Mississippi state budget
From Sunshine Review
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Mississippi faced a $363 million deficit for FY 2009, $480 million deficit for FY 2010 with an estimated shortfall of $544 million for FY 2011.[1] A final balanced FY 2010 budget was passed by the Mississippi State Legislature in special session and signed by Gov. Haley Barbour for the fiscal year start July 1, 2009 leaving an estimated General Fund balance for June 30, 2010 of $0.[2] Gov. Barbour vetoed parts of 7 appropriation bills from the special session.[3]
FY 2010 General Fund Budget:[4]
| Total Funds Available | $4,905,884,250 |
| Total Appropriations | $4,905,884,250 |
| Projected Balance June 30, 2010 | $0 |
39%, $1.9 billion of the FY 2010 General Fund revenue is from sales tax and 31%, $1.5 billion from individual income taxes. Education makes up 62%, $2.9 billion of General Fund expenditures, $2.1 billion for K-12 and $820 million for postsecondary education.[5]
State revenue has continued to contract since approval of the FY 2010 budget over the summer, leading Gov. Barbour to order additional cuts of $171.9 million on September 3, 2009. Mississippi has seen 13 consecutive months of revenue declines including the first 3 months of FY 2010. July 2009 state revenue was 11.3%, $26 million less than expected and 26%, $56 million less than was collected in July of 2008. August 2009 revenue was 1.69%, $5.5 million below estimates and 5.65%, $31 million less than August of 2008.[6] September 2009 state collection figures saw the trend continue with a 10% drop from projections for a 1st quarter FY 2010 total of negative 7.7%, a $77.4 million shortage.[7]
[edit] Budget Background
The Mississippi Senate and House were unable to come to a budget agreement by the end of the regular 2009 session. The two chambers later came to a budget agreement and awaited the Governor's call for a special session so that the budget could be voted on by the full Legislature. Gov. Barbour stated that if a budget was not passed by the start of the next fiscal year, he has the executive authority to keep critical agencies going. Gov. Barbour called a special session on June 28, 2009 and the Legislature sent a budget (minus the Public Service Commission budget that was dealt with in July) to him on June 30, 2009.[8]
Mississipi's fiscal year runs July 1 to June 30. The Governor submits a recommended budget to the Legislature on November 15 of each year with an extended budget submission in January for a new Governor.[9] The Governor must trim spending as mandated by Mississippi Code §27-104-13, which requires the State Fiscal Officer to balance the budget when state revenue falls below estimates for the fiscal year.[10]
The budget process in the state of Mississippi is a year long evolution. Officially beginning in May state agencies prepare requests before submitting them to the Governor for consideration in October. But before submitting a recommended budget the Governor first consults a group composed of the state economist, the state fiscal officer, the state treasurer, the chairman of the state tax commission, and the director of the legislative budget office. The group provides an estimated revenue forecast for the upcoming fiscal year based on current economic indicators and the economy's growth.
On December 15 the legislative budget committee submits the balanced budget recommendation to the Legislature.
[edit] Budget figures
The following table provides a history of Mississippi's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $15.4 [11] | $64.3 [11] |
| 2001 | $16.3 [11] | $66.0[11] |
| 2002 | $17.3[11] | $68.1 [11] |
| 2003 | $18.4 [11] | $72.3 [11] |
| 2004 | $19.5 [11] | $76.5 [11] |
| 2005 | $20.0 [11] | $79.5 [11] |
| 2006 | $22.1 [11] | $84.6 [11] |
| 2007 | $24.4 [11] | $88.5 [11] |
| 2008 | $26.9 [11] | $92.7 [11] |
| 2009 | $29.8* [11] | $97.0* [11] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
- See Mississippi state budget (2008-2009) for more information.
[edit] Accounting Principles
The Mississippi State Auditor is Stacey E. Pickering, elected November of 2007. The state's audit reports are published online.[12]
Mississippi also has the Joint Committee on Performance Evaluation and Expenditure Review (a standing committee created in 1973) to provide legislative oversight, which publishes online:[13]
- Performance evaluations
- Investigations
- Expenditure reviews
Max Arinder has been the Executive Director of the Joint Committee on Performance Evaluation and Expenditure Review since 1996.
