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Millions were supposed to go to Mississippi’s hospitals. Getting that money will be difficult for most, and impossible for others

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What should have been a lifeline for Mississippi’s struggling hospitals is proving to be out of reach for the facilities that need it the most. 

State lawmakers approved sending millions of dollars to save Mississippi’s struggling hospitals during the session, but now many hospital leaders are running into difficulties trying to access that money.

A third of Mississippi’s rural hospitals are at risk of closure — many of them were counting on the state grants to survive the year. 

Legislators in February established the grant program, part of Lt. Gov. Delbert Hosemann’s plan to “save rural hospitals,” in lieu of expanding Medicaid. A month later and just days before the end of the legislative session, they decided on the amount: $103 million to be disseminated among the state’s struggling health care providers.

It was millions less than the Mississippi Hospital Association had advocated for — despite a $4 billion surplus in the state budget — but health care leaders said they would take what they could get.

Hospitals were allocated varying amounts through a formula that accounted for bed counts, hospital designation, emergency rooms and other factors.

But there was a hitch — the money wouldn’t come from the state general fund. Instead, it would come from American Rescue Plan Act funds, federal money meant to ease the financial hits taken by the pandemic. 

Timothy H. Moore is the President/CEO of the Mississippi Hospital Association. Credit: Vickie D. King/Mississippi Today

MHA director Tim Moore, whose organization helped craft the program, said it wasn’t clear then how much the source of the money would affect hospitals’ ability to access it.

“I think the Legislature felt that it would not be a problem … to get the money out,” he said. “We were looking at them actually cutting grant checks to the hospitals. When ARPA money was applied, that changed the whole thing.”

ARPA funds can only be used to cover COVID-related expenses, and many hospitals have already claimed those federal pandemic reimbursement dollars. Expenses claimed through ARPA cannot have been claimed under any other federal and state reimbursement programs, rendering the grant money useless to many Mississippi hospitals.

According to Paul Black, CEO of Winston Medical Center in Louisville, that makes the grant bill more of a reimbursement bill.

“I don’t know who came up with the bright-eyed idea to use ARPA money, if they did, they definitely did not understand what that meant to this program,” he said. 

“It’s just extremely frustrating that one of the pieces of the legislation … is one thing and the appropriations is something completely different. I don’t understand how they can do that, I really don’t.”

Both Hosemann and Gov. Tate Reeves, who sent out a release emphasizing his role in the program’s passage, declined to comment about the grant situation.

House Public Health Chair Sam Mims, author of House Bill 271 which funded the program, did not respond to a request for comment.

Senate Medicaid Chairman Kevin Blackwell, author of Senate Bill 2372 which established the program, deferred questions about hospitals’ issues with the grant program to state Health Officer Dr. Daniel Edney. 

The state health department is tasked with distributing the funds, and because it’s now tied to federal ARPA funds, has to work with the state department of finance and administration to do so, Edney said.

During the bill process, Edney said the health department pointed out the pitfalls of using the ARPA money.

“Federal money … doesn’t take up state resources from other places,” he said. “The downside is it has to follow federal guidelines versus state general funds.”

One of those downsides has already become clear: The allocation based on hospitals’ number of licensed beds has been struck, on account of federal guidelines. That means hospitals, if they get money at all, will definitely be getting less than expected. 

Sen. Hob Bryan, D-Amory, expresses his concerns about a potential state lottery during a special session of the Legislature at the Capitol in Jackson Thursday, August 23, 2018. Credit: Eric J. Shelton, Mississippi Today/ Report for America

Senate Public Health Chair Hob Bryan said he’s received questions about the grant program from hospital officials and others, and that he still doesn’t have all the answers.

“I’ve asked questions, and I’m still confused,” Bryan said. “I talk with A, and A says one thing, then I talk with B, and B says something else.”

“I think there’s a lot of confusion over whether a hospital would have to have already spent money on COVID expenses and can be reimbursed, or whether they can spend in the future. One of the things I’ve been told is that if you are improving things at your hospital to deal with COVID, or to prepare for the next COVID, then you will be eligible under the regulations.

“Hospitals’ reactions appear to be, ‘That’s all well and good, but I’m going broke and this says I can spend more money and get reimbursed, but that doesn’t help me right now,’” Bryan continued.

Bryan said he believes questions and confusion about the program are in part because of the hasty, secretive process Mississippi legislative leaders have used to set budgets in recent years.

