The Pandemic Changed Mississippi’s Budget for the Better. But Will the Windfall Continue; EBR Schools Employee Accused in $100K COVID-19 Relief Fraud Scheme, and other C-Virus related stories

The pandemic changed Mississippi’s budget for the better. But will the windfall continue?

State revenue barely grew over the past fiscal year — by $18.4 million, or just 0.24% from the previous year.

In years past, such anemic growth would foretell an upcoming legislative session beginning in January that would feature profound gnashing of teeth because revenue would be tight and budget cuts would be necessary.

But despite that snail’s pace rate of growth during the past fiscal year, which ended June 30, the Legislature will begin the 2025 session flush with cash — surpluses exceeding $1 billion. Thus, the Legislature next year will not have to prepare a piecemeal budget approach to fund vital services during the upcoming session.

Remember, that is what happened in the late 2010s when legislators and then-Gov. Phil Bryant were forced to cut key services such as health care, mental health, higher education and law enforcement. Those tough times forced Mississippi Department of Transportation officials to beg for extra money to meet their needs.

But the COVID-19 pandemic turned many things on their heads, including the process the Mississippi Legislature utilizes to pass a budget to fund vital services like education, health care and law enforcement.

The surpluses the state is experiencing now — even as revenue slows — can be traced directly back to decisions legislative leaders made in 2020 in the throes of the COVID-19 pandemic. Some of those decisions were insightful and forward-looking. Others, in hindsight, were just downright lucky. After all, no one knew what to expect from the pandemic.

For much of 2020, COVID’s impact was enormous. Legislative leaders did not know what to expect in terms of economic growth and in terms of revenue collections. The financial experts who advised legislative leaders on how much revenue would be available to fund state government also, at their own admission, did not know. But the consensus was that revenue declines would be dramatic because of the pandemic.

Revenue did drop significantly in the final six months of the fiscal year in 2020, and Gov. Tate Reeves had to dip into reserves to avoid budget cuts.

But then things turned around — dramatically. --->READ MORE HERE

EBR Schools employee accused in $100K COVID-19 relief fraud scheme:

An East Baton Rouge Parish School System employee is accused of being connected to a COVID-19 fund relief scheme.

According to federal court documents, Kenyall Williams is accused of conspiring with an unknown individual to defraud the federal government.

From November 2022 through April 2023, the co-conspirator was accused of filing fake applications for federal tax credits through the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The unknown person filled out applications for fraudulent businesses before the pandemic.

Beginning around January 2023 through April 2023, it is believed that Williams conspired with the unknown individual and agreed to willingly commit mail fraud against the United States. Attorneys believe the co-conspirator would hire Williams to help with the scheme in exchange for a portion of the money. The individual would register businesses with the Secretary of State and identify Williams, along with others, as associates and officers for the business.

The co-conspirator would then open bank accounts that are connected to the businesses in Williams’ name. The individual is accused of filing false tax forms that would lead to a large tax credit and a refund from the Internal Revenue Service (IRS), according to the court documents.

The unknown individual reportedly had a $100,221.19 refund sent to an address located on College Drive in Williams’ name. In March 2023, the individual deposited the check into a business bank account in Williams’ name, giving her control of the account. Williams started making personal payments, according to court documents. --->READ MORE HERE

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