logo
Bobby Harrison: So what happens if Mississippi lawmakers don't pass a budget?

Bobby Harrison: So what happens if Mississippi lawmakers don't pass a budget?

Yahoo27-04-2025

On June 30, 2009, Sam Cameron, the then-executive director of the Mississippi Hospital Association, held a news conference in the Capitol rotunda to publicly take his whipping and accept his defeat.
Cameron urged House Democrats, who had sided with the Hospital Association, to accept the demands of Republican Gov. Haley Barbour to place an additional $90 million tax on the state's hospitals to help fund Medicaid and prevent the very real possibility of the program and indeed much of state government being shut down when the new budget year began in a few hours. The impasse over Medicaid and the hospital tax had stopped all budget negotiations.
Barbour watched from a floor above as Cameron publicly admitted defeat. Cameron's decision to swallow his pride was based on a simple equation. He told news reporters, scores of lobbyists and health care advocates who had set up camp in the Capitol as midnight on July 1 approached that, while he believed the tax would hurt Mississippi hospitals, not having a Medicaid budget would be much more harmful.
Just as in 2009, the Legislature ended the 2025 regular session earlier this month without a budget agreement and will have to come back in special session to adopt a budget before the new fiscal year begins on July 1. It is unlikely that the current budget rift between the House and Senate will be as dramatic as the 2009 standoff when it appeared only hours before the July 1 deadline that there would be no budget. But who knows what will result from the current standoff? After all, the current standoff in many ways seems to be more about political egos than policy differences on the budget.
The fight centers around multiple factors, including:
Whether legislation will be passed to allow sports betting outside of casinos.
Whether the Senate will agree to a massive projects bill to fund local projects throughout the state.
Whether leaders will overcome hard feelings between the two chambers caused by the House's hasty final passage of a Senate tax cut bill filled with typos that altered the intent of the bill without giving the Senate an opportunity to fix the mistakes.
Whether members would work on a weekend at the end of the session. The Senate wanted to, the House did not.
It is difficult to think any of those issues will rise to the ultimate level of preventing the final passage of a budget when push comes to shove.
But who knows? What we do know is that the impasse in 2009 created a guideline of what could happen if a budget is not passed.
It is likely that parts, though not all, of state government will shut down if the Legislature does the unthinkable and does not pass a budget for the new fiscal year beginning July 1.
An official opinion of the office of Attorney General Jim Hood issued in 2009 said if there is no budget passed by the Legislature, those services mandated in the Mississippi Constitution, such as a public education system, will continue.
According to the Hood opinion, other entities, such as the state's debt, and court and federal mandates, also would be funded. But it is likely that there will not be funds for Medicaid and many other programs, such as transportation and aspects of public safety that are not specifically listed in the Mississippi Constitution.
The Hood opinion reasoned that the Mississippi Constitution is the ultimate law of the state and must be adhered to even in the absence of legislative action. Other states have reached similar conclusions when their legislatures have failed to act, the AG's opinion said.
As is often pointed out, the opinion of the attorney general does not carry the weight of law. It serves only as a guideline, though Gov. Tate Reeves has relied on the 2009 opinion even though it was written by the staff of Hood, who was Reeves' opponent in the contentious 2019 gubernatorial campaign.
But if the unthinkable ever occurs and the Legislature goes too far into a new fiscal year without adopting a budget, it most likely will be the courts — moreso than an AG's opinion — that ultimately determine if and how state government operates.
In 2009 Sam Cameron did not want to see what would happen if a budget was not adopted. It also is likely that current political leaders do not want to see the results of not having a budget passed before July 1 of this year.
This column was produced by Mississippi Today, a nonprofit news organization that covers state government, public policy, politics and culture. Bobby Harrison is the editor of Mississippi Today Ideas.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

ICE is using no-bid contracts, boosting big firms, to get more detention beds
ICE is using no-bid contracts, boosting big firms, to get more detention beds