“We do everything in secret, and then put it all together at the last minute,” Bryan said. “Transparency, like say, in conference committees and the rest of the process might help, in that issues like this could be identified and addressed before it’s passed. Discussing these things more in the open could provide better results … Of course, we had the House refusing to negotiate on this or anything else because they were holding out for tax cuts, then they tried to do everything in the last 36 ½ minutes.”

Black agreed that hammering out funding details at the last-minute likely contributed to this oversight — an oversight that’ll have grave consequences for state’s hospitals.

“We got all these legislators that are patting themselves on the back for doing something for the hospitals,” Black said. “When it comes out, they didn’t do anything. At least for us to get what was promised in the Senate bill is not what is taking place now.”

Some of the state’s larger hospitals might be able to get their hands on some of the money. But it’s less likely that the state’s smaller, rural hospitals, who are in much more dire financial straits, will be able to.

“The whole intent of this was to help small rural hospitals,” Moore said. “That’s going to be much more of a challenge.”

Winston Medical Center was set to receive a little less than a million through the grant program. Because of the funding complications, the hospital actually won’t get anything at all.

“Unless the Department of Health comes up and finds out some way to get around some of the issues … as things sit right now, there’s no avenue for us to claim any money,” Black said.

The money would’ve been enough to cover about a month’s worth of payroll, Black said, but in the larger scheme of things, it would’ve helped Winston stay open until the end of the year and staunch the “slow bleed.”

Winston, though, is in a far more stable financial state than many other rural hospitals.

Before the grant money and a big credit line approval, Greenwood Leflore Hospital was weeks from shutting down. It’s not clear how the new developments will affect its financial viability.

Greenwood Leflore Hospital’s interim CEO Gary Marchand discusses the challenges facing the hospital at Greenwood Leflore Hospital in Greenwood, Miss., Tuesday, February 14, 2022. Credit: Eric J. Shelton, Mississippi Today

Gary Marchand, the hospital’s leader, said it was too early in the process to answer Mississippi Today’s questions, but said he believes the complications caused by the ARPA funding will just slow down when the hospital will receive its allocation.

“We understand MSDH is moving quickly,” Marchand said.

Hospitals can apply for the money during a one-month window that starts June 1. Edney said once a hospital’s application is approved, he’s hoping to get the money over immediately.

However, Black is more cynical about the reality of the situation.

“That’s what they said when they passed the bill back in April, and now it’s the end of May going into June,” Black said. “If anybody gets it by September, it’ll be a miracle.”

Unless a special session is called to address the funding issue, Moore and Black are looking toward the next legislative session for help. They’re hoping that most hospitals survive until then and that state leaders come around to seeing the economic advantages to expanding Medicaid in Mississippi, which would bring millions of dollars to the state’s hospitals.

“The analogy I keep thinking about is Charlie Brown, Lucy and the football,” Black said. “Lucy holds the ball for Charlie Brown to kick, and at the last minute, she pulls it back. He falls on his rear end.

“That’s what this has been like.”

Reporter Geoff Pender contributed to this story.

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

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Mississippi Today

Presidents are taking longer to declare major natural disasters. For some, the wait is agonizing

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mississippitoday.org – @alxrzr – 2025-09-08 11:30:00


Presidents are taking increasingly longer to declare major natural disasters, delaying federal aid to affected individuals and communities. An Associated Press analysis shows that while declarations took under two weeks in the 1990s, the average wait has grown to over a month during President Donald Trump’s term, with some waits exceeding 60 days. This delay affects disaster survivors like Buddy Anthony of Tylertown, Mississippi, whose home was destroyed by a tornado in March 2025; he waited 50 days for federal aid. The Trump administration attributes delays to more thorough reviews and efforts to reduce federal bureaucracy, while critics warn it leaves disaster victims unsupported. Local officials face financial strain, suspending recovery efforts due to reimbursement uncertainties.

TYLERTOWN — As an ominous storm approached Buddy Anthony’s one-story brick home, he took shelter in his new Ford F-250 pickup parked under a nearby carport.

Seconds later, a tornado tore apart Anthony’s home and damaged the truck while lifting it partly in the air. Anthony emerged unhurt. But he had to replace his vehicle with a used truck that became his home while waiting for President Donald Trump to issue a major disaster declaration so that federal money would be freed for individuals reeling from loss. That took weeks. 

