State Sen. Walter Michel told members of the Rotary Club of North Jackson on April 14 that the recently concluded legislative session was defined by major debates over school choice, teacher pay, infrastructure funding, and rising Medicaid costs.
Speaking just days after adjournment, Michel said lawmakers made progress in several areas but left some of the most contentious issues unresolved.
“We just finished the session about eight days ago,” Michel said. “I say ‘finished,’ but there are still a couple of major topics that are unresolved and may come back.”
Tax Policy and Infrastructure
Michel said Mississippi continues to pursue long-term tax reform aimed at making the state more competitive in the South, including efforts to reduce or eventually eliminate the state income tax.
Lawmakers also approved a phased increase in the gasoline tax—three cents per year over three years—set to begin in July. The increase is expected to generate roughly $200 million annually for road and bridge maintenance.
“Because of fluctuations in fuel prices, most people probably won’t notice it much,” Michel said. “But it will generate revenue that will definitely come in handy for our highway program.”
School Choice Debate Remains Divisive
School choice emerged as one of the most hotly debated issues of the session, with lawmakers considering multiple approaches, including private school vouchers and expanded transfer options between school districts.
Michel outlined three primary models: vouchers for private schools, transfers between districts, and transfers within the same district.
The most controversial proposal in the Senate would have allowed students to transfer across district lines—a measure Michel opposed.
“I find it hard to justify,” he said, noting that families in districts like Madison County pay a premium for access to high-performing schools. “That was an easy vote for me.”
Meanwhile, the House passed a broader school choice bill that would have allowed public funds to be used for private education, but only by a narrow margin.
“That tells you how divided the House is,” Michel said. “It was essentially a one-vote difference.”
He said the issue is likely to return in future sessions, though legislative leadership may take a more cautious approach.
Teacher Pay vs. Medicaid Pressures
Teacher pay increases were also a central issue, but Michel said budget constraints—particularly rising Medicaid costs—limited what lawmakers could accomplish.
A proposed $2,000 teacher pay raise would have cost approximately $130 million annually. At the same time, the state faced roughly $200 million in new Medicaid obligations due to the expiration of federal pandemic-era funding and cost shifts from Washington.
“To put that in perspective, $200 million is roughly equivalent to a $4,000 teacher pay raise,” Michel said. “So you can see the trade-offs.”
Over the past seven years, Mississippi has increased teacher salaries by about $8,000, with starting pay now near $50,000, he said.
Jackson Water System and Local Projects
Michel also highlighted legislation addressing the long-troubled Jackson water system. The bill, introduced by former Sen. John Horhn, establishes a new regional water authority to manage operations once federal oversight ends.
The authority would have the power to lease the system and issue revenue bonds, while the City of Jackson would retain ownership.
However, Michel noted that federal approval will be required before any transition occurs.
Transportation Improvements in Madison Area
Closer to home, Michel pointed to infrastructure improvements along the Interstate 55 corridor in Madison County, including plans to add entrance and exit ramps at the Reunion Parkway interchange.
The legislation also includes funding for Highway 25 improvements in Rankin County.
“These are projects that have been planned for years,” Michel said, crediting a state capacity improvement fund designed to prioritize infrastructure needs based on engineering analysis rather than politics.
Looking Ahead
Michel said several major issues remain unresolved and will likely return in future sessions, including school choice, Medicaid funding, and additional teacher pay increases.
“We made progress in some areas,” he said, “but there are still significant challenges ahead.”
Below is the full transcript of Sen. Walter Michel's talk.
Senator Walter Michel
Rotary Club of North Jackson
April 14, 2026
We’ve killed the same ghost—Rob Williams was here yesterday talking about some of the same things.
I’ll start this way. I always like to begin with a question when I speak to Rotary groups. First person who can tell me the year Rotary was founded in Mississippi… we’ll come back to that.
I’m proud to be here. I’m from a family that has been in this area a long time. I’m a third-generation Mississippian here. My grandfather moved here in 1927. My dad came back after World War II. I remember growing up—we used to meet at the Coliseum and go to events there. Things were a little different back then, but this area has always meant a great deal to me.
Thank you all very much for having me.
We just finished the legislative session about eight days ago. I say “finished,” but there are still a couple of major topics that are unresolved and may come back.
Last year, the focus was tax cuts. We positioned the state to become more competitive from a tax standpoint, with the goal of eventually eliminating the income tax over time. We also reduced the tax on groceries, but as we’ve found, most Southern states already have a much lower grocery tax than we do.
We also addressed gasoline taxes. We approved an increase of three cents per year for three years, beginning in July. Because of fluctuations in fuel prices, most people probably won’t notice it much at the pump, but it will generate revenue.
When fully implemented, that will produce about $200 million annually for our state highway maintenance program, which will definitely come in handy.
This year, we jumped right into two major topics: school choice legislation and teacher pay.
Let me start with school choice.
I like to take a poll when I speak to groups like this because it’s a very interesting issue. There are really three forms of school choice—three ways to look at it.
The most aggressive form would be a voucher system, where a parent receives a voucher from the state and can use it to send their child to a private school.