Associated Press

time17 minutes ago

  • Associated Press

ICE is using no-bid contracts, boosting big firms, to get more detention beds

LEAVENWORTH, Kan. (AP) — Leavenworth, Kansas, occupies a mythic space in American crime, its name alone evoking a short hand for serving hard time. The federal penitentiary housed gangsters Al Capone and Machine Gun Kelly — in a building so storied that it inspired the term 'the big house.' Now Kansas' oldest city could soon be detaining far less famous people, migrants swept up in President Donald Trump's promise of mass deportations of those living in the U.S. illegally. The federal government has signed a deal with the private prison firm CoreCivic Corp. to reopen a 1,033-bed prison in Leavenworth as part of a surge of contracts U.S. Immigration and Customs Enforcement has issued without seeking competitive bids. ICE has cited a 'compelling urgency' for thousands more detention beds, and its efforts have sent profit estimates soaring for politically connected private companies, including CoreCivic, based in the Nashville, Tennessee, area and another giant firm, the Geo Group Inc., headquartered in southern Florida. That push faces resistance. Leavenworth filed a lawsuit against CoreCivic after it tried to reopen without city officials signing off on the deal, quoting a federal judge's past description of the now-shuttered prison as 'a hell hole.' The case in Leavenworth serves as another test of the limits of the Republican president's unusually aggressive tactics to force migrant removals. To get more detention beds, the Trump administration has modified dozens of existing agreements with contractors and used no-bid contracts. One pays $73 million to a company led by former federal immigration officials for 'immigration enforcement support teams' to handle administrative tasks, such as helping coordinate removals, triaging complaints or telling ICE if someone is a risk to community safety. Just last week , Geo Group announced that ICE modified a contract for an existing detention center in southeastern Georgia so that the company could reopen an idle prison on adjacent land to hold 1,868 migrants — and earn $66 million in annual revenue. 'Never in our 42-year company history have we had so much activity and demand for our services as we are seeing right now,' said CoreCivic CEO Damon Hininger during an earnings call last month with shareholders. A tax-cutting and budget reconciliation measure approved last month by the House includes $45 billion over four years for immigrant detention, a threefold spending increase. The Senate is now considering that legislation. Declaring an emergency to expedite contracts When Trump started his second term in January, CoreCivic and Geo had around 20 idle facilities, partly because of sentencing reforms that reduced prison populations. But the Trump administration wants to more than double the existing 41,000 beds for detaining migrants to at least 100,000 beds and — if private prison executives' predictions are accurate — possibly to more than 150,000. ICE declared a national emergency on the U.S. border with Mexico as part of its justification for authorizing nine five-year contracts for a combined 10,312 beds without 'Full and Open Competition.' Only three of the nine potential facilities were listed in ICE's document: Leavenworth, a 2,560-bed CoreCivic-owned facility in California City, California, and an 1,800-bed Geo-owned prison in Baldwin, Michigan. The agreement for the Leavenworth facility hasn't been released, nor have documents for the other two sites. CoreCivic and Geo Group officials said last month on earnings calls that ICE used what are known as letter contracts, meant to speed things up when time is critical. Charles Tiefer, a contract expert and professor emeritus of law at the University of Baltimore Law School, said letter contracts normally are reserved for minor matters, not the big changes he sees ICE making to previous agreements. 'I think that a letter contract is a pathetic way to make big important contracts,' he said. A Kansas prison town becomes a priority CoreCivic's Leavenworth facility quickly became a priority for ICE and the company because of its central location. Leavenworth, with 37,000 residents, is only 10 miles (16 kilometers) to the west of the Kansas City International Airport. The facility would hold men and women and is within ICE's area of operations for Chicago, 420 miles (676 kilometers) to the northeast. 'That would mean that people targeted in the Chicago area and in Illinois would end up going to this facility down in Kansas,' said Jesse Franzblau, a senior policy analyst for the National Immigrant Justice Center. Prisons have long been an important part of Leavenworth's economy, employing hundreds of workers to guard prisoners held in two military facilities, the nation's first federal penitentiary, a Kansas correctional facility and a county jail within 6 miles (10 kilometers) of city hall. Resistance from Trump country The Leavenworth area's politics might have been expected to help CoreCivic. Trump carried its county by more than 20 percentage points in each of his three campaigns for president. But skeptical city officials argue that CoreCivic needs a special use permit to reopen its facility. CoreCivic disagrees, saying that it doesn't because it never abandoned the facility and that the permitting process would take too long. Leavenworth sued the company to force it to get one, and a state-court judge last week issued an order requiring it. An attorney for the city, Joe Hatley, said the legal fight indicates how much ill will CoreCivic generated when it held criminal suspects there for trials in federal court for the U.S. Marshals Service. In late 2021, CoreCivic stopped housing pretrial detainees in its Leavenworth facility after then-President Joe Biden, a Democrat, called on the U.S. Department of Justice to curb the use of private prisons. In the months before the closure, the American Civil Liberties Union and federal public defenders detailed stabbings, suicides, a homicide and inmate rights violations in a letter to the White House. CoreCivic responded at the time that the claims were 'false and defamatory.' Vacancies among correctional officers were as high as 23%, according to a Department of Justice report from 2017. 