Mississippi State Treasurer is Tate Reeves, elected November of 2003. The elected office of the State Treasurer is created under Article 5, Section 134, of the Mississippi Constitution. The Mississippi Code details the fiduciary responsibilities of the Treasurer. These responsibilities include the issuance of State debt, responsibility for the timely payment of principal and interest on the State's bond and note obligations, and receiving, disbursing and investing State funds.[14]
The Institute for Truth in Accounting (IFTA) rates Mississippi “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Mississippi's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[15] Mississippi's CAFRs are published online by the Mississippi Office of the State Auditor. The Mississippi Department of Finance and Administration prepares the state CAFRs.
| Credit Rating | Fitch | Moody's | S&P |
| Mississippi[16] | AA | Aa3 | AA |
[edit] Economic Stimulus Package
Mississippi is expected to receive approximately $2.8 billion from the $787 billion economic stimulus package. The estimated total impact of the funds is totaled at $5.2 billion.According to White House officials the stimulus bill is estimated to create or save 30,000 jobs.[17]
However, Gov. Haley Barbour said he'll refuse about $56 million in unemployment compensation because it would require Mississippi to expand benefits to part-time workers.[18] Barbour added that accepting the money would mean increased taxes for businesses that would have to cover the cost of the extra unemployment benefits in the future. "We want more jobs. You don't get more jobs by putting an extra tax on creating jobs," Barbour said.[19]
According to preliminary reports Mississippi is expected to receive:[20] [21]
- $56 million for unemployment benefits
- $350 million for highways and bridges
- $480 million in block grants for education
- $790 million for Medicaid
[edit] Budget transparency
Mississippi has a new statewide, official spending database online. The Mississippi House Bill 101 (2008), Mississippi Accountability and Transparency Act mandated the creation of such a website.[22] The state has also launched the State of Mississippi Management and Reporting System.
[edit] Legislation
- Mississippi House Bill 101 (2008), Mississippi Accountability and Transparency Act[23]
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| MS Management and Reporting System |  |  | | | | |
[edit] Limitations and Suggestions
This site does not enable users to search for particular employees to find out their specific salaries.
[edit] Support for creation of the database
The National Taxpayers Union supported the passage of Mississippi's Mississippi House Bill 101 (2008), Mississippi Accountability and Transparency Act, and issued a press release describing the bill's passage.[24]
[edit] Public employee salary information
State of Mississippi Management and Reporting System shows information on the State Budget, State Property, Revenues, Vendors, and State Employees.
[edit] Economic Stimulus Transparency
- The Economic Recovery and Reinvestment Act of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[25]
- Mississippi will receive an estimated $1,606,249,181 [26]
- The economic recovery website to show how legislators and government officials in Mississippi are being done by the state auditor who is tracking an ARRA that come into the state.
[edit] See Also
Mississippi taxpayer-funded lobbying
[edit] External links
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Mississippi Center for Public Policy
- Mississippi government spending
- Mississippi Forward
- State of Mississippi Management and Reporting System
[edit] References
- ↑ Gov. Barbour, "FY 2010 Modified Budget Recommendation," May 2009
- ↑ Joint Legislative Budget Committee, "Budget FY 2010," July 20, 2009
- ↑ Gov. Barbour Press Release, "FY 2010 Budget Prudent, Balanced," July 1, 2009
- ↑ Joint Legislative Budget Committee, "Budget FY 2010," July 20, 2009
- ↑ Joint Legislative Budget Committee, "Budget FY 2010," July 20, 2009
- ↑ Gulf Coast News, "Falling State Revenues Demand Reductions in FY 2010 Budget," September 3, 2009
- ↑ Associated Press, "More budget cuts expected, Barbour says," October 3, 2009
- ↑ National Conference of State Legislatures, "Fiscal Year 2010 Budget Status," October 13, 2009
- ↑ National Association of Budget Officers, "Budget Processes in the States," 2008
- ↑ Gulf Coast News, "Falling State Revenues Demand Reductions in FY 2010 Budget," September 3, 2009
- ↑ 11.00 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 US Government Spending,"Mississippi State and Local spending," retrieved February 27,2009
- ↑ Mississippi State Auditor Web site, retrieved October 27, 2009
- ↑ Joint Committee on Performance Evaluation and Expenditure Review Web site, retrieved October 27, 2009
- ↑ Mississippi State Treasurer Web site, retrieved October 27, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ WLBT3,"Jobs could be biggest part of Mississippi's stimulus benefits," February 17,2009
- ↑ Associated Press,"Skirting governors to get stimulus may not be easy," February 27,2009
- ↑ NPR,"Governors to Obama:'Thanks, but no thanks'," February 25,2009
- ↑ MSNBC,"Barbour wants more stimulus money for construction," February 27,2009
- ↑ WLOX-TV,"State leaders promise stimulus money will be well spent," February 26,2009
- ↑ National Taxpayers Union, "Nation's Largest Taxpayer Group Applauds Mississippi for Passing Spending Transparency Legislation," April 17, 2008
- ↑ Department of Finance and Administration, "Mississippi Management and Reporting System," June 20, 2008
- ↑ National Taxpayers Union, "Nation's Largest Taxpayer Group Applauds Mississippi for Passing Spending Transparency Legislation," April 17, 2008
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal,"Stimulus Spending by State," March 12,2009
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