Mississippi Today
Brett Favre says welfare probe has ignored Gov. Bryant’s role
Brett Favre says welfare probe has ignored Gov. Bryant's role
Former NFL quarterback Brett Favre nagged former Gov. Phil Bryant for help funding a new volleyball facility at his alma mater and a pharmaceutical start-up he had invested in.
Bryant's subordinates then funneled a total of $7.1 million in federal welfare funds to the two projects, plus another $1.1 million to Favre himself, within what officials have called the worst public fraud scheme in state history.
Favre now says he's receiving all the blame while officials are letting Bryant off the hook.
In a new motion to dismiss civil charges against him, Favre argues the state welfare department, Mississippi Department of Human Services, has neglected the roles of former Gov. Bryant and the auditor Bryant appointed, Shad White, in the misspending of millions of welfare funds.
"MDHS also has ignored the numerous public officials responsible for overseeing MDHS, such as former Governor Dewey Phillip Bryant and current State Auditor Shad White, who, despite his statutory obligation to conduct annual audits of MDHS, did not 'question' MDHS's transfers of tens of millions of dollars to MCEC (Mississippi Community Education Center) until 2020, nearly five years after those transfers began," reads Favre's motion, filed by his Austin, TX-based attorney Eric Herschmann.
The welfare department's civil suit, filed last May, alleges Favre agreed with MDHS Director John Davis and nonprofit founder Nancy New to transfer $2.1 million in funds from the federal Temporary Assistance for Needy Families program to a pharmaceutical company called Prevacus, in which Favre was a major stakeholder. The suit also alleges Favre took $1.1 million in TANF funds for work he didn't conduct.
Favre denies both allegations, alleging MDHS has fixated on the two items Favre publicly supported — Prevacus and the volleyball project — as a way of "blaming Favre, publicizing his involvement, and bringing its baseless claims against him in this lawsuit."
The civil suit, which targets 38 individuals or companies, only seeks to recoup $24 million of at least $77 million that forensic auditors found was misspent. Favre argued MDHS is "selectively suing only a fraction of those who allegedly received the funds, while inexplicably ignoring the numerous other recipients."
Favre has received significant national coverage in recent months for his proximity to a deal in which officials converted $5 million in welfare funds to build a state-of-the-art facility for University of Southern Mississippi's volleyball program, where his daughter played. The fraud scheme, which involved dressing up the stadium up to appear as a wellness center for impoverished Mississippians, led to a criminal conviction against New's son Zach New.
Favre has not faced any charges in connection with that deal. Gov. Tate Reeves directed the welfare agency not to include the volleyball project — the largest known purchase within the scandal — in its civil suit.
But in his motion, Favre called out the former governor and others for perpetuating the scheme.
"Davis and New did not (and could not have) authorized structuring the $5 million in funding as a sublease on their own," the filing reads. "They needed and obtained the approval and assistance of other State officials and agencies—including Governor Bryant, the Attorney General, the Mississippi Institutions of Higher Learning, Southern Miss itself, and the Southern Miss Athletic Foundation."
The motion also confirms that then-Southern Miss Athletic Director Jon Gilbert introduced Favre to New, who sat on the Southern Miss Athletic Foundation board.
"New was well connected with numerous Mississippi officials, including Davis and then-Governor Bryant, and close friends with Governor Bryant's wife Deborah Bryant," it said.
The money in question flowed through New's nonprofit, Mississippi Community Education Center, or MCEC, and therefore out of sight from public view. Favre zoned in on New's connections to state officials, even corralling current Gov. Reeves into his rebuttal.
"State officials like Davis, former Governor Bryant, and current Governor Reeves were aware that New, through MCEC, used State money to provide services and funding to various State initiatives, through, among other things, the Family First Initiative of Mississippi, an anti-poverty program which was started by Governor Bryant in conjunction with other state officials," his filing reads. "Deborah Bryant and New hosted fundraisers together at the governor's mansion. Governor Reeves even filmed a campaign ad in 2019 at New's school."
For years, the misspending went unnoticed by the state auditor's office as MDHS dismantled internal controls, failing to keep so much as a list of organizations it funded.
Bryant appointed White, his former campaign manager, to state auditor in July of 2018. White's investigation into welfare misspending began after an MDHS employee brought a small tip about Davis' potential fraud to Bryant in June 2019.
White made six arrests in the case, including Davis and New, in February 2020. The payments to Prevacus were central to the indictment. A day earlier, Bryant had scheduled a meeting with Prevacus' founder Jake Vanlandingham, a Florida neuroscientist who offered the governor stock in the company in exchange for his help, according to texts Mississippi Today obtained two years later. The texts showed Favre had even excitedly texted Bryant to tell the governor when they finally started receiving funding from the state in early 2019.
