Capitol Resources Report: MCBL&F Weekly Legislative Update 3.10.25

Weekly Report 
3.10.25

FINAL STRETCH

MS Lawmakers turn towards final third of session with key issues in front of them, including Medicaid, Taxes, Retirement System and more

Lawmakers will spend the first half of this week in floor debates over the other chambers’ bills on dozens of topics, setting the stage for final negotiations on a host of issues. The House of Representatives and Senate Calendars have a manageable number of general bills facing a Wednesday, March 12th deadline for consideration, before lawmakers turn their full attention toward finalizing tax and spending decisions.

House and Senate leaders appeared to remain at odds over whether to fully eliminate the state’s personal income tax, and that division seemed to loom over the outcome of dozens of issues.   The House has sent appropriations bills to Senators without procedural assurances that would put final negotiations into conference committees, as is typical. The move would seem to suggest that chamber is considering no further negotiations on agency budgets unless and until a tax-cut deal is reached. 

Last week’s committee deadline served as a critical juncture, determining which bills continued advancing and which did not. Some legislation could still be revived through amendments or procedural maneuvers. Meanwhile, tax reform, DEI restrictions, and early voting remain alive as the session enters its final stretch. Here’s a recap of last week:

Medicaid: House Amends SB 2867

The House Medicaid Committee approved amendments to the Senate-passed Medicaid technical amendments bill SB 2867.  The move signaled renewed negotiations between the two chambers on Medicaid issues.  Talks appear to have dissipated after the House and Senate failed to agree on Medicaid expansion at the end of the 2024 session. 

House Medicaid Chair Rep. Missy McGee explained the changes to the Senate bill, noting that further refinements could come on the House floor. The House amendment incorporates provisions from previously passed HB 1158, including:

  • All Division of Medicaid (DOM) requests for tweaks to ensure federal compliance.
  • Reauthorization of Le Bonheur’s participation in supplemental payments for two more years.
  • Language preventing Medicaid from changing the formula or quality metrics for supplemental payments.
  • A revived Medicaid Advisory Committee that will meet quarterly.

Additionally, the House accepted several Senate provisions, including:

  • Increased reimbursement rates for pediatricians to 100% of Medicare.
  • Ambulatory Surgery Center reimbursement increased from 80% to 90%.
  • A requirement for DOM to develop a holistic approach to covering Autism Spectrum Disorder.
  • Coverage for sports physicals for children.
  • Changes to eyeglasses coverage, shifting from every five years to every other year.
  • Coverage for ambulance providers treating patients in place.
  • Inclusion of non-statin medications on the preferred drug list.
  • Coverage of weight-loss drugs (already in place under DOM policy).
  • UPL (Upper Payment Limit) expansion to include all hospital-employed physicians. (Currently only physicians employed by the state-run UMMC participate in the supplemental payment program). 
  • Backup/fine-tuning language for presumptive Medicaid eligibility pending in the Senate. The measure was adopted in 2024 but federal Medicaid regulators are requiring changes.

The House version removes several provisions from the Senate bill, including:

  • Insurance and Certificate of Need (CON) code sections, though provisions applying a handful of specific hospitals remains alive in other legislation.
  • Adult day care provisions (pending further study).
  • Senate-added language restricting provider appeals at DOM and requiring court action instead.

This bill remains a work in progress as lawmakers fine-tune its provisions before final passage.

Mississippi Tax Cuts?

The House and Senate have advanced competing tax reform packages, but agreement between the two bodies has yet to materialize. The House proposal HB 1 seeks to phase out the state income tax entirely over the next decade, reduce grocery sales taxes, and allocate additional funding for PERS (the state employee retirement system) and transportation infrastructure. The Senate’s alternative, SB 3095, reduces (but does not eliminate) the state income tax and grocery sales tax while providing additional funds on road and bridge projects. Governor Tate Reeves has thrown his weight behind the House plan, warning that a special session may be necessary if lawmakers fail to reach a consensus before Sine Die. Meanwhile, fiscal year revenue numbers continue to fluctuate, adding urgency to the debate over how Mississippi’s tax dollars should be allocated.

Lawmakers Redraw Ten Senate and Five House districts

Mississippi lawmakers have approved new House and Senate redistricting maps following a federal court order mandating additional majority-minority districts. The House adopted the Senate’s plan JR 202 while the Senate approved the House’s plan JR 1 setting the stage for 15 special elections this November.  This web page has links to maps of the new districts.  Federal court approval is still pending, but if the maps stand, qualifying for the special elections will begin in May, with primaries scheduled for August 5th and general elections set for November 4th.

Banking Chair Senator Polk To Retire

Sen. John Polk, a Republican businessman from Hattiesburg who chairs the important Business and Financial Institutions Committee, announced he would not seek reelection in this year’s special elections.  The new redistricting maps would have pitted him against his colleague Sen. Chris Johnson. Polk, who is serving his fourth term, told colleagues he would not seek reelection.  Sen. Polk has led committees focused on the university system, on governance and has been a key advisor on appropriations matters, including expending federal pandemic relief funding.  Lt. Gov. Delbert Hosemann, the presiding officer of the state Senate, will appoint the new chair of the Business and Financial Institutions Committee.

School Choice Hits a Roadblock as Senate Kills Key Bills

Efforts to expand school choice took a major hit this week as the Senate blocked multiple House-backed education bills. The public-school transfer bill HB 1435 which would have allowed students to transfer schools without needing approval from their home district, was shut down by Senate leadership. In a last-ditch effort to keep it alive, House lawmakers inserted its language into SB 2618, a bill addressing school attendance officers. The Tim Tebow Act HB 1617 which aimed to allow homeschool students to participate in public school extracurriculars, also died. Meanwhile, efforts to expand charter schools HB 1432 failed to advance.  Advocates for education reform remain hopeful that these issues will be revisited in future sessions.

