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Legislative leaders approve budget plan, leaving at least $1 billion for consideration in 2023 session

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State adds USM volleyball project to effort to recoup misspent welfare funds

After months of national coverage about how former NFL quarterback Brett Favre solicited welfare money to build a volleyball stadium at his alma mater, the of Mississippi has filed civil charges attempting to recoup the money.

The lawsuit alleges that Favre “understood that grant funds provided by MDHS could not be used for brick-and-mortar construction” — the first time Favre has officially this charge.

The new allegation just one week after Favre filed a punchy motion to dismiss the welfare department's civil charges against him.

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Mississippi Department of Human Services filed its initial civil suit, the agency's response to a multi-million dollar fraud and embezzlement scandal, in May. The initial complaint targeted Favre for $1.1 million he received under a “vague, illusory promise that Favre make appearances or record PSAs” and $2.1 million the athlete helped secure for a pharmaceutical venture.

But the complaint did not initially include the University of Southern Mississippi Athletic Foundation, which took $5 million in welfare money to build a volleyball stadium — billed as a “wellness center” — on its campus.

The amended complaint, filed Monday, adds the athletic foundation and sheds more light on the roles of Favre and other state officials in the scheme, university officials who are not included as defendants. Former welfare director John Davis and nonprofit founder Nancy New have both pleaded guilty to several fraud and bribery charges in connection with the welfare scandal.

“Despite the Foundation's expressing worries about ‘rais[ing] negative concerns' and being ‘scared to death,' Brett Favre urged Nancy New that it was necessary for the Foundation to ‘utilize you guys [John Davis and Nancy New] in every way,'” the filing reads.

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While the new complaint increases Favre's potential liability by $5 million, it removed the $1.1 million claim against Favre in the initial complaint because he repaid that amount to the state in 2020 and 2021.

The new filing also adds a lobbyist, two former MDHS attorneys and a virtual reality company as defendants in the lawsuit.

It does not mention former Gov. Phil Bryant or the discussions the governor had with Favre about finding for the volleyball stadium or Prevacus, the company purportedly developing a drug to treat concussions.

“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 alleged in his most recent motion.

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The lawsuit still names fitness trainer Paul Lacoste and his organization Victory Sports Foundation, which received $1.3 million under what former MDHS leader Davis described as “the Lt. Gov's fitness issue,” referring to then-Lt. Gov. Tate Reeves. Now governor and in control of the suit, Reeves is also not mentioned in the amended complaint.

In the new complaint, MDHS added the following new defendants:

  • USM Athletic Foundation.
  • N3 Holdings, the company that Nancy New and her sons Zach and Jess New owned and allegedly used to personally invest in Favre's pharmaceutical start-up companies called Prevacus and PreSolMD.
  • Lobaki, Inc. and Lobaki Foundation, a virtual reality company that received welfare funding to prop up a VR academy.
  • JTS Enterprises, the company formed by Brian Jeff Smith, John Davis' brother-in-law, through which he received welfare funds.
  • William Longwitz, former lawmaker and lobbyist who received nearly $320,000 in welfare funds to lobby on behalf of New's organization.
  • Inside Capitol, LLC, Will Longwitz's lobbying firm.
  • Jacob Black, former MDHS attorney.
  • Garrig Shields, former MDHS attorney who left the agency to work for New's nonprofit.
  • William, Weiss, Hester and Co., PLLC, the accounting firm that conducted regular audits of the New nonprofit.

The initial complaint sought to claw back a total of about $24 million. The new complaint asserts that the two nonprofits through which most of the money was misspent — Mississippi Community Education Center and Family Resource of North Mississippi — breached their agreements with MDHS and should have to return their entire awarded amounts, $39.3 million for MCEC and $38 million for FRC. Neither nonprofit has assets totaling anywhere near those amounts.

Former U.S. Attorney Brad Pigott, the private attorney MDHS first hired to bring the suit, planned to include the volleyball project in the complaint, but Reeves' office instructed him to remove it before filing. In July, after Pigott subpoenaed the athletic foundation for its communication with former Gov. Bryant, among other individuals, Reeves' appointed welfare director Bob Anderson fired the attorney. At that time, Reeves said the agency was still considering more potential defendants to add to the suit, including the athletic foundation.

