Hattiesburg American from Hattiesburg, Mississippi • 3

Mm nil Local news editor: Erin Kosnac, (601) 584-3070 ejkosnacHattiesburgAmerican.com FRIDAY, January 11, 2008 www.hattiesburgamerican.com 3A Economists give good, bad news AROUND THE PINE BELT Click it To read staff writer Valerie Wells' live blog, go to www.hattiesburg american.com. economists noted things aren't all that great in the Magnolia State. Housing will continue to be in short supply, especially along the Gulf Coast. Ed Ranck, associate director of Bureau of Business and Economic Research, said the need for sites at a higher elevation and for insurance will continue to keep the supply low. "Movement of retail businesses along the Coast has gone to higher ground," Ranck said.

D'lberville, Ocean Springs and Gautier will see more growth, especially along U.S. 90. It's harder to rebuild as the cost of construction and labor have gone up along with more detailed and sometimes more expensive building codes adopted by many local governments. For a moderate-income family building a modest home, a mortgage note has gone up by $700 a month, Ranck said. These families will be competing with others for rental properties.

Rents are expected to stay at current high levels. "I think we have a very, very tough road," he said. He said some families are still living in tents and FEMA trailers. Tom Cunningham, vice president of the Federal Reserve Bank of Atlanta, also gave a mix of good and bad news. Anyone with a skill at any level is more valuable than in the past, Cunningham said.

"The demand for talent is greater. The fact is we're losing relatively highly skilled people at a disproportionate rate," he said. Part of this is the fault of baby boomers who are retiring. Cunningham discussed disruptions from the subprime lending rates. He said the problem wasn't so much the sub-prime industry as the selling of derivatives.

"If you are an economist, you call it toxic waste," he said. "If you are an MBA, you call it equity." By VALERIE WELLS American Staff Writer vlwellshattiesburgamerican.com Pine Belt bankers, businessmen and other decision-makers learned of a possible recession and other gloomy economic news Thursday at the University of Southern Mississippi. Economists explained all this to about 80 participants during the first Economic Outlook Conference for South Mississippi. "We have a real risk of recession," said Darrin Webb, senior economist with Mississippi Institutions of Higher Learning. STORYCHAT Post your comments on this story online The chance of a national recession at this point is 50-50, but the state's economy is doing better.

As ugly as it sounds, Hurricane Katrina had a positive impact on Mississippi's economy, bringing jobs, construction and retail sales to the southern part of the state. While that upturn may continue, Webb said the main long-term solution that Mississippi must address is the lack of an educated work force with needed skills. Bright spots in the economy include new manufacturing plants in the state such as the Nissan plant in Canton and the Toyota plant near Tupelo. National good news comes in exports. With a weak dollar, American goods are more competitive overseas.

But while Webb said the recession won't hit Mississippi that hard if it does hit, other 1 ftWi-iiS'U" HHDA honors Linton, McMwtrey 7 statewide officials take oath of office piimiiin rrmwimmmmmmmmmmimmmmmmmmmmmmmmm'mmmmmmmfm PURVIS 2 arrested in bank robbery Two people were being held at Lamar County Jail Thursday evening in connection with a robbery of the Hancock Bank at the junction of Mississippi 11 and Mississippi 589. A female and male were arrested around 2 p.m. Thursday after the female passed a teller at the bank a note, said James Snyder, public relations officer for the Mississippi Highway Patrol. Officers from Lamar County Sheriff, Purvis Police and MHP responded, and the pair was arrested at the site. Snyder said he could not release the names of the duo or what charges they face.

He also declined to say how much money, if any, had been given. Group plans MLK parade, program The Concerned Citizens of Lamar County will hold the group's annual Dr. Martin Luther King Jr. Memorial Program and Parade on Jan. 18 in Purvis.

The memorial service is scheduled for 11 a.m. at Spring Chapel Baptist Church. The Rev. Dennis Holder, Lum-berton High School principal and pastor of Mount Zion Baptist Church, is the featured speaker. The parade will begin at 1:30 p.m.

from the Jefferson Todd Education Center. Moss Point Marching Band will be highlighted during the parade. For more information, call Harry Breland at (601) 297-3989 or Paula Poole at (601) 264-8043. PINE BELT Forestry official addresses group The Forrest-Lamar Forestry Association met Monday with area legislators and Charles Morgan, head of the Mississippi Forestry Commission. Morgan said the commission's goals for 2008 include a re-inventory of 16th Section lands to develop a timber harvesting plan, better forecasting plans based on budget revenues and developing a comprehensive volunteer fire department program.

