Mississippi state budget

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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]

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).

• 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.

[edit] Accounting transparency checklist

Comprehensive Balanced budget Timeliness Usability

[edit] The good

• The website has Comprehensive Annual Financial Reports (CAFR) dating back to 1996.^[17]
• An independent auditor’s report is published on page 13 of the document.^[18]
• It provides supplements to the budget workup.^[19]
• The budget is posted using organized and consistent methods of financial reporting.
• Mississippi law requires a balanced budget and a deficit is forbidden.^[20]
• It includes all costs incurred by the government, including long-term liabilities, starting on page 71 of the document.^[18]
• The CAFR compares estimated and actual budgetary numbers, such as on page 94 of the document.^[18]

[edit] The bad

• The Mississippi office was somewhat tardy in submitting the budget.
• The CAFR is posted in a PDF format, so it’s not searchable online.

[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.^[21]
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.^[22] 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.^[23]

According to preliminary reports Mississippi is expected to receive:^{[24] [25]}

• $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.^[26] The state has also launched the State of Mississippi Management and Reporting System.

[edit] Website evaluation

Budget Usability Elected Officials Administrative Officials Ethics Audits Contracts Lobbying Public records Taxes

Ms.gov is the website for the state of Mississippi.

• Main article: Evaluation of state websites

[edit] The good

• Site has a search function and is fairly user friendly.
• Budget is available.^[27]
• Audit reports are published.^[28]
• State tax information is provided.^[29]
• Information on the state ethics commission is posted.^[30]
• State contracts are published.^[31]
• Elected officials listed with contact information under respective office.^[32]
• Administrative officials are listed with contact information in a searchable database.^[33]
• Lobbying information provided includes a database of registered lobbyists.^[34]

[edit] The bad

• Does not provide information on state-paid lobbying and agency lobbying contracts.
• Some agencies provide forms for making public records requests, but no comprehensive information seems to be available.^[35]

[edit] Legislation

• Mississippi House Bill 101 (2008), Mississippi Accountability and Transparency Act^[36]

[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

[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.^[37]

[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 American Recovery and Reinvestment Plan 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.^[38]

• Mississippi will receive an estimated $1,606,249,181.^[39]

• 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] 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.^[40][41]

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.^[42]

[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

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	v • d • e State of Mississippi Jackson (capital)
Transparency	Public Records Act | Transparency Checklist | Government corruption reports | Transparency Legislation | Open Records procedures | Transparency Advocates | Transparency blogs | State budget | Taxpayer-funded lobbying associations |
Divisions	State | List of Counties | List of Cities | List of School Districts | Evaluation of county websites | Evaluation of city websites | Evaluation of school district websites |
Government	Mississippi State Constitution | Executive | House of Representatives | Senate |
Judiciary	Mississippi Supreme Court | Supreme Court Elections | District Courts | Judicial Nominating Commission | Judicial news | Judicial activist organizations |
Ballot Measures	2008 ballot measures | List of ballot measures | Procedures for qualifying an initiative | Amending the constitution | History of direct democracy | Campaign finance requirements |