MPA/MPS Press Releases

-Landowners Earn Average of $1,000 from AgraGate Carbon Credits Sales

For Julian Watson of Jackson, Mississippi, enrolling his 200 acres of Holmes County loblolly pines in the carbon credits market last fall required a fair amount of research. In the end, though, was an easy decision.

“I told my 96-year-old mother we’re getting paid for cleaning the air,” Watson said. “It sounds like Santa Claus, but it’s real.”

Watson, who serves on the board of the Mississippi Forest Association, is one of 269 forest owners in 16 states who this month received checks totaling $273,000 from the sale of carbon credits marketed by AgraGate Climate Credits Corporation. The money was the first installment forest owners will receive during the 15-year contract term.

“I got my first check last week,” Watson said. “I’d like to see higher prices, and maybe we’ll get them with a new president.”

The funds represent the first sale of Exchange Forestry Offsets (XFOs) by AgraGate on the Chicago Climate Exchange, according to CEO Dave Krog. Research shows that trees are very good at converting atmospheric carbon dioxide to a sequestered, stable form of carbon within the tree.

“We began collecting carbon credits from afforestation projects, or new tree plantings, in the fall of 2007,” Krog noted. “We have sold only about 17 percent of this first XFO pool, so owners can expect considerably larger payments as we complete sales later this year and early in 2009.”

Krog said that the forestry program was expanded earlier in 2008 when the Climate Exchange (CCX) approved protocols for sustainably managed “working forests.” That action has opened the carbon credits market to many other landowners. Aggregation of these credits is under way.

AgraGate collects credits from individual landowners and combines them into “pools” that can then be sold on the CCX. The company manages and administers the pools, registers projects, maintains the database of credits, interfaces with the CCX, manages the sales of the credits in the pools and distributes sales proceeds to participants.

Chicago Climate Exchange is North America’s only and the world’s first global marketplace for integrating voluntary legally binding emissions reductions with emissions trading and offsets for all six greenhouse gases. The CCX launched trading in December 2003. Member companies have voluntarily committed to reduce their greenhouse gas emissions. Though they must reduce actual emissions, they also can purchase carbon credits to offset a portion of their carbon dioxide reduction commitment.

AgraGate, a subsidiary of the Iowa Farm Bureau Federation, is the leading aggregator of carbon credits from agriculture. On behalf of farmers, ranchers and private forest owners, the company has marketed more than 3 million carbon credits from enrollments in 26 states on the CCX. For more information, call AgraGate at 866-633-6758, or visit www.agragate.com.

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MEDIA CONTACT:
Ken Benkstein, The Meyocks Group
503-806-2220, kenbenkstein@meyocks.com

Contact: Dr. Billy White, Executive Director
Division of Public Safety Planning
Phone: 601-987-4155/Cell: 601-331-2721
bwhite@mdps.state.ms.us

MS Department of Public Safety
Becky Webster, Division Director
Phone: 601-987-1301/Cell: 601-594-5665
bwebster@mdps.state.ms.us

Mississippi Department of Public Safety Joins National Crackdown on Impaired Drivers August 15 – September 1

(Jackson, MS) – Impaired driving is not an accident — it’s an epidemic of careless disregard for human life.

That’s why the Mississippi Department of Public Safety’s Highway Patrol will join thousands of county and local law enforcement agencies throughout the state and nation in the upcoming Impaired Driving Enforcement Campaign August 15 through Labor Day. Drunk Driving. Over the Limit. Under Arrest. is a national effort to prevent tragedies in Mississippi and across the United States.

Impaired driving is a deadly crime with serious consequences. Each year, more than 13,500 die on our nation’s roads due to impaired driving. The Mississippi Highway Patrol, in conjunction with Mississippi’s finest police officers, deputy sheriffs and other law enforcement agencies, will be working diligently together to help make the streets and highways safer.