The state tells us it costs about $6,600 to $6,900 in state funds to educate each child in public school. Of course, local taxes make up the difference. But the state portion is around $6,900 per student per year.
So the question becomes: should that money follow the child?
Now, the interesting thing is that in many parts of Mississippi, $6,000 to $7,000 would cover tuition at smaller private schools. But in the Metro Jackson area, that’s not the case.
For example, Jackson Academy is around $18,000 per year. Madison-Ridgeland Academy is between $16,000 and $18,000. Madison St. Joseph is similar. Jackson Prep is one of the most expensive, and St. Andrew’s is around $22,000 per year. So a $6,900 voucher wouldn’t go very far in this area.
The second form of school choice would be district-to-district transfers.
That would allow a student in Jackson Public Schools, for example, to transfer to Madison County Schools or Pearl. My district in Madison County is kind of like the middle of a donut. Around it, I have multiple school districts—Canton to the north, Jackson to the south and east, and others nearby.
So I have to look at this kind of legislation differently. When I vote on something like a gas tax or insurance issue, it affects everyone fairly evenly. But school districts are very different.
Madison County schools are some of the best in the South. If we allowed district-to-district transfers, we would likely see a significant influx of students into those districts.
The third form of school choice would allow transfers within the same school district.
For example, if you live in Jackson, you might want to attend a different school within that district. Or in Madison County, a student might want to go to Germantown instead of Madison Central. That’s a simpler scenario because it involves the same school board and tax base.
So I like to take a vote on these.
First, would you support giving a $6,900 voucher to a parent to use at a private school? They would have to pay the difference in tuition.
Second, would you support district-to-district transfers? Keep in mind, the parent would be responsible for transportation and any cost differences.
Third, would you support transfers within the same district?
Interestingly, the option that usually gets the least support is the one that was in the Senate bill—the district-to-district transfer.
That was the bill we had in the Senate, and I voted against it. I find it hard to justify a situation where someone buys a home in Madison—where housing costs are among the highest in the state—lives five to ten minutes from a top-rated school, has bus service, and then is expected to accept students coming from other districts where parents would have to drive long distances and pay additional costs.
That was an easy vote for me.
The House had a much more aggressive bill that would have allowed public school money to go to private schools. That bill passed by essentially one vote. One person changed their vote, or it would have failed.
That tells you how divided the House is—122 members, almost split down the middle.
I wouldn’t be surprised to see that issue come back next year, although I also wouldn’t be surprised if leadership decides to step back from it for a while.
Next was teacher pay.
We started with a proposal for a $2,000 pay increase. But you have to look at the overall budget impact. For every $1,000 increase in teacher pay, it costs about $52 million statewide.
The Senate bill didn’t just include K–12 teachers. We’ve done a good job increasing their pay over the last six or seven years. But university professors, community college instructors, and teacher assistants have not received the same level of increases.
So the Senate bill included all of those groups. That brings the cost to about $65 million per $1,000 increase.
A $2,000 increase would cost about $130 million annually.
At the same time, we were dealing with Medicaid.
Two things drove up costs. First, ARPA funds that had been supporting the system expired. Second, federal legislation shifted more Medicaid costs to the states.
The result was about $200 million in additional Medicaid expenses for Mississippi.
To put that in perspective, $200 million is roughly equivalent to a $4,000 teacher pay raise statewide. So you can see the trade-offs.
Over the past seven years, teachers have received about $8,000 in total pay increases. Many districts also provide local supplements. Starting salaries for teachers are now around $50,000, which is a significant improvement from just a few years ago when it was closer to $35,000.
We also passed legislation affecting the Jackson water system.
Former Senator John Horhn introduced a bill to prepare for the time when the federal government steps back from overseeing the system.
The bill creates a Water Authority Board with nine members. It allows the city to lease the system, issue revenue bonds, and manage operations while the City of Jackson retains ownership of the assets.
However, at this point, Judge Wingate and the federal government are still heavily involved, so any changes will require federal approval.
We also worked on infrastructure projects, particularly along Interstate 55.
I represent the Madison County area, including the I-55 corridor between Madison and Gluckstadt. We passed legislation to add entrance and exit ramps at the Reunion Parkway interchange, which currently lacks access points.
This will help alleviate traffic congestion.
The bill also included funding for Highway 25 in Rankin County.
Several years ago, we created a capacity improvement fund within the Mississippi Department of Transportation. The goal was to take politics out of the process and let engineers determine where the greatest needs are.
MDOT identifies projects years in advance, acquires right-of-way, and plans utility relocations. That way, when funding becomes available, projects are ready to go.
This program has worked well. We’ve already funded projects in DeSoto County and Lafayette County. Madison County is next in line.
The Senate passed the funding bill unanimously. There is strong incentive to move forward because other regions are waiting their turn.
So those are some of the major issues from the session.
We made progress in some areas, but there are still significant challenges ahead, including school choice, teacher pay, Medicaid, and infrastructure.
I appreciate the opportunity to speak with you today, and I’d be happy to take any questions.
This story was created with the assistance of ChatGPT.
