The broken budget record is still spinning
Gov. Haley Barbour announced today that an additional $41 million was disappearing from the state’s budget for fiscal year 2010 because of spiraling state revenue collections.
Since the budget year started last July, $499.1 million has been cut.
“Hopefully we’re making the last cuts of the year,” Barbour said.
The latest round of cuts comes just a few hours after the Joint Legislative Budget Committee lowered the revenue estimate for FY2010 and FY2011. FY10’s figure was reduced to $4.43 billion, and FY2011 was set at $4.45 billion.
Barbour said he was “skeptical” revenue in FY2011 would reach $4.45 billion. Legislators are crafting that plan now.
Barbour signaled his opposition to any budget that comes to him from the Legislature that would waive the stipulation, commonly called the “2 percent rule,” that sets aside 2 percent of appropriations for the rainy day fund. Legislation that violates the 2 percent rule, Barbour said, can expect his veto.
Aside from the state’s dismal fiscal situation, Barbour touched on a few other topics. Among them:
• The healthcare bill President Obama hopes to pass this week would be “very bad for Mississippi,” he said. House Speaker Nancy Pelosi’s plan to pass the bill without a vote wasn’t very popular with Barbour, either. “That’s mind-boggling to me,” he said.
• He urged the House to pass the reauthorization for the Mississippi Department of Employment Security. If the agency is reauthorized by June 30, those currently drawing unemployment will no longer do so. Barbour dropped strong hints that he would call a special session if lawmakers end the regular session without reauthorizing the agency.
• We asked Barbour what was next for The Aerospace Alliance, a four-state consortium that seeks to expand the Gulf South’s aerospace industry, which suffered its first big loss last week when Northrop Grumman/EADS pulled out of the KC-X Tanker program. He said some pretty interesting things, which we’ll chronicle in a story in next week’s MBJ.