“You wake up in the truck and look out the windshield and see nothing. That’s hard. That’s hard to swallow,” Anthony said.

Thousands of trees toppled as the result of tornadoes that hit Tylertown in March of this year are being ground into mulch, Friday, Aug. 15, 2025, as recovery efforts continue.

Disaster survivors are having to wait longer to get aid from the federal government, according to a new Associated Press analysis of decades of data. On average, it took less than two weeks for a governor’s request for a presidential disaster declaration to be granted in the 1990s and early 2000s. That rose to about three weeks during the past decade under presidents from both major parties. It’s taking more than a month, on average, during Trump’s current term, the AP found.

The delays mean individuals must wait to receive federal aid for daily living expenses, temporary lodging and home repairs. Delays in disaster declarations also can hamper recovery efforts by local officials uncertain whether they will receive federal reimbursement for cleaning up debris and rebuilding infrastructure. The AP collaborated with Mississippi Today and Mississippi Free Press on the effects of these delays for this report.

“The message that I get in the delay, particularly for the individual assistance, is that the federal government has turned its back on its own people,” said Bob Griffin, dean of the College of Emergency Preparedness, Homeland Security and Cybersecurity at the University at Albany in New York. “It’s a fundamental shift in the position of this country.”

The wait for disaster aid has grown as Trump remakes government

The Federal Emergency Management Agency often consults immediately with communities to coordinate their initial disaster response. But direct payments to individuals, nonprofits and local governments must wait for a major disaster declaration from the president, who first must receive a request from a state, territory or tribe. Major disaster declarations are intended only for the most damaging events that are beyond the resources of states and local governments.

Trump has approved more than two dozen major disaster declarations since taking office in January, with an average wait of almost 34 days after a request. That ranged from a one-day turnaround after July’s deadly flash flooding in Texas to a 67-day wait after a request for aid because of a Michigan ice storm. The average wait is up from a 24-day delay during his first term and is nearly four times as long as the average for former Republican President George H.W. Bush, whose term from 1989-1993 coincided with the implementation of a new federal law setting parameters for disaster determinations. 

The delays have grown over time, regardless of the party in power. Former Democratic President Joe Biden, in his last year in office, averaged 26 days to declare major disasters — longer than any year under former Democratic President Barack Obama.

This Aug. 14, 2025, photo shows Buddy Anthony’s house after it was destroyed by a tornado in Tylertown, Miss..

FEMA did not respond to the AP’s questions about what factors are contributing to the trend.

Others familiar with FEMA noted that its process for assessing and documenting natural disasters has become more complex over time. Disasters have also become more frequent and intense because of climate change, which is mostly caused by the burning of fuels such as gas, coal and oil.

The wait for disaster declarations has spiked as Trump’s administration undertakes an ambitious makeover of the federal government that has shed thousands of workers and reexamined the role of FEMA. A recently published letter from current and former FEMA employees warned the cuts could become debilitating if faced with a large-enough disaster. The letter also lamented that the Trump administration has stopped maintaining or removed long-term planning tools focused on extreme weather and disasters.

Shortly after taking office, Trump floated the idea of “getting rid” of FEMA, asserting: “It’s very bureaucratic, and it’s very slow.”

FEMA’s acting chief suggested more recently that states should shoulder more responsibility for disaster recovery, though FEMA thus far has continued to cover three-fourths of the costs of public assistance to local governments, as required under federal law. FEMA pays the full cost of its individual assistance.

Former FEMA Administrator Pete Gaynor, who served during Trump’s first term, said the delay in issuing major disaster declarations likely is related to a renewed focus on making sure the federal government isn’t paying for things state and local governments could handle.

“I think they’re probably giving those requests more scrutiny,” Gaynor said. “And I think it’s probably the right thing to do, because I think the (disaster) declaration process has become the ‘easy button’ for states.”

The Associated Press on Monday received a statement from White House spokeswoman Abigail Jackson in response to a question about why it is taking longer to issue major natural disaster declarations:

“President Trump provides a more thorough review of disaster declaration requests than any Administration has before him. Gone are the days of rubber stamping FEMA recommendations – that’s not a bug, that’s a feature. Under prior Administrations, FEMA’s outsized role created a bloated bureaucracy that disincentivized state investment in their own resilience. President Trump is committed to right-sizing the Federal government while empowering state and local governments by enabling them to better understand, plan for, and ultimately address the needs of their citizens. The Trump Administration has expeditiously provided assistance to disasters while ensuring taxpayer dollars are spent wisely to supplement state actions, not replace them.”