“Governor Tate Reeves tasked me with correcting the path of MDHS,” Anderson said in a statement Monday. “As part of that , MDHS has been working hard to restore trust and put in place numerous internal controls to ensure that misspending is not repeated in the future. The rest of the task involves recovering and returning to the taxpayers the millions of dollars in misspent funds which were intended to benefit Mississippi's needy families. We continue that task with this motion to file an amended civil complaint.”

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The amended complaint alleges that in April of 2017, Favre made a “handshake agreement” with USM, where his daughter played volleyball, to personally guarantee the funds to construct a new facility for the team. He then contributed $150,000 worth of autographed merchandise and began soliciting donations from various people and companies, including the Kohler family.

“Favre, however, was unable to convince his friends and connections to donate enough money to meet his obligation to fund the construction of the volleyball facility, and he did not want to pay the costs out of his own pocket,” the complaint reads.

Favre's attorney Eric Herschmann rejected the assertion that the athlete personally committed funds to the project, pointing to emails from USM's athletic director at the time, Jon Gilbert, that say Favre agreed to fundraise for the project.

In July of 2017, Gilbert introduced Favre to nonprofit founder Nancy New, Favre said in his recent filing.

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New, who sat on the athletic foundation board alongside Favre, and another nonprofit operator Christi Webb had just become the recipients of a massive cash flow from the welfare department. At the time, New's nonprofit Mississippi Community Education Center already had existing leases with USM, including for a large suite at the football stadium, where the nonprofit could invite guests to watch the .

Shortly after connecting with New, Favre met at USM with her, Gilbert, Davis, MDHS attorney Garrig Shields and former WWE wrestler Teddy DiBiase to discuss using MDHS funds on the volleyball construction.

“John Davis discussed his plan to ‘do good things for USM' and ‘give them 4 mil' with Christi Webb and Nancy New, both of whom enthusiastically agreed. John Davis suggested that Nancy New tell Jon Gilbert that the facility should be named after Favre,” the complaint reads. “The Foundation told Brett Favre that they were ‘very leary [sic] of accepting such a large grant,' and suggested ‘ to find a way for John [Davis] to allocate money to an entity that could then give to us that would pay for brick and mortar.' Brett Favre also told Nancy New he ‘passed [this] same info[rmation] to John [Davis] and of course he [John Davis] sent back we will find a way to make it work.'”

The lawsuit alleges attorneys Shields and Black were instrumental in crafting the sham lease agreement, as well as facilitating several other allegedly fraudulent purchases.

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Black was one of the employees who gathered and brought information about Davis' alleged fraud to Gov. Bryant in June of 2019.

Favre denies any wrongdoing in the volleyball project. Longwitz, Black, Shields and a spokesperson for USM did not return calls to Mississippi Today on Monday.

“While he had helped raise funds for the facility and thereby met Davis and New, Favre, as with the transfers complained of in the Complaint, did absolutely nothing wrong in connection with the Wellness Center,” Favre's Nov. 28 motion reads. “During Favre's fundraising efforts, in July 2017, the Southern Miss athletic director introduced Favre to New, a Southern Miss Athletic Foundation board member, as someone who could assist Favre with the fundraising. New was well connected with numerous Mississippi officials, including Davis and then-Governor Bryant, and close friends with Governor Bryant's wife Deborah Bryant.”

Tom Duff, current president of the Institutions of Higher Learning Board of Trustees and one of the board members who signed off on the $5 million MDHS grant to build the volleyball stadium in 2017, told Mississippi Today last month that he believed USM should return the funds.

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“MDHS's proposed amended complaint, in which MDHS has dropped its original $1.1 million claim against Brett Favre, while adding new groundless allegations about him, is as frivolous as its original complaint,” Herschmann said in a statement Monday after the state's latest filing. “Again, MDHS omits facts key to these new allegations—including that the Mississippi signed off on the transfers of funds from MDHS to another state entity, the University of Southern Mississippi, all with the full knowledge and consent of the Governor and other State officials.  That a private citizen, like non-lawyer Brett Favre, could have any liability under these circumstances is baseless.  Accordingly, we will oppose, on Brett's behalf, MDHS's motion to amend the complaint to the extent it adds these new groundless allegations. “

Editor's note: Mississippi Today Editor-in-Chief Adam Ganucheau's mother signed off on the language of a lease agreement to construct a University of Southern Mississippi volleyball stadium. Read more about that here.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

Senate committee passes Medicaid ‘expansion’ bill that leaves hundreds of millions in federal dollars on table

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mississippitoday.org – Sophia Paffenroth and Taylor Vance – 2024-03-27 16:39:21

The only surviving Medicaid expansion bill in the passed the Senate Medicaid Committee Wednesday and is headed to the full Senate for a vote. 

