Back in the day when casinos were coming to the Mississippi Coast I wrote a piece about the Law of Diminishing Returns to argue against an unlimited amount of casinos….it seems that they were building casinos to have something to do……..
Law of Diminishing Returns simply put is if there is a finite amount of casino revenue, say $10 million, then the more casinos there are the more diluted the revenue will be…..now with the slowdown of the economy the casinos have suffered the same fate……when the bill passed the state legislature the deal was that the tax revenue would be used to sure up the sagging education system……well we stilkl have one of the worse systems around and the funds found there way into the “general fund”…….
But could the casino become a burden on the state? Under normal conditions they should not……but there is nothing usual about the Mississippi gaming system……what could be a possible result of a casino failure?
Well, let’s look at Delaware, shall we………
Lawmakers appear ready to support Gov. Jack Markell’s plan to use $8 million from higher-than-expected state tax collections to bail out the state’s casino industry. But it’s not clear if the state aid will forestall layoffs threatened by casinos that have seen revenues plummet from intense regional competition.Sen. Robert Venables, who chairs the General Assembly’s join Bond Bill committee, said Tuesday $8 million is “better than nothing” for the industry, which has pleaded with lawmakers and the governor in recent weeks for help to reduce its tax burden.
If the proposal makes it into the final draft of the Bond Bill, tied in with hundreds of millions in school and infrastructure spending, it’s likely to pass the General Assembly without debate.
Now how is that? An industry that makes obscene profits could get a government bailout…….could this be the future of the failing casinos of the Gulf Coast?
During the regular legislative session, lawmakers did not reauthorize Medicaid funding. Thus, on July 1, Mississippi’s Medicaid program will no longer be funded. This will not only affect individuals covered by Medicaid, but all who are employed in jobs that are funded in full or in part by Medicaid dollars. The defunding of Medicaid will result in thousands of layoffs and firings in the health care field.
That’s why I started a petition to Governor Phil Bryant, which says:
As July 1, 2013 ticks ever closer, we understand the tremendous impact not funding Medicaid will have on our state. Not only will thousands of children, pregnant women, and the disabled not have the health care they desperately need, but money for sliding fee scale clinics, STD testing, pregnancy prevention, and mental health services will be cut off from the community. This lack of funding will lead to massive layoffs and firings within the Mississippi health care and social services sector.
The health and well-being of Mississippi is not a partisan issue. Call the special session immediately!
Time to step up and help the people of Mississippi….we have had enough vague promises and political games……time to get serious about the state’s residents……
I got this email recently from the Progressive States Network and thought I would pass it along to the readers….some of the ideas are pretty good and innovative and some are just dumb….
Job Creation Opportunities During a Recession
Kauffman Foundation – The Economic Future Just Happened
Information Technology and Innovation Foundation – 2008 State New Economy Index
Kauffman Foundation – Better, Faster, Cheaper: The New Bootstrap Job Creator”
State Venture Capital Funds
National Governors Association – State Strategies to Promote Angel Investment for Economic Growth
NASVF – U.S. State-Supported Venture Capital Funds
Encourage Technology Transfer and Commercialization
Pennsylvania Economy League – A Continuing Record of Achievement: The Economic Impact of Ben Franklin Technology Partners 2002-2006
U.S. Department of Commerce, Economic Development Administration – Construction Grants Program Impact Assessment Report
Information Technology and Innovation Foundation – 2008 State New Economy Index
Batelle and the Association of University Research Parks – Characteristics and Trends in North American Research Parks
Strengthen Industry Partnerships & Clusters
Keystone Research Center – Pennsylvania’s Industry Partnership Strategy
Steel Valley Authority (SVA) – Early Warning and Layoff Aversio
Seattle Foundation and SkillUp Washington – Creating Stronger Workforce Partnerships In Manufacturing
National Fund for Workforce Solutions – The Principles of the National Fund for Workforce Solutions and Their Implications for Public Policy
National Governors Association – Cluster-Based Strategies for Growing State Economies
State government needs all the help it can get….but unfortunately politics is NOT always the best for the state…just the individuals that play the game……
There are times when the state legislature does something that is a blatant disregard of the people it represents and SB2288 is such bill….which states:
AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF A COUNTY AND/OR THE GOVERNING AUTHORITIES OF A MUNICIPALITY TO GRANT A PARTIAL AD VALOREM TAX EXEMPTION FOR AGRICULTURAL PROPERTY THAT IS BEING CONVERTED TO A RESIDENTIAL USE IN AN AMOUNT EQUAL TO THE DIFFERENCE IN THE ASSESSED VALUE OF THE PROPERTY FOR AGRICULTURAL USE AND THE ASSESSED VALUE OF THE PROPERTY FOR RESIDENTIAL USE; TO PROVIDE THAT THE EXEMPTION SHALL END WHEN THE PROPERTY IS OCCUPIED BY A HOMEOWNER; TO PROVIDE THE MANNER IN WHICH A REQUEST FOR SUCH EXEMPTION MUST BE MADE; AND FOR RELATED PURPOSES.
