Mississippi Today
Lt. Gov. Delbert Hosemann calls state pension problems ‘the major issue’ of 2024 legislative session
Lt. Gov. Delbert Hosemann said that deciding how to ensure the long-term financial solvency of the massive Mississippi Public Employees Retirement System is “the major issue” facing lawmakers during the current legislative session.
PERS provides pension benefits for more than 360,000 current and former government employees in Mississippi, including school district employees and higher education and community college staff.
The system has experienced financial problems for years that many argue have gone largely unaddressed. It has about $32 billion in assets to pay its retirees, but it is about $25 billion in long-term debt. It has a funding ratio of about 56%, meaning the system has just 56% of the revenue needed to cover its liabilities over a 30-year period.
PERS leaders this year are asking the Legislature for an infusion of cash — which lawmakers traditionally do not provide on an annual basis — to help offset the system’s uncertain financial future.
Hosemann recently said until the issues facing PERS are resolved, the Legislature cannot commit on how much to provide in funding for state agencies, schools and other programs.
“We are going to pay the retirees,” Hosemann said.
House Speaker Jason White, R-West, has also talked of the importance of addressing PERS.
“I think there has been a commitment at least around the coffee pot that we (legislators) want to fix this long term,” White said before the session began. “… For myself, I would say we are not going to just increase it (the amount of government money put into the plan) 5%, 10% and hope it gets better.”
While Hosemann and many legislative leaders appear to be locked in on PERS, the problems have not been addressed by Gov. Tate Reeves. Reeves, in the first year of his final term as governor, did not mention PERS in his recently released budget proposal. At a time when legislative leaders and local government officials are grappling with how to fund PERS, Reeves instead touted his plan to eliminate the state income tax, which would, if passed, do away with one-third of the state’s current annual general fund revenue.
Fixing the pension program, many leaders believe, will take a significant infusion of funds. Some proposed solutions could place a significant strain on city and county governments, on school districts and state agencies that currently pay into the system unless the Legislature commits to appropriating an additional amount of money.
During a recent meeting with the Senate Finance Committee, Ray Higgins, the PERS executive director, did not provide a specific amount of money that he believes the Legislature needed to contribute to the program. Hosemann has spoken of the program possibly needing an additional $360 million annually.
“When it comes down to the long-term sustainability of PERS, we should either fund it, change it, or eventually we may risk it,” Higgins wrote in a letter to lawmakers. “Revenue must increase, expenses and liabilities should decrease, or both.”
The retirement system’s revenue to pay pension benefits is generated in the following ways:
- From employees contributing 9% of their salaries to PERS.
- From employers or governmental entities contributing a sum equal to 17.4% of an employee’s paycheck to the program.
- From investment income. Investment income is key since the employee/employer contributions are not enough to cover the monthly costs.
The average annual retirement income for retirees is about $26,900.
Multiple factors are contributing to the financial uncertainty in the system, including:
- Recessions through the years that have impacted the investment earnings.
- A shrinking governmental workforce and additional retirees.
- Legislature-approved added benefits through the years, dating back to the 1990s — some of which were provided, some argue, without a revenue stream to pay for them.
Perhaps the most confusing and controversial change that placed stress on the system was the action by the 10-member board that governs PERS to change what is known as the assumed rate of return. Based on recommendations from actuaries, the board recently dropped the assumed rate of return from 7.5% to 7%, meaning that PERS’ investments will earn 7% instead of 7.5% annually. The change was made to paint what PERS officials said is a more accurate picture of the system’s financial outlook. But the lower assumed rate of return means the expectation is that the investment earnings will generate less money, thus causing more debt.
Sen. Daniel Sparks, R-Belmont, pointed out that at one point not too long ago the assumed rate of return was 8%. He said, optimistically, that each year the investment earnings exceed the assumed rate of returns means the system’s debt is decreased.
Still, the PERS board believes that strong investment earnings will not be enough to totally resolve the financial woes facing the system. The board plans to phase in a 5% increase in the employer contribution rate over a three-year period. There has been talk of phasing in a 10% increase in the employer contribution rate. The first 2% increase that will be enacted on July 1 will cost the state $60 million, not counting the cost for local and county governments. Under current law, the board has the authority to act on its own to increase the employer contribution rate, though the Legislature could change the law.
City and county officials have told legislators they cannot afford the increase.
Senate Appropriations Chair Briggs Hopson, R-Vicksburg, said he already is hearing from state agency directors about the issue.
“I guarantee they are coming to me saying whatever you do, give us enough money to pay for the PERS increase,” Hopson said. “ … Either we provide the money or they have to absorb it,” meaning they cannot provide raises or enact other programs that cost money.
Hosemann said such increases in the employer contribution would be “catastrophic” for the system since local governments would start hiring contract workers instead of full-time government employees who would be eligible for PERS pensions. That, Hosemann said, would further reduce the number of employees paying into the system.
Sen. Hob Bryan, D-Amory, pointed out that each time the Legislature privatizes a governmental function it reduces the number of state employees paying into the system.