'It was just mayhem,' recalled William Rogers, who worked as a guard at the CoreCivic facility in Leavenworth from 2016 through 2020. He said repeated assaults sent him to the emergency room three times, including once after a blow to the head that required 14 staples. The critics have included a federal judge When Leavenworth sued CoreCivic, it opened its lawsuit with a quote from U.S. District Court Judge Julie Robinson — an appointee of President George W. Bush, a Republican — who said of the prison: 'The only way I could describe it frankly, what's going on at CoreCivic right now is it's an absolute hell hole.' The city's lawsuit described detainees locked in showers as punishment. It said that sheets and towels from the facility clogged up the wastewater system and that CoreCivic impeded the city police force's ability to investigate sexual assaults and other violent crimes. The facility had no inmates when CoreCivic gave reporters a tour earlier this year, and it looked scrubbed top to bottom and the smell of disinfectant hung in the air. One unit for inmates had a painting on one wall featuring a covered wagon. During the tour, when asked about the allegations of past problems, Misty Mackey, a longtime CoreCivic employee who was tapped to serve as warden there, apologized for past employees' experiences and said the company officials 'do our best to make sure that we learn from different situations.' ICE moves quickly across the CoreCivic's Leavenworth prison, other once-shuttered facilities could come online near major immigrant population centers, from New York to Los Angeles, to help Trump fulfill his deportation plans. ICE wants to reopen existing facilities because it's faster than building new ones, said Marcela Hernandez, the organizing director for the Detention Watch Network, which has organized nationwide protests against ICE detention. Counties often lease out jail space for immigrant detention, but ICE said some jurisdictions have passed ordinances barring that. ICE has used contract modifications to reopen shuttered lockups like the 1,000-bed Delaney Hall Facility in Newark, New Jersey, and a 2,500-bed facility in Dilley, Texas, offering no explanations why new, competitively bid contracts weren't sought. The Newark facility, with its own history of problems, resumed intakes May 1, and disorder broke out at the facility Thursday night. Newark Mayor Ras Baraka, a Democrat who previously was arrested there and accused of trespassing, cited reports of a possible uprising, and the Department of Homeland Security confirmed four escapes. The contract modification for Dilley, which was built to hold families and resumed operations in March, calls its units 'neighborhoods' and gives them names like Brown Bear and Blue Butterfly. The financial details for the Newark and Dilley contract modifications are blacked out in online copies, as they for more than 50 other agreements ICE has signed since Trump took office. ICE didn't respond to a request for comment. From idle prisons to a 'gold rush' Private prison executives are forecasting hundreds of millions of dollars in new ICE profits. Since Trump's reelection in November, CoreCivic's stock has risen in price by 56% and Geo's by 73%. 'It's the gold rush,' Michael A. Hallett, a professor of criminal justice at the University of North Florida who studies private prisons. 'All of a sudden, demand is spiraling. And when you're the only provider that can meet demand, you can pretty much set your terms.' Geo's former lobbyist Pam Bondi is now the U.S. attorney general. It anticipates that all of its idle prisons will be activated this year, its executive chairman, George Zoley, told shareholders. CoreCivic, which along with Geo donated millions of dollars to largely GOP candidates at all levels of government and national political groups, is equally optimistic. It began daily talks with the Trump administration immediately after the election in November, said Hininger. CoreCivic officials said ICE's letter contracts provide initial funding to begin reopening facilities while the company negotiates a longer-term deal. The Leavenworth deal is worth $4.2 million a month to the company, it disclosed in a court filing. Tiefer, who served on an independent commission established to study government contracting for the Iraq and Afghanistan wars, said ICE is 'placing a very dicey long-term bet' because of its past problems and said ICE is giving CoreCivic 'the keys to the treasury' without competition. But financial analysts on company earnings calls have been delighted. When CoreCivic announced its letter contracts, Joe Gomes, of the financial services firm Noble Capital Markets, responded with, 'Great news.' 'Are you hiding any more of them on us?' he asked. ___ Hanna reported from Topeka, Kan. Associated Press writers Joshua Goodman in Miami and Morgan Lee, in Santa Fe, N.M., contributed reporting.

