Home » NEWS » Lawmakers approve $5.4B budget plan

Lawmakers approve $5.4B budget plan

JACKSON — The budgets of many agencies and programs would be cut under a plan approved yesterday by key lawmakers, which also called for tapping up to half of the money in two cash reserves to help keep Mississippi’s government afloat in the coming fiscal year.

The Joint Legislative Budget Committee adopted a budget recommendation approaching $5.4 billion for the fiscal year starting July 1.

Lawmakers had warned that few agencies would be granted the budget increases they requested during fall hearings.

Mississippi’s revenue collections have been sluggish in recent years amid the national economic downturn. And, officials say drafting a spending plan will be particularly challenging because the state will be without $700 million in nonrecurring funds — mostly stimulus money — that disappear at the end of this budget year.

“We have to get on with the program and spend no more than we have,” House Speaker Billy McCoy, D-Rienzi, said Monday. “We don’t have any options for new revenue. No tax increases. No fee increases.”

The broad proposal will be presented to the full Legislature after it convenes in January. Under the plan, universities would be cut by 2 percent compared to the current year’s budget, while the overall budget for K-12 public education would remain nearly level. Funding for community colleges would be reduced by 1.2 percent and the Department of Mental Health’s budget would be cut by 4.4 percent.

All of those agencies, as well as a few other programs, are included in the plan’s footnote for lawmakers to give special consideration for additional funding during the 2011 session.

Department of Mental Health executive director Ed Legrand has said if his agency is cut any more it could force the closure of many of its facilities.

“The House is adamant about not destroying the progress made in mental health over the last 30 years,” McCoy said.

Republican Lt. Gov. Phil Bryant agreed that an effort would be made to steer more money to mental health.

“Trying to keep mental patients out of jails is a priority for me,” Bryant said.

The budget committee’s proposal called for using $56.3 million of the state’s healthcare trust fund and $88 million of the rainy day fund to plug budget holes.

In Gov. Haley Barbour’s proposed spending plan released weeks ago, most state programs would be cut by 8 percent. Universities and community colleges would see cuts of about 3 percent under his plan. While funding for elementary and secondary schools would remain about level.

Lawmakers didn’t make across-the-board reductions, but many vacant positions were eliminated. Barbour’s plan also recommended using about half of the state’s financial reserves.

Not all of the budget committee members were satisfied with the spending plan approved yesterday.

Rep. George Flaggs, D-Vicksburg, said “the footnote is the part of the budget that guarantees tax at the local level.”


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

One comment

  1. A great resolution for the New Year is to volunteer your time for others, even if just once a week, or once a month. Volunteering is all about commitment and enthusiasm, so choose something that you will enjoy and are interested in.

Leave a Reply

Your email address will not be published. Required fields are marked *