Bryan also pointed out that years ago, a separate public retirement system for Mississippi Highway Patrol troopers faced financial difficulties. Bryan said in that instance, the Legislature passed a law to place a fee on traffic citations with the revenue earned from the fee directed to the retirement system.
Whether there is the legislative will to create a similar source of revenue dedicated to the much larger PERS system remains to be seen.
In the meantime, the Legislature is expected to act on a proposal by the PERS board to change the benefits for new governmental hires. The proposal includes eliminating the guaranteed 3% annual cost of living increase for new employees. Instead, under the proposal, new employees would get a cost of living increase when revenue is available and tied to the annual inflation rate instead of the automatic 3% cost of living increase each year. The proposal would not make any changes to the guaranteed 3% annual cost of living increase for current employees and retirees.
Both Hosemann and Hopson said they do not believe it is legal to reduce the benefits for current employees and retirees.
“I don’t think you can do that,” Hosemann said. “I am not going to do it.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Trump nominates Baxter Kruger, Scott Leary for Mississippi U.S. attorney posts
President Donald Trump on Tuesday nominated Baxter Kruger to become Mississippi’s new U.S. attorney in the Southern District and Scott Leary to become U.S. attorney for the Northern District.
The two nominations will head to the U.S. Senate for consideration. If confirmed, the two will oversee federal criminal prosecutions and investigations in the state.
Kruger graduated from the Mississippi College School of Law in 2015 and was previously an assistant U.S. attorney for the Southern District. He is currently the director of the Mississippi Office of Homeland Security.
Sean Tindell, the Mississippi Department of Public Safety commissioner, oversees the state’s Homeland Security Office. He congratulated Kruger on social media and praised his leadership at the agency.
“Thank you for your outstanding leadership at the Mississippi Office of Homeland Security and for your dedicated service to our state,” Tindell wrote. “Your hard work and commitment have not gone unnoticed and this nomination is a testament to that!”
Leary graduated from the University of Mississippi School of Law, and he has been a federal prosecutor for most of his career.
He worked for the U.S. Attorney’s Office in the Western District of Tennessee in Memphis from 2002 to 2008. Afterward, he worked at the U.S. Attorney’s Office for the Northern District of Mississippi in Oxford, where he is currently employed.
Leary told Mississippi Today that he is honored to be nominated for the position, and he looks forward to the Senate confirmation process.
This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The post Trump nominates Baxter Kruger, Scott Leary for Mississippi U.S. attorney posts 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 straightforward news report on President Donald Trump’s nominations of Baxter Kruger and Scott Leary for U.S. attorney positions in Mississippi. It focuses on factual details about their backgrounds, qualifications, and official responses without employing loaded language or framing that favors a particular ideological perspective. The tone is neutral, with quotes and descriptions that serve to inform rather than persuade. While it reports on a political appointment by a Republican president, the coverage remains balanced and refrains from editorializing, thus adhering to neutral, factual reporting.
Mississippi Today
Jackson’s performing arts venue Thalia Mara Hall is now open
After more than 10 months closed due to mold, asbestos and issues with the air conditioning system, Thalia Mara Hall has officially reopened.
Outgoing Mayor Chokwe A. Lumumba announced the reopening of Thalia Mara Hall during his final press conference held Monday on the arts venue’s steps.
“Today marks what we view as a full circle moment, rejoicing in the iconic space where community has come together for decades in the city of Jackson,” Lumumba said. “Thalia Mara has always been more than a venue. It has been a gathering place for people in the city of Jackson. From its first class ballet performances to gospel concerts, Thalia Mara Hall has been the backdrop for our city’s rich cultural history.”
Thalia Mara Hall closed last August after mold was found in parts of the building. The issues compounded from there, with malfunctioning HVAC systems and asbestos remediation. On June 6, the Mississippi State Fire Marshal’s Office announced that Thalia Mara Hall had finally passed inspection.
“We’re not only excited to have overcome many of the challenges that led to it being shuttered for a period of time,” Lumumba said. “We are hopeful for the future of this auditorium, that it may be able to provide a more up-to-date experience for residents, inviting shows that people are able to see across the world, bringing them here to Jackson. So this is an investment in the future.”
In total, Emad Al-Turk, a city contracted engineer and owner of Al-Turk Planning, estimates that $5 million in city and state funds went into bringing Thalia Mara Hall up to code.
The venue still has work to be completed, including reinstalling the fire curtain. The beam in which the fire curtain will be anchored has asbestos in it, so it will have to be remediated. In addition, a second air-conditioning chiller needs to be installed to properly cool the building. Until it’s installed, which could take months, Thalia Mara Hall will be operating at a lower seating capacity of about 800.
“Primarily because of the heat,” Al-Turk said. “The air conditioning would not be sufficient to actually accommodate the 2,000 people at full capacity, but starting in the fall, that should not be a problem.”
Al-Turk said the calendar is open for the city to begin booking events, though none have been scheduled for July.