Days after the arrest, Bryant cut ties with the scientist and White publicly named Bryant as the "whistleblower" in the case.
"State Auditor White—who was previously Governor Bryant's campaign manager and policy director and was appointed State Auditor by Governor Bryant—made this (whistleblower) designation knowing that Governor Bryant was both aware of and supported MCEC's payments to Prevacus at issue in this lawsuit, as well as its $5 million payment to Southern Miss in connection with the construction of a wellness center," Favre's filing reads.
In Favre's motion, his first significant jab in the case, the athlete argues that the welfare department has targeted him for his celebrity in an attempt to divert attention away from its own wrongdoing.
Mississippi Today first connected Favre to the welfare scandal in February 2020 in its reporting on the welfare-funded volleyball stadium at the University of Southern Mississippi and Favre's attempts to lure Prevacus to Mississippi with Bryant's help. White made the first official finding against Favre in his annual audit released in May of 2020. The report noted that his company, Favre Enterprises, received $1.1 million under a promotional contract, including supposed appearances at which "the individual contracted did not speak nor was he present for those events."
Favre has repeatedly denied that he failed to fulfill the terms of his agreement with the nonprofit. Mississippi Today obtained a 2018 invoicethat shows conservative talk radio network SuperTalk ran Favre's ad promoting Families First more than two dozen times during a three-month period.
"As to the $1.1 million MCEC paid Favre," Favre's motion reads, "it did so in exchange for Favre agreeing to perform services for MCEC, including recording a radio advertisement promoting Families First of Mississippi, a program launched by Governor Bryant, in conjunction with MDHS and MCEC, to provide services to needy Mississippians."
Favre returned the $1.1 million — a fact he laments is missing from MDHS's complaint — but the auditor's office maintains that he still owes interest on the funds.
"It's ludicrous to say that Mr. Favre has been singled out in any way," the auditor's office said in a statement Monday evening. "And as far as our office is concerned, Mr. Favre remains liable for $228,000 in interest for nonperformance of the contract in question."
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Experts dispel fears that Medicaid expansion is too costly for Mississippi
National studies and experts in Medicaid expansion states refute concerns voiced in Mississippi's legislative conference committee that costs to the state would exceed projections.
Among those dispelling that fear are experts and a former governor in Kentucky – one state Mississippi conferee and Senate Medicaid Chairman Kevin Blackwell referred to as an example of where expansion has been expensive.
One study in the National Bureau of Economic Research that analyzed state budget data over an eight-year period found that changes in state spending were “modest and non-significant” after Medicaid expansion, and “state projections (of cost) in the aggregate were reasonably accurate, with expansion states projecting average Medicaid spending from 2014-2018 within 2 percent of the actual amounts, and in fact overestimating Medicaid spending in most years.”
Senate negotiators on Tuesday said they fear more people than estimated would enroll in Medicaid under expansion, and that this would result in higher-than-estimated costs to the state.
House Medicaid Chairwoman Missy McGee, R-Hattiesburg, reiterated that multiple studies – including one done this month on expansion's potential impact in Mississippi by a nonpartisan research organization – found that traditional expansion would result in savings to the state, not increased costs.
The study found that traditional expansion – insuring those making up to 138% of the federal poverty level or about $20,000 annually for an individual – would cost the state nothing in the first four years of implementation, and roughly $3 million the following year. It would stimulate the economy, putting about $1.2 billion into circulation that the state would not see otherwise and creating 11,000 new jobs in Mississippi, in addition to providing health insurance for poor working people and cutting uncompensated care costs for state- and locally owned hospitals by 60% each year.
While Medicaid enrollment after expansion could exceed projections, that possibility was taken into account by Hilltop's report, which estimated 95% of enrollees would be newly eligible. According to the study, about 200,000 Mississippians would enroll in Medicaid post-expansion.
Sen. Brice Wiggins, R-Pascagoula, said he believes the Senate's original plan is a pragmatic proposal that offers savings – “whereas 44 other states have not been that,” he said, referencing the 40 – not 44 – expansion states. The original Senate plan covers fewer people than the House plan, includes a stringent work requirement unlikely to be approved by the federal government, and doesn't qualify for increased federal funding.
Blackwell also made a similar comment, asking his House counterpart “Have any of (the states) – I guess how many exceeded the number of population they estimated at onset? I think 40.”
Blackwell later offhandedly told a reporter he heard from a fellow lawmaker in Kentucky expansion had been expensive.
Asked what their sources were regarding their statements about Medicaid expansion costs, Wiggins referred questions to fellow conferee Sen. Nicole Boyd, R-Oxford, who declined to comment. Blackwell said he was unable to provide any sources because they “are still working on the bill” and suggested the reporter read an opinion piece by a conservative columnist whose past views have aligned with those of Gov. Tate Reeves, a Medicaid expansion opponent.