“We will be aggressively looking for all impaired drivers and will arrest anyone we find driving under the influence,” said Stephen B. Simpson, Commissioner of the Department.

Driving with a blood alcohol concentration (BAC) of .08 or higher is illegal in every state. Yet, in 2006 there were more than 167 DUI arrests per hour in the United States, with nearly 13,500 fatalities from alcohol impaired driving crashes nationwide, of which 375 died on Mississippi roads.

“Impaired drivers are a very large threat to themselves and all those they encounter. Our goal is to get these drivers off the streets,” said Simpson. “Too many people don’t understand the gravity of their actions and the serious consequences of driving while impaired. On top of the possibility of a deadly crash, incarceration, driver’s license suspension, higher insurance rates, and numerous other expenses from attorney fees, fines, and court costs can result from just one instance of drinking and driving.”

Motorcycle riders also have a high rate of alcohol abuse in fatal crashes. According to the National Highway Traffic Safety Administration (NHTSA), 27 percent of all fatally injured motorcyclists in 2006 were legally intoxicated, plus 41 percent of those who died in single-vehicle crashes had a BAC above the legal limit.

Underage DUI arrests constitute major traffic safety problems. The Mississippi underage driver accounts for 11.5 percent of all Mississippi drivers arrested for DUI. The most alarming fact is that these young drivers are committing two serious offenses – both drinking alcohol illegally and then driving under the influence.

In Mississippi, traffic safety indicators show a positive change from 2006 to 2007. Last year’s “Over the Limit – Under Arrest” public information and education campaign, paired with the strict traffic enforcement by state and local departments, documented that our state has made significant progress in reducing deaths on our roadways.

Though fatal crashes are down only 1 percent, traffic fatalities are down 3 percent.

Alcohol-related fatalities decreased from 375 in 2006 to 345 in 2007, representing an 8 percent over all improvement; in the same time period, DUI arrests increased from 23,693 in 2006 to 24,851 in 2007.

“In the last 29 months Governor Barbour has put 169 new troopers on the highway. This has undoubtedly contributed to the 8 percent decrease in alcohol-related fatalities,” said Col. Michael Berthay of the Mississippi Highway Patrol.

“Be smart,” said Simpson. “Don’t drink and drive. Refuse to ride with a driver who has had too much to drink. We won’t tolerate it and neither should you.”

For more information on the Impaired Driving Campaign, contact Becky Webster, bwebster@mdps.state.ms.us, or visit the national web site at www.StopImpairedDriving.org.

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Mississippi House of Representatives
Jackson, MS

On Monday the Mississippi Hospital Association sent their members a comparison of two plans to solve the Medicaid funding problem.  In order to fill the $90 million shortfall, the Governor has proposed a combination of cuts in payments for services and increased taxes on hospitals.  The House of Representatives has steadfastly supported increased tobacco taxes to solve the problem.  The Association’s comparison clearly points out the flaws in the Governor’s plan and the benefits of the House plan.

More than 80% of the state’s hospitals fare better under the House plan than under the Governor’s plan.  In addition, some of the hospitals that would gain under the Governor’s plan would receive extraordinary “windfalls” at the expense of the losers.  For example, one 25 bed hospital would receive an additional nearly $6 million annually, a 36 bed hospital would receive a more than $10 million increase and a 35 bed facility would receive another $8 million per annum.  Other hospitals would see dramatic cuts in their revenues as a result of the Governor’s plan.  Clearly in his haste to push his tax on hospitals the Governor gave little thought to his plan’s impact on individual hospitals.

After reviewing the Association report, Dirk Dedeaux, Chairman of the House Medicaid Committee, said “The Governor has consistently opposed raising taxes on cigarettes to fund Medicaid and other healthcare needs, and now we see the result of his obstinacy.  The House continues to support taxing those things that cause healthcare problems like tobacco and to oppose taxes on healthcare providers.”

