Mississippi state budget

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Mississippi faces an estimated shortfall of $544 million for FY 2011.^[1]

Lawmakers announced on April 16, 2010, that they reached a $5.5 billion budget deal, and most state programs will take cuts because money is tight.^[2] Gov. Haley Barbour cut approximately 9% from what started as about a $6 billion budget, and most state programs received cuts of some sort.^[2]

After Congress approved federal funds for the states on August 10, 2010, Gov. Haley Barbour said Mississippi would be forced to rewrite its budget to qualify for $98 million in education funds, moving at least $50 million into education spending from public safety and health. "There is no justification for the federal government hijacking state budgets," Barbour said.^[3] Mississippi will also receive between $150 to $130 million for Medicaid from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.^[4][5] The governor and lawmakers are contemplating saving , instead of spending, the medicaid portion of that federal stimulus money.^[5]

See also: The Mississippi State Budget on State Budget Solutions

[edit] Fiscal Year 2012 State Budget

State leaders anticipate that FY2012 will be one of the most challenging of years as federal stimulus funds disappear. House Appropriations Committee Chairman Johnny Stringer said next year's budget hole is $400 million to $500 million deep. Legislative hearings on the FY2012 budget begin September 2012.^[6]

Spokeswoman Laura Hipp said that, as of the end of July 2010, Gov. Barbour was starting to prepare the 2012 executive budget recommendation, and she said, "But one thing is clear: The budget cliff for 2012 will be enormous."^[6] Given the concern for FY2012, several lawmakers say Mississippi will have a bigger need for the Medicaid stimulus money next year than it does in FY2011 when the funds were granted because other federal stimulus funds are set to disappear in FY2012.^[5]

[edit] Fiscal Year 2011 State Budget

Gov. Barbour called a special legislative session to begin on Aug. 27, 2010, to consider an incentive package for a $500 million economic development project that would create 1,000 direct and indirect jobs.^[7]

The federal stimulus passed in August 2010 includes $151 million for the state for medicaid.^[8] The state will also receive almost $98 million which the federal Department of Education estimates will retain 2,000 education jobs, mostly K-12 teachers.^[8] Lawmakers said they plan to spend that money in FY2011.^[5] Gov. Barbour said that the stimulus will force the state to rewrite its budget.^[8] The governor explained that, to get the federal money, Mississippi would have to spend $50 million to $75 million more than lawmakers had budgeted for FY2011, which will force spending cuts in areas such as law enforcement, human services and mental health.^[9]

Revenues were $6.7 million above predictions for the first month of the 2011. July 2010 was only the second month in nearly two years that tax collections met or exceeded expectations, due to increases in individual income and corporate taxes.^[6]

The budget reduced the state's mental health budget by $20 million.^[6]

Total general fund appropriations in the FY2011 budget totaled $4,386,749,122, which is a net decrease of over $369,000,000.^[10] The state budget can be found here.

[edit] 2009-2010 budget crisis

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.^[11] Gov. Barbour vetoed parts of 7 appropriation bills from the special session.^[12] The governor has cut the FY 2010 budget by a total of $458.5 million, as of February 2010, since its adoption in 2009 in light of falling revenue.^[13]

State revenue 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.^[14] 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.^[15]

Senate Bill 2506, a measure to reduce lawmaker salaries by 10 percent, from $10,000 to $9,000, died, even though it passed in the Mississippi Senate approved it.^[16][17]

[edit] 2008-2009 budget crisis

See: Mississippi state budget (2008-2009)

[edit] Budget Background

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.^[18] 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.^[19]

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 [20]	$64.3 [20]
2001	$16.3 [20]	$66.0[20]
2002	$17.3[20]	$68.1 [20]
2003	$18.4 [20]	$72.3 [20]
2004	$19.5 [20]	$76.5 [20]
2005	$20.0 [20]	$79.5 [20]
2006	$22.1 [20]	$84.6 [20]
2007	$24.9 [21]	$987.7 [21]
2008	$28.0 [21]	$91.8 [21]
2009	$31.6* [21]	$90.6* [21]
2010	$35.5**[21]	$92.9**[21]

• NOTE: The figures for FY 2009 are not yet finalized.
  • NOTE: Figures are estimated and won't be finalized until the end of the fiscal year 2010.