Dr. Ben Sommers, a health economist and primary care physician based in Boston, is the author of the National Bureau of Economic Research study that found minimal changes in state spending in expansion states. He shared three additional publications with Mississippi Today that show there is no evidence of expansion negatively impacting state budgets.
“There's a difference between saying that enrollment was higher than expected and that the state budget impact was worse than expected. More people enrolling than projected doesn't mean that states lost money … expansion states were able to bring in 90% federal funding which often replaced things like behavioral health and uncompensated care spending that the state was previously paying for with 100% state dollars,” Sommers told Mississippi Today.
Morgan Henderson, one of the authors on the Hilltop report, echoed Sommers. And even with a lower matching rate from the federal government in current years, Henderson, who has a PhD in economics, believes the costs to states are still offset by other benefits.
“Higher enrollment than expected in the expansion group can lead to higher costs than expected, but this relationship likely won't be one-for-one. More new enrollees can also mean more cost offsets – such as premium tax revenue and other state tax revenue due to the increased economic activity in the state – which significantly mitigate the costs of expansion,” he told Mississippi Today.
Experts and a former governor in Kentucky – one state Blackwell referred to as an example of where expansion has been costly – said that Sommers' and Henderson's characterizations are accurate for what their state experienced post-expansion.
A study published by the University of Louisville Commonwealth Institute of Kentucky found that while Kentucky did experience an increase in its Medicaid budget, the increase has been offset by other benefits, such as savings in general state funds “related to care for vulnerable groups who were ineligible for Medicaid prior to expansion.”
Expansion funneled $2.9 billion into the state's health care system within the first two years, which reduced costs of charity care and collections for medical debts, the study said.
Even if the number of enrollees is higher than originally estimated, that doesn't necessarily bode poorly for the state's budget, Sommers said. On top of the 90% federal match and the increased federal incentives for newly expanded states, the leftover portion the state is responsible for under expansion is mitigated by increased tax revenue, reduced uncompensated care costs to hospitals, and other program cost offsets, Sommers explained.
While the state does put up a small amount of money for each new enrollee under expansion, it is less expensive than the amount of money the state pays pre-expansion to cover uninsured individuals who seek care in emergency rooms and inpatient hospital settings – the most expensive places to receive care and often the only option for uninsured people.
Mississippi hospitals incur around $600 million in uncompensated care annually. Kentucky's hospitals saw a 64% decrease in uncompensated care costs from 2013 to 2017, according to the Center on Budget and Policy Priorities.
“Everybody's got heartburn over people ‘getting something they don't deserve,'” Dr. Dustin Gentry, a rural physician from Louisville, Mississippi, and self-described conservative, said. “But they're getting it anyway. They go to the ER, they get free care, they don't pay for it, but that doesn't bother anybody. But if they get Medicaid, which will actually pay the hospitals for the work they do, all of a sudden everybody's got heartburn.”
One report estimates that nearly half of all Mississippi's rural hospitals are at risk of closure.
And while the original House and the Senate plans both cover those in the coverage gap – those making too much to qualify for Medicaid currently but too little to afford private insurance plans – the House proposal would draw down $1 billion federal dollars the original Senate plan would not, since it is not considered true “expansion” according to the Affordable Care Act. That means the state would have to shell out more money, receiving its typical 77% federal match instead of 90%, and would not qualify for the additional funds that would make expansion free to the state for the first four years under the House plan.
In the last 10 years, as 40 states have chosen to expand Medicaid to cover the working poor, the poorest and sickest state has held out.
After leaving House conferees alone at the negotiating table Thursday afternoon, the Senate announced its own compromise plan Friday morning. The option extends coverage to those making up to 138% of the federal poverty level and draws down the maximum amount of federal dollars available.
Lawmakers have until Monday to pass a final bill, according to current deadlines.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Mississippi company listed among the ‘Dirty Dozen’
A chicken processing company and a staffing agency that allowed a teenager to clean machines at a Hattiesburg plant, leading to his death, have landed on a national list of unsafe and reckless employers.
The National Council for Occupational Safety and Health assembled its “Dirty Dozen” list compiled through nominations and released its report Thursday during Workers' Memorial Week.
“These are unsafe and reckless employers, risking the lives of workers and communities by failing to eliminate known, preventable hazards – and in at least one case, actively lobbying against better protections for workers,” the report states.
More than half of the companies included on the list have locations in Mississippi.
Marc-Jac Poultry and Onin Staffing
Onin Staffing hired 16-year-old Duvan Perez and placed him at the Mar-Jac Poultry plant in Hattiesburg. The night of July 14, 2023, he died after being pulled into a deboning machine.
