050518 Mississippi Governor Signs Bill to Pay Off Beef Plant

Gov. Haley Barbour signed a bill that pays off the State's debt for the now-defunct Mississippi Beef Processors plant.

He stated, "Today I am signing legislation to pay the cost of a bad attempt at economic development. Mississippi Beef Processors, a creation of a legislative process led by the current House leadership, is costing the taxpayers $40 million.

"The last administration got snookered on Mississippi Beef Processors, and the Legislature ended up buying a pig in a poke. We're not going to have that kind of good ole boy logrolling any more. We're not going to trade beef for pork," Barbour added.

Treasurer Tate Reeves stated that his office will wire nearly $35 million to creditors on Friday to bring the infamous Beef Plant debacle to a close. "I have been hopeful since February that the Legislature would do the right thing regarding the Beef Plant," he said. "With the Governor's leadership in the special session, that became a reality. The Legislature should be commended for owning up to the mistake and acting in the most financially prudent manner to correct it."

Reeves added that he began making preparations some time ago in anticipation of Thursday's approval of the bill by the Governor. Reeves and his staff began meeting with the Mississippi Development Authority, Community Bank, various other lenders, and legal counsel nearly three months ago.

"When the Governor signed the bill today, we were ready to roll," Reeves said. "When you are making transfers of this nature, with tens of millions of dollars on the line, you have to get your ducks in a row. You cannot allow the red tape of state government to become a costly hindrance."

Reeves said that the approximately $5,300 per day interest payments on the Beef Plant loan guaranty will no longer accumulate. "The Beef Plant fiasco is over," he stated. "Taxpayers of Mississippi will not pay another cent of interest on the Beef Plant facility. The bleeding has stopped."

Reeves concluded, "I am looking forward to moving on from this financial disaster. We have a lot of very positive financial numbers out there and I am eager to help build on this economic momentum. We will rise from the ashes of the Beef Plant."

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