This appears to be a boon for the purpose of land speculation….
A case could be made that land speculation is the cause of almost every major recession/depression that has occurred whether nationwide or statewide…..The 19th century economist Henry George describes it:
That land speculation is the true cause of industrial depression is, in the United States, clearly evident. In each period of industrial activity land values have steadily risen, culminating in speculation which carried them up in great jumps. This has been invariably followed by a partial cessation of production, and its correlative, a cessation of effective demand (dull trade), generally accompanied by a commercial crash; and then has succeeded a period of comparative stagnation, during which the equilibrium has been again slowly established, and the same round been run again. This relation is observable throughout the civilized world. Periods of industrial activity always culminate in a speculative advance of land values, followed by symptoms of checked production, generally shown at first by cessation of demand from the newer countries, where the advance in land values has been greatest.
This bill is just another attempt to help the land speculators while depriving the state of much needed tax revenue…in these days any reduction in revenue can only lead to a cut in needed services….
Once again, the state legislation is dealing the people of the state a bad hand, just as they do every session…the people need to stop sleeping through the day and wake up politically…they are paying these people to do nothing but screw them at every session….
Recently at an economic forum some interesting points were made:
The governor also talked about the state’s graduation rates and the need for more work-force training. High school graduation rates, Barbour said, might improve if students were directed to career paths early in high school.More education, generally, translates into people with better paying jobs with more disposable income that would translate into increased tax collections.
You would think that if that was the attitude that the governor and the legislature would be gung-ho on educational bills, right?
I will bet that you are about to read me the riot act over the title, right?
I am referring to a bill before the state legislature, HB 148—which states:
AN ACT TO CREATE THE “MISSISSIPPI COMPREHENSIVE COMMUNITIES OF COLOR TEEN PREGNANCY PREVENTION ACT OF 2010”; TO REQUIRE THE DEPARTMENT OF HUMAN SERVICES AND THE DEPARTMENT OF HEALTH TO DEVELOP CERTAIN PROGRAMS AND STRATEGIES PROMOTING PREGNANCY PREVENTION AND PROVIDING INFORMATION ON THE CONSEQUENCES OF UNPROTECTED, UNINFORMED AND UNDERAGE SEXUAL ACTIVITY; TO AMEND SECTION 41-79-5, MISSISSIPPI CODE OF 1972, IN CONFORMITY WITH THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
Don’t you just love these guys and gals?
It seems that the state is worried about teen pregnancies in the “Communities of Color”….not this is a total racist thing…they seem to be implying that only teens of color are getting pregnant….why do we not go visit a trailer park and count for ourselves…..
You know a lot of this BS could be solved by actually teaching sex ed in the classroom….but that collapses every session and every session they try it again…it has turned into this perverted little game…..
But to put the term, “communities of color” is just plain and outright moronic….if this is truly non-racial then I suggest a better title for this Act…..