Gov. Tate Reeves and members of the Legislature are fighting over $1.25 billion Mississippi received from the federal government from the Coronavirus Aid Relief Economic Security (CARES) Act.
On Friday the Legislature moved the funds from one account to another in an effort to ensure it is being spent properly, according to State Sen. Angela Hill, R-Picayune. Senate Bill 2772 was passed Friday and gave the authority for the funds to be transferred.
At Reeves’ daily briefing on Friday, he stated, “Right now, the ground is shifting beneath us as we try to respond to get aid out to those who need it. The Legislature voted today to strip our ability to use CARES Act funds to fight this virus and the unemployment emergency it has created.”
Reeves is wanting to hire an outside private firm to oversee the distribution of the money; however, the legislators say they believe it is their duty, along with the State Treasury Department and State Auditor’s Office. In the Request for Qualifications that was posted on the Mississippi Portal website, a fee would be structured based on a percentage of Relief Funds for the private firm. If the winning firm charged 3%, the fee would still come to $37.5 million.
“That’s taxpayer’s money. That is a lot of money for one person to handle,” State Rep. Ken Morgan, R-Morgantown, said.
Hill, who represents Marion County, said, “I do not have anything bad to say about the governor, but I have more questions than I do answers about all of this.”
Speaker of the House Philip Gunn sent a rebuking letter to Reeves on Monday, calling Reeves out on what Reeves has been saying in daily briefings and on social media.
“Since the passage of Senate Bill 2772, you have made statements that are completely incorrect and/or misleading and you have attacked my House members and the legislative process,” Gunn states in his letter.
One of the issues includes the Mississippi Unemployment Commission and the delay in people receiving unemployment. Hill said there has been constant communication with the commission and the legislation is ready to move ahead to help, but the commission has not requested help. Hill said the big issue unemployment is facing is the system being bogged down by so many claims being filed and people trying to get through. The money is there, Hill said.
Reeves expressed concerns Sunday about the length of time it would take for the emergency dollars to be distributed if it went through the Legislature. Hill said all it takes is a phone call and the House and Senate can reconvene.
Reeves said small businesses are closing because the funding has not been distributed. Gunn said small businesses are struggling because they have no customers. Gunn said the focus needs to on allowing businesses to reopen.
Reeves has five days to veto SB 2772. The Legislature has already been called to assemble at 1 p.m. on Thursday in case there is a veto. The house can override the veto if it receives two-thirds of the votes, according to Morgan.