About $1.5 million has been cut from the commission's funding request to the Legislature for next year. The commission is operating with three fewer planes to spot fires since only 18 percent of fires were spotted by air. The commission also has disbanded state tree seedling nurseries. HATTIESBURG USM physics society honored The University of Southern Mississippi Society of Physics Students has been selected as a 2006-07 Outstanding Chapter by the national Society of Physics Students. The chapter is one of 58 recognized from among 700 in the national organization.

The Society of Physics Students, with more than 5,000 students involved nationally, was established in 1968 and is a member of the American Institute of Physics. The national Society of Physics Students is a professional association designed for students. Membership, through collegiate chapters such as Southern Miss, is open to students interested in physics. For details, visit www.spsna-tional.org. PETAL Board accepting applications The Petal School Board is accepting applications for memberj who reside within the city limits.

Interested parties may submit their resumes until 5 p.m. Feb. 5 at City Hall, 119 W. Eighth Ave. For more information, call (601) 545-1776.

TOP: BERNICE LINTON looks down at a bouquet she received from Diane Shepherd, left, during the retirement reception held by the Historic Hattiesburg Downtown Association for Linton and Linda McMurtrey at the Hattiesburg Cultural Center on Thursday. ABOVE: McMurtrey, center, and Linton, right, visit during their retirement reception. LEFT: McMurtrey smiles as she is toasted during the reception. For more photos, visit www.hattiesburgamerican.com. Photos by REBECCA LATIMER Nl if 6 ft ill nil Mniiiilmi ia iiiim PRCC receives grant from Asbuiy Foundation Bryant, surrounded by his family and friends, said he never dreamed his humble beginnings would lead to a political career.

Bryant said when he was first elected to the Mississippi House in 1991, it "never should have happened." "Here's a young kid from Moorhead, Mississippi, whose father was a diesel mechanic and his mother a youngest of three boys. But there I was serving in the Mississippi House of Representatives," he said. Bryant used the event, which was attended by Barbour, state judges and other officeholders, to ask House members to support a resolution to shorten the 2008 Legislature from 120 to 104 days. He also talked about lawmakers' plans to fully fund the Mississippi Adequate Education Program, a formula that ensures equitable funding for the state's 152 school districts. "I know, I've been to the budget hearings.

But you see I know what we can do we do here in the state of Mississippi. I know the important issues of the day have solutions," Bryant said. "I pledge to you the Mississippi Senate will work with you as a partner to search out those solutions." See OFFICIALS, 9A See related content, 1A of bribery other "bodies buried" that Balducci and Scruggs knew about. Lackey, a 73-year-old who sings in the choir of his church, reported the alleged bribery overture to the FBI. Prosecutors want to know more about the alleged "bodies" that Balducci talked about.

Matt Steffey, a law professor at Mississippi College who has been following the case, cautioned that prosecutors have presented "just one side of part of the story" so far. "I keep hearing that any day there is going to be blockbuster information," he said. "Everybody at this point is in the rumor and speculation By SHELIA BYRD The Associated Press JACKSON Lt. Gov. Phil Bryant officially became Mississippi's second-in-command on Thursday, taking the oath of office and promising to work with the governor and the Legislature to move the state forward.

Bryant and six other statewide elected officials were sworn in Thursday by Mississippi Supreme Court Chief Bryant Justice Jim Smith. Others taking the oath of office were Attorney General Jim Hood, Secretary of State Delbert Hosemann, Insurance Commissioner Mike Chaney, Treasurer Tate Reeves, Agriculture Commissioner Lester Spell and Auditor Stacey Pickering. Hood is the only Democrat in the group. Gov. Haley Barbour, a Republican, will be inaugurated for his second term next Tuesday.

Bryant kissed outgoing Lt. Gov. Amy Tuck on the cheek as he took over the podium. Tuck performed her last duties in office on Thursday as she presided over the Senate and the joint assembly for the swearing-in ceremony. FBI agents on Dec.

