Lawmakers Work On Home Grants, Tide Leases

JACKSON, Miss. -- Mississippi lawmakers are still haggling over two significant money issues that could shape the Gulf Coast's recovery from Hurricane Katrina.

One involves casinos' leases of public tidelands.

The other is a proposed grant program to help people whose homes were damaged or destroyed by Katrina's storm surge or flooding.

A north Mississippi lawmaker is using an onshore casino bill as leverage to resolve the tidelands issue.

The bill to let coast casinos move 800 feet onshore passed the House and Senate.

The state Senate passed the bill 29-21 on Monday.

The vote came after two hours of debate in which coast senators pleaded for a way to help their communities recover.

Before Katrina, the coastal gambling houses employed about 14,000 people and generated about $500,000 a day in state and local taxes.

"Well, the moral issue is, they should come down there and see the people whose houses are tents. That's the moral issue on this thing," said Sen. Tommy Gollot, D-Harrison.

But gaming opponents said the bill was a step in the wrong direction.

"They have 800 feet this year, but what about next year? What will they ask for next year?" said Sen. Hillman Frazier, D-Jackson.

The House approved the measure last week.

Gov. Haley Barbour said he expects to sign it this week.

But, Senate Appropriations Chairman Jack Gordon is holding the onshore gaming bill for reconsideration -- a move that could either allow more debate or simply stall the bill in getting to the governor.

Gordon said he's stalling because he believes lawmakers need to resolve questions about whether casinos will still pay tidelands leases if they're on dry land.

The state collects about $7.5 million a year for the leases, and the money goes to public projects in the three coastal counties.

The House and Senate are trying to compromise on a program to give people $25,000 to rebuild homes destroyed by Hurricane Katrina's storm surge or flooding.

The House has passed a bill that would put $100 million into a home grant program.

The Senate increased that to $500 million.

Some legislators worry that creating a state program might make some homeowners lose federal rebuilding money.