“We’re very proud,” he said. “This took a little bit longer than what we anticipated, but we had probably seven or eight different contractors we had to coordinate with and all of them did a superb job to get us where we are today.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The post Jackson’s performing arts venue Thalia Mara Hall is now open 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 straightforward report on the reopening of Thalia Mara Hall in Jackson, focusing on facts and statements from city officials without promoting any ideological viewpoint. The tone is neutral and positive, emphasizing the community and cultural significance of the venue while detailing the challenges overcome during renovations. The coverage centers on public investment and future prospects, without partisan framing or editorializing. While quotes from Mayor Lumumba and a city engineer highlight optimism and civic pride, the article maintains balanced, factual reporting rather than advancing a political agenda.
Mississippi Today
‘Hurdles waiting in the shadows’: Lumumba reflects on challenges and triumphs on final day as Jackson mayor
On his last day as mayor of Jackson, Chokwe Antar Lumumba recounted accomplishments, praised his executive team and said he has no plans to seek office again.
He spoke during a press conference outside of the city’s Thalia Mara Hall, which was recently cleared for reopening after nearly a year of remediation. The briefing, meant to give media members a peek inside the downtown theater, marked one of Lumumba’s final forays as mayor.
Longtime state Sen. John Horhn — who defeated Lumumba in the Democratic primary runoff — will be inaugurated as mayor Tuesday, but Lumumba won’t be present. Not for any contentious reason, the 42-year-old mayor noted, but because he returns to his private law practice Tuesday.
“I’ve got to work now, y’all,” Lumumba said. “I’ve got a job.”
Thalia Mara Hall’s presumptive comeback was a fitting end for Lumumba, who pledged to make Jackson the most radical city in America but instead spent much of his eight years in office parrying one emergency after another. The auditorium was built in 1968 and closed nearly 11 months ago after workers found mold caused by a faulty HVAC system – on top of broken elevators, fire safety concerns and vandalism.
“This job is a fast-pitched sport,” Lumumba said. “There’s an abundance of challenges that have to be addressed, and it seems like the moment that you’ve gotten over one hurdle, there’s another one that is waiting in the shadows.”
Outside the theater Monday, Lumumba reflected on the high points of his leadership instead of the many crises — some seemingly self-inflicted — he faced as mayor.
He presided over the city during the coronavirus pandemic and the rise in crime it brought, but also the one-two punch of the 2021 and 2022 water crises, exacerbated by the city’s mismanagement of its water plants, and the 18-day pause in trash pickup spurred by Lumumba’s contentious negotiations with the city council in 2023.
Then in 2024, Lumumba was indicted alongside other city and county officials in a sweeping federal corruption probe targeting the proposed development of a hotel across from the city’s convention center, a project that has remained stalled in a 20-year saga of failed bids and political consternation.
Slated for trial next year, Lumumba has repeatedly maintained his innocence.
The city’s youngest mayor also brought some victories to Jackson, particularly in his first year in office. In 2017, he ended a furlough of city employees and worked with then-Gov. Phil Bryant to avoid a state takeover of Jackson Public Schools. In 2019, the city successfully sued German engineering firm Siemens and its local contractors for $89 million over botched work installing the city’s water-sewer billing infrastructure.
“I think that that was a pivotal moment to say that this city is going to hold people responsible for the work that they do,” Lumumba said.
Lumumba had more time than any other mayor to usher in the 1% sales tax, which residents approved in 2014 to fund infrastructure improvements.
“We paved 144 streets,” he said. “There are residents that still are waiting on their roads to be repaved. And you don’t really feel it until it’s your street that gets repaved, but that is a significant undertaking.”
And under his administration, crime has fallen dramatically recently, with homicides cut by a third and shootings cut in half in the last year.
Lumumba was first elected in 2017 after defeating Tony Yarber, a business-friendly mayor who faced his own scandals as mayor. A criminal justice attorney, Lumumba said he never planned to seek office until the stunning death of his father, Chokwe Lumumba Sr., eight months into his first term as mayor in 2014.
“I can say without reservation, and unequivocally, we remember where we started. We are in a much better position than we started,” Lumumba said.
Lumumba said he has sat down with Horhn in recent months, answered questions “as extensively as I could,” and promised to remain reachable to the new mayor.
This article first appeared on Mississippi Today and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The post 'Hurdles waiting in the shadows': Lumumba reflects on challenges and triumphs on final day as Jackson mayor 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
The article reports on outgoing Jackson Mayor Chokwe Antar Lumumba’s reflections without overt editorializing but subtly frames his tenure within progressive contexts, emphasizing his self-described goal to make Jackson “the most radical city in America.” The piece highlights his accomplishments alongside challenges, including public crises and a federal indictment, maintaining a factual tone yet noting contentious moments like labor disputes and governance issues. While it avoids partisan rhetoric, the focus on social justice efforts, infrastructure investment, and crime reduction, as well as positive framing of Lumumba’s achievements, aligns with a center-left perspective that values progressive governance and accountability.
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