10. Federal investigators were looking for information on cases from when Timothy Bal-ducci, a lawyer who already has pleaded guilty in the bribery case, worked at Langston's law firm more than a year earlier, Tony Farese, an attorney for Zach Scruggs, said at the time. The Clarion-Ledger newspaper in Jackson, which has been reporting on the grand jury, said those involved in the 1994 case have been interviewed by FBI agents. According to the November indictment in the bribery case, Balducci was caught on tape telling Circuit Judge Henry Lackey that there were all this." The Asbury Foundation's mission emphasizes improving health care in southern Mississippi. The need for radiographic technologists trained to operate the equipment used in hospitals prompted the foundation to donate the money to PRCC, Ray said.

"Everything's gone digital," he said "If you're going to put them in the labor market, they have to know digital. If they train here, they're going to live here." PRCC radiography students currently receive digital and computed radiography experience during clinical training at area hospitals. The new equip MUMMW Mil llnilirM I I'Vifminni mmmmMmmmi Submitted photo BILL RAY, center, president of Asbury Foundation, met Wednesday with PRCC officials to present a grant to the radiography program at the Forrest County Center. With Ray are, from left, Program Director David Armstrong, PRCC President William Lewis, radiography instructor Hope Husband and Forrest County Center Dean Cecil Burt. probing new case involving lawyer accused Special to the American A grant from the Asbury Foundation to Pearl River Community College will allow radiographic technology students to receive the latest state-of-the-art training.

Asbury Foundation President Bill Ray met Wednesday with PRCC officials to confirm the grant of $262,241 for the purchase of digital radiography and computed radiography equipment. "We hope a better prepared student will produce a better product for the consumer," PRCC President William Lewis said. "That's the bottom line in Grand jury By HOLBROOK MOHR The Associated Press JACKSON -The federal investigation in a judicial bribery case that entangled one of the nation's wealthiest plaintiffs attorneys appears to be expanding, with a grand jury considering at least one case dating back to 1994. Famed plaintiffs attorney Richard "Dickie" Scruggs, his son and several associates were indicted Nov. 28 on charges they conspired to bribe a judge for a favorable ruling in a dispute over $26.5 million in legal fees from a Hurricane Katrina settlement Now a federal grand jury in Oxford has been asked to look ment will allow them to train at the PRCC Allied Health Center at the Forrest County Center.

"This will bring us out of the stone age of film processing into the new technology," said David Armstrong, program director. "It will allow us to teach it on campus rather than depending on them to teach it during din-icals, We really appreciate Asbury Foundation and Bill Ray." PRCC will be the first college in the state, with the exception of University Medical Center, to have digital radiography equipment, which displays the image directly on a computer screen, instructor Hope Husband said. Barbara Dunn said Thursday that the 1994 file was not available because federal investigators took all 7,001 documents related to the case earlier this week. The judge who presided over the 1994 case was Circuit Judge Bobby DeLaughter, a former prosecutor renowned for successfully prosecuting Byron De La Beckwith in the 1990s for the 1963 murder of NAACP field secretary Medger Evers. During a telephone interview with the AP on Thursday, DeLaughter said he could not comment on reports of the grand jury probe but challenged anyone who doubted his judicial integrity to read his ruling in the case.

at least one other case Scruggs was involved in during his rise to the top of his nrnfessinn. R.Scruggs sources close to the investigation told The Associated Press. One of the cases apparently being looked into by federal authorities is a 1994 lawsuit in which two of Scruggs' former associates, attorneys Alwyn Luckey and William Roberts Wilson sued Scruggs for a bigger cut of millions of dollars that the attorneys had won in asbestos litigation. Hinds County Circuit Clerk I "I have not taken any bribes of any sort. Have not issued any rulings in exchange for money or anything else," DeLaughter said.

"If one were to go back and look at my very lengthy and detailed ruling, I think it would be very evident they are on a solid legal basis and would stand any scrutiny." Numerous calls to U.S. Attorney Jim Greenlee's office in Oxford this week have not been returned. Attorneys for Scruggs have not responded to repeated requests for comment Two of Scruggs' attorneys, Joey Langston and Billy Quin of the Langston Law Firm, both withdrew from the case this week. The Langston Law Firm in Booneville was searched by Frorrvtajf reports.