New piping and hook-ups are under construction at Paradise Ranch RV Resort where a few campers enjoy the park in Tylertown, Friday, Aug. 15, 2025. The park is open again after a tornado struck the area in March.

In Mississippi, frustration festered during wait for aid

The tornado that struck Anthony’s home in rural Tylertown on March 15 packed winds up to 140 mph. It was part of a powerful system that wrecked homes, businesses and lives across multiple states.

Mississippi’s governor requested a federal disaster declaration on April 1. Trump granted that request 50 days later, on May 21, while approving aid for both individuals and public entities.

On that same day, Trump also approved eight other major disaster declarations for storms, floods or fires in seven other states. In most cases, more than a month had passed since the request and about two months since the date of those disasters.

If a presidential declaration and federal money had come sooner, Anthony said he wouldn’t have needed to spend weeks sleeping in a truck before he could afford to rent the trailer where he is now living. His house was uninsured, Anthony said, and FEMA eventually gave him $30,000. 

In nearby Jayess in Lawrence County, Dana Grimes had insurance but not enough to cover the full value of her damaged home. After the eventual federal declaration, Grimes said FEMA provided about $750 for emergency expenses, but she is now waiting for the agency to determine whether she can receive more.

Tornado destroyed home on Hwy 98 north of downtown Tylertown, Monday, March 17, 2025.

“We couldn’t figure out why the president took so long to help people in this country,” Grimes said. “I just want to tie up strings and move on. But FEMA — I’m still fooling with FEMA.”

Jonathan Young said he gave up on applying for FEMA aid after the Tylertown tornado killed his 7-year-old son and destroyed their home. The process seemed too difficult, and federal officials wanted paperwork he didn’t have, Young said. He made ends meet by working for those cleaning up from the storm.

“It’s a therapy for me,” Young said, “to pick up the debris that took my son away from me.”

Historically, presidential disaster declarations containing individual assistance have been approved more quickly than those providing assistance only to public entities, according to the AP’s analysis. That remains the case under Trump, though declarations for both types are taking longer.

About half the major disaster declarations approved by Trump this year have included individual assistance.

Some people whose homes are damaged turn to shelters hosted by churches or local nonprofit organizations in the initial chaotic days after a disaster. Others stay with friends or family or go to a hotel, if they can afford it.

But some insist on staying in damaged homes, even if they are unsafe, said Chris Smith, who administered FEMA’s individual assistance division under three presidents from 2015-2022. If homes aren’t repaired properly, mold can grow, compounding the recovery challenges.

Tylertown Assistant Fire Chief Les Lampton, shows how he and other firefighters receive alerts via their smartphones, Friday, Aug. 15, 2025, in Tylertown.

That’s why it’s critical for FEMA’s individual assistance to get approved quickly — ideally, within two weeks of a disaster, said Smith, who’s now a disaster consultant for governments and companies.

“You want to keep the people where they are living. You want to ensure those communities are going to continue to be viable and recover,” Smith said. “And the earlier that individual assistance can be delivered … the earlier recovery can start.”

In the periods waiting for declarations, the pressure falls on local officials and volunteers to care for victims and distribute supplies. 

In Walthall County, where Tylertown is, insurance agent Les Lampton remembered watching the weather news as the first tornado missed his house by just an eighth of a mile. Lampton, who moonlights as a volunteer firefighter, navigated the collapsed trees in his yard and jumped into action. About 45 minutes later, the second tornado hit just a mile away.

“It was just chaos from there on out,” Lampton said. 

Walthall County, with a population of about 14,000, hasn’t had a working tornado siren in about 30 years, Lampton said. He added there isn’t a public safe room in the area, although a lot of residents have ones in their home. 

Rural areas with limited resources are hit hard by delays in receiving funds through FEMA’s public assistance program, which, unlike individual assistance, only reimburses local entities after their bills are paid. Long waits can stoke uncertainty and lead cost-conscious local officials to pause or scale-back their recovery efforts.

Walthall County Emergency Management Director Royce McKee, at emergency management headquarters in Tylertown, Friday, Aug. 15, 2025. McKee discusses recovery efforts in Tylertown and surrounding areas after tornadoes struck in March.

