Mississippi Lt. Gov. Tate Reeves answered questions from Columbus Rotarians Tuesday at Lion Hills Center.
He said the state’s economy hasn’t been growing as fast as some people have wanted, partially because of what he called “the Obama economy.”
“The fact of the matter is, coming out of the 2008-09 recession, the economic recovery that the country is experiencing today is the slowest economic recovery in the history of our country,” he said. “We all know that. We’re growing at a very, very slow rate nationally. … Mississippi’s economy is not immune from the national economy, so that lack of growth is certainly hurting us.”
He added that from 2012-14, Mississippi saw revenue growths of more than 5 percent, whereas in the last 50 years, the state’s growth rate has been between 2 or 3 percent, annually. Since 2014, the state has reverted back to that average.
While Reeves is hopeful state revenue will increase this fiscal year, he said he thinks it certainly will in 2018 and 2019.
Reeves also talked about how since taking office in 2011, he has worked to encourage businesses to invest in Mississippi by getting rid of the corporate franchise tax, which taxes businesses $2.50 for every $1,000 the business makes in capital. The elimination of the tax will be implemented over 10 years starting in 2018.
“If we want more of something in Mississippi, we need to tax it less,” Reeves said.
Reeves also said the state needs to increase funding for infrastructure – not just roads and bridges, he said, but water and sewer systems, as well.
The problem, he said, is that many people don’t realize the infrastructure in their area is in bad shape.
“Everyone in the state thinks their water and sewer system is hunky dory until when?” he said. “Until it’s not. And when it’s not, it causes real problems.”
Lastly, he fielded a question concerning bright spots in the state’s education system. According to Reeves, while the national graduation rate has remained flat over the past five years, Mississippi’s high school graduation rates have risen from 70.5 percent to 80.5 percent, nearly reaching the national average of 82 percent.
“That’s not good enough,” he said. “That’s not where we want it to be. … But a move of that magnitude over a five-year period is dramatic.”
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