Contact: Rep. Cecil Brown at 601-982-4123; Rep. Dirk Dedeaux at 228-216-3475.

For More Information Contact:
Tina Bruno @ 210-559-5277

As the state’s schools grapple with rising costs, some superintendents recently said it is time to shift the start of school to the end of August. A new coalition of parents agrees, and plans to ask the Mississippi legislature to consider setting statewide parameters for public schools to begin classes on the fourth Monday in August and end classes in May.

“It’s too hot in early-August,” said April McDonald, a Richland parent and supporter of Save Mississippi Summers. “Children have a difficult time focusing in the classroom, family vacation time is cut short, and temperatures are dangerously high on playgrounds, sports fields and buses. Add in the cost of cooling our schools during the hottest time of the year, and it just does not make sense to begin school in early August,” she said.

Harrison County Schools Superintendent Henry Arledge said a late-August-to-May calendar could work in Mississippi. The key would be to push back the date for state standardized tests by three weeks in the spring. “If all public schools begin classes on the same day and take the standardized tests on the same day, it creates a system of fairness across the state,” Arledge explained. “A uniform calendar allows us to more accurately analyze test scores and best practices.

“In sports, we insist that all participants begin at the same starting line,” Arledge said. “We need to apply this consistent approach to school start dates and testing dates as well.”

Arledge said pushing back the school start date should also reduce school cooling costs, since early August tends to be the hottest time of the school year. Utility savings could be used for instructional programs, such as better preparing children to start kindergarten. “I think most administrators and teachers would agree that shifting money from air conditioning to student achievement makes good sense,” Arledge said.

Last year, a number of Texas schools saw dramatic savings after a new state law passed requiring schools to begin on the fourth Monday of August. The Dallas Independent School District cut its electric costs for August in half, and saved more than $2 million.

Andi Rushton-Oustalet, mother of three in the Gulfport area, said those kinds of cost savings should get the attention of Mississippi lawmakers. “School districts are strapped, and taxpayers are already overburdened with high gas prices, food costs and energy bills,” she said. “If a simple change in the school calendar can help reduce non-instructional costs, the state has an obligation to look into it.”

Rushton-Oustalet points out that a number of other states have shifted school calendars after hearing from parents, educators and businesses. Wisconsin, North Carolina, Michigan, Texas, Florida, South Carolina, Virginia, Arkansas, Iowa, West Virginia and Minnesota all have laws governing school start dates on the books. Alabama, Kentucky, Georgia, Indiana and Ohio all have grassroots movements underway to push back the start of the school year.

McDonald said Save Mississippi Summers is trying to spread the word that changing the school calendar is a practical way to cut non-instructional costs and give families a full summer together. “Starting school at the end of August is a win-win situation for Mississippi families and schools,” she said.

Those interested in joining Save Mississippi Summers should log onto the groups’ web site at www.SaveMississippiSummers.org .

For more information:
Contact: Stacey Corso
Communications Department
(925) 953-1716

Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has opened a new office in Jackson, Miss. Matthew M. Fitzgerald has been appointed to supervise the Jackson office as its regional manager. The new office is located at 617 Renaissance Way, Suite 200, Ridgeland, MS 39157. The phone number is (601) 856-4706. The fax number is (601) 856-4763.

“The opening of our new Jackson office marks the first time a national commercial real estate brokerage firm has entered the state of Mississippi,” explains Fitzgerald. “Marcus & Millichap will serve a segment of the Southeast investment community that has been overlooked in the past. We opened this office to meet the growing demands of local and out-of-state real estate investors. We plan to target investment real estate in Mississippi’s dynamic growth areas, including DeSoto County, Downtown Jackson, Madison/Ridgeland and, particularly, along the Gulf Coast.”

Brent Yurtkuran and Brad Barham, multi-family investment specialists, will lead the new office as senior associates. Yurtkuran and Barham join Marcus & Millichap from Jackson-based Real Estate Solutions, a real estate services firm founded by Yurtkuran in 2001. Harry Noble, formerly of Noble Development Properties Inc., has also joined the firm as a retail and single-tenant net lease investment specialist.

