[bequanna]

> The article i link says they’re getting ~10B from the feds so they’d need a ~15% tax rate on their 3M people earning avg of 25K to pay for that. Thank god for them 25K income is so low that they only pay federal tax rate of ~12%.

Huh? That isn't how that works at all. Cities issue bonds to raise the cash to pay for large projects. Those bonds are paid down over time or not at all if they just pay interest w/ no principle. A 10B project for a metro this size is a pretty manageable expense.

In this case, it seems like the local politicians simply didn't know how to do that or want to as raising taxes might make it difficult to get reelected.

The solution they seem to have arrived at is: Wait until things get so bad that there is a humanitarian crisis and the Feds have to bail us out. Which they will, because we don't want people to suffer without clean water.

So now the rest of us are made suckers as federal taxpayers are on the hook for this mismanagement/scam.

[vineyardmike]

Every year, Mississippi the state takes money from the federal government. Money that they don’t earn through taxes levied. Every state of course does this, but Mississippi is pretty bad on a per person level and on a percent of total budget level. To cover existing budget shortfall they’d need to tax an extra 15% of income for the average resident (6k per person). For comparison California would need an extra $12 per person which is like 0.03% to cover their differences. That should set the scene for how cash strapped the state is.

Considering how dependent the state is on funding, it’s not crazy to imagine that the local municipalities would also be similarly dependent.

Jackson surely knows how to raise bonds. In Dec2021 their water and sewer bond rating was put in the “B” range (Baa) for their existing 200M in debt for the water system.

Mississippi likely just has no more money from their existing population available. And has likely started to run out of availability debt accessible.

Ps: The “rest of us” surely are suckers paying for it, but it looks like we always were. I’m in California and I’d raise my own taxes by $12 just be able to brag to red states that California takes less in “government handouts” than them. But it doesn’t matter. We’re all in one big national union working together to help each other. It doesn’t matter who is paying and who is getting re-elected - those residents need water. And fwiw, it’s not like the fed balances the budget. That’s just “free money” anyways.