But the proposal, as it passed the Senate committee, is not considered traditional “expansion” under the Affordable Care Act, and therefore would not qualify for the enhanced federal funding the law to newly-expanded states. It would the cost of the expanded coverage up to the state.

The Senate committee passed the House Republican bill with a strike-all, meaning it replaced the bill's original language with its own plan, which Medicaid Committee Chairman Kevin Blackwell, R-Southaven, refers to as “expansion light.”

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Blackwell estimated about 80,000 people would be eligible under this version of expansion, and half of that would apply. The House plan was expected to cover more than 200,000 people.

When a draft of the Senate's bill was leaked on March 20, Blackwell stressed to Mississippi that he and Senate were still tweaking parts of the legislation. However, the legislation that passed the committee is essentially the same as what was outlined in the leaked draft. 

The Senate proposal would:

  • Cover working Mississippians up to 99% of the federal poverty level. For an individual, that would be an annual income up to $15,060. For a family of four, that would be an annual income up to $31,200.
  • Not cover those making between 100% and 138% of the federal poverty threshold — not even through a private-care option. A plan that doesn't cover people making up to 138% is not considered “expansion” under the Affordable Care Act, meaning Mississippi wouldn't qualify for the 90% federal match rate that the Affordable Care Act grants to new expansion states, nor the additional, two-year 5% increase in match rate the federal government provides to newly-expanded states under pandemic relief spending passed by Congress. Instead, as was the case with Georgia, Mississippi would only get its regular federal Medicaid rate of about 77%.
  • Leave the health insurance exchange, the online marketplace that offers federally subsidized plans to people who make between 100% and 138% of the federal poverty level, intact. The Senate plan, unlike Arkansas' Medicaid expansion, would not provide extra subsidies from the state's federal Medicaid money available from the ACA.
  • Include a work requirement mandating at least 120 hours of employment a month in a position for which health insurance is not paid for by the employer. That's more stringent than Georgia's plan, which mandates 80 hours a month. There are several exemptions, such as for full-time students or who are the primary caregiver of a child under six years old.
  • Go into effect 30 days after the federal Centers for Medicare and Medicaid Services approves a waiver necessary for the work requirement. That's unlikely to happen under the Biden administration, which has rescinded work requirements previously approved for other states during the Trump administration and has not approved new ones. If the federal government denies the waiver, Mississippi would have to wait until a new administration took office, or sue the Biden administration. Georgia remains in litigation with the federal government over the work requirement issue, and has suffered low enrollment and missed out on millions in federal funds by not fully expanding coverage.
  • Require anyone who voluntarily dropped private insurance to wait 12 months before applying for Medicaid coverage.

Senate Democrats voiced several concerns about the administrative burden of the work requirement and the 120 hour a month minimum, which is even stricter than Georgia's plan – currently the strictest expansion plan in the country. 

Sen. David Blount, D-Jackson

Sen. David Blount, D-Jackson, asked Blackwell about the enhanced match from the federal government.

“So the federal government paying our match for two years and 90% after the two years – we would not qualify for that?” Blount asked.

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Blackwell said that is correct, and they would leave that money on the table.

Sen. John Horhn, D-Jackson, introduced two amendments: one to decrease the recertification requirements from four times a year to twice a year, and the other to reduce the work requirement hours from 120 hours a month to 80 hours a month. 

Both amendments were voted down by , who make up a majority of the committee's membership. Despite their amendments getting shot down, the Democrats still voted in favor of the bill. Only three Republican senators in the committee voted against the plan. 

When asked about the administrative burden of enforcing the work requirement, Blackwell said he is not worried and believes the Division of Medicaid has enough employees for its implementation. 