In Walthall County, officials initially spent about $700,000 cleaning up debris, then suspended the cleanup for more than a month because they couldn’t afford to spend more without assurance they would receive federal reimbursement, said county emergency manager Royce McKee. Meanwhile, rubble from splintered trees and shattered homes remained piled along the roadside, creating unsafe obstacles for motorists and habitat for snakes and rodents.

When it received the federal declaration, Walthall County took out a multimillion-dollar loan to pay contractors to resume the cleanup.

“We’re going to pay interest and pay that money back until FEMA pays us,” said Byran Martin, an elected county supervisor. “We’re hopeful that we’ll get some money by the first of the year, but people are telling us that it could be [longer].”

Lampton, who took after his father when he joined the volunteer firefighters 40 years ago, lauded the support of outside groups such as Cajun Navy, Eight Days of Hope, Samaritan’s Purse and others. That’s not to mention the neighbors who brought their own skid steers and power saws to help clear trees and other debris, he added. 

“That’s the only thing that got us through this storm, neighbors helping neighbors,” Lampton said. “If we waited on the government, we were going to be in bad shape.”

Lieb reported from Jefferson City, Missouri, and Wildeman from Hartford, Connecticut.

Update 98/25: This story has been updated to include a White House statement released after publication.

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post Presidents are taking longer to declare major natural disasters. For some, the wait is agonizing appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Center-Left

This article presents a critical view of the Trump administration’s handling of disaster declarations, highlighting delays and their negative impacts on affected individuals and communities. It emphasizes concerns about government downsizing and reduced federal support, themes often associated with center-left perspectives that favor robust government intervention and social safety nets. However, it also includes statements from Trump administration officials defending their approach, providing some balance. Overall, the tone and framing lean slightly left of center without being overtly partisan.

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Mississippi Today

Northeast Mississippi speaker and worm farmer played key role in Coast recovery after Hurricane Katrina

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mississippitoday.org – @BobbyHarrison9 – 2025-09-07 07:00:00


Northeast Mississippi House Speaker Billy McCoy, a worm farmer from Rienzi, played a crucial role in the Mississippi Gulf Coast’s recovery after Hurricane Katrina in 2005. Despite representing a rural, largely anti-casino base, McCoy allowed a controversial bill to expand casino gambling by permitting casinos to be built on land rather than floating in the Mississippi Sound. This move was vital for the Coast’s economic revival, as casinos employed around 30,000 people. Governor Haley Barbour credited McCoy for prioritizing state interests over political pressures, even though McCoy voted against the bill. McCoy died in 2019 and is remembered as a hero for the Coast’s recovery.

The 20th anniversary of Hurricane Katrina slamming the Mississippi Gulf Coast has come and gone, rightfully garnering considerable media attention.

But still undercovered in the 20th anniversary saga of the storm that made landfall on Aug. 29, 2005, and caused unprecedented destruction is the role that a worm farmer from northeast Mississippi played in helping to revitalize the Coast.

House Speaker Billy McCoy, who died in 2019, was a worm farmer from the Prentiss, not Alcorn County, side of Rienzi — about as far away from the Gulf Coast as one could be in Mississippi.

McCoy grew other crops, but a staple of his operations was worm farming. 

Early after the storm, the House speaker made a point of touring the Coast and visiting as many of the House members who lived on the Coast as he could to check on them.

But it was his action in the forum he loved the most — the Mississippi House — that is credited with being key to the Coast’s recovery.

Gov. Haley Barbour had called a special session about a month after the storm to take up multiple issues related to Katrina and the Gulf Coast’s survival and revitalization. The issue that received the most attention was Barbour’s proposal to remove the requirement that the casinos on the Coast be floating in the Mississippi Sound.

Katrina wreaked havoc on the floating casinos, and many operators said they would not rebuild if their casinos had to be in the Gulf waters. That was a crucial issue since the casinos were a major economic engine on the Coast, employing an estimated 30,000 in direct and indirect jobs.

It is difficult to fathom now the controversy surrounding Barbour’s proposal to allow the casinos to locate on land next to the water. Mississippi’s casino industry that was birthed with the early 1990s legislation was still new and controversial.

Various religious groups and others had continued to fight and oppose the casino industry and had made opposition to the expansion of gambling a priority.