Yurtkuran and Barham have been involved in the commercial real estate industry for nearly six years. As such, they have experience selling multi-family properties throughout Mississippi on behalf of local and out-of-state investors.

“Mississippi is long over due for a national specialized commercial real estate brokerage firm,” says Yurtkuran. “Marcus & Millichap will fill a major void in Northern Mississippi and along the Gulf Coast. Investors will now have the opportunity to tap into Marcus & Millichap’s extensive pool of nationwide investment capital,” he adds.

“Our markets are stable and well positioned for future growth,” notes Barham. “The arrival of Marcus & Millichap is direct evidence of the strong opportunity in this relatively untapped market.”

Yurtkuran and Barham are Certified Commercial Investment Member (CCIM) candidates.

With the opening of the Jackson office, Marcus & Millichap expands its already strong presence in the southeast region of the United States, including offices in Atlanta; Birmingham, Ala; Greenville, S.C.; Louisville, Ky.; Lafayette, La.; Memphis, Tenn.; and Williamsburg, Va. The firm also has offices in Charlotte and five offices in Florida.

# # #

With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.

www.MarcusMillichap.com

CONTACT: Virgi Lindsay, Executive Director, 601-352-8850

Set among twinkling lights along historic Carlisle Street, five stages will feature local musicians during the end-of-the-summer celebration, Bright Lights, Belhaven Nights, 6-9 p.m., Saturday, August 16.

The street festival schedule is as follows:
• Inside Basil’s of Belhaven – 6-7 p.m., Noah Thompson; 7-8 p.m., Bob Gates
• Carlisle Street Main Stage – 6-7 p.m., Jackson Jug Revival; 7-8 p.m., Curves; 8-9 p.m., The Weeks
• Porch at 1020 Carlisle Street – 6-7 p.m., Tim Avalon & Friends; 7-8 p.m., Jim Kopernak & Howard Jones
• Outside New Stage Theatre – 6-7 p.m., Signals; 7-8 p.m., Los Buddies; 8-9 p.m., The Rounders
• Inside New Stage Theatre—6-7 p.m., Mississippi Improve; 7-8 p.m., St. Brigid’s; 8-9 p.m., Eric Stracener & The Frustrations

Bright Lights, Belhaven Nights has been named a Top 20 Event in the Southeast for the month of August by the Southeastern Tourism Society.

The street festival highlights Greater Belhaven, a unique near-downtown neighborhood. It is casual, family-fun event including exciting children’s activities, art, music, theatre and food.

“We are pleased that we are still able to provide an event for the metro area and beyond where a family of four can attend with such a reasonable cost” said Virgi Lindsay, executive director of the Greater Belhaven Neighborhood Foundation (GBNF).

Admission to the festival is $3 for those 13 and older; $1 for children ages 12 and younger. Parking will be available at New Stage Theatre, along Belhaven streets and at the parking garage adjacent to Baptist Health Systems Medical Arts East at the corner of North and Carlisle Streets.

The festival begins at McDade’s parking lot and will extend up Carlisle Street to New Stage Theater. Within the festival there will be a children’s area which will include a balloon artist, train rides, space jumps, and arts and crafts. Children will also be invited to help paint a permanent mural designed by local neighborhood artists.

Vendors from the Belhaven Market will be selling a variety of items including foods, arts and crafts. Beverages, including soft drinks, beer and bottled water will be on sale as well. Belhaven merchants will be offering a variety of gifts and coupons as door prizes for all who attend.

Vidal Blankenstein is the featured artist of this year’s festival and her original artwork will be featured in festival promotions.

