Lt. Gov. Phil Bryant believes Mississippi is positioned to bounce back faster than any state in the country once the recession loosens its grip. He explained why during a Tuesday stop in Columbus.
At the top of his list is the announcement of Houston-based KiOR signing on to build three synthetic crude oil production plants in Mississippi with the option to construct two more.
“If this works the way I believe it will, we”re going to be the envy of the world. Not just the Delta. Not just Rankin County. This is the most exciting opportunity and technology for this state I”ve seen in my lifetime,” Bryant said during an address to the Columbus Rotary Club at the Columbus Country Club.
The biofuels company has already committed to investing $500 million in Mississippi, creating 1,000 jobs in the process, and agreeing to find a buyer for its crude oil before asking for any further assistance from the state. KiOR officials have told Bryant they could make a profit selling a barrel of crude oil substitute for $17. The average price for a barrel of conventional crude is more than $70.
“I think someone is going to make a lot of money. You should see some direct results at the pump,” said Bryant.
Sharing his best-case-scenario, Bryant envisioned a day when trees from Mississippi would be converted to crude oil in Mississippi and refined at the Chevron refinery in Pascagoula before being sold at Mississippi gas stations. That dream may or may not come true, but either way, the process would begin in Columbus, where KiOR plans to construct its first plant at the Port of Columbus.
“People say, ”How in the world, after everything Columbus and the Golden Triangle has, and then you take KiOR over there?” Well, I didn”t do it,” said Bryant. “You see, they underestimate your efforts here. They believe that somehow you”re just lucky here. They don”t understand how hard work and innovation pay off. It seems as if the (Columbus-Lowndes Development) Link is always working together with the city and the county making sure they”re always on the forefront of economic opportunities.”
Bryant”s praise for Columbus and the Golden Triangle didn”t stop there. He touted the recent expansion at Severstal, the world-class helicopters produced at American Eurocopter, the military innovations at Stark Aerospace, the remainder of industries at the Golden Triangle Global Industrial Aerospace Park, Columbus Air Force Base and Mississippi University for Women.
The anticipated gubernatorial candidate also touted his own work with the Mississippi Legislature, as well as that of Gov. Haley Barbour”s administration. Bryant bragged about the performance-based budget bill he introduced which passed 51-1 in the Senate but never made it out of the House Appropriations Committee.
“I proposed last year the Smart Budget Act. It”s a budget based on outcome. We”ve got targeted goals for every state agency. If you don”t meet your goals, you”re not funded at the levels you”ve asked,” he explained. “Most of the nation uses it and we just haven”t got accustomed to it here in Mississippi.”
Bryant says budgeting for state agencies thus far has been determined by politics. He plans to resubmit the bill this year.
He praised Barbour for making difficult budget cuts last year after the Legislature overspent and for diverting more than $100 million in available funds this year to the state”s rainy day fund.
“In 2012, it looks as though we might have a $400 million deficit again. We have to understand we have not met (revenue) projections but three out of the last 25 months. The rest of the time we were being too optimistic,” said Bryant.
Compounding the budget problem is the possible addition of 300,000 people to Medicaid in Mississippi.
“The Obama (health care) package pushes the ability to be on Medicaid to 133 percent of the poverty level. That”s about $30,000 a year. The average household income in Mississippi is only about $30,000 a year,” said Bryant. “We”re $90 million in the hole in an average year on Medicaid. Next year that could go to $200 million.”
Jason Browne was previously a reporter for The Dispatch.
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