Opposition to casinos and expansion of casinos was believed to be especially strong in rural areas, like those found in McCoy’s beloved northeast Mississippi. It was many of those rural areas that were the homes to rural white Democrats — now all but extinct in the Legislature but at the time still a force in the House.

So, voting in favor of casino expansion had the potential of being costly for what was McCoy’s base of power: the rural white Democrats.

Couple that with the fact that the Democratic-controlled House had been at odds with the Republican Barbour on multiple issues ranging from education funding to health care since Barbour was inaugurated in January 2004.

Barbour set records for the number of special sessions called by the governor. Those special sessions often were called to try to force the Democratic-controlled House to pass legislation it killed during the regular session.

The September 2005 special session was Barbour’s fifth of the year. For context, current Gov. Tate Reeves has called four in his nearly six years as governor.

There was little reason to expect McCoy to do Barbour’s bidding and lead the effort in the Legislature to pass his most controversial proposal: expanding casino gambling.

But when Barbour ally Lt. Gov. Amy Tuck, who presided over the Senate, refused to take up the controversial bill, Barbour was forced to turn to McCoy.

The former governor wrote about the circumstances in an essay he penned on the 20th anniversary of Hurricane Katrina for Mississippi Today Ideas.

“The Senate leadership, all Republicans, did not want to go first in passing the onshore casino law,” Barbour wrote. “So, I had to ask Speaker McCoy to allow it to come to the House floor and pass. He realized he should put the Coast and the state’s interests first. He did so, and the bill passed 61-53, with McCoy voting no.

“I will always admire Speaker McCoy, often my nemesis, for his integrity in putting the state first.”

Incidentally, former Rep. Bill Miles of Fulton, also in northeast Mississippi, was tasked by McCoy with counting, not whipping votes, to see if there was enough support in the House to pass the proposal. Not soon before the key vote, Miles said years later, he went to McCoy and told him there were more than enough votes to pass the legislation so he was voting no and broached the idea of the speaker also voting no.

It is likely that McCoy would have voted for the bill if his vote was needed.

Despite his no vote, the Biloxi Sun Herald newspaper ran a large photo of McCoy and hailed the Rienzi worm farmer as a hero for the Mississippi Gulf Coast.

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post Northeast Mississippi speaker and worm farmer played key role in Coast recovery after Hurricane Katrina appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

The article presents a factual and balanced account of the political dynamics surrounding Hurricane Katrina recovery efforts in Mississippi, focusing on bipartisan cooperation between Democratic and Republican leaders. It highlights the complexities of legislative decisions without overtly favoring one party or ideology, reflecting a neutral and informative tone typical of centrist reporting.

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Mississippi Today

PSC moves toward placing Holly Springs utility into receivership

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mississippitoday.org – @alxrzr – 2025-09-05 12:45:00


On September 4, 2025, the Mississippi Public Service Commission (PSC) voted unanimously to petition a judge to place the Holly Springs Utility Department into receivership due to ongoing service failures and financial mismanagement. Serving about 12,000 mostly out-of-city customers since 1935 under a Tennessee Valley Authority contract, the utility has faced issues including prolonged outages during a 2023 ice storm, power surges damaging appliances, and inaccurate billing. A July report by Silverpoint Consulting deemed the city “incapable” of managing the utility. The 2024 state bill empowers the PSC to remove control temporarily. Holly Springs officials requested 24 months for improvements, but the PSC deemed immediate action necessary. Repair costs may exceed $25 million, with the utility owing $10 million in debt. Alternatives to receivership include condemnation or sale to another utility.

NEW ALBANY — After five hours in a courtroom where attendees struggled to find standing room, the Mississippi Public Service Commission voted to petition a judge to put the Holly Springs Utility Department into a receivership.

The PSC held the hearing Thursday about a half hour drive west from Holly Springs in New Albany, known as “The Fair and Friendly City.” Throughout the proceedings, members of the PSC, its consultants and Holly Springs officials emphasized there was no precedent for what was going on.

Concerned residents listen during a Public Service Commission hearing on whether Holly Springs should retain control of its utility department, in New Albany, Miss., on Thursday, Sept. 4, 2025.

The city of Holly Springs has provided electricity through a contract with the Tennessee Valley Authority since 1935. It serves about 12,000 customers, most of whom live outside the city limits. While current and past city officials say the utility’s issues are a result of financial negligence over many years, the service failures hit a boiling point during a 2023 ice storm where customers saw outages that lasted roughly two weeks as well as power surges that broke their appliances.