Act of GENIUS or Blockheaded Bill? Congress Considers Stablecoins
Act of GENIUS or Blockheaded Bill? Congress Considers Stablecoins

Yahoo

time21 minutes ago

  • Yahoo

Act of GENIUS or Blockheaded Bill? Congress Considers Stablecoins

The US Senate voted last week to advance the Guiding and Establishing National Innovation for US Stablecoins Act which, because D.C. lawmakers of all stripes love cringe acronyms, stands for the GENIUS Act. The purported stroke of brilliance would lay out the first-ever regulatory framework for stablecoins, or digital tokens pegged to the value of the dollar. It has found both Republican and Democratic support and opposition. Those who see genius in GENIUS say it takes a commonsense approach to balancing innovation and regulation. Those who think it's a blockheaded approach to blockchain have ideologically diverse critiques, which we'll get to. A final vote has been scheduled for tomorrow. READ ALSO: Can Blue Origin Fill NASA's SpaceX Void? and BlackRock's Virtual Investment Analyst 'Asimov' Ushers in AI Era on Wall Street The GENIUS Act, if passed, would let banks and private companies approved by federal regulators issue their own stablecoins. Those issuers would be required to back their stablecoins at all times with a 1:1 reserve of a stable asset, either cash or short-term Treasurys. They'd also be subject to some anti-money laundering laws and be required to adhere to US sanctions on foreign entities. The idea behind using the specified assets is implied in the term stablecoin: It means the tokens are more stable than most digital coins, which can exhibit dramatic price swings. Take, for example, 2022 — when Bitcoin had a high of $46,000 in March and a low of around $16,000 in December. The bill and its safeguards have managed to win the support of almost all the Republicans and 18 Democrats in the Senate. And, The Wall Street Journal reported Friday, the issue has generated enough excitement that both Amazon and Walmart are entertaining issuing their own stablecoins, a move that would allow them to sidestep billions of fees involved in cash and card transactions that involve the traditional financial system. But there are holdouts in the Senate, and their opposition comes from wildly different places: First, there's Republican Senator Rand Paul of Kentucky. It's no surprise that the libertarian-leaning lawmaker is leaning 'against' the bill because he's not convinced of the need for federal regulation of stablecoins at all. Then there's his GOP colleague Josh Hawley of Missouri, a Silicon Valley skeptic who has called for the breakup of Big Tech companies. He has warned that the bill would let tech behemoths issue stablecoins that compete with the dollar and use them to collect inordinate amounts of data on people. Democratic Senator Elizabeth Warren, an expert in bankruptcy and commercial law, supports 'a strong stablecoin bill' but says the GENIUS Act is not that, arguing it could trigger 'the next financial meltdown' because it 'folds stablecoins directly into the traditional financial system while applying weaker safeguards than banks or investment companies must adhere to.' Warren noted that, in the past, some stablecoins have failed to maintain their pegs: The 2022 crypto crash, which led to Bitcoin's fall that year, was caused by the collapse of Terraform Labs' Terra/Luna 'algorithmic' stablecoin, which cost investors $42 billion. One 2023 study that analyzed 60 stablecoins found every single one of them had de-pegged from its underlying asset at least once. A Bond Boon? ARK Invest argued, in a report earlier this month, that a turbocharged stablecoin would be good for the Federal Reserve by encouraging companies to become more active in holding US Treasurys. That, the investment firm said, could help offset the sharp decline in foreign holdings of US debt in recent years, which has accelerated amid the tariff pressures created by the Trump administration. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.

