, and any and all other social media, streaming, and telephonic platforms,” a press release from the city of Greenville reads.

Reeves fired back on Twitter. 

“If you send police after worshippers trying to social distance, you are going to have Mississippians revolt. I’ve asked all pastors not to hold these services—but we ordered churches safe from these outrageous actions. Don’t trample the Constitution.”

We will see what Sunday brings.

The MCPP team talks about the good we have seen from individuals and many private companies during the coronavirus pandemic and the hope we see from the return of sports. Some good news for your day.

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Underlying conditions are one of the reasons why the death rate in Mississippi is so high from the coronavirus pandemic.

Mississippi is ranked 17th in the death rate for COVID-19. One of the main reasons the state is ranked so high is that it has some of the highest incidences nationally of these underlying conditions that can lead to increased morbidity from the virus.

They include:

• Hypertension (high blood pressure). Mississippi has the nation’s highest death rate in this category during normal times.
• Obesity. Mississippi is the nation’s fattest state, with 39.5 percent of its citizens considered obese according to the U.S. Centers for Disease Control.
• Diabetes. The Magnolia State has the second highest death rate nationally from this disease.
• Cardiovascular disease. Mississippi has the nation’s highest death rate from this syndrome and this is the number one cause of death statewide.
• Renal (kidney) disease, which Mississippi leads the nation in the death rate.
• Lung disease. Mississippi has the third highest death rate nationwide for lung disease
• Compromised immune system. Jackson is the fourth-highest city nationally for HIV infection rates.

There are 2,003 cases of COVID-19 statewide, with 67 deaths, according to data from the state Department of Health as of April 9. 

Four of the COVID-19 deaths statewide have been from those without any of these conditions, with the rest having one or more of these issues. 

Forty deaths statewide have come from those with cardiovascular disease, while 34 with diabetes have passed away after catching the virus. Twenty six of the COVID-19 victims in the state also had hypertension.

The latest models at the Institutes for Health Metrics and Evaluation predict that there will be 301 deaths from COVID-19 in Mississippi. The models also predict that April 19 is the projected peak in daily deaths, which would be 11 deaths. 

The models also predict that there won’t be a bed shortage (5,733 available) by the disease’s peak in Mississippi, same for intensive care unit beds (111 needed, 340 available). 

The economic shutdown and related stay at home orders to slow the spread of the coronavirus pandemic will impact the budgets of every city in Mississippi, as sales and gaming taxes are often a big chunk of tax revenues. 

According to analysis of data by the Mississippi Center for Public Policy, Tunica will likely feel the effects the most from the revenue downturn, as 84 percent of the revenue in the small city in north Mississippi comes from gaming. 

Among the cities without gaming, Tupelo’s budget will take the biggest hit since the sales tax accounts for nearly 60 percent of its tax revenues.

Last year, the Department of Revenue transferred $448 million in sales tax revenues to cities and $87 million in gaming fees and taxes to municipalities and counties with casinos. Any reduction in those revenues, even for a month, could put municipal budgets in a serious squeeze.

Four other cities with casinos —Biloxi, D’Iberville, Greenville, Gulfport, Vicksburg and Natchez — will feel the effects of the casino closures to varying degrees. 

Casinos in Mississippi were closed on March 16 by the order of the Mississippi Gaming Commission, which regulates the state’s casino industry.

According to data from the state auditor’s office, Tunica had $2.4 million in total revenues in 2018 (the latest data available), with only $402,462 coming from sales tax (16.75 percent) and the majority (more than $2 million) from gaming revenues.

Biloxi received about 32 percent of its tax revenues from gaming, while 21.65 percent came from sales tax receipts. Vicksburg received about 22 percent of its revenues from gaming fees and taxes, while the sales tax accounted for 36 percent of the city’s revenue.

For those cities without casino gaming, the COVID-19 economic shutdown will hit Tupelo hardest as 58 percent of its tax revenues came from the sales tax. Businesses considered non-essential, such as most clothing stores, were shut down earlier than most in the state by the city.

Hattiesburg will also be hit hard by the shutdown, as 48 percent of its tax proceeds came from sales tax. Pearl will also be severely affected, as 46 percent of its revenues come from sales tax receipts.

Mississippi levies a 7 percent sales tax statewide and 18 percent of those proceeds are sent by the state Department of Revenue back to the municipality where the sale was performed.

Cities that are more dependent on property tax revenues, such as Southaven (more than 60 percent of total tax revenues) and Jackson (47 percent), will weather the economic storm in much better shape.

The longer the shutdown continues, the worse it will be, both for state revenues and cities. A study from the Mercatus Center at George Mason University estimates that real growth in the U.S. gross domestic product will decline 5 percent for each month of partial economic shutdown.

Data from city websites and the Office of State Auditor’s reports.