Those living in the service area say those issues still occur periodically, in addition to infrequent and inaccurate billing.

“I moved to Marshall County in 2020 as a place for retirement for my husband and I, and it’s been a nightmare for five years,” customer Monica Wright told the PSC at Thursday’s hearing. “We’ve replaced every electronic device we own, every appliance, our well pump and our septic pumps. It has financially broke us.

“We’re living on prayers and promises, and we need your help today.”

John Keith Perry, Holly Springs City attorney, speaks during a Public Service Commission hearing in New Albany, Miss., on Thursday, Sept. 4, 2025.

Another customer, Roscoe Sitgger of Michigan City, said he recently received a series of monthly bills between $500 and $600.

Following a scathing July report by Silverpoint Consulting that found Holly Springs is “incapable” of running the utility, the three-member PSC voted unanimously on Thursday to determine the city isn’t providing “reasonably adequate service” to its customers. That language comes from a 2024 state bill that gave the commission authority to investigate the utility.

The bill gives a pathway for temporarily removing the utility’s control from the city, allowing the PSC to petition a chancery judge to place the department into the hands of a third party. The PSC voted unanimously to do just that.

Residents listen during a Public Service Commission hearing on whether Holly Springs should retain control of its utility department, in New Albany, Miss., on Thursday, September 4, 2025.

Thursday’s hearing gave the commission its first chance to direct official questions at Holly Springs representatives. Newly elected Mayor Charles Terry, utility General Manager Wayne Jones and City Attorney John Keith Perry fielded an array of criticism from the PSC. In his rebuttal, Perry suggested that any solution — whether a receivership or selling the utility — would take time to implement, and requested 24 months for the city to make incremental improvements. Audience members shouted, “No!” as Perry spoke.

“We are in a crisis now,” responded Northern District Public Service Commissioner Chris Brown. “To try to turn the corner in incremental steps is going to be almost impossible.”

Roscoe Stigger, a Marshall County resident, expresses how the Holly Springs Utility Department’s issues have personally affected him during a Mississippi Public Service Commission hearing in New Albany, Miss., on Thursday, Sept. 4, 2025.

It’s unclear how much it would cost to fix the department’s long list of ailments. In 2023, TVPPA — a nonprofit that represents TVA’s local partners — estimated Holly Springs needs over $10 million just to restore its rights-of-way, and as much as $15 million to fix its substations. The department owes another $10 million in debt to TVA as well as its contractors, Brown said.

“The city is holding back the growth of the county,” said Republican Sen. Neil Whaley of Potts Camp, who passionately criticized the Holly Springs officials sitting a few feet away. “You’ve got to do better, you’ve got to realize you’re holding these people hostage, and it’s not right and it’s not fair… They are being represented by people who do not care about them as long as the bill is paid.”

In determining next steps, Silverpoint Principal Stephanie Vavro told the PSC it may be hard to find someone willing to serve as receiver for the utility department, make significant investments and then hand the keys back to the city. The 2024 bill, Vavro said, doesn’t limit options to a receivership, and alternatives could include condemning the utility or finding a nearby utility to buy the service area.

Monica Wright, a Marshall County resident, talks about her frustrating experiences with the Holly Springs Utility Department during a Mississippi Public Service Commission hearing in New Albany, Miss., on Thursday, Sept. 4, 2025.

Answering questions from Central District Public Service Commissioner De’Keither Stamps, Vavro said it’s unclear how much the department is worth, adding an engineer’s study would be needed to come up with a number.

Terry, who reminded the PSC he’s only been Holly Springs’ mayor for just over 60 days, said there’s no way the city can afford the repair costs on its own. The city’s median income is about $47,000, roughly $8,000 less than the state’s as a whole.

This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

The post PSC moves toward placing Holly Springs utility into receivership appeared first on mississippitoday.org



Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

This article presents a factual and balanced account of the situation involving the Holly Springs Utility Department and the Mississippi Public Service Commission. It includes perspectives from various stakeholders, such as city officials, residents, and state commissioners, without showing clear favoritism or ideological slant. The focus is on the practical challenges and financial issues faced by the utility, reflecting a neutral stance aimed at informing readers rather than advocating a particular political viewpoint.

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