After Gov. Tate Reeves vetoed a disaster relief program and alleged an unconstitutional route was taken to lower the interest rate levied on local governments impacted by Winter Storm Fern, lawmakers moved Wednesday to reconcile the matter and still provide low-interest loans.
Conferees from the House and Senate stripped a different bill, House Bill 1646, and agreed on a short-term loan program for storm-struck cities and counties with no interest upfront but a 3% annual interest rate after reimbursement has been received from the Federal Emergency Management Agency. The Mississippi Emergency Management Agency would administer the program and provide loans to local governments that apply for them.
“Loans issued under this act shall be at a zero percent (0%) interest rate until all Federal Emergency Management reimbursements have been processed and applied to the loan balance. After such time, a three percent (3%) per annum fixed interest rate shall be charged to cover the administrative costs to service the loan,” a portion of the conference report reads.
The conference report will still need approval from both the House and Senate floors before it can be sent to Reeves for signature.
Whether Reeves will sign it or not is unclear. The second-term governor gave rise to a firestorm of finger-pointing amongst Republican officials when he shot down a version of the program late Monday. Reeves vetoed Senate Bill 2632, which would have created the program with a 1% annual interest rate, countering that he was of the belief it would be a 1% monthly rate – effectively a 12% annual rate.
In his veto message, Reeves said the bill that reached his desk was “materially different” from what lawmakers originally agreed upon and alleged that someone altered the final language after legislative approval in a “possibly criminal” move.
Republican leaders at the capitol, such as Lt. Gov. Delbert Hosemann, quickly fired back and accused Reeves of misrepresenting the process and unfairly targeting lawmakers and legislative staffers. The original text of the bill inadvertently included a 1% monthly interest rate, Hosemann said, with Republican Sen. Tyler McCaughn offering an amendment that was approved on March 13 to remove the term “monthly” and take it to a 1% annual rate.
“The Governor’s veto message is inaccurate,” a portion of a statement from Hosemann read. “… Attacking and accusing a Senate staffer of committing a criminal act in a veto message is malicious, unnecessary, and false.”
Lawmakers could have chosen to override the veto with a two-thirds majority, which would have been feasible based on previous unanimous approvals of the legislation. However, Wednesday’s move signals that an override was not the top pick amongst leaders from both chambers.
Reeves’ office did not immediately respond to a request for comment.