“This is a great way to enjoy a summer evening,” said Lindsay. “This is the most fun you can have in hot weather and not be in the water. It’s wonderful to come out on a summer evening to experience many fun activities for the entire family in our Capitol City.”
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The Foundation, which is a non-profit group governed by a board of directors with representation from Belhaven and Belhaven Heights, works to improve and revitalize the area through long-range planning, economic restructuring, historic preservation, green space enhancement, and improvement of Fortification Street, the major east-west corridor between the two neighborhoods.

Editor’s note: Images available upon request.

For more information contact:

Two Lakes For Mississippi Foundation
P.O.Box 55809
Jackson, MS 39296
601.987.1039

“The Two Lakes Plan is not dead and never was,” John McGowan said today. McGowan is chairman of the Two Lakes for Mississippi Foundation and spoke in response to claims by some Rankin County politicians that the project was finished.

Two Lakes is a comprehensive project that will provide flood control, spur economic development along the Pearl River and improve recreational opportunities that can make Jackson and the tri-county area a true destination.

“Contrary to the claims made by those who oppose the plan, we are moving ahead with a project that will drastically reduce flooding in the area,” he added. McGowan went on to say that so far 30 of the 87 property owners are participating in an effort to find private financing arrangement for the landowners. The Hinds County Board of Supervisors also strongly supports the Two Lakes Plan. The only plan yet offered as a replacement for Two Lakes, improperly called a lake plan, will only provide marginal flood protection for downtown Jackson. In reality this is a levees-only scheme, offering no meaningful recreational or economic advantages. Further, even the U.S. Corps of Engineers says that it is inferior to the Two Lakes Plan as a flood-control measure.

“It’s this simple,” said McGowan, “Our taxpayers can blow hundreds of millions of dollars on an illegitimate boondoggle, or they can participate in a privately run venture that will provide jobs, tax revenue, recreation, and which will cost the same as the plan Levee Board’s proposes.

A recent editorial in the Northside Sun noted that the Corps of Engineers envisions paying $3,576 to clear one acre of land. McGowan’s real-world estimate is $1,000.

John McGowan, an oilman and native of Jackson, has foresworn any personal gain from Two Lakes. “I just want to do something for the city and the state,” he said.

Please log on to our website for more information. www.twolakesms.com or contact Robert Muller at 601.987.1039, 601.982.3444 or at twolakesms@mcgowanwp.com

Mississippi House of Representatives
Jackson, Mississippi

STATEMENT OF HOUSE SPEAKER BILLY MCCOY, AUGUST 1, 2008

House Speaker Billy McCoy on Friday said his leadership team is fully aware of the public’s frustration over the cost of the current special session.

McCoy said that Gov. Barbour has limited the legislature’s options during the special session. “If we had all tools available to us, we could reach a consensus fairly quickly,” McCoy added.

He said allowing an increase in the tobacco tax as part of the mix would dramatically improve chances of a reconciliation.

“The public supports such an plan, the medical community advocates it, and, if allowed to vote, I predict a sufficient number of senators would support the measure,” McCoy said.

“Governor Barbour is putting on his ‘magician’s costume’ raising hopes that he can pull off a ‘trick’ to lessen the harm to our state’s 600,000 citizens who depend on Medicaid,” McCoy added. “If he comes up with some method to get more federal funds to reduce or eliminate his unreasonable tax on hospitals and sick folks, I assure him that the House will accept it.”

Rumors have spread around the Capitol that Barbour has been able to access additional federal funds to reduce or eliminate the Medicaid deficit.

House proposals have included a compromise that would combine a cigarette tax with a reduced tax on hospitals to prevent any cuts in services. In a floor vote, the Governor’s plan to tax hospitals was overwhelmingly rejected by the House.

Contact Speaker McCoy at 601-359-3300.