[edit] FY 2010 budget figures

FY 2010 General Fund Budget:^[22]

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.^[23]

[edit] General Fund Appropriations FY2010 Compared with FY2009

Agency	Appropriations FY09	Appropriations FY10	% Increase or Decrease	% Total FY10 Appropriation
Legislative	$25,975,417	$25,699,726	-1.06%	0.54%
Judiciary and Justice	$61,781,166	$61,004,725	-1.26%	1.28%
Executive and Administrative	$3,683,145	$3,512,117	-4.64%	0.07%
Fiscal Affairs	$98,100,908	$94,180,378	-4.00%	1.98%
Public Education	$2,258,445,881	$2,129,086,604	-5.73%	44.83%
Higher Education	$849,013,054	$819.950.820	-3.42%	17.27%
Public Health	$34,106,624	$31,790,911	-6.79%	0.67%
Hospitals and Hospital Schools	$264,528,980	$220,418,554	-16.68%	4.64%
Agricultural and Economic Development	$112,619,372	$113,599,572	+0.87%	2.39%
Conservation	$55,301,770	$55,509,293	+0.38%	1.17%
Corrections	$265,954,055	$263,071,632	-1.08%	5.54%
Social Welfare	$523,154.383	$401,973,805	-23.16%	8.46%
Veterans' Affairs	$95,453,092	$96,214,673	+ 0.80%	2.03%
Local Assistance	$84,600,000	$84,150.000	-0.53%	1.77%
Miscellaneous	$1,406,859	$1,457,411	+3.59%	0.03%
Debt Service	$289,547,871	$347,187,030	+19.91%	7.31%
Total General Fund Appropriations (Recurring)	$5,023,672,577	$4,748,807,251	-5.47%	100.00%

[edit] Accounting Principles

Main article: Mississippi government accounting principles

The Mississippi State Auditor is Stacey E. Pickering, elected November of 2007. The state's audit reports are published online.^[24]

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:^[25]

• Performance evaluations
• Investigations
• Expenditure reviews

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.^[26] 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[27]	AA	Aa3	AA

[edit] Budget transparency

Mississippi has a statewide, official spending database online. The Mississippi House Bill 101 (2008), Mississippi Accountability and Transparency Act mandated the creation of such a website.^[28] The state has also launched the State of Mississippi Management and Reporting System.

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases

State Database	Searchability	Grants	Contracts	Line Item Expenditures	Dept/Agency Budgets	Public Employee Salary
MS Management and Reporting System

See also: Evaluation of Mississippi state website

[edit] Public employee salary information

Main article: Mississippi state government salary

State of Mississippi Management and Reporting System shows information on the State Budget, State Property, Revenues, Vendors, and State Employees.

[edit] Economic Stimulus Transparency

• Mississippi will receive approximately $250 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.^[29]

• Mississippi received an estimated $1,606,249,181 from the first stimulus.^[30]

• 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.

One Mississippi project was noted in Senator Coburn and Senator McCain's "Summertime Blues, 100 stimulus projects that give taxpayers the blues" report. The project provides nearly $190,000 to paint a metal canopy in use at the Choctaw Central High School baseball field and repairing and replacing a retaining wall behind the concession stand to protect the field.^[31]

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.^[32][33]

The stimulus provided nearly $1 million to Mississippi's 5th District, which was eliminated following the 2000 census. In total, stimulus funds were sent to six fictitious Districts.^[34]

[edit] See Also

• Mississippi taxpayer-funded lobbying

[edit] External links

[edit] Additional reading

• Gov. Haley Barbour,"2010 State of the State Address," January 18, 2010
• Gov. Haley Barbour,"2009 State of the State Address," January 13, 2009

[edit] References

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