Mississippi State Senator Chad McMahan called for funding to support small municipality grants, describing the program as a valuable tool for economic development in towns with populations under 5,000.
The state Senate approved more than $204.5 million for the Mississippi Development Authority on Thursday, which is $109.9 million less than the amount recommended by the Legislative Budget Office. Lawmakers cited plans to establish a new Department of Tourism and the redirection of funds to that agency as reasons for the reduced appropriation.
McMahan questioned why the $10 million allocated for small municipal grants had not been funded in the past three years. He emphasized the importance of the grants for nearly 300 cities across the state and expressed willingness to consider using emergency funds if necessary.
Appropriations Chairman State Senator Briggs Hopson said a bill addressing small municipality grants had passed the Senate earlier this session but had not yet been considered by the House. He noted that the current bill includes $18 million for site development, which is categorized as capital expenditure funding, not general funds. Funding for the grants would require lawmakers to identify additional revenue sources.
Hopson also expressed concerns about setting a precedent for larger cities to seek similar grants, warning that a new revenue source would need to be identified. Senators discussed performance goals for the program, but none were included in the current bill. The measure now advances to the House for further consideration, with final approval likely in conference.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