Early Voting Debate Shifts as Lawmakers Look for Common Ground

Efforts to bring early voting to Mississippi have hit a snag in the House with support for a 15-day early voting proposal cooling amid political headwinds and logistical concerns. While the Senate passed an early voting bill with bipartisan support the House has opted to shift the conversation toward expanding absentee voting instead.

Elections Chairmen Sen. Jeremy England and Rep. Noah Sanford initially appeared aligned on giving Mississippians more flexibility in how they cast their ballots. However, as debate continued House members signaled they weren’t ready to embrace a full-fledged early voting system. Instead, the House committee amended the proposal to broaden absentee voting allowing caregivers of children and disabled individuals to vote in person before Election Day.

Sanford noted that while early voting remains an ongoing discussion, he doesn’t see the votes in the House to pass a 15-day early voting plan this session. Some circuit clerks have also raised concerns about the logistical challenges of implementing such a system, particularly in smaller offices with limited space. Rather than let the issue stall completely he’s backing a study committee to explore early voting further.

England meanwhile remains hopeful that some version of early voting can still make it to the governor’s desk. He amended the House’s absentee voting bill to include his early voting language, keeping the door open for negotiations in conference committee. With lawmakers from both chambers continuing to discuss potential compromises, the issue isn’t entirely off the table just evolving into a longer-term conversation about the best way to expand voting access in the state.

Around the State:

Economic Growth: Fabricators Supply Expands, Creating Jobs in West Point

West Point-based Fabricators Supply is making a $2.675 million investment to expand its operations, creating 15 new jobs in the area. The custom machining and metal fabrication company is adding advanced laser fabrication capabilities to its services. The Mississippi Development Authority is providing assistance through the Mississippi Flexible Tax Incentive (MFLEX) program, with additional support from the Clay County Board of Supervisors and the city of West Point. Governor Tate Reeves praised the expansion, calling it a testament to Mississippi’s strong manufacturing sector and commitment to economic growth.

State Budget Outlook as Fiscal Year Nears End

February’s tax collection report  from the Legislative Budget Office showed that monthly tax collections were $11.3 million, or 2.39%, above legislative estimates. General Fund collections for the month rose by 11.6% compared to the previous year, with increases in sales tax, individual income tax, and corporate income tax revenues.

Despite the positive February numbers, overall fiscal year-to-date collections remain slightly below projections. Revenues are currently $13.3 million, or 0.29%, underestimates and $18.6 million, or 0.4%, below the prior fiscal year’s collections. With four months remaining in the 2025 fiscal year and a Sine Die Revenue Estimate of $7.6 billion, budget writers are carefully assessing spending priorities as they work through appropriations bills for the upcoming fiscal year.

Judge Rules Legislature is Not a Public Body Under Open Meetings Act

A Mississippi judge upheld lawmaker’s practice of holding caucus meetings, in which no official actions are taken, behind closed doors.  The decision follows a lawsuit from the Mississippi Free Press, which argued that these meetings should be open in the name of government transparency.

Upcoming Special Elections for Legislative Seats

Mississippi voters will head to the polls to fill vacancies in three legislative districts.  Special elections for House Districts 23 and 82 are scheduled for March 25, 2025, with potential runoffs on April 22. Senate District 18’s election will take place on April 15, with a runoff, if needed, on May 13.

·      House District 23, formerly held by Andy Stepp (deceased), has five candidates running: Perry Van Bailey, Colby Bollinger, Andy Clark, Danny Lampley, and Travis E. Wright.

·      House District 82, previously represented by Charles Young (deceased), has three candidates in the race: Joseph “Joe” Norwood, Joseph A. Denson, and Gregory Elliott.

·      Senate District 18, formerly held by Jenifer Branning (elected to the Supreme Court), has five candidates competing for the seat: Mark Forsman, Lane Taylor, Marty Sistrunk, Lindsey Kidd, and Jackson “Ike” Melton.

Mississippi Lawmakers Recognize Journalist Emily Wagster Pettus

The Mississippi Legislature honored longtime journalist Emily Wagster Pettus on Thursday for her decades of Capitol reporting. A resolution praised her fairness, accuracy, and dedication to keeping the public informed. Pettus, who recently stepped down as Mississippi Capitol correspondent for the Associated Press, covered 31 regular sessions and numerous special sessions. Lawmakers commended her commitment to journalism and government transparency. Her departure marks the end of an era in Mississippi political reporting, but her impact will continue through the stories she covered and the journalists she mentored.

Remembering a Trailblazer: Robert Clark’s Legacy Lives On

Mississippi lost a political icon this week with the passing of Robert Clark, the first Black lawmaker elected to the Mississippi Legislature in the modern era. Clark, who represented Holmes County from 1968 to 2004, played a pivotal role in education policy and racial reconciliation. He was a longtime chair of the House Education Committee and served as Speaker Pro Tempore, making history as the highest-ranking Black official in the Legislature since Reconstruction. Leaders from both chambers honored his contributions, recognizing his impact on generations of Mississippians. His influence continues through his son, Rep. Bryant Clark, and the many policies he helped shape. Lawmakers held a moment of silence in his memory, with House Speaker Jason White calling him “a trailblazer and an icon for Mississippi.”

Next Deadline: Wednesday March 12:  Deadline for ORIGINAL FLOOR ACTION on general bills and constitutional amendments originating in OTHER HOUSE. Full deadline calendar can be found here.