For more information:
Angelique Minnifield
Novia Communications
(601) 985-9502 – office
(601) 316-4494 – cell
angelique@noviamedia.com

In Jackson, Mississippi, we’re building more than a state-of-the art 330,000-square-foot convention complex. We’re building local, small, and minority-owned businesses. The Jackson Convention Complex is a $65 million project which will serve as an economic catalyst for the City of Jackson and the metro area, primarily by hosting local, regional and national conventions, workshops, consumer trade shows and entertainment events.

But that’s not all. The goal of the Commissioners for the Jackson Convention Complex is to insure that business development and contract opportunities are extended to qualified small and minority owned companies in an effort to build capacity and foster wealth building. To do this, the Commissioners and SMG (the company chosen to manage the Jackson Convention Complex) have partnered with local government and business development agencies and organizations to offer a series of business development and networking conferences targeting aspiring, small and minority business owners who are interested and operating businesses in and around the Jackson Convention Complex.

At a time when the economy is a primary issue of concern, local, small & minority owned businesses are experiencing positive financial impact as a direct result of the construction and operation of the Jackson Convention Complex. Such opportunities are significant for entrepreneurial success and expansion in Mississippi.

The U. S. Small Business Administration reports that there are over 1.1 million minority owned businesses in America today contributing almost $400 billion to the United States’ economic bottom line. Mississippi’s small and minority owned business sector has contributed to that bottom line through both public and private sector contract opportunities. Richard Speights, Director of the Mississippi Development Authority’s Small & Minority Business Development Division, sees the Jackson Convention Complex as one of those public sector projects that will open the door to success for aspiring entrepreneurs, and help to build a greater capacity for existing small and minority business enterprises that take part in the construction and operation of the facility.

“The Convention Center development is an enormous gift to the metropolitan area. As Mississippi’s capital, it is important that Jackson is seen as a hub for new opportunity and growth. The city has an Equal Business Opportunity Program in place that helps to insure the growth of minority-owned business, which ultimately has a positive affect on the entire state,” says Speights. Leroy Walker, Vice Chairman of the Commission and Chairman of the Procurement Committee, echoes those sentiments. “The Commission for the Jackson Convention Complex is a strong proponent of business development, particularly for our local and minority-owned businesses,” says Walker.

This past March, the Jackson Convention Complex/SMG and its partners sponsored its first business development conference targeting existing small and minority-owned businesses, which are ideal candidates to provide some of the products and professional services required to fulfill the day-to-day operations and maintenance needs for the Jackson Convention Complex. Attendees received information on contract opportunities with the Complex, as well as information on networking, financial resources, and real estate options to help support growth.

Other business development and networking conferences on strategic partnerships, customer service, operating a successful restaurant or retail store, marketing, and affordable office and retail space in downtown Jackson are scheduled to take place prior to the opening of the Jackson Convention Complex. These conferences are designed to not only educate and empower the local business community, but to also give birth to new restaurants and retails shops around the Jackson Convention Complex for visitors and locals to enjoy.

By the time the convention center is completed in January of 2009, approximately $65 million will have been spent constructing the Jackson Convention Complex. According to Dr. Bob Neal, Senior Economist at the Mississippi Institution of Higher Learning, the $65 million spent on the project is estimated to generate approximately $43 million in payroll.

“When you consider the primary and secondary jobs this project will create, about 950 jobs will be generated in many areas including construction, the hotel and food industry, as well as professional services,” says Neal.

Linda McCarthy, General Manager with SMG who is overseeing the Jackson Convention Complex, agrees that this kind project not only provides a boost to the local economy, “it also gives smaller firms working on the project an opportunity to be properly mentored and groomed for even larger projects,” says McCarthy. Local companies already participating in this development include Dale & Associates Architects, IMS Engineers, The Priester Law Firm, Porter/Fox Everette, Novia Communications, Advanced Microsystems, LaBass Photography, A-1 Janitorial, Ellis Masonry, Capital Security Services, Inc., McGraw Gotta Go, Waterproofing Systems, Capital Glass, CivilTech Engineering, Watkins and O’Gwynn, Foshee Construction and Waggoner Electric.