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But Georgia, the only state currently with a work requirement in its expansion plan, has spent $26 million taxpayer dollars to ensure a mere 3,500 people to date. More than 90% of that has gone to administrative and consulting costs. 

The bill is expected to be taken to a floor vote as early as Thursday, with a deadline of April 10. 

Since the Senate plan is drastically different than the House proposal – which is a mostly-traditional expansion plan insuring those who make up to 138% of the federal poverty level and would go into effect whether or not the federal government approves a work requirement waiver – a final version will likely be hammered out later in the session in a conference committee.

Any final plan would realistically need a two-thirds majority from both chambers to show it has the potential to override a potential veto from Republican Gov. Tate Reeves, who has privately told lawmakers he plans to veto any Medicaid expansion bill.

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Reeves on Tuesday night hosted around 20 state senators at the Governor's Mansion in Jackson where he, again, reiterated his opposition to any form of Medicaid expansion, according to multiple people familiar with the situation. 

At the Tuesday night , Reeves said he would veto the Senate's expansion plan if it reached his desk, though he reportedly said he approved the Senate's work requirement provisions. 

Shortly after the committee passed the expansion legislation, Reeves posted on social that the Senate plan is “still bad policy” and he will oppose it.

“And so I will continue to do what I told the voters I would do – fight Obamacare Medicaid Expansion with every ounce of my being,” Reeves said.  

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This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Michael Guidry named Mississippi Today managing editor

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Mississippi is pleased to announce Michael Guidry as managing editor.

Guidry, who joined the staff in February 2024, manages the newsroom's day-to-day and plans broader editorial strategy.

He previously served as managing editor at Mississippi Public Broadcasting, where he developed skills in audio storytelling as a producer, writer and editor.

“Michael is a perfect fit for what we're building at Mississippi Today,” said Adam Ganucheau, Mississippi Today's editor-in-chief. “He's a proven newsroom leader, and he knows Mississippi. He also brings us a lot of digital and audio skills that can expect to see more of pretty quickly.”

A native of Destrehan, , Guidry moved to Mississippi to attend Millsaps College, where he earned a dual Bachelor of Arts in History and Theatre. After graduating, he worked as a public school teacher for more than a decade.

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Michael Guidry

While at MPB, Guidry helped a team that received recognitions from the Radio Television Digital News Association, the Mississippi Association of Broadcasters and the Public Journalists Association.

MPB's special feature on – which he co-produced and co-narrated – received the 2023 Region 9 Edward R Murrow Award for Excellence in Diversity, Equity and Inclusion.

Guidry continues to host MPB's weekly politics show @Issue.

“As someone who spent years in a space adjacent to Mississippi Today, it became evident the newsroom was quickly becoming a leader in local, nonprofit news,” Guidry said. “I could not be more excited to join a publication dedicated to elevating the voices of while holding power to account.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Geoff Pender named Mississippi Today politics editor

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Mississippi Today is pleased to announce Geoff Pender as Politics and Editor.

Pender, who first joined the Mississippi Today staff as senior political reporter in May 2020, will oversee the day-to-day of Mississippi Today's politics team.

He brings more than 30 years of experience covering Mississippi politics to the new role.

“If you follow Mississippi politics, you know Geoff Pender,” said Adam Ganucheau, Mississippi Today's editor-in-chief. “He's been a vital member of our politics team since 2020, and we couldn't be more for him to now lead it. He's been a mentor to so many of our reporters, and he's led several impactful investigations for us. can expect more of that from him in this new job— and if you're wondering, you'll also continue to see plenty of his analysis of the 's biggest stories.”

Geoff Pender

Before joining Mississippi Today, Pender was political and investigative editor at the Clarion Ledger, where he also penned a popular political column. He previously served as an investigative reporter and political editor at the Sun Herald, where he was a member of the Pulitzer Prize-winning team for Hurricane Katrina coverage.

A native of Florence, Pender is a journalism graduate of the of Southern Mississippi and has received numerous throughout his career for reporting, columns and of information efforts.

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“I truly appreciate this and appreciate being able to continue working with the great team of journalists at Mississippi Today providing in-depth coverage at such a crucial time for the state,” Pender said.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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