Who Spends The Stimulus Not Yet Clear

Who spends the stimulus not yet clear Bobby Harrison Northeast Mississippi Daily Journal, Tupelo, Miss. McClatchy-Tribune Regional News
Mar. 8--JACKSON -- One of the basic precepts of the American form of government is that the legislative branch controls the purse strings.

That is what Republican Gov. Haley Barbour successfully argued when he blocked funds from the settlement of the state's lawsuit against the tobacco companies from being diverted to the private, nonprofit Partnership for a Healthy Mississippi.

Barbour's attorneys successfully argued before the state Supreme Court that it was unconstitutional for the Partnership to receive payments from the lawsuit settlement funds because they had not been appropriated by the Legislature.

Now the issue of whether the Legislature has the duty to appropriate funds has come up again. But in this case the funds are designated for Mississippi as part of the massive federal stimulus package.

Mississippi is set to receive at least $2.3 billion in federal funds. In most cases, the governor must request the funds or the Legislature by majority vote can override the governor and accept them.

The funds are distributed -- in most cases -- either to a state agency, school district or directly to the governor.

Chris Whatley, the Washington director of the Council of State Governments, recently told members of the Mississippi House that most states are grappling with whether the governor has sole authority to spend those funds or if they must go through the legislative appropriations process.

While it might appear to be an arcane "inside-baseball" type issue, Whatley said it could have far-reaching impact because the stimulus package is politically controversial. Someone who opposed the package could sue to stop expenditure of the federal funds, saying they are not being spent with the authority of the state Legislature.

"If the issue is not resolved, you could find a lot of good intentions locked up in litigation after the fact," Whatley told House members.

Rep. Cecil Brown, D-Jackson, a key member of the House Appropriations leadership, said the question of whether the funds should flow through the legislative process "has not been settled at all. I think it is an open question."

With the funds beginning to flow to the state and the Legislature nearing the time in the session when it develops a budget, that question must be settled in the near future.

Barbour spokesman Dan Turner said that $87 million in "flexible funds" that can be used for any purpose will be allocated to the governor through the stimulus package. Those funds presumably will be used to restore education cuts made during the current fiscal year because of a state revenue shortfall and to provide additional funds during the upcoming year.

Turner said those funds will not flow through the legislative process.

At this point, Brown said he does not know if the House Democrats agree with that assessment, saying they still are gathering information.

In other areas there appears to be agreement. Turner and Senate Appropriations Chairman Alan Nunnelee, R-Tupelo, agree that federal and state laws are crafted in such a way as to require extra Medicaid funds provided in the stimulus package to go through the Legislature.

"The Medicaid funds, I feel very confident, can only be spent by an act of the Legislature," Nunnelee said. "...We're getting more and more information every day. Soon we should have a much better feel" about other funds in the stimulus package.

Over a three-year period, the state is supposed to receive an additional $756.5 million in Medicaid funds.

House Public Health Chairman Steve Holland, D-Plantersville, not only thinks those funds should flow through the Legislature, but also that lawmakers should be innovative in how they spend the money.

For instance, the state currently spends little on what is known as "home and community-based services" for the elderly. Holland said in the long run Medicaid could save money by spending more on the program.

The program provides services, such as home health and elderly daycare centers, to keep seniors in their homes longer and out of more expensive nursing homes.

"I don't think we are supposed to create new Medicaid programs with the stimulus funds, but we can enrich existing ones and make a real difference," Holland said.

Copyright (c) 2009, Northeast Mississippi Daily Journal, Tupelo, Miss. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. Mar. 8--JACKSON -- One of the basic precepts of the American form of government is that the legislative branch controls the purse strings.