Use tax; revise provisions regarding use of funds distributed to municipalities/counties for infrastructure assistance.
Impact
The bill proposes that a total of three million dollars will be distributed equally among all municipalities, with the remaining funds allocated based on population and sales tax revenue from the previous fiscal year. This dual allocation method aims to ensure both equitable distribution and recognition of community needs. Furthermore, the legislation stipulates that municipalities must meet a designated expenditure level to receive full funding. These adjustments are expected to enhance local agency in managing their infrastructure needs, thereby promoting improved public services across the state.
Summary
House Bill 984 amends Section 27-67-35 of the Mississippi Code of 1972 to revise the allocation and usage of funds created to assist municipalities and counties with road and bridge improvements as well as water and sewer infrastructure enhancements. The bill establishes a special fund that will be separate from the General Fund, aiming to streamline the funding process for local infrastructure needs. Notably, it specifies that the funds can only be used for repair, maintenance, and reconstruction of roads, streets, bridges, and improvements to water and sewer infrastructure. Additionally, it prohibits the usage of these funds for employee compensation, administrative costs, or non-related public structures.
Contention
While the bill has garnered support due to its potential benefits for infrastructure development, it also raises concerns about the funding eligibility criteria which could limit access to smaller municipalities that may not have the resources to meet previous expenditure benchmarks. Critics might argue that tying fund allocation to past spending limits could disadvantage areas that require more immediate investment but are currently underfunded. This tension highlights ongoing debates around how best to balance equitable funding with support for infrastructure improvement without creating further disparities among local governments.