The Capitol Complex Improvement District (CCID) will receive $3 million in funding this year, but the state will be able to more than double that in spending, thanks to a vote earlier this year by the Mississippi Legislature.
During the 2018 session, lawmakers gave the Mississippi Department of Finance and Administration the ability to issue up to $7 million in short-term debt for CCID projects.
DFA Executive Director Laura Jackson discussed the agency’s borrowing capabilities at the first CCID advisory board meeting. “When you start to look at the flow of funds, we realized if we were going to get $300,000 a month for the next 11 months, it was going to take until this side of forever to have enough money accumulated to do anything,” she said.
The $7 million would basically be used as seed money to start work and be paid off with portions of the CCID for a period of no longer than five years. Before any loans could be issued, they would have to be signed off on by the state bond commission.
The CCID was established by lawmakers in 2017 to help the city of Jackson offset costs for providing municipal services, such as fire and police protection, to state-owned facilities. State-owned facilities do not pay property tax, funds the city uses to help pay for those services.
Revenues for the district will come from sales tax dollars generated within the city limits.
Projections from the Mississippi Department of Revenue show that the district will receive around $3 million in fiscal year 2019, $6 million in fiscal year 2020, and around $9.2 million a year beginning in 2021.
Funds will be diverted to the DFA and placed in a special account to use specifically on public improvement projects in the CCID. Rather than receiving a lump sum at the start of the year, the agency will receive a portion of the approved funds each month, based on that month’s sales tax collections, Jackson said.