Fountain Major Construction, a joint venture company comprised of locally owned and operated Fountain Construction and Major Associates, serves as the general contractor for the project.

The Jackson Convention Complex/SMG is proud to partner with the City of Jackson, Downtown Jackson Partners, Mississippi Development Authority Minority and Small Business Development Division, MinCap, U.S. Small Business Administration, the Jackson Chamber of Commerce, JSU Small Business Development Center, JSU Entrepreneurship Program, Mississippi Minority Business Alliance, and the Mississippi Black Chamber of Commerce to help build the local business community. The Jackson Convention Complex is scheduled to open in January of 2009 with grand opening events to be announced later this year.

Myth #1. The plan passed by the Senate and supported by the Governor is “the hospital plan.”

Fact #1. The plan was written by the Mississippi Hospital Association at the request of members of the Senate who set the rules – all of the money had to come from the hospitals and it had to replace all of the $90 million shortfall. The Mississippi Hospital Association has consistently supported an increase in the tobacco tax to cover the shortfall. They support the Senate plan only if it a choice between that plan and the Governor’s $360 million cuts in Medicaid payments.

Myth #2. – For every $1 in taxes a hospital pays, it receives $6 in Medicaid reimbursements.

Fact #2. The amount of money a hospital receives from the Medicaid program is not related to the amount it pays in taxes. As usual, the Governor has done some fancy (bogus) math. He has totaled up all of the Medicaid money disbursed to hospitals in Mississippi and divided it by the amount they would pay in taxes under his plan, and, eureka, calculated a 6 to 1 ratio. However, the first number is not related to the second number. Hospitals get Medicaid payments based on the services they provide to patients, not based on the amount they pay in taxes. This myth is a little like saying that every day the sun shines, there is water in the ocean. Both statements are true, but the fact that there is water in the ocean has nothing to do with whether or not the sun shines.

Myth #3. – The proposed $167.25 per patient per day tax is just a revision of the existing hospital tax that was in place until 3 years ago.

Fact #3. – The proposed tax is very different from the prior plan. Under the old plan 26 public hospitals paid the tax, and those same hospitals received additional payments from Medicaid. Under the Governor’s proposal, all hospitals will be taxed, and the payment will be spread among all hospitals. As a result, there will be winners and losers. Two public hospitals have testified that the proposal will be devastating to their facilities.

Myth #4. – The proposed tax is “fair.”

Fact #4. – We do not tax any other group of medical providers to provide matching funds for their Medicaid reimbursements. Neither do we tax highway contractors even though their contracts are funded, in large part, by federal matching funds. We might just as well tax Katrina victims who received federal grants to provide the state’s required match. It just makes no sense.

Myth #5. – The new tax will not be passed along to patients and their insurers.

Fact #5. – The Governor’s own hand picked Medicaid Hospital Advisory Committee said in their report that “hospitals will be required to pass increased tax cost and payment shortfalls onto other insurance companies and/or reduce services or jobs,” Barbour has already increased taxes on nursing homes, and those increases have been passed on to private patients.

Myth #6. The Governor is required by law to make the cuts.

Fact #6. – This one is a little like myth #2. Technically it is true. However, as mentioned above, the House has passed legislation to prevent the cuts. In addition, there have been shortfalls in Medicaid every year that Barbour has been in office, and he has never made cuts. In addition, there are more than sufficient funds already available to Medicaid to carry us well into the regular legislative session.

Myth #7. The House leadership wants the Governor to make the cuts for political reasons.

Fact #7. The House has passed and sent to the Senate two bills that would prevent the cuts – one to allow the Governor to tap the rainy day fund, another to delay any cuts until February 1 so that we can address the issue in the regular legislative session.

Cecil Brown
Member of the Joint Legislative Budget Committee
Mississippi House of Representatives
Jackson, MS

601-573-8777 (c)