Cambodia threatens Thai fruits ban as tensions over border disputes continue to soar

time21 minutes ago

Cambodia threatens Thai fruits ban as tensions over border disputes continue to soar

PHNOM PENH, Cambodia -- Cambodia on Monday said it would stop importing Thai fruits and vegetables if Thailand refused to lift border restrictions imposed following a deadly clash in one of the disputed areas between the two countries. An armed confrontation at the border on May 28 left one Cambodian soldier dead. The incident, which each side blamed on the other, reportedly took place in a relatively small 'no man's land' along their border that both countries claim as their own. Cambodian and Thai authorities have engaged in saber-rattling since last week, and continue to implement or threaten measures short of armed force, keeping tensions high. Thailand has added restrictions at border crossings, and Cambodia has banned Thai movies and TV shows and implemented a boycott of the neighboring country's international internet links. Cambodian Senate President Hun Sen, the former prime minister, said in a televised speech Monday that the ban on Thai fruits and vegetables would take effect if Thailand doesn't lift the border restrictions by Tuesday. Thai Prime Minister Paetongtarn Shinawatra later said Thailand decided to impose the border restrictions out of safety concerns for the citizens of both countries due to the heavier presence of armed forces along the areas. She also said any 'unprofessional communication' that was conveyed outside a bilateral mechanism would only hurt the interests of both sides. Officials of the two countries met over the weekend in Cambodia's capital, Phnom Penh, on the conflicting territorial claims that led to last month's deadly confrontation. While both sides said the meeting was held in a good atmosphere, it appears no major breakthrough was achieved to resolve the current spat. Cambodia on Sunday said it has officially submitted a request to the U.N.'s International Court of Justice, seeking a resolution to the ongoing border disputes with Thailand in four areas. The Cambodia's State Secretariat of Border Affairs said after the weekend meetings concluded that Cambodia would no longer discuss these areas under the bilateral mechanism of the two countries. The Thai Ministry of Foreign Affairs said Monday that it was deeply disappointed that Cambodia refused to address the disputes through the existing mechanism and reiterated that Thailand does not accept the jurisdiction of the International Court of Justice. Both however agreed to participate in the next round of meetings on border issues to be hosted by Thailand in September. Much of their war of words has appeared intended to mollify nationalistic critics on both sides of the border. In Thailand, the elected government of Prime Minister Paetongtarn has been attacked by right-wing nationalists who are longtime foes of her father, former Prime Minister Thaksin Shinawatra. There is a long history to the territorial disputes between the two countries. Thailand is still rankled by a 1962 ICJ ruling that awarded Cambodia the disputed territory where the historic Preah Vihear temple stands. There were sporadic though serious clashes there in 2011. The ruling was reaffirmed in 2013. ——-

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store