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Budget Spotlight: Mississippi Department of Mental Health Budget FY 2009-FY 2011

July 26, 2010

Filed under: Budget & Tax — admin @ 9:41 AM

Much has been discussed about the state’s successive budget cuts in total or as an ever-increasing percentage of an agency’s budget. Not much has been discussed about how the cuts are affecting specific programs and services. This budget spotlight shows how the cuts are affecting the Mississippi Department of Mental Health.

The budget for the Department of Mental Health in Mississippi has decreased by almost $59 million from FY 2009 to FY 2011. The Department has not only dealt with decreases in its appropriation between years, but has also endured mid-year cuts in both FY 2009 and FY 2010. The figures below show how the Department of Mental Health’s budget has changed in the last two years.

Comparison of Department of Mental Health General Fund Budget FY 2009-2011

So, what does this mean for Department of Mental Health services? Among the cuts, one area effected is respite care for caregivers of persons with a mental illness. The respite care program provided a modest eight hours a month of relief for caregivers.

Respite care is critical to preventing caregiver burnout and less costly than the costs of placing someone with a mental illness in the state hospital. In the absence of respite care, the likelihood that a person with a mental illness will end up in the hospital increases – along with the cost to the state for that service.

Source: MEPC Analysis of data from the Enacted Budget 2010, Governor’s Office data 2009 and 2010, and the SB 3143 Conference Report
Author: Sara Miller, Senior Policy Analyst

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Unemployment Insurance Extension Benefits Mississippi’s Economy

July 21, 2010

Filed under: Income & Working Families — admin @ 11:30 AM

Today, the U.S. Senate will vote on a bill to extend unemployment insurance to the long-term unemployed. In addition to supporting families, the extensions will put much needed money into Mississippi’s economy.

As seen in the chart below, while the unemployment rates are beginning to decline from their peaks earlier in the year, many Mississippians are still looking for work.

Opponents cite deficit worries as reasons not to support the UI extenders.

However, UI payments provide one of the biggest boosts to the economy during a downturn.

While UI extensions are critical for Mississippi’s economy, two important job supporting provisions are left out of the legislation: state fiscal relief and an extension of the TANF Emergency Fund.

State fiscal relief is necessary to protect jobs – especially those in the education sector. If included in the bill, nearly $100 million would be made available for K-12 education. The TANF Emergency Fund currently supports the Mississippi STEPS program. STEPS is a nationally recognized initiative that provides a pathway to employment for many low-income families around the state. Without federal extensions, the program would no longer have the resources necessary to continue.

Source: U.S. Department of Labor Bureau of Labor Statistics
Author: Ed Sivak, MEPC Director

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Public Sector: Workers In Public Sector Provide Services Vital to Mississippi’s Economy

July 9, 2010

Filed under: Budget & Tax,Income & Working Families — Sara Miller @ 8:44 AM

Not only do Mississippians who choose careers as public servants provide valuable services to our communities, they also represent the largest employment sector in the state. Jobs in the public sector support a large portion of the state’s economy. These public servants spend their work days (or nights) serving as teachers or police officers, and on their way home they spend their paychecks in grocery stores, restaurants, gas stations, and other businesses in their communities.

Figure 1: Number of Mississippi Employees (in thousands) by Sector, March 2010

   While government jobs make up the largest employment sector in the state, most government sector jobs in Mississippi are people employed by state and local governments.   State and local jobs make up 89% of government jobs in Mississippi.

   The largest number of public sector workers serve their home communities through local governments. More than half of those local government employees work in education.

With the new budget year underway, Mississippi’s public sector workers will be stretched even further as budget are shrunk and layoffs and furloughs implemented. In the near term, no better option to preserve these critical jobs exists than the fiscal relief provisions in the Senate jobs bill.

As Congress returns next week, its passage should be a priority.

Source: MEPC analysis of data from the U.S. Bureau of Labor Statistics

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FY 2010 Revenue in Under Estimate, FY 2011 Appropriations Further Reduce Budget

July 2, 2010

Filed under: Budget & Tax — admin @ 3:04 PM

All but one month in FY 2010 saw revenue collections come in under estimate. In total, general fund revenue came in close to $400 million under the estimate used to create the FY 2010 budget.

FY 2010 Mississippi General Fund Collections Actual and Estimate

*preliminary data

As a result of below estimate revenue collections, nearly $500 million was cut from the state budget in FY 2010. Some examples of the trickledown effect of budget cuts include increased class sizes and decreased teacher training. Both universities and community colleges approved tuition increases and the Department of Mental Health has cut services for caregivers. Other state workers are experiencing furloughs, decreased pay, or the loss of jobs altogether meaning fewer front line persons to manage Mississippi’s public structures.

Unfortunately, while the economy struggles to recover, the budget picture is not expected to get better any time soon. General Fund appropriations for FY 2011 are $369 million lower than FY 2010 appropriations. The expiration of stimulus funds will also hurt the state budget over the next couple of years.

One of the best short term opportunities for Mississippi includes state fiscal relief. A measure currently under debate in Congress would extend aid to the states for Medicaid. If it approved, Mississippi would receive $151 million in federal funds that would provide $110 million for current budget needs.

Long term, a balanced approach that includes raising state revenue is needed to protect the state’s investment in vital services like education and workforce development. These investments have been threatened by successive rounds of budget cuts, and remain vital to the state’s economic recovery.

Source: MEPC analysis of data from the Mississippi Department of Revenue Monthly Transfers FY 2010 and data from the Office of the Governor, June 30, 2010.
Author: Sara Miller,Senior Policy Analyst

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