Federal law prohibits children from working in dangerous conditions such as meat processing plants, especially because of the machinery. In January, OSHA cited Mar-Jac for 17 violations relating to the teenager's death and proposed over $212,000 in penalties.
Mar-Jac said it relied on Onin to verify employees' age, qualifications and training, and Onin denied being Duvan's employer, according to court records. An attorney for Mar-Jac told NBC News the teenager used identification of a 32-year-old man to get the job.
In February, Duvan's mother filed a wrongful death lawsuit against Mar-Jac and Onin in the Forrest County Circuit Court. Responding to the complaint, both companies denied most of the allegations.
“The plaintiff's decedent's negligence was the sole and/or proximate contributing cause of plaintiff's injuries,” Mar-Jac states in its response to the complaint.
Since 2020, two other workers have died at the Hattiesburg poultry plant, and workers have suffered amputations and other injuries, according to court records.
To date, OSHA has cited Mar-Jac nearly 40 times for violations in the past decade, according to agency records.
Tyson Foods
The company has operations across the country, including two mills in Carthage and Ceres, as well as hatcheries, feed mills, truck stops and other offices across Mississippi.
The report said six workers have died since 2019 and over 140 have been injured from ammonia leaks, none of them in Mississippi. The gas is often used to refrigerate meat, and according to the Centers for Disease Control and Prevention, exposure to the gas in high doses can be fatal.
The report also said the company is under investigation for child labor violations, assigning children to work in dangerous high-risk jobs, which is illegal.
In the past decade, OSHA has issued over 300 citations against Tyson, according to agency records.
When asked about what it takes to get companies with a poor history of worker safety to protect employees, Jessica Martinez, co-executive director of COSH, said change is needed from all fronts, including having government agencies like Occupational Health and Safety Administration conduct routine inspections.
She said workers are too fearful to complain. “They need these jobs for survival. Workers are fearful of losing their jobs,” she said.
Uber and Lyft
Nationwide, over 80 drivers for the rideshare apps have been killed on the job since 2017, according to Gig Workers Rising. The report says this is a sign that drivers are pressured to accept unsafe riders.
Internal documents have shown 24,000 “alleged assaults and threats of assault” against Uber drivers, and workers of color and immigrants experience most of the danger, according to the report.
JC Muhammad, a Lyft driver and organizer with the Chicago Gig Alliance, was physically assaulted by a passenger, and said the companies need a complete overhaul in how they protect drivers, including verification of passenger identification.
In his situation, another person, allegedly the mother of the passenger, called for the ride. There was no verification for the person, and the passenger did not have an ID. Muhammad said he had no way to report what happened to police because he lacked the necessary information.
“We've had drivers robbed, assaulted, shot at,” he said during a Thursday press conference. “There are no protections, no protocols.”
In Mississippi, several drivers have been injured, including a woman grabbed by a drunk passenger in Ocean Springs in 2019; a man assaulted by his passenger in Oxford in 2021 and a woman driver shot in the head by a passenger in Gulfport in 2023.
Two other companies included in the report are Waffle House and Walmart, which were cited for inadequate security to protect workers and customers and a lack of worker protections. Both have locations in Mississippi and have had incidents occur here, including shootings and fights.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Isabelle Taft named as Livingston Award finalist
Former Mississippi Today reporter Isabelle Taft has been named as a 2024 Livingston Award finalist in the local reporting division for her investigation into Mississippi's practice of jailing people who have not been charged with a crime and are in need of mental health treatment.
The award recognizes the best reporting by young journalists.
“Committed to Jail,” a 2023 Mississippi Today and ProPublica investigation, revealed that Mississippi counties jail hundreds of people without criminal charges every year, for days or weeks at a time, solely because they may need mental health treatment — a practice that has resulted in 14 deaths since 2006 and is unique in scope in the United States. Taft was named as a finalist along with ProPublica counterparts Agnel Philip and Mollie Simon.
Mississippi Today found that in just 19 of the state's 82 counties, people were jailed without charges more than 2,000 times over four years. Taft spoke with 14 Mississippians about their experiences in jail and learned that people detained for being sick are generally treated the same as people accused of crimes. She obtained Mississippi Bureau of Investigation reports on jail deaths and pored over lawsuits and news clips to identify 15 people who died after being jailed during this process since 2006, (including the most recent death in January, after the original series was published). And she surveyed behavioral health officials and disability rights advocates in all 50 states to show that Mississippi stands alone.
Taft was selected from thousands of applicants as a 2024-2025 fellow at The New York Times beginning this summer. She will cover national news.
The winner will be announced in June.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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